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| [  ] | Confidential, for Use of the Commission Only [as permitted by Rule 14a-6(e)(2)] |
|----------------|---------------------------------------------------------------------------------|

| [  ] | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
|----------------|--------------------------------------------------------------------------|

|   | 3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): ___________________ |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| [  ] | Fee paid previously with preliminary materials. |
|----------------|-------------------------------------------------|

| [  ] | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.  Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (1) | To elect two directors, to hold office for terms of three years and until their successors are duly elected and qualified. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (2) | To vote on an advisory, non-binding resolution to approve the compensation of First Merchants Corporation’s named executive officers. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | To ratify the appointment of the firm of BKD, LLP as the independent auditor for 2012. |
|-----|----------------------------------------------------------------------------------------|

| (4) | To vote on an advisory, non-binding resolution to approve the frequency of advisory votes on executive compensation. |
|-----|----------------------------------------------------------------------------------------------------------------------|

| (5) | To transact such other business as may properly come before the meeting. |
|-----|--------------------------------------------------------------------------|

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| ·   | By Internet – Shareholders who received a notice regarding the availability of proxy materials may submit proxies over the Internet by following the instructions on the notice.  Shareholders who received a paper or electronic copy of a proxy card may submit proxies over the Internet by following the instructions on the proxy card. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | By Telephone – Shareholders who live in the United States or Canada may submit proxies by telephone by calling toll-free 1-800-690-6903 on a touch-tone telephone and following the instructions.  Shareholders who received a notice regarding the availability of proxy materials should have the notice in hand when calling, and shareholders who received a paper or electronic copy of a proxy card should have the proxy card in hand when calling. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | By Mail – Shareholders who received a paper or electronic copy of a proxy card may submit proxies by mail by completing, signing and dating the proxy card and mailing it in the postage-paid envelope we have provided or by returning it to First Merchants Corporation, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | Based on a Schedule 13G filing with the SEC, Dimensional Fund Advisors LP, an investment advisor registered under Section 203 of the Investment Advisors Act of 1940, furnishes investment advice to four investment companies registered under the Investment Advisors Act of 1940 and serves as investment manager to certain other commingled group trusts and separate accounts.  These investment companies, trusts and accounts are the “Funds.”  In certain cases, subsidiaries of Dimensional Fund Advisors LP may act as an advisor or sub-advisor to certain Funds.  In its role as investment advisor sub-advisor and/or manager, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2)   | neither Dimensional Fund Advisors LP nor its subsidiaries (collectively, “Dimensional”) possess voting and/or investment power over the shares of FMC common stock held by the Funds, and may be deemed to be the beneficial owner of these shares under rules of the SEC.  However, all of these shares are owned by the Funds.  Dimensional disclaims beneficial ownership of such shares for any other purpose. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Based on a Schedule 13G filing with the SEC, BlackRock, Inc. is the parent holding company of six subsidiaries, BlackRock Japan Co. Ltd., BlackRock Institutional Trust Company, N.A., BlackRock Fund Advisors, BlackRock Asset Management Canada Limited, BlackRock Advisors, LLC, and BlackRock Investment Management, LLC, that are the beneficial owners and possess voting and investment power over these shares of FMC common stock. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Based on a Schedule 13G filing with the SEC, the listed beneficial owners of these shares of FMC common stock, as a group, are deemed to be a “person” for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934.  The shares are held directly by Castle Creek Capital Partners IV, LP, whose sole general partner is Castle Creek Capital IV LLC.  Mr. Eggemeyer and Mr. Ruh, as managing principals of Castle Creek Capital IV LLC, share voting and dispositive power over the shares.  Mr. Eggemeyer and Mr. Ruh each disclaim beneficial ownership of the shares except to the extent of their respective pecuniary interests in Castle Creek Capital Partners IV, LP. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             | Amount and Nature       | Percent  |
|----------------------------------|-------------------------|----------|
| Beneficial Owner                 | of Beneficial Ownership | of Class |
|                             |                    |     |
| Jerry R. Engle                   | 63,450 (1)              | *        |
| Roderick English                 | 17,478 (2)              | *        |
| Jo Ann M. Gora                   | 17,477 (3)              | *        |
| William L. Hoy                   | 24,869 (4)              | *        |
| Gary Lehman                      | 16,078 (5)              | *        |
| Michael C. Rechin                | 118,516 (6)             | *        |
| Charles E. Schalliol             | 38,576 (7)              | *        |
| Patrick A. Sherman               | 25,035 (8)              | *        |
| Terry L. Walker                  | 46,336 (9)              | *        |
| Jean L. Wojtowicz                | 21,151 (10)             | *        |
| Robert R. Connors                | 52,391 (11)             | *        |
| Mark K. Hardwick                 | 100,605 (12)            | *        |
| John J. Martin                   | 13,485 (13)             | *        |
| Michael J. Stewart               | 42,439 (14)             | *        |
| Directors and Executive          |                    |     |
| Officers as a Group (17 persons) | 670,267 (15)            | 2.30%    |

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| (1)   | Includes 2,512 Restricted Shares, 38,480 shares held jointly with his spouse, Terri Engle, and 17,991 shares that he has the right to acquire by exercising Vested Options; 18,712 of the shares have been pledged as security for loans. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes 7,630 Restricted Shares and 9,128 shares that he has the right to acquire by exercising Vested Options. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes 7,630 Restricted Shares and 9,128 shares that she has the right to acquire by exercising Vested Options. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes 7,630 Restricted Shares, 917 shares that he holds as custodian for his daughter, and 5,657 shares that he has the right to acquire by exercising Vested Options; 6,473 of the shares have been pledged as security for loans. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Includes 1,858 Restricted Shares and 1,500 shares that he has the right to acquire by exercising Vested Options. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (6)   | Includes 35,228 Restricted Shares, 4,000 shares held jointly with his spouse, Debra Rechin, and 65,000 shares that he has the right to acquire by exercising Vested Options. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Includes 14,899 Restricted Shares and 9,128 shares that he has the right to acquire by exercising Vested Options. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (8)   | Includes 7,630 Restricted Shares and 4,500 shares that he has the right to acquire by exercising Vested Options. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (9)   | Includes 8,814 Restricted Shares, 30,157 shares held jointly with his spouse, Cheryl L. Walker, 551 shares held by his spouse and 6,814 shares that he has the right to acquire by exercising Vested Options. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Includes 9,966 Restricted Shares and 10,285 shares that she has the right to acquire by exercising Vested Options. |
|------------------|--------------------------------------------------------------------------------------------------------------------|

| (11)   | Includes 8,252 Restricted Shares, 3,568 shares held jointly with his spouse, Ann Connors, and 37,056 shares that he has the right to acquire by exercising Vested Options. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)   | Includes 24,353 Restricted Shares, 401 shares held by his spouse, Catherine Hardwick, and 56,658 shares that he has the right to acquire by exercising Vested Options. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   | Includes 8,249 Restricted Shares and 2,000 shares that he has the right to acquire by exercising Vested Options. |
|------------------|------------------------------------------------------------------------------------------------------------------|

| (14)   | Includes 24,353 Restricted Shares and 14,000 shares that he has the right to acquire by exercising Vested Options. |
|------------------|--------------------------------------------------------------------------------------------------------------------|

| (15)   | Includes 181,768 Restricted Shares and 283,372 shares that directors and executive officers have the right to acquire by exercising Vested Options. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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| Class III (Terms expire 2015):          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| William L. Hoyage 63Director since 2007 | Mr. Hoy has served as the Chief Executive Officer of The Columbus Sign Company, a 100 year-old, third generation family-owned custom sign and graphic fabricator that is one of Ohio’s largest, since 1990.  He also co-owns Innocom Corporation, an environmental graphic design and custom display company, and is the managing partner and co-owner of M&B Properties, a real estate partnership based in Columbus, Ohio.  In 1990, he became a founding director of Commerce National Bank, a Columbus-based bank that FMC acquired in 2002.  Mr. Hoy continued as a Commerce director until FMC merged all of its subsidiary bank charters into First Merchants Bank, N. A. in 2009.  Mr. Hoy has been amember of the board of directors of the Columbus Zoo, one of America’s leading zoos, for many years, including service as the President of that board. Some of the attributes that make Mr. Hoy a valued director include his experience and perspective as a successful small business owner and entrepreneur.  The Board and the Company also benefit from Mr. Hoy’s long residence, high visibility, and recognized civic leadership in the Columbus metropolitan area, one of the Company’s “high growth” markets.  He is the only director who works and resides in that market.  Mr. Hoy has extensive knowledge of banking in the Columbus area gained from more than 20 years of combined service as a director of Commerce National Bank and FMC. |

----

| Patrick A. Shermanage 64Director since 2009 | Mr. Sherman is a certified public accountant and a partner in the accounting firm of Sherman & Armbruster LLP, which he co-founded 30 years ago.  He served as a director of Lincoln Bancorp from 2005 until its acquisition by FMC in 2009.  Mr. Sherman chaired Lincoln’s Audit and Compliance Committees.  He served as a director of Heartland Community Bank from 1997 to 2005, when Heartland was acquired by Lincoln.  As a director of Heartland, Mr. Sherman served as the Vice Chairman of the board and chaired the Audit Committee. Some of the attributes that make Mr. Sherman a valued director include his professional financial expertise and, as Chairman of FMC’s Audit Committee, his experience chairing audit committees, including those of two other financial institutions.  The Board has identified Mr. Sherman as an “audit committee financial expert.”  He works, resides, and is a community leader in the south side of the Indianapolis metropolitan area, one of the Company’s “high growth” markets. |
|---------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Class I (Terms expire 2013):               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Michael C. Rechinage 53Director since 2005 | Mr. Rechin is the President and Chief Executive Officer of FMC, having served as the Company’s CEO since 2007.  In 2009, when FMC merged all of its subsidiary bank charters into a single bank, First Merchants Bank, N.A., Mr. Rechin also became the President and CEO of First Merchants Bank.  Mr. Rechin joined FMC in 2005, as its Executive Vice President and Chief Operating Officer, after having served in senior management positions with National City Bank for 23 years.  National City was a super regional bank that was acquired by PNC Bank in 2008. From 1995-2005, Mr. Rechin was National City’s Executive Vice President of Corporate Banking for 10 years, managing that Bank’s Indianaoperations. |
|                                       |  Some of the attributes that make Mr. Rechin a valued director include the leadership, strategic and management skills he has demonstrated and the experience he has gained as the President and CEO of FMC, and the knowledge of the banking industry he has acquired during 30 years of service in executive and senior management positions.  He is engaged in civic activities in the Muncie community, where he works, and the Indianapolis community, where he resides.                                                                                                                                                                                                                                                                                |

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| Charles E. Schalliolage 64Director since 2004 | Mr. Schalliol is “of counsel” with the law firm of Faegre Baker Daniels LLP, but he focuses most of his time and expertise on entrepreneurial activities.  He has provided consulting services to several companies, including Credit Suisse First Boston, a worldwide financial services company, on global infrastructure funds, and he serves or has served as a director of several entities, including four venture capital funds, the Purdue Research Foundation and the Indiana University Research and Technology Corporation.  The latter two are dedicated to enhancing Purdue’s and IU’s research and development capabilities, creating new Indiana-based companies and supportingentrepreneurship.  Mr. Schalliol has devoted several years to public service, serving as the Director of the Indiana Office of Management and Budget and Chief Financial Officer for the State of Indiana from 2004-2007 under Governor Mitch Daniels.  As OMB Director, he was responsible for the State’s budgets and financial operations, including its two pension funds, as well as agencies with more than 2,000 state employees.  Before that, he was the first President and Chief Executive Officer of BioCrossroads, an economic development organization focused on life sciences companies; and he held several executive positions with Eli Lilly and Company, a leading worldwide pharmaceuticals company, principally in the areas of strategic planning, investment banking and business development.  He was founder and Managing Director of three Lilly venturefunds.  Mr. Schalliol is a director of Heritage-Crystal Clean, Inc., a NASDAQ company, where he serves on the Compensation and Audit Committees. |
|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          |  Some of the attributes that make Mr. Schalliol a valued director include his legal training, the leadership abilities he has demonstrated and the experience he has gained as the Board Chairman and the Chairman of the Compensation and Human Resources Committee, his executive and financial expertise as the head of significant and complex public and private entities, as well as his high level of financial acumen, as evidenced by his primary role in the formation of successful new businesses and venture capital funds.  He resides, works, and is a civic leader in the Indianapolis metropolitan area, an FMC “high growth” market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Terry L. Walkerage 65Director since 2006      |  Mr. Walker retired at the end of 2011, concluding a notable 34-year career as an executive employee of Muncie Power Products, Inc., a Muncie-based company with multiple U.S. locations.  For the 7 years preceding his retirement, he was the Chairman of Muncie Power’s Board of Directors and its Chief Executive Officer.  Muncie Power and its parent, Interpump Group, S.p.A., an Italy-based public company, are the largest power take-off manufacturing company in the world and serve the truck equipment market by manufacturing and distributing mobile power components and systems including, in addition to power take-offs, hydraulic gear pumps, hydraulic reservoirs, and other specialty products.  Mr.Walker is as a certified public accountant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                          |  Some of the attributes that make Mr. Walker a valued director include his leadership skills and business experience as the CEO of a successful company with global operations, as well as his financial expertise.  The Board has recognized his leadership skills by appointing him Chairman of the Nominating and Governance Committee.  He also serves on the Audit Committee and has been identified by the Board as an “audit committee financial expert.”   Mr. Walker resides, works, and is a community leader in Muncie and East Central Indiana, where the Company’s principal office and one of its largest markets is located.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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| Class II (Terms expire 2014)              |
|-------------------------------------------|
|                                      |   |
| Roderick Englishage 60Director since 2005 |  Mr. English has been employed by the Defense Finance and Accounting Services Office of the U. S. Department of Defense since 2010.  He is responsible for managing the Operations Review Office at DFAS, including leading audit teams in performing audit readiness reviews of human resources operational processes to ensure regulatory compliance, accuracy of processing, appropriate maintenance of records and files, and process efficiencies.  Since 2006, Mr. English has also provided business management and consulting services to clients as the President and Chief Executive Officer of The James Monroe Group, LLC, whose services include developing strategic business plans, top grading management personnel,expanding the business core to achieve sustainable growth, and improving operational efficiencies and reducing waste.  From 1994-2006, Mr. English was the Senior Vice President, Human Resources and Communications, for Remy International, Inc., a tier one automotive manufacturer that was spun off from General Motors in 1994.  In this position, he provided leadership and direction for all of Remy’s human resources initiatives, including in the areas of acquisitions, mergers and divestitures.  Prior to 1994, Mr. English held several management positions with the Delco Remy Division of General Motors, including plant manager of one of its manufacturing plants and manager of its labor relations  |
|                                      | Some of the attributes that make Mr. English a valued director include his strategic planning skills and his global experience as the head of human resources management at a major public company.  In addition, as an African-American, Mr. English contributes to the Board’s diversity.  Studies show, and the Board has concluded, that having a board of directors comprised of members with diverse backgrounds benefits the Board, the Company, and the shareholders.  Mr. English currently resides in FMC’s “high growth” Indianapolis metropolitan area and formerly resided and worked in Anderson, Indiana, another important FMC market, where he held several civic leadershippositions.  |

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| Jo Ann M. Goraage 66Director since 2004 |  Dr. Gora has served since 2004 as the President of Ball State University, one of Indiana’s leading state universities, with 20,000 students, more than 3,000 employees, and an annual budget approaching $400 million.  She has led the strategic planning and been the catalyst for Ball State’s growing prominence as an educational institution with a large number of nationally-ranked academic programs and a nationwide reputation for technology innovation.  Under her direction, Ball State is installing the largest closed geothermal energy system in the United States, which will result in substantially reduced heating and cooling costs and benefit the environment by replacing existing coal-firedboilers.  Dr. Gora is also a director of the $200,000,000 Ball State University Foundation, which manages and administers University-related funds for the support of scholarships, programs and projects.  She serves on several Foundation committees, including the Executive, Investment, Audit and Compensation Committees, where she is privy to extensive information regarding the financial markets and public and private regional, national and international investment opportunities.  Before assuming Ball State’s Presidency, Dr. Gora was the Chancellor of the University of Massachusetts, Boston from 2001-2004 and the Provost and Vice President for Academic Affairs of Old Dominion University from 1992-2001.  She also serves as a board member and leader of various statewide and national organizations that support higher education – such as theAmerican Council on Education and the Association of Governing Board’s Council of Presidents; and she is a director of organizations that promote economic development and action on public policy issues in Indiana – such as the Indiana Chamber of Commerce and the Central Indiana Corporate Partnership, which is comprised of chief executive officers of some of the largest for-profit companies and nonprofit organizations in Central Indiana.  |
|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    | Some of the attributes that make Dr. Gora a valued director include her demonstrated leadership and strategic planning skills as the head of a large, complex organization.  Dr. Gora resides, works, and is a community leader in Muncie and East Central Indiana, the location of FMC’s principal office.  As a woman, Dr. Gora contributes to the Board’s diversity.  Studies show, and the Board has concluded, that having a board of directors comprised of members with diverse backgrounds benefits the Board, the Company, and the shareholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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| Gary J. Lehmanage 59Director since 2011    |  Mr. Lehman has served as the President and Chief Executive Officer of Fairfield Manufacturing Company Inc. since 2003 and Oerlikon Drive Systems since 2010.  Fairfield is headquartered in Lafayette, Indiana and is the largest independent gear manufacturer in the United States.  Oerlikon Drive Systems is one of the six business segments of Oerlikon AG, a Switzerland-based public company, and is a leading global supplier of gears and gearing solutions with operations in 12 countries.  Before joining Fairfield, Mr. Lehman was the founder and Managing Director of The Cannelton Group, which provided operations and financial assistance to private equity and closely held manufacturingfirms.  He previously served as the President and CEO of Philips Lighting Electronics NA and Advance Transformer, a wholly owned subsidiary of Philips Electronics NV, and as Senior Vice President of Worldwide Operations and General Manager of the Body Systems Division of ITT Automotive.  Mr. Lehman is a member of the Purdue University Board of Trustees, and he served on the Indiana Commission for Higher Education from 2008-2010. Some of the attributes that make Mr. Lehman a valued director include his extensive and varied business and executive leadership skills and experience gained as the CEO of successful companies, including smaller manufacturing companies and companies with global operations.  He resides and works in Lafayette, one of the Company’s most important markets, and is a community leader in Lafayette and Northwest Indiana.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Jean L. Wojtowiczage 54Director since 2004 |  Ms. Wojtowicz is the President of Cambridge Capital Management Corp., a manager of non-traditional sources of capital for businesses which has provided more than $500 million to approximately 1,200 businesses since she founded the company in 1983.  Cambridge currently manages the Indiana Statewide Certified Development Corporation, which provides fixed-asset financing to small businesses; the Indiana Community Business Credit Corporation, a consortium of financial institutions that pool money to provide working capital loans to businesses in a growth stage; and Lynx Capital Corporation, which provides debt and equity financing to minority-owned companies.  Cambridge is also the general partner of CambridgeVentures L.P., a licensed small business investment company.  Ms. Wojtowicz is one of the seven Board members of the Indiana Department of Financial Institutions, the agency responsible for supervising financial services providers incorporated under the laws of the State of Indiana.  She has authored many articles for the Indianapolis Business Journal, Hoosier Banker, and other business and financial publications.  Ms. Wojtowicz is a director of Vectren Corporation, a New York Stock Exchange company, and chairs its Compensation and Benefits Committee and serves on its Audit and Risk Management Committee.  She is also a director of the First Internet Bank of Indiana, chairing its Audit Committee, and a director of American United MutualInsurance Holding Company, serving on its Audit and Investment Committees. Some of the attributes that make Ms. Wojtowicz a valued director include her business and financial acumen and her expertise in finance, the financial services industry, and entrepreneurial endeavors, for which she was named the Indiana Chamber of Commerce “2011 Business Leader of the Year.”  Ms. Wojtowicz serves the Board as Chairman of the Risk and Credit Policy Committee, and the Board has identified her as an “audit committee financial expert.”  As a woman, Ms. Wojtowicz also contributes to the Board’s diversity.  Studies show, and the Board has concluded, that having a board of directors comprised of members with diverse backgrounds benefits the Board, theCompany, and the shareholders.  Ms. Wojtowicz resides, works, and is a civic leader in the Indianapolis metropolitan area, an FMC “high growth” market. |

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| (1)   | It has reviewed with FMC’s Chief Risk Officer the senior executive officer compensation plans and has made all reasonable efforts to ensure that these plans do not encourage the participants in the plans to take unnecessary and excessive risks that threaten the value of the Company; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | It has reviewed with FMC’s Chief Risk Officer the employee compensation plans and has made all reasonable efforts to limit any unnecessary risks these plans pose to the Company: and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | It has reviewed with FMC’s Chief Risk Officer the employee compensation plans to eliminate any features of these plans that would encourage the manipulation of reported earnings of the Company to enhance the compensation of any employee. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | The Senior Management Incentive Compensation Program, under which participants may annually earn additional cash compensation; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Long-term Equity Incentive Plan, under which the Committee awards restricted stock and stock options to participants, generally annually; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The change of control agreements, which are designed to encourage key executives to remain with the Company in the event of a proposed acquisition or other change of control situation; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Defined Contribution Supplemental Executive Retirement Plan, which provides additional retirement benefits to executives designated by the Committee. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Retirement Pension Plan, a qualified defined benefit pension plan; |
|--------------------|------------------------------------------------------------------------|

| ·   | The Retirement and Income Savings Plan, a qualified Internal Revenue Code (“Code”) §401(k) plan; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | The Employee Stock Purchase Plan, a Code §423 employee stock purchase plan; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | The Commercial Growth Rewards Plan, covering certain commercial banking employees; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | The Mortgage Loan Originator Rewards Plan, and four other incentive plans covering specified mortgage lending employees; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | The Retail Rewards Scorecard Plan, covering retail banking center employees; |
|--------------------|------------------------------------------------------------------------------|

| ·   | The Cash Management Rewards Plan, covering cash management officers; |
|--------------------|----------------------------------------------------------------------|

| ·   | Two incentive plans for employees of First Merchants Trust Company; |
|--------------------|---------------------------------------------------------------------|

| ·   | The Brokerage Reward Plan, a commission-based compensation plan for licensed registered representatives engaged in retail brokerage transactions; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The First Merchants Insurance Group Commission Plus Plans, commission-based compensation plans for licensed insurance agents engaged in insurance sales, and two other incentive plans for First Merchants Insurance Group employees; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Annual Performance and Profit Link to Excellence (APPLE) Plan, covering employees who aren’t covered by any of the other incentive compensation plans. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| COMPENSATION OF EXECUTIVE OFFICERS |
|------------------------------------|

| ·   | Michael C. Rechin, President and Chief Executive Officer; |
|--------------------|-----------------------------------------------------------|

| ·   | Mark K. Hardwick, Executive Vice President and Chief Financial Officer; |
|--------------------|-------------------------------------------------------------------------|

| ·   | Michael J. Stewart, Executive Vice President and Chief Banking Officer; |
|--------------------|-------------------------------------------------------------------------|

| ·   | Robert R. Connors, Senior Vice President and Chief Information Officer; and |
|--------------------|-----------------------------------------------------------------------------|

| ·   | John J. Martin, Senior Vice President and Chief Credit Officer. |
|--------------------|-----------------------------------------------------------------|

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| ·   | is comprised of a competitive mix of compensation elements that are designed to attract, retain and motivate high-performing, qualified executives; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provides performance-based compensation, including incentive compensation that rewards employees based on the Company’s financial performance and individual contributions to that performance; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | links compensation to stock performance and the factors that affect stock performance. |
|--------------------|----------------------------------------------------------------------------------------|

| Year |   | Amount |   |
|------|--------|--------|--------|
| 2008 |   | $      | 1.14   |   |
| 2009 |   |   | (2.17  | )  |
| 2010 |   |   | 0.07   |   |
| 2011 |   |   | 0.80   |   |

| Year |   | Amount |    |
|------|--------|--------|---------|
| 2008 |   | $      | 625,225 |   |
| 2009 |   |   | 518,549 |   |
| 2010 |   |   | 498,532 |   |
| 2011 |   |   | 640,972 |   |

----

----

| ·   | is comprised of a competitive mix of compensation elements that are designed to attract, retain and motivate high-performing, qualified executives; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provides performance-based compensation, including incentive compensation that rewards employees based on the Company’s financial performance and individual contributions to that performance; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | links compensation to stock performance and the factors that affect stock performance. |
|--------------------|----------------------------------------------------------------------------------------|

----

| 1st Source Corporation                   | Heartland Financial USA, Inc.     |
|------------------------------------------|-----------------------------------|
| Capitol Bancorp, Ltd.                    | MB Financial Inc.                 |
| Chemical Financial Corporation           | National Penn Bancshares, Inc.    |
| Community Trust Bancorp, Inc.            | Old National Bancorp              |
| F. N. B. Corporation                     | Park National Corporation         |
| First Busey Corporation                  | Pinnacle Financial Partners, Inc. |
| First Commonwealth Financial Corporation | Republic Bancorp, Inc.            |
| First Financial Bancorp                  | S & T Bancorp, Inc.           |
| First Midwest Bancorp, Inc.              | Taylor Capital Group, Inc.        |

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| Name and Principal Position | Year   |   | Salary |    |   | Stock Awards(1) |   |    | Option Awards(1) |   |   | Non-Equity Incentive Plan Compensation(2) |   |   | Change in Pension Value and Non-Qualified Deferred Compensation Earnings(3) |   |   | All Other Compensation(4) |    |   | Total  |   |
|-----------------------------|--------|--------|--------|---------|--------|-----------------|--------|---------|------------------|--------|--------|-------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|---------------------------|---------|--------|--------|--------|
|                        |   |   |   |    |   |            |   |    |             |   |   |                                      |   |   |                                                                        |   |   |                      |    |   |   |   |
| Michael C. Rechin           | 2009   |   | $      | 350,000 |   |            | $      | 44,560  |             |   | $      | 59,296                                    |   |   | $                                                                           | 0      |   |                      |  $ | 0      |   |   | $ | 64,693 |   |   | $ | 518,549 |   |
| President and               | 2010   |   |   | 350,000 |   |            |   | 88,350  |             |   |   | 0                                         |   |   |                                                                        | 0      |   |                      |    | 0      |   |   |   | 60,182 |   |   |   | 498,532 |   |
| Chief Executive Officer     | 2011   |   |   | 359,692 |   |            |   | 147,200 |             |   |   | 0                                         |   |   |                                                                        | 64,590 |   |                      |    | 0      |   |   |   | 69,490 |   |   |   | 640,972 |   |
|                        |   |   |   |    |   |            |   |    |             |   |   |                                      |   |   |                                                                        |   |   |                      |    |   |   |   |   |   |   |   |   |   |   |
| Mark K. Hardwick            | 2009   |   |   | 250,000 |   |            |   | 35,648  |             |   |   | 23,718                                    |   |   |                                                                        | 0      |   |                      |    | 0      |   |   |   | 21,159 |   |   |   | 330,525 |   |
| Executive Vice President    | 2010   |   |   | 250,000 |   |            |   | 58,900  |             |   |   | 0                                         |   |   |                                                                        | 0      |   |                      |    | 5,549  |   |   |   | 17,385 |   |   |   | 331,834 |   |
| and Chief Financial Officer | 2011   |   |   | 259,692 |   |            |   | 101,200 |             |   |   | 0                                         |   |   |                                                                        | 41,553 |   |                      |    | 10,787 |   |   |   | 17,351 |   |   |   | 430,583 |   |
|                        |   |   |   |    |   |            |   |    |             |   |   |                                      |   |   |                                                                        |   |   |                      |    |   |   |   |   |   |   |   |   |   |   |
| Michael J. Stewart          | 2009   |   |   | 245,000 |   |            |   | 35,648  |             |   |   | 23,718                                    |   |   |                                                                        | 0      |   |                      |    | 0      |   |   |   | 15,488 |   |   |   | 319,854 |   |
| Executive Vice President    | 2010   |   |   | 245,000 |   |            |   | 58,900  |             |   |   | 0                                         |   |   |                                                                        | 0      |   |                      |    | 0      |   |   |   | 12,498 |   |   |   | 316,398 |   |
| and Chief Banking Officer   | 2011   |   |   | 254,692 |   |            |   | 101,200 |             |   |   | 0                                         |   |   |                                                                        | 40,760 |   |                      |    | 0      |   |   |   | 12,530 |   |   |   | 409,182 |   |
|                        |   |   |   |    |   |            |   |    |             |   |   |                                      |   |   |                                                                        |   |   |                      |    |   |   |   |   |   |   |   |   |   |   |
| Robert R. Connors           | 2009   |   |   | 200,000 |   |            |   | 22,280  |             |   |   | 8,894                                     |   |   |                                                                        | 0      |   |                      |    | 454    |   |   |   | 16,608 |   |   |   | 248,236 |   |
| Senior Vice President and   | 2010   |   |   | 200,000 |   |            |   | 24,738  |             |   |   | 0                                         |   |   |                                                                        | 16,320 |   |                      |    | 9,450  |   |   |   | 11,784 |   |   |   | 262,292 |   |
| Chief Information Officer   | 2011   |   |   | 202,423 |   |            |   | 18,400  |             |   |   | 6,838                                     |   |   |                                                                        | 69,182 |   |                      |    | 12,901 |   |   |   | 14,808 |   |   |   | 324,552 |   |
|                        |   |   |   |    |   |            |   |    |             |   |   |                                      |   |   |                                                                        |   |   |                      |    |   |   |   |   |   |   |   |   |   |   |
| John J. Martin              | 2009   |   |   | 161,423 |   |            |   | 13,368  |             |   |   | 5,930                                     |   |   |                                                                        | 0      |   |                      |    | 0      |   |   |   | 10,327 |   |   |   | 191,048 |   |
| Senior Vice President and   | 2010   |   |   | 181,692 |   |            |   | 17,670  |             |   |   | 3,730                                     |   |   |                                                                        | 15,014 |   |                      |    | 0      |   |   |   | 9,218 |   |   |   | 227,324 |   |
| Chief Credit Officer        | 2011   |   |   | 188,442 |   |            |   | 36,800  |             |   |   | 3,108                                     |   |   |                                                                        | 64,221 |   |                      |    | 0      |   |   |   | 10,988 |   |   |   | 303,559 |   |

| (1)   | A discussion of the assumptions used in calculating these values is contained in Note 16 to the 2011 audited financial statements, on page 79 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The amounts shown in the Non-equity Incentive Plan Compensation column are payments under the Senior Management Incentive Compensation Program for 2009, 2010 and 2011 performance that were paid in February of the following year.  No bonuses were paid to any of the NEOs for 2009, 2010 or 2011 except under this Program. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The amounts shown in the Change in Pension Value and Nonqualified Deferred Compensation Earnings column for Mr. Hardwick and Mr. Connors are the changes in the actuarial present value of their frozen benefits under the Retirement Pension Plan for 2009, 2010 and 2011.  The present value of Mr. Hardwick’s benefits decreased by $1,607 in 2009; however, SEC rules require that this amount be shown as $0 in the Summary Compensation Table.  Mr. Rechin, Mr. Stewart and Mr. Martin have not participated in any Company-sponsored defined benefit plan or other actuarial pension plan.  No NEO received above-market or preferential earnings on deferred compensation for 2009, 2010 or 2011. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4)   | The Company made matching contributions to the Retirement and Income Savings Plan for the benefit of the NEOs in the following amounts for 2009, 2010 and 2011, respectively: Mr. Rechin - $7,350, $7,350 and $7,350; Mr. Hardwick - $7,350, $7,350 and $7,350; Mr. Stewart - $7,350, $7,350 and $7,350; Mr. Connors - $6,853, $5,348 and $7,098; and Mr. Martin - $5,184, $5,461 and $6,564.  The Company made service-weighted employer contributions to the Retirement and Income Savings Plan for the benefit of the NEOs in the following amounts for 2009, 2010 and 2011, respectively: Mr. Rechin - $4,900, $7,350 and $7,350; Mr. Hardwick - $9,800, $9,800 and $9,800; Mr. Stewart - $4,900, $4,900 and $4,900; Mr. Connors - $7,015, $6,276 and $7,098;and Mr. Martin - $3,456, $3,641 and $4,376.  The Company also made contributions to the Defined Contribution Supplemental Executive Retirement Plan in 2009, 2010 and 2011 for the benefit of Mr. Rechin in the amounts of $46,949, $44,926 and $54,376, respectively.  None of the NEOs received perquisites in the aggregate amount of $10,000 or more for 2009, 2010 or 2011.  The other amounts shown in the All Other Compensation column include the dollar value of life insurance premiums and dividends on restricted stock awards paid to or for the benefit of each of the NEOs for 2009, 2010 and 2011. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |       |   | Estimated future payouts undernon-equity incentive plan awards(1) |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            |   |
|--------------------|------------|--------|-------------------------------------------------------------------|--------|--------|--------|--------|---------|---------|--------|--------|-----------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
| Name               | Grant Date |   | Threshold                                                         |   |   | Target |   |    | Maximum |   |   | All other stock awards; Number of sharesof stock or units |   |   | All other option awards; Number of securitiesunderlying options |   |   | Exercise or base price of option awards (per share) |   |   | Grant date fair value of stock and option awards |   |
| Michael C. Rechin  | --    |   | $                                                                 | 0      |   |   | $      | 162,900 |    |   | $      | 325,800                                                   |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            | 16,000 |   |   |   |   |   | $ | 9.20 |   |   | $ | 147,200 |   |
|               |       |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mark K. Hardwick   | --    |   |                                                              | 0      |   |   |   | 104,800 |    |   |   | 209,600                                                   |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            | 11,000 |   |   |   |   |   |   | 9.20 |   |   |   | 101,200 |   |
|               |       |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Michael J. Stewart | --    |   |                                                              | 0      |   |   |   | 102,800 |    |   |   | 205,600                                                   |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            | 11,000 |   |   |   |   |   |   | 9.20 |   |   |   | 101,200 |   |
|               |       |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Robert R. Connors  | --         |   |                                                              | 0      |   |   |   | 60,900  |    |   |   | 109,620                                                   |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            | 2,000  |   |   |   |   |   |   |   |   |   |   | 18,400 |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            |   |   |   |   | 2,200 |   |   |   | 9.20 |   |   |   | 6,838 |   |
| John J. Martin     | --         |   |                                                              | 0      |   |   |   | 56,850  |    |   |   | 102,330                                                   |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            | 4,000  |   |   |   |   |   |   |   | 9.20 |   |   |   | 36,800 |   |
|               | 2/11/2011  |   |                                                              |   |   |   |   |    |    |   |   |                                                      |   |   |                                                            |   |   |   |   | 1,000 |   |   |   |   |   |   |   | 3,108 |   |

| (1)   | The amounts shown in the Estimated Future Payouts under Non-equity Incentive Plan Awards column are the range of payouts for targeted performance under the Senior Management Incentive Compensation Program for 2011, as described under “Elements of Executive Compensation Program – the Senior Management Incentive Compensation Program” in the Compensation Discussion and Analysis on pages 21-22.  The payments made in February 2012 for 2011 performance under the Program are shown in the Non-equity Incentive Plan Compensation column of the Summary Compensation Table on page 26. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|               |   | Option Awards                                                     |   |                                                                   |                                                                                                                                |                  |   | Stock Awards           |   |
|--------------------|--------|-------------------------------------------------------------------|--------|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|------------------------|--------|
| Name               |   | Number of securities underlying unexercised options (Exercisable) |   | Number of securities underlying unexercised options(1) (Unexercisable) |                                                                                                                                | Option exercise price |   | Option expiration date |   | Number of shares or units of stock that have not vested(2) |   |   | Market value of shares or units of stock that have not vested |   |
| Michael C. Rechin  |   |                                                              | 10,000 |                                                                   |                                                                                                                                |                  | $      | 25.90                  |   | 11/21/15 |   |   | 35,228 |   |   | $  | 298,381 |   |
|               |   |                                                              | 8,000  |                                                                   |                                                                                                                                |                  |   | 25.14                  |   | 02/10/16 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 12,000 |                                                                   |                                                                                                                                |                  |   | 26.31                  |   | 02/08/17 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 15,000 |                                                                   |                                                                                                                                |                  |   | 28.25                  |   | 02/27/18 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 20,000 |                                                                   |                                                                                                                                |                  |   | 11.14                  |   | 02/24/19 |   |   |   |   |   |   |   |   |
|               |   |                                                              |   |                                                                   |                                                                                                                                |                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Mark K. Hardwick   |   |                                                              | 4,409  |                                                                   |                                                                                                                                |                  |   | 26.93                  |   | 07/01/12 |   |   | 24,353 |   |   |   | 206,270 |   |
|               |   |                                                              | 5,249  |                                                                   |                                                                                                                                |                  |   | 23.46                  |   | 07/01/13 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 6,000  |                                                                   |                                                                                                                                |                  |   | 25.60                  |   | 07/01/14 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 10,000 |                                                                   |                                                                                                                                |                  |   | 26.70                  |   | 09/01/15 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 7,000  |                                                                   |                                                                                                                                |                  |   | 25.14                  |   | 02/10/16 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 8,000  |                                                                   |                                                                                                                                |                  |   | 26.31                  |   | 02/08/17 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 8,000  |                                                                   |                                                                                                                                |                  |   | 28.25                  |   | 02/27/18 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 8,000  |                                                                   |                                                                                                                                |                  |   | 11.14                  |   | 02/24/19 |   |   |   |   |   |   |   |   |
|               |   |                                                              |   |                                                                   |                                                                                                                                |                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Michael J. Stewart |   |                                                              | 6,000  |                                                                   |                                                                                                                                |                  |   | 25.44                  |   | 01/29/18 |   |   | 24,353 |   |   |   | 206,270 |   |
|               |   |                                                              | 8,000  |                                                                   |                                                                                                                                |                  |   | 11.14                  |   | 02/24/19 |   |   |   |   |   |   |   |   |
|               |   |                                                              |   |                                                                   |                                                                                                                                |                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Robert R. Connors  |   |                                                              | 3,307  |                                                                   |                                                                                                                                |                  |   | 25.33                  |   | 08/26/12 |   |   | 8,252 |   |   |   | 69,894 |   |
|               |   |                                                              | 5,249  |                                                                   |                                                                                                                                |                  |   | 23.46                  |   | 07/01/13 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 6,000  |                                                                   |                                                                                                                                |                  |   | 25.60                  |   | 07/01/14 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 8,000  |                                                                   |                                                                                                                                |                  |   | 26.70                  |   | 09/01/15 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 4,000  |                                                                   |                                                                                                                                |                  |   | 25.14                  |   | 02/10/16 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 4,500  |                                                                   |                                                                                                                                |                  |   | 26.31                  |   | 02/08/17 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 3,000  |                                                                   |                                                                                                                                |                  |   | 28.25                  |   | 02/27/18 |   |   |   |   |   |   |   |   |
|               |   |                                                              | 3,000  |                                                                   |                                                                                                                                |                  |   | 11.14                  |   | 02/24/19 |   |   |   |   |   |   |   |   |
|               |   |                                                              |   |                                                                   |                      2,200 |                  |   | 9.20                   |   | 02/11/21 |   |   |   |   |   |   |   |   |
|               |   |                                                              |   |                                                                   |                                                                                                                                |                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| John J. Martin     |   |                                                              | 2,000  |                                                                   |                                                                                                                                |                  |   | 11.14                  |   | 02/24/19 |   |   | 8,249 |   |   |   | 69,869 |   |
|               |   |                                                              |   |                                                                   |                      2,000 |                  |   | 5.89                   |   | 02/25/20 |   |   |   |   |   |   |   |   |
|               |   |                                                              |   |                                                                   |                      1,000 |                  |   | 9.20                   |   | 02/11/21 |   |   |   |   |   |   |   |   |

| (1)   | The vesting dates of the option awards that had not vested at the end of the 2011 fiscal year are as follows: the vesting date for Mr. Connor’s option to purchase 2,200 shares is February 11, 2013; and the respective vesting dates for Mr. Martin’s options to purchase 2,000 shares and 1,000 shares are February 25, 2012 and February 11, 2013. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Of the stock awards that had not vested at the end of the 2011 fiscal year, 4,000 of Mr. Rechin’s shares vested on February 24, 2012, 15,149 shares will vest on February 25, 2013, and 16,079 shares will vest on February 11, 2014; 3,200 of Mr. Hardwick’s shares vested on February 24, 2012, 10,099 shares will vest on February 25, 2013, and 11,054 shares will vest on February 11, 2014; 3,200 of Mr. Stewart’s shares vested on February 24, 2012, 10,099 shares will vest on February 25, 2013, and 11,054 shares will vest on February 11, 2014; 2,000 shares of Mr. Connor’s shares vested on February 24, 2012, 4,242 shares will vest on February 25, 2013, and 2,010 shares will vest on February 11, 2014; 1,200 of Mr.Martin’s shares vested on February 24, 2012, 3,030 shares will vest on February 25, 2013, and 4,019 shares will vest on February 11, 2014. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | Option Awards                         |   |   | Stock Awards               |   |
|--------------------|--------|---------------------------------------|--------|--------|----------------------------|--------|
| Name               |   | Number of shares acquired on exercise |   |   | Value realized on exercise |   |   | Number of shares acquired on vesting |   |   | Value realized on vesting (1) |   |
| Michael C. Rechin  |   |                                  | 0      |   |                       |   | 0 |   |   |   | 4,000 |   |   | $ | 35,760 |   |
|               |   |                                  |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Mark K. Hardwick   |   |                                  | 0      |   |                       |   | 0 |   |   |   | 2,700 |   |   |   | 24,138 |   |
|               |   |                                  |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Michael J. Stewart |   |                                  | 0      |   |                       |   | 0 |   |   |   | 3,000 |   |   |   | 27,180 |   |
|               |   |                                  |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Robert R. Connors  |   |                                  | 0      |   |                       |   | 0 |   |   |   | 2,000 |   |   |   | 17,880 |   |
|               |   |                                  |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| John J. Martin     |   |                                  | 0      |   |                       |   | 0 |   |   |   | 1,700 |   |   |   | 15,318 |   |

| (1)   | The value realized on vesting was computed by multiplying the number of shares of stock by the market value of the shares on the vesting date. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name               |   | Plan name    |   |   | Number of years credited service(1) |   |   | Present value of accumulated benefit |   |   | Payments during last fiscal year |   |
|--------------------|--------|--------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------|--------|
| Michael C. Rechin  |   |         | N/A    |   |                                |   | N/A    |                                 |   |   | N/A                              |   |   |   | N/A |   |
| Mark K. Hardwick   |   | Pension Plan |   |   |                                | 7.32   |   |                                 | $      | 37,144 |                             |   | $ | 0 |   |
| Michael J. Stewart |   |         | N/A    |   |                                |   | N/A    |                                 |   |   | N/A                              |   |   |   | N/A |   |
| Robert R. Connors  |   | Pension Plan |   |   |                                | 2.50   |   |                                 |   | 87,914 |                             |   |   | 0 |   |
| John J. Martin     |   |         | N/A    |   |                                |   | N/A    |                                 |   |   | N/A                              |   |   |   | N/A |   |

| (1)   | Mr. Rechin, Mr. Stewart and Mr. Martin are not eligible to participate in the Pension Plan.  Mr. Hardwick’s and Mr. Connors’ benefits under the plan were frozen, effective March 1, 2005.  Their years of credited service under the plan were one fewer than their number of actual years of service with the Company when the Plan was frozen. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                  | Plan Name(1) |   | Executive contributions in last fiscal year |   |   | Company’s contributions in last fiscal year |   |   | Aggregate earnings in last fiscal year |   |   | Aggregate withdrawals/ distributions |   |   | Aggregate balance at fiscal year end |   |
|-----------------------|--------------|--------|---------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
| Michael C. Rechin(2)  | SERP         |   |                                        | 0      |   |                                              | $      | 54,376 |                                        |   | $      | 6,302                                |   |   | $                                    | 0      |   |   | $ | 203,449 |   |
| Mark K. Hardwick      |         |   |                                        | N/A    |   |                                              |   | N/A    |                                        |   |   | N/A                                  |   |   |                                 | N/A    |   |   |   | N/A |   |
| Michael J. Stewart(2) | EDCP         |   |                                        | 100    |   |                                              |   | 0      |                                        |   |   | 1                                    |   |   |                                 | 0      |   |   |   | 101 |   |
| Robert R. Connors     |         |   |                                        | N/A    |   |                                              |   | N/A    |                                        |   |   | N/A                                  |   |   |                                 | N/A    |   |   |   | N/A |   |
| John J. Martin        |         |   |                                        | N/A    |   |                                              |   | N/A    |                                        |   |   | N/A                                  |   |   |                                 | N/A    |   |   |   | N/A |   |

| (1)   | The “SERP” is the First Merchants Corporation Defined Contribution Supplemental Executive Retirement Plan described above, and the “EDCP” is the First Merchants Corporation 2011 Executive Deferred Compensation Plan described above. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Mr. Rechin is currently the only participant in the SERP.  The amount credited to his account for 2011 was 12% of his compensation.  This amount is also reported as compensation to Mr. Rechin in the Summary Compensation Table on page 26, in the column headed “All Other Compensation.”  Mr. Stewart is the only NEO who participated in the EDCP during 2011, although the plan has other participants.  The only contributions made to the EDCP for 2011 were participants’ salary deferrals. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name               |   | Multiplier |   |   | Severance Benefit Amount |   |      | Bargain Element Values of Outstanding Stock Options(1) |   |   | Estimated Values of Insurance Coverages for 2 years |   |
|--------------------|--------|------------|--------|--------|--------------------------|--------|-----------|--------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| Michael C. Rechin  |   |       | 299    | %      |                     | $      | 1,275,504 |                                                   |   | $      | 0                                                   |   |   | $ | 30,381 |   |
| Mark K. Hardwick   |   |       | 299    | %      |                     |   | 907,623   |                                                   |   |   | 0                                                   |   |   |   | 29,804 |   |
| Michael J. Stewart |   |       | 299    | %      |                     |   | 890,302   |                                                   |   |   | 0                                                   |   |   |   | 19,258 |   |
| Robert R. Connors  |   |       | 150    | %      |                     |   | 408,273   |                                                   |   |   | 0                                                   |   |   |   | 30,381 |   |
| John J. Martin     |   |       | 150    | %      |                     |   | 380,582   |                                                   |   |   | 5,940                                               |   |   |   | 30,350 |   |

| (1)   | All of the NEOs’ outstanding stock options were out-of-the-money on December 31, 2011, except for the option granted to Mr. Martin on February 25, 2010 to purchase 2,000 shares at a price of $5.89/share. |
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|   | RESOLVED, THAT THE SHAREHOLDERS APPROVE THE COMPENSATION OF THE NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THE “COMPENSATION DISCUSSION AND ANALYSIS,” THE COMPENSATION TABLES AND ANY RELATED MATERIAL IN THE PROXY STATEMENT FOR THE 2012 ANNUAL MEETING OF SHAREHOLDERS. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                  |   | Fees earned or paid in cash |   |   | Stock awards(1)(2) |   |   | Option awards(1)(2) |   |   | All other compensation(3) |   |   | Total  |   |
|-----------------------|--------|-----------------------------|--------|--------|-------------------------|--------|--------|--------------------------|--------|--------|---------------------------|--------|--------|--------|--------|
| Thomas B. Clark(4)(6) |   | $                           | 7,396  |   |                    | $      | 7,396  |                     |   | $      | 0                         |   |   | $      | 302    |   |   | $ | 15,094 |   |
| Roderick English      |   |                        | 20,009 |   |                    |   | 19,991 |                     |   |   | 4,571                     |   |   |   | 264    |   |   |   | 44,835 |   |
| Jo Ann M. Gora        |   |                        | 20,009 |   |                    |   | 19,991 |                     |   |   | 4,571                     |   |   |   | 264    |   |   |   | 44,835 |   |
| William L. Hoy(5)     |   |                        | 20,009 |   |                    |   | 19,991 |                     |   |   | 4,571                     |   |   |   | 264    |   |   |   | 44,835 |   |
| Barry J. Hudson(5)(6) |   |                        | 5,925  |   |                    |   | 5,909  |                     |   |   | 0                         |   |   |   | 124    |   |   |   | 11,958 |   |
| Gary J. Lehman(6)     |   |                        | 15,007 |   |                    |   | 14,993 |                     |   |   | 4,571                     |   |   |   | 18     |   |   |   | 34,589 |   |
| Marvin G. Pember(6)   |   |                        | 5,003  |   |                    |   | 4,997  |                     |   |   | 0                         |   |   |   | 0      |   |   |   | 10,000 |   |
| Charles E. Schalliol  |   |                        | 40,109 |   |                    |   | 39,981 |                     |   |   | 4,571                     |   |   |   | 511    |   |   |   | 85,082 |   |
| Patrick A. Sherman    |   |                        | 23,774 |   |                    |   | 23,726 |                     |   |   | 4,571                     |   |   |   | 229    |   |   |   | 52,300 |   |
| Terry L. Walker       |   |                        | 24,404 |   |                    |   | 24,346 |                     |   |   | 4,571                     |   |   |   | 299    |   |   |   | 53,620 |   |
| Jean L. Wojtowicz     |   |                        | 26,264 |   |                    |   | 26,236 |                     |   |   | 4,571                     |   |   |   | 345    |   |   |   | 57,416 |   |

| (1)   | A discussion of the assumptions used in calculating these values is contained in Note 16 to the 2011 audited financial statements, on page 79 of FMC’s Annual Report on Form 10-K for the year ended December 31, 2011. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | As of the end of the 2011 fiscal year, the aggregate number of shares that had not vested under stock awards to each director under the Equity Compensation Plan for Non-employee Directors was as follows: Mr. English, Dr. Gora, Mr. Hoy and Mr. Sherman – 7,630 each; Mr. Lehman – 1,858; Mr. Pember – 559; Mr. Schalliol – 14,899; Mr. Walker – 8,814; and Ms. Wojtowicz – 9,966.  As of the end of the 2011 fiscal year, each director had the following aggregate number of option awards outstanding under the Long-term Equity Incentive Plan: Mr. Clark – 11,099; Mr. English, Dr. Gora and Mr. Schalliol – 9,128 each; Mr. Hoy – 5,657; Mr. Hudson – 11,143; Mr. Lehman – 1,500; Mr.Sherman – 4,500; Mr. Walker – 6,814; and Ms. Wojtowicz – 10,285. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The dollar amounts shown under “All Other Compensation” represent the dividends paid during 2011 on the stock awards to the non-employee directors under the Equity Compensation Plan for Non-Employee Directors. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr. Clark deferred payment of all of his director compensation earned in 2011, including both fees payable in cash and stock awards (and the interest and dividends thereon), under the provisions of the Directors’ Deferred Compensation Plan. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5)   | In addition to their compensation for their services as directors, Mr. Hoy received $4,000 in 2011 from First Merchants Bank, N. A., a wholly-owned subsidiary of FMC, for his services as a regional director of the Columbus Region of the Bank; and Mr. Hudson received distributions totaling $215,280 in 2011 under an insurance-funded deferred compensation plan in which he participated prior to his retirement as Chairman of the Board of Directors of First National Bank of Portland, N. A., which merged with First Merchants Bank, N. A. in 2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Mr. Clark and Mr. Hudson retired as directors on May 3, 2011, the date of the 2011 annual shareholder meeting.  Mr. Lehman and Mr. Pember were elected as new directors at the 2011 annual shareholder meeting; however, Mr. Pember resigned as a director on June 30, 2011 upon accepting new employment outside the Company’s market area. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | 2010   |    |   | 2011   |   |
|--------------------|--------|--------|---------|--------|--------|--------|
| Audit Fees         |   | $      | 317,000 |   |   | $      | 326,000 |   |
| Audit-Related Fees |   |   | 77,039  |   |   |   | 47,283 |   |
| Tax Fees           |   |   | 119,512 |   |   |   | 70,749 |   |
| All Other Fees     |   |   | 0       |   |   |   | 0 |   |
| Total Fees         |   | $      | 513,551 |   |   | $      | 444,032 |   |

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