----

| A.   | Full title of the plan and the address of the plan, if different from that of the Issuer named below: |
|----------------|-------------------------------------------------------------------------------------------------------|

| B.   | Name of issuer of the securities held pursuant to the plan and the address of its principal office: |
|----------------|-----------------------------------------------------------------------------------------------------|

----

----

|   | Report of Independent Registered Public Accounting Firm                    1 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Financial Statements |
|--------|----------------------|

|   | Statements of Net Assets Available for Benefits                       2 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Statements of Changes in Net Assets Available for Benefits                   3 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Notes to Financial Statements                             4 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Supplemental Schedules |
|--------|------------------------|

|   | Schedule H, Line 4a – Schedule of Delinquent Participant Contributions                   16 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Schedule H, Line 4i - Schedule of Assets (Held at End of Year)                    17         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Assets                                                  |   |   |       |   |   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                    |   | 2010   |       |   | 2009   |   |
| Investments, at fair market value                       |   |   |       |   |   |   |
| Common Stock                                            |   | $      | 1,070,093  |   |   | $      | 533,127 |   |
| Mutual Funds                                            |   |   | 46,048,029 |   |   |   | 37,625,582 |   |
| Collective Investment Fund                              |   |   | 3,383,610  |   |   |   | 2,993,325 |   |
| Money Market Funds                                      |   |   | 4,037,108  |   |   |   | 4,545,153 |   |
| Total Investments                                       |   |   | 54,538,840 |   |   |   | 45,697,187 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Receivables                                             |   |   |       |   |   |   |   |   |
| Accrued Income                                          |   |   | 127,471    |   |   |   | 29,997 |   |
| Employer Contributions                                  |   |   | 1,637,034  |   |   |   | 1,805,633 |   |
| Participant Loans                                       |   |   | 1,087,379  |   |   |   | 2,488 |   |
| Total Receivables                                       |   |   | 2,851,884  |   |   |   | 1,838,118 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Cash                                                    |   |   | 6,776      |   |   |   | 3,210 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total Assets                                            |   | $      | 57,397,500 |   |   | $      | 47,538,515 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Liabilities                                             |   |   |       |   |   |   |   |   |
| Excess Contributions Refundable                         |   | $      | 74,877     |   |   | $      | - |   |
|                                                    |   |   |       |   |   |   |   |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits, at Fair Market Value |   | $      | 57,322,623 |   |   | $      | 47,538,515 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Adjustment from fair value to contract value            |   |   |       |   |   |   |   |   |
| for interest in collective investment fund relating     |   |   |       |   |   |   |   |   |
| to fully benefit-responsive investment contracts        |   | $      | (111,402   | )      |   | $      | (79,335 | ) |
|                                                    |   |   |       |   |   |   |   |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits                       |   | $      | 57,211,221 |   |   | $      | 47,459,180 |   |

----

|                                                    |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Investment Income                                       |   |   |       |   |   |   |
| Net Appreciation in fair value of investments           |   | $      | 5,450,409  |   |   | $      | 6,369,861 |   |
| Investment Interest and Dividends                       |   |   | 997,839    |   |   |   | 844,214 |   |
| Net Investment Income                                   |   |   | 6,448,248  |   |   |   | 7,214,075 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Interest Income From Notes Receivable from Participants |   |   | 41,315     |   |   |   | 800 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Contributions                                           |   |   |       |   |   |   |   |   |
| Participants                                            |   |   | 3,162,365  |   |   |   | 3,336,361 |   |
| Employer                                                |   |   | 2,745,642  |   |   |   | 2,994,554 |   |
| Rollovers                                               |   |   | 481,971    |   |   |   | 58,643 |   |
| Other Contributions                                     |   |   | -          |   |   |   | 345 |   |
| Total Contributions                                     |   |   | 6,389,978  |   |   |   | 6,389,903 |   |
| Total Additions                                         |   | $      | 12,879,541 |   |   | $      | 13,604,778 |   |
|                                                    |   |   |       |   |   |   |   |   |
|                                                    |   |   |       |   |   |   |   |   |
| Deductions                                              |   |   |       |   |   |   |   |   |
| Benefits Paid to Participants                           |   |   | 3,127,500  |   |   |   | 4,291,107 |   |
| Other Expenses                                          |   |   | -          |   |   |   | 30 |   |
| Total Deductions                                        |   | $      | 3,127,500  |   |   | $      | 4,291,137 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Increase                                            |   |   | 9,752,041  |   |   |   | 9,313,641 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits, Beginning of Year    |   |   | 47,459,180 |   |   |   | 38,145,539 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits, End of Year          |   | $      | 57,211,221 |   |   | $      | 47,459,180 |   |

----

| Note 1:   | Description of Plan |
|---------------------|---------------------|

| ·   | Retirement security contributions:  range from 2% to 7% of pay based on years of continuous service.  The participant must have 1,000 hours of service and be employed at the end of the Plan year.  Effective January 1, 2010, any employee who is hired or rehired after January 1, 2010 is not eligible for the Retirement Security Contribution. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Matching contributions:  50% of the first 6% of employees’ eligible compensation for all participating employees. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transition contributions:  3% of eligible compensation for all participants who are at least age 45, credited with at least ten years of service at February 28, 2005 and were participating in the Corporation’s defined-benefit plan at February 28, 2005. The participant must have 1,000 hours of service and be employed at the end of the Plan year. This contribution was only applicable through the 2009 Plan year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Note 2:   | Summary of Significant Accounting Policies |
|---------------------|--------------------------------------------|

----

| Note 3:   | Investments |
|---------------------|-------------|

|                       |   | 2010             |      |
|----------------------------|--------|------------------|-----------|
|                       |   | Net Appreciation |      |   | Fair Value |   |
|                       |   | in Fair Value    |      |   | at End |   |
|                       |   | During Year      |      |   | Of Year |   |
|                       |   |             |      |   |   |   |
| Common Stock               |   | $                | 335,315   |   |   | $ | 1,070,093 |   |
| Mutual Funds               |   |             | 5,115,094 |   |   |   | 46,048,029 |   |
| Collective Investment Fund |   |             | -         |   |   |   | 3,383,610 |   |
| Money Market Fund          |   |             | -         |   |   |   | 4,037,108 |   |
|                       |   |             |      |   |   |   |   |   |
|                       |   | $                | 5,450,409 |   |   | $ | 54,538,840 |   |

----

|                       |   | 2009             |      |
|----------------------------|--------|------------------|-----------|
|                       |   | Net Appreciation |      |   |   |   |
|                       |   | (Depreciation)   |      |   | Fair Value |   |
|                       |   | in Fair Value    |      |   | at End |   |
|                       |   | During Year      |      |   | Of Year |   |
|                       |   |             |      |   |   |   |
| Common Stock               |   | $                | (999,199  | ) |   | $ | 533,127 |   |
| Mutual Funds               |   |             | 7,369,060 |   |   |   | 37,625,582 |   |
| Collective Investment Fund |   |             |      |   |   |   | 2,993,325 |   |
| Money Market Fund          |   |             |      |   |   |   | 4,545,153 |   |
|                       |   |             |      |   |   |   |   |   |
|                       |   | $                | 6,369,861 |   |   | $ | 45,697,187 |   |

|                                  |   | 2010   |      |   | 2009   |   |
|---------------------------------------|--------|--------|-----------|--------|--------|--------|
| American Funds Amcap Fund             |   | $      | 5,274,854 |   |   | $      | 4,652,710 |   |
| Federated Capital Preservation Fund   |   |   | 3,383,610 |   |   |   | 2,993,325 |   |
| Federated Government Obligations Fund |   |   | 4,037,108 |   |   |   | 4,545,153 |   |
| Franklin Small Cap Value Fund         |   |   | 3,422,814 |   |   |   | 2,704,539 |   |
| Goldman Sachs Mid Cap Equity Fund     |   |   | 4,018,797 |   |   |   | 3,164,450 |   |
| MFS Value Fund                        |   |   | 4,587,146 |   |   |   | 4,100,383 |   |
| PIMCO Total Return Fund               |   |   | 4,305,599 |   |   |   | 3,646,236 |   |

----

| Note 4:   | Disclosures About Fair Value of Assets and Liabilities |
|---------------------|--------------------------------------------------------|

|   | Level 1 | Quoted prices in active markets for identical assets or liabilities |
|--------|---------|---------------------------------------------------------------------|

|   | Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   |   |       | 2010                          |
|----------------------------|--------|--------|------------|-------------------------------|
|                       |   |   |       | Fair Value Measurements Using |
|                       |   |   |       | Quoted Prices                 |   |   |   |   |   |   |
|                       |   |   |       | in Active                     |   |   | Significant |   |   |   |
|                       |   |   |       | Markets for                   |   |   | Other |   |   | Significant |
|                       |   |   |       | Identical                     |   |   | Observable |   |   | Unobservable |
|                       |   | Fair   |       | Assets                        |   |   | Inputs |   |   | Inputs |
|                       |   | Value  |       | (Level 1)                     |   |   | (Level 2) |   |   | (Level 3) |
| Common Stock               |   | $      | 1,070,093  |                          | $ | 1,070,093 |   |   |   |   |   |   |
| Mutual Funds               |   |   |       |                          |   |   |   |   |   |   |   |   |
| Bonds                      |   |   | 8,798,359  |                          |   | 8,798,359 |   |   |   |   |   |   |
| Broad Market               |   |   | 33,665     |                          |   | 33,665 |   |   |   |   |   |   |
| Emerging Market            |   |   | 51,837     |                          |   | 51,837 |   |   |   |   |   |   |
| International Equities     |   |   | 4,102,199  |                          |   | 4,102,199 |   |   |   |   |   |   |
| Large Cap Equities         |   |   | 14,257,516 |                          |   | 14,257,516 |   |   |   |   |   |   |
| Lifecycle Funds            |   |   | 5,074,609  |                          |   | 5,074,609 |   |   |   |   |   |   |
| Mid-Cap Equities           |   |   | 7,328,526  |                          |   | 7,328,526 |   |   |   |   |   |   |
| Real Estate                |   |   | 644,246    |                          |   | 644,246 |   |   |   |   |   |   |
| Small-Cap Equities         |   |   | 5,757,072  |                          |   | 5,757,072 |   |   |   |   |   |   |
|                       |   |   | 46,048,029 |                          |   | 46,048,029 |   |   |   |   |   |   |
| Money Market Fund          |   |   | 4,037,108  |                          |   | 4,037,108 |   |   |   |   |   |   |
| Collective Investment Fund |   |   | 3,383,610  |                          |   |   |   |   |           3,383,610 |   |   |   |
|                       |   | $      | 54,538,840 |                          | $ | 51,155,230 |   | $  |         3,383,610 |   | $ |                    - |

----

|                       |   |   | 2009                          |
|----------------------------|--------|--------|-------------------------------|
|                       |   |   | Fair Value Measurements Using |
|                       |   |   | Quoted Prices                 |   |   |   |   |   |   |
|                       |   |   | in Active                     |   |   | Significant |   |   |   |
|                       |   |   | Markets for                   |   |   | Other |   |   | Significant |
|                       |   |   | Identical                     |   |   | Observable |   |   | Unobservable |
|                       | Fair   |   | Assets                        |   |   | Inputs |   |   | Inputs |
|                       | Value  |   | (Level 1)                     |   |   | (Level 2) |   |   | (Level 3) |
| Common Stock               |   | $      | 533,127                       |   | $ | 533,127 |   |   |   |   |   |   |
| Mutual Funds               |   |   |                          |   |   |   |   |   |   |   |   |   |
| Bonds                      |   |   | 7,574,154                     |   |   | 7,574,154 |   |   |   |   |   |   |
| International Equities     |   |   | 3,592,822                     |   |   | 3,592,822 |   |   |   |   |   |   |
| Large Cap Equities         |   |   | 12,518,108                    |   |   | 12,518,108 |   |   |   |   |   |   |
| Lifecycle Funds            |   |   | 3,499,312                     |   |   | 3,499,312 |   |   |   |   |   |   |
| Mid-Cap Equities           |   |   | 5,542,169                     |   |   | 5,542,169 |   |   |   |   |   |   |
| Real Estate                |   |   | 495,597                       |   |   | 495,597 |   |   |   |   |   |   |
| Small-Cap Equities         |   |   | 4,403,420                     |   |   | 4,403,420 |   |   |   |   |   |   |
|                       |   |   | 37,625,582                    |   |   | 37,625,582 |   |   |   |   |   |   |
| Money Market Fund          |   |   | 4,545,153                     |   |   | 4,545,153 |   |   |   |   |   |   |
| Collective Investment Fund |   |   | 2,993,325                     |   |   |   |   |   |           2,993,325 |   |   |   |
|                       |   | $      | 45,697,187                    |   | $ | 42,703,862 |   |  $ | 2,993,325 |   | $  | - |

| Note 5:   | Party-in-Interest Transactions |
|---------------------|--------------------------------|

----

|                       |   | First Merchants |      |
|----------------------------|--------|-----------------|-----------|
|                       |   | Corporation     |      |
|                       |   | Common Stock    |      |
|                       |   |            |      |
| Balance, January 1, 2009   |   |            | 1,293,563 |   |
| Changes                    |   |            | (760,436) |   |
|                       |   |            |      |   |
| Balance, December 31, 2009 |   |            | 533,127   |   |
| Changes                    |   |            | 536,966   |   |
|                       |   |            |      |   |
| Balance, December 31, 2010 |   |            | 1,070,093 |   |

| Note 6:   | Nonexempt Transactions |
|---------------------|------------------------|

| Note 7:   | Plan Amendments |
|---------------------|-----------------|

----

| Note 8:   | Risks and Uncertainties |
|---------------------|-------------------------|

| Note 9:   | Differences between Financial Statements and Form 5500 |
|---------------------|--------------------------------------------------------|

----

----

| Identity                   | Relationship        | Description                                                                                                                                           | ParticipantContributionsTransferred late to the Plan |   |   | Total ThatConstituteNonexemptProhibitedTransactions |   |   | Total FullyCorrected UnderVoluntary FiduciaryCorrectionProgram (VCFP) |   |
|----------------------------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|-----------------------------------------------------------------------|--------|
|                       |                |                                                                                                                                                  |                                                      |   |   |                                                |   |   |                                                                  |   |
| First MerchantsCorporation | Employer andSponsor | January 2009 employee deferral was not remitted to the Plan within the required time period established by the DOL.  Remitted in April 2010 | $                                                         | 150    |   |                                                | $      | 8      |                                                                  |   | $ | - |   |
|                       |                |                                                                                                                                                  |                                                      |   |   |                                                |   |   |                                                                  |   |
|                       |                |                                                                                                                                                  |                                                      |   |   |                                                |   |   |                                                                  |   |   |   |

----

|                                                   |   | (c)              |         |   |   |      |   |
|--------------------------------------------------------|--------|------------------|--------------|--------|--------|-----------|--------|
| (a)(b)                                                 |   | Description of   |         |   |   |      |   |
| Identity of Issue,                                     |   | Investment       |         |   |   | (d)       |   |
| Borrower, Lessor or                                    |   | Including Par or |         |   |   | Current   |   |
| Similar Party                                          |   | Maturity Value   |         |   |   | Value     |   |
|                                                   |   |             |         |   |   |      |   |
| Common Stock                                           |   |             |         |   |   |      |   |
| *First Merchants Corporation                           |   |             | 120,778      |   | shares |      | $      | 1,070,093 |   |
|                                                   |   |             |         |   |   |      |   |   |   |
| Mutual Funds                                           |   |             |         |   |   |      |   |   |   |
| American Funds AMCAP Fund                              |   |             | 283,900      |   | shares |      |   | 5,274,854 |   |
| American Funds Capital World Bond                      |   |             | 29,543       |   | shares |      |   | 602,964 |   |
| American Funds Europacific Fund                        |   |             | 28,752       |   | shares |      |   | 1,168,191 |   |
| American High Income Trust Fund                        |   |             | 113,268      |   | shares |      |   | 1,276,525 |   |
| Blackrock Small Cap Growth Fund                        |   |             | 84,082       |   | shares |      |   | 1,095,590 |   |
| Federated Intercontinental Fund                        |   |             | 683          |   | shares |      |   | 33,665 |   |
| Federated International Small-Mid Cap Opportunity Fund |   |             | 24,678       |   | shares |      |   | 850,155 |   |
| Federated U.S. Government Fund                         |   |             | 213,151      |   | shares |      |   | 2,502,394 |   |
| Fidelity Advisor Diversified Fund                      |   |             | 57,562       |   | shares |      |   | 915,816 |   |
| Fidelity Advisor Emerging Markets Fund                 |   |             | 2,131        |   | shares |      |   | 51,837 |   |
| Fidelity Advisor Freedom 2010 Fund                     |   |             | 34,668       |   | shares |      |   | 399,031 |   |
| Fidelity Advisor Freedom 2015 Fund                     |   |             | 74,212       |   | shares |      |   | 890,547 |   |
| Fidelity Advisor Freedom 2020 Fund                     |   |             | 76,567       |   | shares |      |   | 931,055 |   |
| Fidelity Advisor Freedom 2025 Fund                     |   |             | 37,662       |   | shares |      |   | 464,745 |   |
| Fidelity Advisor Freedom 2030 Fund                     |   |             | 66,094       |   | shares |      |   | 758,758 |   |
| Fidelity Advisor Freedom 2035 Fund                     |   |             | 58,383       |   | shares |      |   | 678,993 |   |
| Fidelity Advisor Freedom 2040 Fund                     |   |             | 44,732       |   | shares |      |   | 515,315 |   |
| Fidelity Advisor Freedom 2045 Fund                     |   |             | 23,243       |   | shares |      |   | 222,668 |   |
| Fidelity Advisor Freedom 2050 Fund                     |   |             | 22,640       |   | shares |      |   | 213,497 |   |
| Fidelity Advisor Mid Cap Fund                          |   |             | 4,312        |   | shares |      |   | 76,708 |   |
| First American Equity Index Fund                       |   |             | 90,937       |   | shares |      |   | 1,949,694 |   |
| First American Mid Cap Growth Fund                     |   |             | 42,283       |   | shares |      |   | 1,687,083 |   |
| First American Mid Cap Index Fund                      |   |             | 119,562      |   | shares |      |   | 1,545,938 |   |
| First American Small Cap Index Fund                    |   |             | 6,803        |   | shares |      |   | 72,931 |   |
| Franklin Small Cap Value  Fund               |   |             | 77,299       |   | shares |      |   | 3,422,814 |   |
| Goldman Sachs Mid Cap Fund                             |   |             | 113,078      |   | shares |      |   | 4,018,797 |   |
| Hartford Inflation Plus Fund                           |   |             | 9,795        |   | shares |      |   | 110,877 |   |
| Invesco Real Estate Fund                               |   |             | 30,035       |   | shares |      |   | 644,246 |   |
| Invesco Small Cap Equity Fund                          |   |             | 95,240       |   | shares |      |   | 1,165,737 |   |
| MFS Massachusetts Investors Trust Fund                 |   |             | 131,425      |   | shares |      |   | 2,445,822 |   |
| MFS Value Fund                                         |   |             | 202,612      |   | shares |      |   | 4,587,146 |   |
| PIMCO Total Return Fund                                |   |             | 396,829      |   | shares |      |   | 4,305,599 |   |
| Templeton Foreign Fund                                 |   |             | 169,773      |   | shares |      |   | 1,168,037 |   |
|                                                   |   |             |         |   |   |      |   | 46,048,029 |   |
|                                                   |   |             |         |   |   |      |   |   |   |
| Collective Investment Fund                             |   |             |         |   |   |      |   |   |   |
| Federated Capital Preservation Fund                    |   |             | 327,221      |   | units  |      |   | 3,383,610 |   |
|                                                   |   |             |         |   |   |      |   |   |   |
| Money Market Fund                                      |   |             |         |   |   |      |   |   |   |
| Federated Government Obligation Fund                   |   |             | 4,037,108    |   | shares |      |   | 4,037,108 |   |
|                                                   |   |             |         |   |   |      |   |   |   |
| *Participant Loans                                     |   |             | 5.0% - 6.0 % |   |   | 1,087,379 |   |
|                                                   |   |             |         |   |   |      |   |   |   |
|                                                   |   |             |         |   |   |      | $      | 55,626,219 |   |
| *Party-in-interest                                     |   |             |         |   |   |      |   |   |   |

----

|                | First Merchants Corporation Retirement Income and Savings Plan                                        |
|---------------------|------------------------------------------------------------------------------------------------------------|
| Date: June 23, 2011 | /s/ Mark K. Hardwick                                                                                       |
|                | Mark K. Hardwick                                                                                           |
|                | Executive Vice President and Chief Financial Officer(Principal Financial and Principal Accounting Officer) |

----