EXHIBIT 10.3

VIRGINIA BANKERS ASSOCIATION MODEL DEFERRED COMPENSATION PLAN FOR
DIRECTORS (January, 1998)

ADOPTION AGREEMENT

If the Corporation completing this document
has any questions about the adoption of the Plan, the provisions of the Plan, its representative should contact Bette J. Albert, C.L.U. at the Virginia Bankers Association Benefits Corporation, 700 East Main Street, Suite 1411, Post Office Box 462,
Richmond, Virginia 23203, telephone number (804) 643-7469 during business hours.

Each Corporation named below hereby adopts the
Plan through this Adoption Agreement (the Adoption Agreement), to be effective as of the date(s) specified below, and elects the following specifications and provides the following information relating thereto:

In completing this Adoption Agreement, if additional space is required insert additional sheets.

|   |                                                                  |                                                                                                  | Adoption Agreement Contents                                     |                                | Page | 
|-- | ---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | --------------------------------------------------------------- | ------------------------------ | ---- | 
|   |                                                                  |                                                                                                  |                                                                 |                                |      | 
|   | Option 1                                                         |                                                                                                  | Corporation(s) Adopting Plan Named In Paragraph 1.9 of the Plan |                                | 1    | 
|   | Option 2                                                         |                                                                                                  | General Plan Information                                        |                                | 2    | 
|   | Option 3                                                         |                                                                                                  | Status of Plan and Effective Date(s)                            |                                | 2    | 
|   | Option 4                                                         |                                                                                                  | Definitions                                                     |                                | 2    | 
|   | Option 5                                                         |                                                                                                  | Time and Form of Benefit Payments                               |                                | 4    | 
|   | Option 6                                                         |                                                                                                  | Participant Deemed Investment Direction                         |                                | 8    | 
|   |                                                                  |                                                                                                  |                                                                 |                                |      | 
|1. | CORPORATION(S) ADOPTING PLAN NAMED IN PARAGRAPH 1.9 OF THE PLAN.
|   |                                                                 
|   | (a)                                                              | Name of Corporation:                                                                             | (b)                                                             | Corporations telephone Number
|   |                                                                  | Pinnacle Bankshares Corporation                                                                  |                                                                 | (804) 369-3000                
|   |                                                                  |                                                                                                  |                                                                 |                               
|   | (c)                                                              | Address of Corporation:                                                                          | (d)                                                             | Corporations EIN:            
|   |                                                                  |                                                                                                  |                                                                 |                               
|   |                                                                  | Post Office Box 29                                                                               |                                                                 | 54-1832714                    
|   |                                                                  | Altavista, VA  24517-0029                                                                        |                                                                 |                               
|   |                                                                  |                                                                                                  | (e)                                                             | Corporations Tax Year End:   
|   |                                                                  |                                                                                                  |                                                                 |                               
|   |                                                                  |                                                                                                  |                                                                 | 12/31                         
|   |                                                                  |                                                                                                 
|   | (f)                                                              | Name, Address and Identifying Information of Other Participating Corporations Adopting the Plan:
|   |                                                                  |                                                                                                  |                                                                 |                                |      | 



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|2. | GENERAL PLAN INFORMATION.            
|-- | -------------------------------------
|   |                                      
|   | (a)                                  
|   |                                      
|   |                                      
|   |                                      
|   | (b)                                  
|   |                                      
|3. | STATUS OF PLAN AND EFFECTIVE DATE(S).
|   |                                      
|   | (a)                                  
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|   | (b)                                  
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|   | (c)                                  
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|4. | DEFINITIONS.                         
|   |                                      
|   | (a)                                  
|   |                                      

2



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| |     |                                  |  | (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | General Definition.  The Compensation definition in paragraph 1.8 of basic plan document is modified as follows:   
| | --- | -------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (A)                                                                                                                
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (B)                                                                                                                
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Specific Definitions.  When used with respect to Deferral Contributions under the Plan, Compensation shall include:
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       | o                                                                                                                  
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       | o                                                                                                                  
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       | x                                                                                                                  
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| | (b) | Eligible Director Paragraph 1.16 |  | Eligible Director shall mean only the following:                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                  |  | x                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (1)                                                                                                                
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  | o                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (2)                                                                                                                
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| |     |                                  |  | o                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (3)                                                                                                                
| |     |                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                    
| | (c) | Plan Year Paragraph 1.20         |  | In the case of Restated Plan which prior to the Effective Date of this Restatement was maintained on the basis of a Plan Year beginning on a date other than January
1, the Plan Year shall begin _________________ on, _________ and ending on ___________, _____ with a short Plan Year beginning on ___________________, _____ and ending on December 31, _____.  Thereafter, the Plan Year shall be the 12 month
period beginning each January 1.

3



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|   | (d)                                | Valuation Date Paragraph 1.23                                    |  | The following date selected by the Corporation:                                                              
|-- | ---------------------------------- | ---------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | o                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | o                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | x                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   | (e)                                | Effective Date of Coverage Subparagraph 2.1                      |  | The effective date of coverage for an Eligible Director shall be [Check one]:                                
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | o                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | o                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | x                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|5. | TIME AND FORM OF BENEFIT PAYMENTS.
|   |                                   
|   | (a)                                | Benefit Commencement Date Defined Paragraphs 1.5, 3.3(a) and 6.1 |  | The term Benefit Commencement Date shall mean the first day of calendar quarter coinciding or next following:
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | o                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  | x                                                                                                            
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              
|   |                                    |                                                                  |  |                                                                                                              

4



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| |     |                                                 |  |                                                                                                                       | o   | (iv)                                                                                                      | The earlier of a date certain or his termination as a Director of the Corporation.                                                                                                                                                                                       
| | --- | ----------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------- | --- | --------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       | o   | (v)                                                                                                       | Describe other options to be available:                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       | (B) | Timing of Participant Election.  Participant shall elect Benefit Commencement Date at the following time:
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       | o   | (i)                                                                                                       | At Time Deferral Election is Made.  The Participant election of the Benefit Commencement Date shall be made at the time his first Deferred Contribution
Election is filed under the Plan.                                                                                
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       | x   | (ii)                                                                                                      | In Plan Year Prior to Date Elected.  The Participant election of the Benefit Commencement Date shall be made no later than the earlier of (a) the end of
the Plan Year prior to the Benefit Commencement Date selected and (b) at least 90 days before the selected date.
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| | (b) | Form of Payment to Participant Paragraph 6.2(a) |  | The form of benefit payments available to the Participant shall be determined in accordance with the following rules:
| |     |                                                 |  |                                                                                                                      
| |     |                                                 |  | o                                                                                                                     | (1) | Selected By Corporation.  The Corporation selects the following form of payment:                         
| |     |                                                 |  |                                                                                                                       |     |                                                                                                          
| |     |                                                 |  |                                                                                                                       | o   | (A)                                                                                                       | Lump Sum Payment.  Deferral Benefits will be paid in the form of a lump sum payment.                                                                                                                                                                                     
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       | o   | (B)                                                                                                       | Periodic Installments.  Deferral Benefits will be paid in the form of periodic installment payments made:                                                                                                                                                                
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | (i)                                                                                                       | Frequency:                                                                                                                                                                                                                                                               
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                         | (a)                                                                                                                                                                                                                                                                      
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                         | (b)                                                                                                                                                                                                                                                                      
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                         | (c)                                                                                                                                                                                                                                                                      
| |     |                                                 |  |                                                                                                                       |     |                                                                                                           |                                                                                                                                                                                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                         | (d)                                                                                                                                                                                                                                                                      

5



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| |  |  |  |   |     | (ii)                                                                                                                 | Duration.  Over the following period:                                                                                                        
| |  |  |  | - | --- | -------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | o                                                                                                                    | (a)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | o                                                                                                                    | (b)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | o                                                                                                                    | (c)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | o                                                                                                                    | (d)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  | x | (2) | Selected By Participant.  The form of payment shall be selected by the Participant in accordance with the following:
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | (A)                                                                                                                  | Participants Options.  The Participant may elect from among the following forms of payment [Select options to be available to
Participants]:
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | x                                                                                                                    | (i)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | x                                                                                                                    | (ii)                                                                                                                                         
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | (a)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | (b)                                                                                                                                          
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     |                                                                                                                      | x                                                                                                                                            
| |  |  |  |   |     |                                                                                                                      |                                                                                                                                              
| |  |  |  |   |     | (B)                                                                                                                  | Timing of Participant Election.  The Participant shall elect his form of payment at the following time:                                      

6



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| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (i)                                                                                                       | At Time Deferral Election is Made.  The Participants election of the form of payment shall be made at the time his first Deferred Contribution Election is
flied under the Plan.                                                                                
| | --- | ----------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------- | --- | -------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | x                                                                                                                    | (ii)                                                                                                      | In Plan Year Prior to Date Elected.  The Participants election of the form of payment shall be made no later than the earlier of (a) the end of the Plan Year
prior to the Benefit Commencement Date selected and (b) at least 90 days before the selected date.
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| | (c) | Form of Payment to Beneficiary Paragraph 6.2(b) |  | The form of benefit payments available to the Beneficiary shall be determined in accordance with the following rules:
| |     |                                                 |  |                                                                                                                      
| |     |                                                 |  | o                                                                                                                     | (1) | Selected By Corporation.  The Corporation selects the following form of payment:                                    
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                     
| |     |                                                 |  |                                                                                                                       | o   | (A)                                                                                                                  | Lump Sum Payment.  Deferral Benefits will be paid       in the form of a lump sum payment.               
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                          
| |     |                                                 |  |                                                                                                                       | o   | (B)                                                                                                                  | Periodic Installments.  Deferral Benefits will be paid in the form of periodic installment payments made:
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | (i)                                                                                                                  | Frequency:                                                                                               
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                          
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (a)                                                                                                       | Monthly.                                                                                                                                                                                                                                                         
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (b)                                                                                                       | Quarterly.                                                                                                                                                                                                                                                       
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (c)                                                                                                       | Semi-Annually.                                                                                                                                                                                                                                                   
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (d)                                                                                                       | Annually.                                                                                                                                                                                                                                                        
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | (ii)                                                                                                                 | Duration.  Over the following period:                                                                    
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (a)                                                                                                       | Five (5) years.                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (b)                                                                                                       | Ten (l0) years.                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (c)                                                                                                       | Fifteen (15) years.                                                                                                                                                                                                                                              
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  |                                                                                                                       |     | o                                                                                                                    | (d)                                                                                                       | Twenty (20) years.                                                                                                                                                                                                                                               
| |     |                                                 |  |                                                                                                                       |     |                                                                                                                      |                                                                                                           |                                                                                                                                                                                                                                                                  
| |     |                                                 |  | x                                                                                                                     | (2) | Selected By Participant.  The form of payment shall be selected by the Participant in accordance with the following:

7



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|   |                                                       |                        |  |                            | (A) | Participants Options.  The Participant may elect from among the following forms of payment [Select options to be available to
Participants]:       
|-- | ----------------------------------------------------- | ---------------------- |  | -------------------------- | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            | x   | (i)                                                                                                                                                 
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            | x   | (ii)                                                                                                                                                
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | (a)                                                                                                                                                 
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | (b)                                                                                                                                                 
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            |     | x                                                                                                                                                   
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  |                            | (B) | Timing of Participant Election.  The Participant shall elect the Beneficiarys form of payment at the time his first at any time prior to his
death.
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|6. | PARTICIPANT DEEMED INVESTMENT DIRECTION.Paragraph 3.6
|   |                                                      
|   | (a)                                                   | Availability Generally |  | A Participant [Check one]:
|   |                                                       |                        |  |                           
|   |                                                       |                        |  | o                          | (1) | Not Permitted.  May not make deemed investment directions.                                                                                          
|   |                                                       |                        |  |                            |     |                                                                                                                                                     
|   |                                                       |                        |  | x                          | (2) | Permitted.  May make deemed investment directions for his Deferral Accounts.                                                                        
|   |                                                       |                        |  |                            |     |                                                                                                                                                     

8



---

| | (b) | Frequency and Effective Date of Investment Directions |  | Participants may make their deemed investment directions as[Check one if Option 6(a)(2) is selected]:                     
| | --- | ----------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------
| |     |                                                       |  |                                                                                                                           
| |     |                                                       |  | o                                                                                                                         
| |     |                                                       |  |                                                                                                                           
| |     |                                                       |  | o                                                                                                                         
| |     |                                                       |  |                                                                                                                           
| |     |                                                       |  | x                                                                                                                         
| |     |                                                       |  |                                                                                                                           
| |     |                                                       |  | and (if any of the above options are selected) at such other date(s) as the Administrator may from time to time authorize.

IN WITNESS WHEREOF, each Corporation,
by its duly authorized representatives, has executed this instrument this 1st day of April, 1998.

|                               |  |                             |                            | PINNACLE BANKSHAREs CORPORATION
|------------------------------ |  | --------------------------- | -------------------------- | -------------------------------
|                               |  |                             |                            |                                
|                               |  |                             |                            | [Enter Name of Corporation]    
|                               |  |                             |                            |                                
|                               |  | By                          | /s/  ROBERT H. GILLIAM JR.
|                               |  |                             |                           
|                               |  |                             | Its                        | President                      
|                               |  |                             |                            |                                
|[SEAL]                         |  |                             |                            |                                
|                               |  |                             |                            |                                
|ATTEST:                        |  |                             |                            |                                
|                               |  |                            
|                               |  |                            
|/s/                            |  |                            
|                               |  |                            
|Its Secretary, Treasurer & CFO |  |                            
|                               |  |                             |                           
|                               |  | [Enter Name of Corporation]
|                               |  |                            
|                               |  | By                          |                           
|                               |  |                            
|                               |  | Its                        
|                               |  |                             |                           
|                               |  |                             |                           
|[SEAL]                         |  |                             |                           
|                               |  |                             |                           
|ATTEST:                        |  |                             |                           
|                               |  |                             |                           
|                               |  |                             |                           
|Its                            |  |                             |                            |                                
|                               |  |                             |                            |                                
|                               |  |                             |                            |                                

9