----

| 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: |
|----------------|-----------------------------------------------------------------------------------------------------|

----

----

| Contents                                                       |   |
|----------------------------------------------------------------|--------|
|                                                           |   |
| 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 Schedule                                          |   |
| Schedule H, Line 4i - Schedule of Assets (Held at End of Year) | 16     |

----

----

|                                                    |   | 2011   |       |   | 2010   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Assets                                                  |   |   |       |   |   |   |
| Investments, at fair market value                       |   |   |       |   |   |   |
| Common Stock                                            |   | $      | 1,260,912  |   |   | $      | 1,070,093 |   |
| Mutual Funds                                            |   |   | 46,391,397 |   |   |   | 46,048,029 |   |
| Collective Investment Fund                              |   |   | 3,454,682  |   |   |   | 3,383,610 |   |
| Money Market Funds                                      |   |   | 3,704,051  |   |   |   | 4,037,108 |   |
| Total Investments                                       |   |   | 54,811,042 |   |   |   | 54,538,840 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Receivables                                             |   |   |       |   |   |   |   |   |
| Accrued Income                                          |   |   | 247,208    |   |   |   | 127,471 |   |
| Employer Contributions                                  |   |   | 1,608,045  |   |   |   | 1,637,034 |   |
| Notes Receivable from Participants                      |   |   | 1,338,110  |   |   |   | 1,087,379 |   |
| Total Receivables                                       |   |   | 3,193,363  |   |   |   | 2,851,884 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Cash                                                    |   |   | 304        |   |   |   | 6,776 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total Assets                                            |   | $      | 58,004,709 |   |   | $      | 57,397,500 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Liabilities                                             |   |   |       |   |   |   |   |   |
| Excess Contributions Refundable                         |   |   | 44,434     |   |   |   | 74,877 |   |
| Accrued Administrative Expenses                         |   |   | 24,096     |   |   |   |   |   |
| Total Liabilities                                       |   | $      | 68,530     |   |   | $      | 74,877 |   |
|                                                    |   |   |       |   |   |   |   |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits, at Fair Market Value |   | $      | 57,936,179 |   |   | $      | 57,322,623 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Adjustment from fair value to contract value            |   |   |       |   |   |   |   |   |
| for interest in collective investment fund relating     |   |   |       |   |   |   |   |   |
| to fully benefit-responsive investment contracts        |   | $      | (73,309    | )      |   | $      | (111,402 | ) |
|                                                    |   |   |       |   |   |   |   |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits                       |   | $      | 57,862,870 |   |   | $      | 57,211,221 |   |

----

|                                                           |   | 2011   |       |   | 2010   |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Investment Income (Loss)                                       |   |   |       |   |   |   |
| Net (Depreciation) / Appreciation in fair value of investments |   | $      | (1,768,965 | )      |   | $      | 5,450,409 |   |
| Investment Interest and Dividends                              |   |   | 1,281,157  |   |   |   | 997,839 |   |
| Net Investment Income (Loss)                                   |   |   | (487,808   | )      |   |   | 6,448,248 |   |
|                                                           |   |   |       |   |   |   |   |   |
| Interest Income From Notes Receivable from Participants        |   |   | 68,879     |   |   |   | 41,315 |   |
|                                                           |   |   |       |   |   |   |   |   |
| Contributions                                                  |   |   |       |   |   |   |   |   |
| Participants                                                   |   |   | 3,404,659  |   |   |   | 3,162,365 |   |
| Employer                                                       |   |   | 2,797,162  |   |   |   | 2,745,642 |   |
| Rollovers                                                      |   |   | 342,705    |   |   |   | 481,971 |   |
| Total Contributions                                            |   |   | 6,544,526  |   |   |   | 6,389,978 |   |
| Total Additions                                                |   | $      | 6,125,597  |   |   | $      | 12,879,541 |   |
|                                                           |   |   |       |   |   |   |   |   |
|                                                           |   |   |       |   |   |   |   |   |
| Deductions                                                     |   |   |       |   |   |   |   |   |
| Benefits Paid to Participants                                  |   |   | 5,373,722  |   |   |   | 3,127,500 |   |
| Administrative Expenses                                        |   |   | 100,226    |   |   |   | - |   |
| Total Deductions                                               |   | $      | 5,473,948  |   |   | $      | 3,127,500 |   |
|                                                           |   |   |       |   |   |   |   |   |
| Net Increase                                                   |   |   | 651,649    |   |   |   | 9,752,041 |   |
|                                                           |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits, Beginning of Year           |   |   | 57,211,221 |   |   |   | 47,459,180 |   |
|                                                           |   |   |       |   |   |   |   |   |
| Net Assets Available for Benefits, End of Year                 |   | $      | 57,862,870 |   |   | $      | 57,211,221 |   |

----

| 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 |
|---------------------|-------------|

----

|                       |   | 2011             |       |
|----------------------------|--------|------------------|------------|
|                       |   | Net Depreciation |       |   |   |   |
|                       |   | in Fair Value    |       |   | Fair Value at |   |
|                       |   | During Year      |       |   | End Of Year |   |
|                       |   |             |       |   |   |   |
| Common Stock               |   | $                | (31,926    | ) |   | $ | 1,260,912 |   |
| Mutual Funds               |   |             | (1,737,039 | ) |   |   | 46,391,397 |   |
| Collective Investment Fund |   |             | -          |   |   |   | 3,454,682 |   |
| Money Market Funds         |   |             | -          |   |   |   | 3,704,051 |   |
|                       |   |             |       |   |   |   |   |   |
|                       |   | $                | (1,768,965 | ) |   | $ | 54,811,042 |   |

|                       |   | 2010             |      |
|----------------------------|--------|------------------|-----------|
|                       |   | Net Appreciation |      |   |   |   |
|                       |   | in Fair Value    |      |   | Fair Value at |   |
|                       |   | During Year      |      |   | End 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 |   |

----

|                                  |   | 2011   |      |   | 2010   |   |
|---------------------------------------|--------|--------|-----------|--------|--------|--------|
| Fidelity Contra Fund                  |   | $      | 4,586,086 |   |   | $      | - |   |
| Federated Total Return Bond           |   |   | 4,494,746 |   |   |   | - |   |
| Vanguard Windsor II Fund              |   |   | 4,201,746 |   |   |   |  - |   |
| Federated Capital Preservation Fund   |   |   | 3,454,682 |   |   |   | 3,383,610 |   |
| Goldman Sachs Mid Cap Equity Fund     |   |   | 3,375,764 |   |   |   | 4,018,797 |   |
| Franklin Small Cap Value Fund         |   |   | 3,033,844 |   |   |   | 3,422,814 |   |
| Federated Government Obligations Fund |   |   | 2,996,714 |   |   |   | 4,037,108 |   |
| American Funds Amcap Fund             |   |   | -         |   |   |   | 5,274,854 |   |
| MFS Value Fund                        |   |   | -         |   |   |   | 4,587,146 |   |
| PIMCO Total Return Fund               |   |   | -         |   |   |   | 4,305,599 |   |

| 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 |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   |   |       |   | 2011                          |   |
|----------------------------|--------|--------|------------|--------|-------------------------------|--------|
|                       |   |   |       |   | Fair Value Measurements Using |   |
|                       |   |   |       |   | Quoted                        |   |   | Significant |   |   |   |   |
|                       |   |   |       |   | Prices in Active              |   |   | Other |   |   | Significant |   |
|                       |   |   |       |   | Markets for                   |   |   | Observable |   |   | Unobservable |   |
|                       |   | Fair   |       |   | Identical Assets              |   |   | Inputs |   |   | Inputs |   |
|                       |   | Value  |       |   | (Level 1)                     |   |   | (Level 2) |   |   | (Level 3) |   |
| Common Stock               |   | $      | 1,260,912  |   |                          | $      | 1,260,912 |   |   |   |   |   |   |   |
| Mutual Funds               |   |   |       |   |                          |   |   |   |   |   |   |   |   |   |
| Bonds                      |   |   | 9,014,489  |   |                          |   | 9,014,489 |   |   |   |   |   |   |   |
| Broad Market               |   |   | 28,314     |   |                          |   | 28,314 |   |   |   |   |   |   |   |
| Emerging Market            |   |   | 149,960    |   |                          |   | 149,960 |   |   |   |   |   |   |   |
| International Equities     |   |   | 3,553,416  |   |                          |   | 3,553,416 |   |   |   |   |   |   |   |
| Large Cap Equities         |   |   | 13,273,574 |   |                          |   | 13,273,574 |   |   |   |   |   |   |   |
| Lifecycle Funds            |   |   | 6,998,951  |   |                          |   | 6,998,951 |   |   |   |   |   |   |   |
| Mid-Cap Equities           |   |   | 6,820,506  |   |                          |   | 6,820,506 |   |   |   |   |   |   |   |
| Real Estate                |   |   | 849,046    |   |                          |   | 849,046 |   |   |   |   |   |   |   |
| Small-Cap Equities         |   |   | 5,703,141  |   |                          |   | 5,703,141 |   |   |   |   |   |   |   |   |   |
|                       |   |   | 46,391,397 |   |                          |   | 46,391,397 |   |   |   |   |   |   |   |   |   |
| Money Market Fund          |   |   | 3,704,051  |   |                          |   | 3,704,051 |   |   |   |   |   |   |   |   |   |
| Collective Investment Fund |   |   | 3,454,682  |   |                          |   |   |   |   |   | 3,454,682 |   |   |   |   |   |
|                       |   | $      | 54,811,042 |   |                          | $      | 51,356,360 |   |   | $ | 3,454,682 |   |   | $ | - |   |

----

|                       |   |   |       |   | 2010                          |   |
|----------------------------|--------|--------|------------|--------|-------------------------------|--------|
|                       |   |   |       |   | Fair Value Measurements Using |   |
|                       |   |   |       |   | Quoted                        |   |   | Significant |   |   |   |   |
|                       |   |   |       |   | Prices in Active              |   |   | Other |   |   | Significant |   |
|                       |   |   |       |   | Markets for                   |   |   | Observable |   |   | Unobservable |   |
|                       |   | Fair   |       |   | Identical 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 |   |   | $ | - |   |

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

----

|                       |   | First Merchants |      |
|----------------------------|--------|-----------------|-----------|
|                       |   | Corporation     |      |
|                       |   | Common Stock    |      |
|                       |   |            |      |
| Balance, January 1, 2010   |   | $               | 533,127   |   |
| Changes                    |   |            | 536,966   |   |
|                       |   |            |      |   |
| Balance, December 31, 2010 |   |            | 1,070,093 |   |
| Changes                    |   |            | 190,819   |   |
|                       |   |            |      |   |
| Balance, December 31, 2011 |   | $               | 1,260,912 |   |

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

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

----

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

----

----

|                                     |   | (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             |   |             | 148,868    |    | shares |   | $ | 1,260,912 |   |
|                                     |   |             |       |    |   |   |   |   |   |
| Mutual Funds                             |   |             |       |    |   |   |   |   |   |
| American Century International Bond      |   |             | 36,439     |    | shares |   |   | 520,358 |   |
| American Europacific Growth Fund         |   |             | 32,452     |    | shares |   |   | 1,138,748 |   |
| American High Income Trust Fund          |   |             | 109,456    |    | shares |   |   | 1,166,810 |   |
| Blackrock Small Cap Growth Fund          |   |             | 54,039     |    | shares |   |   | 1,267,778 |   |
| Dodge & Cox International Fund       |   |             | 32,013     |    | shares |   |   | 936,065 |   |
| Federated Intercontinental Fund          |   |             | 687        |    | shares |   |   | 28,314 |   |
| Federated U.S. Government Fund           |   |             | 200,864    |    | shares |   |   | 2,334,043 |   |
| Federated Total Return Bond              |   |             | 398,470    |    | shares |   |   | 4,494,746 |   |
| Fidelity Contra Fund                     |   |             | 67,982     |    | shares |   |   | 4,586,086 |   |
| Fidelity Advisor Mid Cap Fund            |   |             | 4,762      |    | shares |   |   | 77,397 |   |
| Fidelity Diversified International Fund  |   |             | 54,819     |    | shares |   |   | 759,248 |   |
| Franklin Small Cap Value  Fund |   |             | 72,028     |    | shares |   |   | 3,033,844 |   |
| Goldman Sachs Mid Cap Fund               |   |             | 100,558    |    | shares |   |   | 3,375,764 |   |
| Invesco Small Cap Equity Fund            |   |             | 93,885     |    | shares |   |   | 1,194,217 |   |
| MFS International Discovery Fund         |   |             | 37,041     |    | shares |   |   | 719,355 |   |
| Nuveen Mid Cap Index Fund                |   |             | 45,563     |    | shares |   |   | 1,865,843 |   |
| Nuveen Real Estate Fund                  |   |             | 44,757     |    | shares |   |   | 849,046 |   |
| T Rowe Emerging Markets Fund             |   |             | 5,259      |    | shares |   |   | 149,960 |   |
| T Rowe Price Dividend Growth Fund        |   |             | 101,939    |    | shares |   |   | 2,379,266 |   |
| Vanguard 500 Index Fund                  |   |             | 22,022     |    | shares |   |   | 2,106,476 |   |
| Vanguard Inflation Protected Bond        |   |             | 17,991     |    | shares |   |   | 498,533 |   |
| Vanguard Mid Cap Index Fund              |   |             | 53,377     |    | shares |   |   | 1,501,502 |   |
| Vanguard Small Cap Index Fund            |   |             | 6,891      |    | shares |   |   | 207,302 |   |
| Vanguard Target Retirement Fund          |   |             | 10,874     |    | shares |   |   | 125,382 |   |
| Vanguard Target 2015 Fund                |   |             | 60,293     |    | shares |   |   | 741,610 |   |
| Vanguard Target 2025 Fund                |   |             | 103,044    |    | shares |   |   | 1,264,357 |   |
| Vanguard Target 2035 Fund                |   |             | 38,820     |    | shares |   |   | 485,649 |   |
| Vanguard Target 2045 Fund                |   |             | 22,223     |    | shares |   |   | 286,012 |   |
| Vanguard Target 2010 Fund                |   |             | 33,979     |    | shares |   |   | 762,151 |   |
| Vanguard Target 2020 Fund                |   |             | 59,681     |    | shares |   |   | 1,294,482 |   |
| Vanguard Target 2050 Fund                |   |             | 22,363     |    | shares |   |   | 456,434 |   |
| Vanguard Target 2040 Fund                |   |             | 26,205     |    | shares |   |   | 537,214 |   |
| Vanguard Target 2030 Fund                |   |             | 49,983     |    | shares |   |   | 1,045,659 |   |
| Vanguard Windsor II Fund                 |   |             | 91,841     |    | shares |   |   | 4,201,746 |   |
|                                     |   |             |       |    |   |   |   | 46,391,397 |   |
|                                     |   |             |       |    |   |   |   |   |   |
| Collective Investment Fund               |   |             |       |    |   |   |   |   |   |
| Federated Capital Preservation Fund      |   |             | 338,137    |    | units  |   |   | 3,454,682 |   |
|                                     |   |             |       |    |   |   |   |   |   |
| Money Market Funds                       |   |             |       |    |   |   |   |   |   |
| Federated Government Obligation Fund     |   |             | 2,996,714  |    | shares |   |   | 2,996,714 |   |
| Federated U.S. Treasury Cash Fund        |   |             | 707,336    |    | shares |   |   | 707,337 |   |
|                                     |   |             |       |    |   |   |   | 3,704,051 |   |
|                                     |   |             |       |    |   |   |   |   |   |
| *Participant Loans                       |   |             | 4.0% - 6.0 | %       |   |   |   |  1,338,110 |   |
|                                     |   |             |       |    |   |   |   |   |   |
|                                     |   |             |       |    |   |   | $ | 56,149,152 |   |
| *Party-in-interest                       |   |             |       |    |   |   |   |   |   |

----

----