Exhibit 10.13 - Community Bank Shares of Indiana, Inc. and Affiliates Business
Ethics Policy

                     COMMUNITY BANK SHARES OF INDIANA, INC.
                      AND AFFILIATES BUSINESS ETHICS POLICY

      It is Community Bank Shares of Indiana, Inc. and affiliates' policy to
conduct business in accordance with the highest standards and business ethics.
It is the Company's objective to comply with the antitrust laws of the United
States and other countries applicable to its business operations and to hold
employees in management positions and directors personally and strictly
accountable for taking the measures necessary to achieve this objective within
their areas of responsibility.

      Our ethical principals are the values that set the ground rules for all
that we do as employees, officers and directors of Community Bank Shares and
affiliates. As we seek to achieve responsible financial success, we will be
challenged to balance these principles against each other, always mindful of our
promise to shareholders that we will achieve responsible financial success.

      Community Bank Shares of Indiana, Inc. is committed to the highest
standards of ethics and business conduct. This encompasses our relationship with
our customers, our suppliers, our shareholders, our competitors, the communities
in which we operate, and with each other as employees, officers and directors at
every organizational level. These commitments and their responsibilities are
summarized as:

      OUR CUSTOMERS: Our primary responsibility is to those who use our products
and services. We are committed to providing high quality and value, fair prices
and honest transactions. We will deal both lawfully and ethically with all our
customers.

      OUR EMPLOYEES: We are committed to treating one another fairly and to
maintaining employment practices based on equal opportunity for all employees.
We will respect each other's privacy and treat each other with dignity and
respect regardless of age, race, color, sex, religion or nationality. We are
committed to providing safe and healthy working conditions and an atmosphere of
open communication for all employees.

      OUR SUPPLIERS: We are committed to dealing fairly with our suppliers. We
will emphasize fair competition, without discrimination or deception, in a
manner consistent with long-lasting business relationships.

      OUR SHAREHOLDERS: We are committed to providing a superior return to
shareholders and to protecting and improving the value of their investment
through the prudent utilization of corporate resources and by observing the
highest standards of legal and ethical conduct in all our business dealings.

      OUR COMPETITORS: We are committed to competing vigorously and fairly for
business and to base our efforts solely on the merits of our competitive
offerings.


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      OUR COMMUNITIES: We are committed to being a responsible corporate citizen
of the communities in which we reside. We will abide by all national and local
laws, and we will strive to improve the well-being of our communities through
the encouragement of employee participation in civic affairs and through
corporate efforts.

      Under established principles of law and Company policy, every director,
officer and employee of Community Bank Shares of Indiana, Inc. and affiliates,
has a duty of undivided loyalty to the company. Accordingly, personnel, if
confronted with a choice between the interests of the Company and personal
economic interests or obligations or duties to others, must act in the interests
of the Company.

      While it is not possible to describe all situations or potential or actual
conflict, the following is listed for your guidance:

      1)    Receipt of compensation, gifts, entertainment, or any thing of value
            from any competitor of the Company and its subsidiaries or from
            suppliers, customers or other persons with current or anticipated
            business dealings with the Company or its affiliates (other than the
            receipt of minor gifts, entertainment, discounts, services or things
            of value not exceeding $300.00 per year from any one firm or person)
            is prohibited.

      2)    Retention of a stock or other financial interest in any firm
            described in (1) above. This would not usually apply to the
            investment in securities of a publicly held corporation unless the
            investor's judgment in transactions involving the Community Bank
            Shares' organization might be affected by factors such as the size
            of the investment or the amount of business done with the Company
            and its subsidiaries. As a general rule, a 2% aggregate interest by
            a person, member of his family and associated individuals or
            companies would present no problem.

      3)    Acting as a director, officer, consultant, agent, employee or in
            some other capacity for a person or firm described in (1). In
            certain situations, statutes impose prohibitions on interlocking
            directorships and offices. To ensure compliance with these statutes,
            all directors and officers of the Company should inform the
            Corporate Secretary prior to accepting any directorship of office
            with another corporation.

      4)    Having an interest in any transaction involving the Company or its
            subsidiaries where the interest may affect the objective and
            impartial representation of the Company.

      5)    Disclosure or other misuse of confidential information.

      6)    Appropriation to personal benefit of a business opportunity in which
            the Company or an affiliate might reasonably be expected to be
            interested, without first making available the opportunity to the
            Company or affiliate. For instance, a person might learn of a


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            business, an invention or other property that is for sale and which
            the Company or an affiliate might be interested in acquiring. A
            person who fails to disclose this knowledge to the Company and
            acquires the property may be legally accountable to the Company for
            any profits realized.

      7)    Trading in securities of the Company or its affiliates for quick
            profits or speculative purposes. The Company encourages its
            directors, officers and employees to invest in the Company's
            securities as part of a long-range investment plan in order to
            stimulate their interest in the success of the Company.

      8)    Interests, relationships or activities of the type described above
            taken by (a)family members, or (b) any trust or estate in which
            either the employee or family members have a substantial interest,
            or (c) any partnership, corporation or other firm of which the
            employee is a partner, director or officer in which either the
            employee or family members have a substantial interest.

      Where a conflict or potential conflict develops, the person should
disclose promptly and fully to superiors all pertinent facts. In most instances,
the only consequences will be a disqualification of the person from
participating in a particular transaction, or finding that the condition
appearing questionable to an employee is not significant. In other cases, it may
prove advisable for the person to dispose of the outside interest or for other
measures to be taken.

      The Company has a strict policy against the making of any improper,
disguised or questionable payments or book entries of any kind. In addition to
the Company's policy, there are numerous laws which impose civil and criminal
penalties for such acts, not only upon the Company, but the individual employee
as well.

      As a guidance, employees may not:

      1)    Use, directly or indirectly, any funds or other assets of the
            Company or any subsidiary for any unlawful purpose.

      2)    Even if lawful, use, directly or indirectly, any funds or other
            assets of the Company or any affiliate for political contributions
            or any kind or in any form (whether cash, other property, services
            or the furnishings of facilities), or establish or administer any
            committee or other organization to raise or make political
            contributions.

            This policy is not intended to prevent the communication of Company
            views to legislators, governmental agencies, or the general public
            with respect to existing or proposed legislation or governmental
            policies or practices affecting business operations. Moreover, under
            this Policy, reasonable costs incurred by the Company to establish
            or administer political action committees or


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            activities organized to solicit voluntary political contributions
            from individual employees are not regarded as contributions to
            political parties or candidates, where the Company may lawfully
            incur such costs.

      3)    Establish or maintain undisclosed or unrecorded bank accounts or
            other funds or assets of the Company or any affiliate.

      4)    Make or permit any false, misleading or artificial entries on books
            or records of the Company or any affiliate. All transactions shall
            be appropriately authorized, recorded and evidenced by proper
            supporting documentation.

      5)    Make any payment on behalf of the Company or any of its affiliates
            with the intention or understanding that it is to be used for a
            purpose other than that described by the documents supporting the
            payment.

      6)    Give gifts or favors to anyone with current or anticipated business
            dealings with the Company or its affiliates, if the gift or favor
            could reasonably be interpreted as being for the purpose of
            improperly influencing a business decision of any person.

      7)    Offer or make any payment or gift, directly or indirectly, to any
            governmental official for the purpose of assisting the Company in
            obtaining, retaining or directing business.

      Violations of this Policy are grounds for discharge or other disciplinary
action. Adapted to the circumstances or the particular violation and having as a
primary objective furtherance of the Company's interest in preventing violations
and make clear that violations are neither tolerated nor condoned. Disciplinary
action will be taken, not only against individuals who authorize or participate
directly in a violation of this Ethic's Policy, but also against:

      1)    Any employee, officer or director who may have deliberately failed
            to report a violation of the Policy.

      2)    Any employee, officer or director who may have deliberately withheld
            relevant and material information concerning a violation of this
            Policy and

      3)    The violator's supervisors, to the extent that the circumstances of
            the violation reflect inadequate leadership and lack of diligence.

I have received and read a copy of the Code of Ethics Policy Statement,
understand all of its terms and agree to be bound by the provisions contained
therein.

Dated:____________________              Signed:_______________________________


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