Executive Deferred Compensation Agreement between Mahaska Investment Company



 Exhibit 10.20 
 MAHASKA INVESTMENT COMPANY 
 EXECUTIVE DEFERRED COMPENSATION AGREEMENT 
 THIS AGREEMENT is made this 1st
day of Jan., 2003, by and between MAHASKA INVESTMENT COMPANY, a bank holding company located in Oskaloosa, Iowa (the “Company”), and DAVID A. MEINERT (the
“Executive”). 
 INTRODUCTION 
 To encourage the Executive to remain an employee of the Company, the Company is willing to provide to the Executive a deferred compensation opportunity. The Company will pay the Executive’s benefits from the
Company’s general assets. 
 AGREEMENT 
 The Executive and the Company agree as follows: 
 Article 1 
 Definitions 
 Whenever used in this
Agreement, the Following words and phrases shall have the meanings specified: 
 1.1 “Anniversary Date” means
December 31 of each year. 
 1.2 “Average Return On Tangible Equity (Average ROTE)” means the average of the previous
three calendar years of after tax net income divided by tangible equity, as determined by an independent auditor based upon certified financial statements for the pertinent year. 
 1.3 “Change of Control” means the transfer of shares of the Company’s voting common stock such that one entity or one person
acquires (or is deemed to acquire when applying Section 318 of the Code) more than 50 percent of the Company’s outstanding voting common stock, followed within twelve (12) months by the Executive’s Termination of Employment for
reasons other than death, Disability or retirement. 
 1.4 “Code” means the Internal Revenue Code of 1986, as amended.

 1.5 “Compensation” means the total salary and bonus paid to the Executive during a Plan Year. 
 1.6 “Deferral Account” means the Company’s accounting of the Executive’s accumulated Deferrals plus accrued interest.

 1.7 “Deferrals” means the amount of the Executive’s Compensation which the Executive elects to defer according to
this Agreement. 
 1.8 “Disability” means the Executive’s suffering a sickness, accident or injury which has been
determined by the carrier of any individual or group disability insurance policy 








 
covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally or permanently disabled. The Executive
must submit proof to the Company of the carrier’s or Social Security Administration’s determination upon the request of the Company. 
 1.9 “Effective Date” means January 1, 2003. 
 1.10 “Election Form” means the form attached
as Exhibit 1. 
 1.11 “Normal Retirement Age” means the
Executive’s 65th birthday. 
 1.12
“Normal Retirement Date” means the later of the Normal Retirement Age or Termination of Employment. 
 1.13 “Plan
Year” means the calendar year. 
 1.14 “Projected Benefit” means the balance that would have accumulated in the
Executive’s Deferral Account at Normal Retirement Age if it is assumed that the Executive: (1) continued to defer Compensation at the same rate that the Executive had been deferring Compensation on the date of the Executive’s death;
(2) the Executive reached Normal Retirement Age; and (3) interest had been credited on the Deferral Account at an annual rate equal to the Wall Street Journal Prime Rate plus two percent on the first business day of the Plan Year,
compounded monthly. 
 1.15 “Termination of Employment” means that the Executive ceases to be employed by the Company for
any reason, voluntary or involuntary, other than by reason of a leave of absence approved by the Company. 
 Article 2 

Deferral Election 
 2.1 Initial
Election. The Executive shall make an initial deferral election under this Agreement by filing with the Company a signed Election Form within 30 days after the Effective Date of this Agreement. The Election Form shall set forth the amount of
Compensation to be deferred and shall be effective to defer only Compensation earned after the date the Election Form is received by the Company. 
 2.2 Election Changes. 
 2.2.1 Generally. Upon the Company’s approval, the Executive may modify the amount of
Compensation to be deferred annually by filing a new Election Form with the Company prior to the beginning of the Plan Year in which the Compensation is to be deferred. The modified deferral election shall not be effective until the calendar year
following the year in which the subsequent Election Form is received and approved by the Company. 
 2.2.2 Hardship. If any
unforeseeable financial emergency arising from the death of a family member, divorce, sickness, injury, catastrophe or similar event outside the control of the Executive occurs, the Executive, by written instructions to the Company, may reduce
future deferrals under this Agreement. 
  

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 Article 3 
 Deferral Account 
 3.1 Establishing and Crediting. The Company shall establish a Deferral
Account on its books for the Executive and shall credit to the Deferral Account the following amounts: 
 3.1.1 Deferrals. The
Compensation deferred by the Executive as of the time the Compensation would have otherwise been paid to the Executive. 
 3.1.2
Interest. On each Anniversary Date of this Agreement and immediately prior to the payment of any benefits but only until commencement of the benefit payments under this Agreement, interest is to be credited on the account balance at an annual
rate equal the Company’s Average ROTE, with annual compounding. The Company’s Average ROTE on the Effective Date of this Agreement is 13.29 percent, which shall be the crediting rate for the first Plan Year. 
 3.2 Statement of Accounts. The Company shall provide to the Executive, within 120 days after each Anniversary Date, a statement setting forth the
Deferral Account balance. 
 3.3 Accounting Device Only. The Deferral Account is solely a device for measuring amounts to be paid
under this Agreement. The Deferral Account is not a trust fund of any kind. The executive is a general unsecured creditor of the Company for the payment of benefits. The benefits represent the mere Company promise to pay such benefits. The
Executive’s rights are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Executive’s creditors. 
 Article 4 
 Benefits During
Lifetime 
 4.1 Normal Retirement Benefit. Upon the Normal Retirement Date, the Company shall pay to the Executive the benefit
described in this Section 4.1 in lieu of any other benefit under this Agreement. 
 4.1.1 Amount of Benefit. The benefit under
this Section 4.1 is the Deferral Account balance at the Executive’s Normal Retirement Date. 
 4.1.2 Payment of Benefit. The
Company shall pay the benefit to the Executive in 180 equal monthly installments commencing on the first day of the month following the Executive’s Normal Retirement Date. The Company shall credit interest pursuant to Section 3.1.2 on the
remaining account balance during any applicable installment period. 
 4.2 Early Retirement Benefit. Upon Termination of Employment
prior to the Normal Retirement Age for reasons other than death, Change of Control or Disability, the Company shall pay to the Executive the benefit described in this Section 4.2 in lieu of any other benefit under this Agreement. 
 4.2.1 Amount of Benefit. The benefit under this Section 4.2 is the Deferral Account balance at the Executive’s Termination of Employment.

  

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 4.2.2 Payment of Benefit. The Company shall pay the benefit to the Executive in 180 equal monthly
installments commencing on the first day of the month following the Executive’s Termination of Employment. The Company shall credit interest on the remaining account balance during any applicable installment period at an annual rate equal to
the Wall Street Journal Prime Rate on the first business day of the Plan Year, compounded monthly. 
 4.3 Disability Benefit.
If the Executive terminates employment as an Executive due to Disability prior to Normal Retirement Age, the Company shall pay to the Executive the benefit described in this Section 4.3 in lieu of any other benefit under this Agreement.

 4.3.1 Amount of Benefit. The benefit under this Section 4.3 is the Deferral Account balance at the Executive’s Termination
of Employment. 
 4.3.2 Payment of Benefit. The Company shall pay the benefit to the Executive in 180 equal monthly installments
commencing on the first day of the month following the Executive’s Normal Retirement Age. The Company shall credit interest pursuant to Section 3.1.2 on the remaining account balance during any applicable installment period. 
 4.4 Change of Control Benefit. Upon a Change of Control, the Company shall pay to the Executive the benefit described in this Section 4.4 in
lieu of any other benefit under this Agreement. 
 4.4.1 Amount of Benefit. The benefit under this Section 4.4 shall be the
Deferral Account balance at the Executive’s Termination of Employment. 
 4.4.2 Payment of Benefit. The Company shall pay the
benefit to the Executive in a lump sum within 60 days after the Executive’s termination of Employment. 
 4.4.3 Excess Parachute
Payment. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement to the extent the benefit would create an excise tax under the excess parachute rules of Section 280G of
the Code. 
 4.5 Hardship Distribution. Upon the Board of Directors’ determination (following a written request by the Executive)
that the Executive has suffered an unforeseeable financial emergency as described in Section 2.2.2, the Company shall distribute to the Executive all or a portion of the Deferral Account balance as determined by the Company, but in no event
shall the distribution be greater than is necessary to relieve the financial hardship. 
 Article 5 
 Death Benefits 
 5.1 Death During
Active Service. If the Executive dies while in the active service of the Company, the Company shall pay to the Executive’s beneficiary the benefit described in this Section 5.1 in lieu of any other benefit under this Agreement.

 5.1.1 Amount of Benefit. The benefit under this Section 5.1 is the greater of: a) the Deferral Account balance at the
Executive’s death; or b) the Projected Benefit. 
  

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 5.1.2 Payment of Benefit. The Company shall pay the benefit to the beneficiary in 180 equal
monthly installments commencing on the first day of the month following the Executive’s death. The Company shall credit interest pursuant to Section 3.1.2 on the remaining account balance during any applicable installment period.

 5.2 Death During Payment of a Benefit. If the Executive dies after benefit payments have commenced under this Agreement but before
receiving all such payments, the Company shall pay the remaining benefits to the Executive’s beneficiary at the same time and in the same amounts they would have been paid to the Executive had the Executive survived. 
 5.3 Death After Termination of Employment But Before Benefit Payments Commence. If the Executive is entitled to benefit payments under this
Agreement, but dies prior to the commencement of said benefit payments, the Company shall pay the benefit payments to the Executive’s beneficiary that the Executive was entitled to prior to death except that the benefit payments shall commence
on the first day of the month following the date of the Executive’s death. 
 Article 6 
 Beneficiaries 
 6.1 Beneficiary
Designations. The Executive shall designate a beneficiary by filing a written designation with the Company. The Executive may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective
if signed by the Executive and received by the Company during the Executive’s lifetime. The executive’s beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Executive or if the Executive names a
spouse as beneficiary and the marriage is subsequently dissolved. If the Executive dies without a valid beneficiary designation, all payments shall be made to the Executive’s estate. 
 6.2 Facility of Payment. If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Company may require proof of incompetence,
minority or guardianship as it may deem appropriate prior to the distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit. 
 Article 7 
 General Limitations

 7.1 Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any
benefit under this Agreement that is in excess of the Executive’s Deferrals (i.e., the interest earned on the Deferral Account) if the Company terminates the Executive’s employment for: 
 (a) Gross negligence or gross neglect of duties to the Company; 
  

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 (b) Commission of a felony or of a gross misdemeanor involving moral turpitude in
connection with the Executive’s employment to the Company; or 
 (c) Fraud, disloyalty, dishonesty or willful violation
of any law or significant Company policy committed in connection with the Executive’s employment and resulting in an adverse effect on the Company. 
 7.2 Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Executive commits suicide within three years after the date of this Agreement. In addition, the Company shall not
pay any benefit under this Agreement if the Executive has made any material misstatement of fact on a resume provided to the Company, or on any application for any benefits provided by the Company to the Executive. 
 Article 8 
 Claims and Review
Procedures 
 8.1 Claims Procedure. An executive or beneficiary (“claimant”) who has not received benefits under
this Agreement that he or she believes should be paid shall make a claim for such benefits as follows: 
 8.1.1 Initiation – Written
Claim. The claimant initiates a claim by submitting to the Company a written claim for the benefits. 
 8.1.2 Timing of Company
Response. The Company shall respond to such claimant within 90 days after receiving the claim. If the Company determines that special circumstances requires additional time for processing the claim, the Company can extend the response period by
an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company
expects to render its decision. 
 8.1.3 Notice of Decision. If the Company denies part or all of the claim, the Company shall notify
the claimant in writing of such denial. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth: 
 (a) The specific reasons for the denial, 
 (b) A reference to the specific provisions of the Agreement on which the denial is based, 
 (c) A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed, 
 (d) An explanation of the Agreement’s review procedures and the time limits applicable to such procedures, and 
  

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 (e) A statement of the claimant’s right to bring a civil action under ERISA
Section 502(a) following an adverse benefit determination on review. 
 8.2 Review Procedure. If the Company denies part or all
of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows: 
 8.2.1
Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the Company’s notice of denial, must file with the Company a written request for review. 
 8.2.2 Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents,
records and other information relating to the claim. The Company shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable
ERISA regulations) to the claimant’s claim for benefits. 
 8.2.3 Considerations on Review. In considering the review, the
Company shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 
 8.2.4 Timing of Company Response. The Company shall respond in writing to such claimant within 60 days after receiving the request for review. If
the Company determines that special circumstances required additional time for processing the claim, the Company can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day
period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 
 8.2.5 Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company shall write the notification in
a manner calculated to be understood by the claimant. The notification shall set forth: 
 (a) The specific reasons for the
denial, 
 (b) A reference to the specific provisions of the Agreement on which the denial is based, 
 (c) A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits, and 
 (d) A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 
  

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 Article 9 
 Amendments and Termination 
 This Agreement may be amended or terminated only by a written agreement
signed by the Company and the Executive. 
 Article 10 
 Miscellaneous 
 10.1 Binding Effect. This Agreement shall bind the
Executive and the Company, and their beneficiaries, survivors, executors, administrators and transferees. 
 10.2 No Guarantee of
Employment. This Agreement is not a contract for employment. It does not give the Executive the right to remain an employee of the Company, nor does it interfere with the Company’s right to discharge the Executive. It also does not require
the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time. 
 10.3
Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner. 
 10.4 Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement. 
 10.5 Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the State of Iowa, except to the extent preempted by the laws of the United States of America. 
 10.6 Unfunded Arrangement. The Executive and the Executive’s beneficiary are general unsecured creditors of the Company for the payment of
benefits under this Agreement. The benefits represent the mere promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Executive’s life is a general asset of the Company to which the Executive and the Executive’s beneficiary have no preferred or secured claim. 
 10.7 Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its
assets to another company, firm, or person unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the terms
“Company” as used in this Agreement shall be deemed to refer to the successor or survivor company. 
 10.8 Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein. 
  

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 10.9 Administration. The Company shall have powers which are necessary to administer this
Agreement, including but not limited to: 
 (a) Interpreting the provisions of the Agreement; 
 (b) Establishing and revising the method of accounting for the Agreement; 
 (c) Maintaining a record of benefit payments; and 
 (d) Establishing rules and prescribing any forms necessary or desirable to administer the Agreement. 
 10.10 Named Fiduciary. The Company shall be the named fiduciary and plan administrator under the Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the plan including the employment of advisors and the delegation of ministerial duties to qualified individuals. 
  

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 IN WITNESS WHEREOF, the Executive and a duly authorized Company officer have signed this Agreement.

  

							
	EXECUTIVE:	 		 	COMPANY:
			
		 		 	MAHASKA INVESTMENT COMPANY
				
	 /s/ David A. Meinert
	 		 	By	 	 /s/ Charles Howard

	David A. Meinert	 		 	Title:	 	President & CEO

  

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