Exhibit 10(13)

                                                               -----------, ----

                  DIRECTOR NON-QUALIFIED STOCK OPTION AGREEMENT

---------------:

     You are hereby granted the option to purchase a total of ________ shares of
the Common Stock,  without par value ("Common  Stock"),  of River Valley Bancorp
("RVB") over the next ten years , on the following terms and conditions:

     1. The purchase  price of the shares of Common Stock subject to this option
is $_____ per share.  You must pay this purchase  price in cash at the time this
option is exercised;  provided,  however that , with the approval of RVB's Stock
Compensation  Committee  (the  "Committee"),  you may  exercise  your  option by
tendering  to RVB  whole  shares  of  RVB's  Common  Stock  owned  by you or any
combination of whole shares of RVB's Common Stock owned by you and cash,  having
a fair market value equal to the cash exercise  price of the shares with respect
to which  the  option is  exercised  by you.  For this  purpose,  any  shares so
tendered  shall be deemed to have a fair market  value equal to the mean between
the  highest  and  lowest  quoted  selling  prices for the shares on the date of
exercise  of the  option  (or if there  were no sales on such date the  weighted
average of the means between the highest and lowest quoted selling prices on the
nearest  date  before and the  nearest  date after the date of  exercise  of the
option),  as  reported  in The Wall  Street  Journal  or a  similar  publication
selected by the Committee. To exercise this option, you must send written notice
to the RVB's  Secretary  at the address  noted in Section 9 hereof.  Such notice
shall  state  the  number  of shares  in  respect  of which the  option is being
exercised,  shall identify the option exercised as a non-qualified stock option,
and shall be signed by the person or  persons so  exercising  the  option.  Such
notice  shall be  accompanied  by payment of the full cash option price for such
shares or, if the  Committee  has  authorized  the use of the stock swap feature
provided for above,  such notice shall be followed as soon as practicable by the
delivery of the option price for such shares.  Certificates evidencing shares of
Common Stock will not be delivered  to you until  payment has been made.  To the
extent  permitted by the  Committee,  you may deliver a notice to your broker to
deliver  the cash to RVB  upon the  receipt  of such  cash  from the sale of RVB
Common Stock.  Contact the Secretary of RVB for further  information  about this
procedure if you are interested in it.

     2. The term of this option (the "Option Term") shall be for a period of ten
years from the date of this letter,  subject to earlier  termination as provided
in paragraphs 3 and 4 hereof. These shares may be purchased at any time, or from
time to time, in whole or in part, until the Option Term expires, but in no case
may fewer than 100 such shares be purchased at any one time,  except to purchase
a residue of fewer than 100 shares.  Notwithstanding  the foregoing or any other
provision herein, the option may not be exercised during the first six months of
the Option term.
<PAGE>

     3. If you cease to be a director  of RVB for any reason  other than  death,
you may  exercise  this option in whole or in part at any time within six months
after the date you  cease to be a  director,  but not  later  than the date upon
which this option would otherwise expire.

     4. If you die while  serving  as a  director  of RVB,  or within six months
after you cease to be a director,  this option may be  exercised  in whole or in
part by your executor, administrator, or estate beneficiaries at any time within
one (1) year after the date of your death but not later than the date upon which
this option would otherwise expire.

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

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

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

     8.  Nothing  in  this  option  shall  restrict  the  right  of  RVB  or its
subsidiaries to terminate your service at any time with or without cause.

     9.  All  notices  by you to RVB and  your  exercise  of the  option  herein
granted,  shall be addressed to River Valley Bancorp, 430 Clifty Drive-P.O.  Box
1590, Madison, Indiana 47250, Attention:  Secretary or such other address as RVB
may, from time to time, specify.

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

                                       Very truly yours,

                                       RIVER VALLEY BANCORP


                                       By:
                                          --------------------------------------
                                          Matthew P. Forrester, President/CEO


Accepted on the date above written


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