EXHIBIT 10(10)

                                                       ________________, _______


                      NON-QUALIFIED STOCK OPTION AGREEMENT
               UNDER THE UNION COMMUNITY BANCORP STOCK OPTION PLAN
                                    DIRECTOR

Dear ______________:

     You are hereby granted the option to purchase a total of __________  shares
of the Common Stock,  without par value  ("Common  Stock"),  of Union  Community
Bancorp  ("UCB")  over the next ten years and one day  pursuant  to UCB's  Stock
Option Plan (the "Plan"), on the following terms and conditions:

     1. The purchase  price of the shares of Common Stock subject to this option
is $_____ per share.  You must pay this purchase  price in cash at the time this
option is exercised;  provided,  however that,  with the approval of UCB's Stock
Option  Plan  Committee  (the  "Committee"),  you may  exercise  your  option by
tendering  to UCB  whole  shares  of UCB's  Common  Stock  owned by you,  or any
combination of whole shares of UCB's Common Stock owned by you and cash,  having
a fair market value equal to the cash exercise  price of the shares with respect
to which  the  option is  exercised  by you.  For this  purpose,  any  shares so
tendered  shall be deemed to have a fair market  value equal to the mean between
the  highest  and  lowest  quoted  selling  prices for the shares on the date of
exercise  of the  option  (or if there  were no sales on such date the  weighted
average of the means between the highest and lowest quoted selling prices on the
nearest  date  before and the  nearest  date after the date of  exercise  of the
option),  as  reported  in The Wall  Street  Journal  or a  similar  publication
selected by the Committee. To exercise this option, you must send written notice
to UCB's Secretary at the address noted in Section 10 hereof.  Such notice shall
state the number of shares in  respect  of which the option is being  exercised,
shall identify the option exercised as a non-qualified  stock option,  and shall
be signed by the person or persons so exercising  the option.  Such notice shall
be  accompanied  by payment of the full cash option price for such shares or, if
the  Committee  has  authorized  the use of the stock swap feature  provided for
above,  such notice shall be followed as soon as  practicable by the delivery of
the option price for such shares. Certificates evidencing shares of Common Stock
will not be  delivered  to you  until  payment  has  been  made.  Under  certain
circumstances,  the Plan  permits  you to  deliver  a notice  to your  broker to
deliver  the cash to UCB  upon the  receipt  of such  cash  from the sale of UCB
Common Stock.  Contact the Secretary of UCB for further  information  about this
procedure if you are interested in it.

     2. The term of this option (the "Option Term") shall be for a period of ten
years and one day from the date of this letter,  subject to earlier  termination
as provided in paragraphs 3 and 4 hereof.  Except as otherwise  provided  below,
the option shall become  exercisable  with respect to the first 20% of the total
number of shares  covered  hereby on the first  anniversary  of the date of this
letter,  and the option  shall  become  exercisable  with respect to the second,
third,  fourth and fifth 20% of such  shares on the  second,  third,  fourth and
fifth anniversaries,  respectively,  of the date of this letter. When the option
becomes exercisable with respect to any shares of Common Stock, those
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shares may be purchased at any time,  or from time to time, in whole or in part,
until the Option Term expires,  but in no case may fewer than 100 such shares be
purchased  at any one time,  except to  purchase  a  residue  of fewer  than 100
shares.  Notwithstanding the foregoing or any other provision herein, the option
may not be exercised during the first six months of the Option Term.

     3. If you are no  longer a  director  or  director  emeritus  of UCB or its
subsidiaries  because of any reason  other  than  death or  disability,  you may
exercise this option, to the extent it was exercisable at the date you ceased to
be a director,  in whole or in part at any time within six (6) months after such
date, but not later than the date upon which this option would otherwise expire.
If you cease to be a director  or director  emeritus of UCB or its  subsidiaries
because of your disability,  you may exercise this option in whole or in part at
any time  within  one (1) year  after the date you  ceased to be a  director  or
director emeritus by reason of such disability, but not later than the date upon
which this option would otherwise terminate.

     4. If you die while  serving as a director or  director  emeritus of UCB or
its  subsidiaries,  within  six  months  after you are no longer a  director  or
director  emeritus of UCB or its subsidiaries for reasons other than disability,
or within one (1) year after the date you  ceased to be a director  or  director
emeritus by reason of your disability,  this option may be exercised in whole or
in part by your executor,  administrator,  or estate  beneficiaries  at any time
within  one (1) year  after the date of your  death but not later  than the date
upon which this option would otherwise expire.

     5. This option is  non-transferable  otherwise  than by will or the laws of
descent and distribution or pursuant to a qualified domestic relations order. It
may be exercised only by you or your  guardian,  if any, or, if you die, by your
executor,  administrator,  or  beneficiaries  of your estate who are entitled to
your option.

     6. All rights to exercise this option will expire,  in any event, ten years
and one day from the date of this letter.

     7.  Certificates  evidencing shares issued upon exercise of this option may
bear a  legend  setting  forth  among  other  things  such  restrictions  on the
disposition  or  transfer of the shares of UCB as UCB may deem  consistent  with
applicable federal and state laws.

     8.  Nothing  in  this  option  shall  restrict  the  right  of  UCB  or its
shareholders to terminate your service as a director at any time with or without
cause.

     9. This option is subject to all the terms,  provisions  and  conditions of
the Plan, which is incorporated herein by reference,  and to such regulations as
may from time to time be adopted by


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the  Committee.  A copy of the Plan has been  furnished to you and an additional
copy may be  obtained  from  UCB.  In the  event  of any  conflict  between  the
provisions of the Plan and the provisions of this letter, the terms,  conditions
and provisions of the Plan shall control,  and this letter shall be deemed to be
modified accordingly.

     10.  All  notices  by you to UCB and your  exercise  of the  option  herein
granted,  shall be addressed  to Union  Community  Bancorp,  221 E. Main Street,
Crawfordsville,  Indiana 47933,  Attention:  Secretary, or such other address as
UCB may, from time to time, specify.

     11. This option may not be exercised  until UCB has been advised by counsel
that all other applicable legal requirements have been met.

                                   Very truly yours,

                                   UNION COMMUNITY BANCORP


                                   By:
                                      ------------------------------------------
                                      Alan L. Grimble, Chief Executive Officer

Accepted on the date above written


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