| .2  | NON-QUALIFIED STOCK      OPTION AWARD AGREEMENT |
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| 18. | NQSO      Award.  The Company grants to the Option Holder a      Non-Qualified Stock Option (the “NQSO”) to purchase [Number] Shares at an      Exercise Price of $[Number] per      Share. |
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| 19. | Vesting      Dates:  The NQSO shall vest as follows[, subject to      earlier vesting as provided in Section[s] 6 [and 7] and] subject to      forfeiture of the NQSO as provided in Section6: |
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|         | NQSO      for             |
|--------------|---------------------------|
| Vesting Date | Number of Shares  Vesting |

| 20. | Exercise:               The      Option Holder (or other person to whom the NQSO has been validly      transferred) may exercise the NQSO during the Exercise Period by giving      written notice to the Committee, care of the Secretary of the Company, in      the form required by the Committee (“Exercise Notice”).  The      Exercise Notice must specify the number of Shares to be      purchased.  The exercise date is the date the Exercise Notice is      received by the Company.  The Exercise Period commences on the      Vesting Date and expires at 5:00 p.m., Muncie, Indiana time, on the date      ten years after the Grant Date, subject to earlier expiration in the event      of a termination of Service as provided in Section 6.  Any      portion of the NQSO not exercised as of the close of business on the last      day of the Exercise Period shall be cancelled without consideration at      that time. |
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| 21. | Related      Awards: The      NQSO [is      notrelated to      any other Award under the Plan.] or[is related      to a stock appreciation right granted on the Grant Date and designated SAR      No. ___.  To the      extent any portion of the related stock appreciation right is exercised,      the NQSO shall terminate with respect to the same number of      Shares.] |
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| 22. | Transferability.  The      Option Holder may not sell, assign, transfer, pledge or otherwise encumber      any portion of the NQSO, except: (i) in the event of the Option Holder’s      death, by will or by the laws of descent and distribution or pursuant to      the Option Holder’s prior designation of a Beneficiary in accordance with      the Plan to receive any portion of the NQSO that may be exercised after      the Option Holder’s death; or (ii) pursuant to a Qualified Domestic      Relations Order.  In addition, the Committee, in its sole and      absolute discretion, may allow the Option Holder to transfer all or any      portion of the NQSO which is then unexercised to a Family Member of the      Option Holder, as provided in thePlan. |
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| 23. | Termination of      Service.  If the Option Holder terminates Service for any      reason other than on account of the death or Disability of the Option      Holder, any portion of the NQSO that has not vested as of the date of that      termination shall be forfeited to the Company, and the Exercise Period      shall expire [three months] after that termination of Service, except in      the case of a Termination for Cause, when it shall expire      immediately.  If the Option Holder’s Service terminates on      account of the Option Holder’s death or Disability[, the Vesting Date for      all portions of the NQSO that have not vested or been forfeited shall be      accelerated to the date of that termination of Service, and] the Exercise      Period shall expire on the earlier of [one year] after that termination of      Service and the date ten years after the Grant  Date. |
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| 24. | [Effect      of Change in Control.  Upon a Change in Control, the      Vesting Date for any portion of the NQSO that has not vested or been      forfeited shall be accelerated to the date of the earliest event      constituting a Change in Control.] |
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| 25. | Option      Holder’s Rights.  The NQSO awarded hereby does not      entitle the Option Holder to any rights of a stockholder of the      Company. |
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| 26. | Delivery      of Shares to Option Holder.  Promptly after receipt of an      Exercise Notice and full payment of the Exercise Price for the Shares      being acquired, the Company shall take such action as is necessary to      cause the issuance of a stock certificate for such Shares or the issuance      of such Shares in uncertificated form to the Option Holder (or other      person validly exercising the NQSO), registered in the name of the Option      Holder (or such other person), or, upon request, in the name of the Option      Holder (or such other person) and in the name of another person in such      form of joint ownership as requested by the Option Holder (or such other      person) pursuant to applicable state law.  The Company’s      obligation to deliver Shares purchased upon the exercise of the NQSO may      be conditioned upon the receipt of a representation of investment intent      from the Option Holder (or other person validly exercising the NQSO) in      such form as the Committee requires.  The Company shall not be      required to deliver any Shares purchased prior to: (a) the listing of      those Shares on the NASDAQ Stock Market or such other stock exchange or      automated quotation system on which Shares may then be listed or quoted;      or (b) the completion of any registration or qualification of those Shares      required under applicable law. |
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| 27. | Adjustments      in Shares.  In the event of any recapitalization, forward      or reverse stock split, reorganization, merger, consolidation, spin-off,      combination, exchange of Shares or other securities, stock dividend,      special or recurring dividend or distribution (whether in the form of      cash, securities or other property), liquidation, dissolution or other      similar corporate transaction or event, the Committee shall, in such      manner as it may deem equitable in order to prevent dilution or      enlargement of rights, adjust the number of Shares or class of securities      of the Company covered by the NQSO and/or the Exercise Price of the      NQSO.  The Option Holder agrees to execute any documents      required by the Committee in connection with an adjustment under this      Section 10. |
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| 28. | Tax      Withholding.  The Company shall have the right to require      the Option Holder to pay to the Company the amount of any tax that the      Company is required to withhold with respect to the Shares acquired upon      exercise of the NQSO, or in lieu thereof, to retain or sell without      notice, a sufficient number of Shares to cover the minimum amount required      to be withheld. |
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| 29. | Plan      and Committee Decisions are Controlling.  This Agreement,      the award of the NQSO to the Option Holder and the issuance of Shares upon      the exercise of the NQSO are subject in all respects to the provisions of      the Plan, which are controlling.  Capitalized terms herein not      defined in this Agreement shall have the meaning ascribed to them in the      Plan.  All decisions, determinations and interpretations by      Committee respecting the Plan, this Agreement, the award of the NQSO or      the issuance of Shares upon the exercise of the NQSO shall be binding and      conclusive upon the Option Holder, any Beneficiary of the Option Holder or      the legal representative thereof or any other person to whom the NQSO is      transferred as permitted hereby. |
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| 30. | Option      Holder’s Service.  Nothing in this Agreement shall limit      the right of the Company or any of its Affiliates to terminate the Option      Holder’s service or employment as a director, advisory director, officer      or employee, or otherwise impose upon the Company or any of its Affiliates      any obligation to employ or accept the services or employment of the      Option Holder. |
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| 31. | Amendment.  The      Committee may waive any conditions of or rights of the Company or modify      or amend the terms of this Agreement; provided, however, that the      Committee may not amend, alter, suspend, discontinue or terminate any      provision of this Agreement if such action may adversely affect the Option      Holder without the Option Holder’s written consent.  [To the      extent permitted by applicable laws and regulations, the Committee shall      have the authority, in its sole discretion, to accelerate the vesting of      the NQSO or remove any other restrictions imposed on the Option Holder      with respect to the NQSO or the Shares that may be purchased thereunder,      whenever the Committee may determine that such action is appropriate by      reason of any unusual or nonrecurring events affecting the Company, any      Affiliate or their financial statements or any changes in applicable laws,      regulations or accountingprinciples.] |
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| 32. | Option      Holder Acceptance.  The Option Holder shall signify      acceptance of the terms and conditions of this Agreement and acknowledge      receipt of a copy of the Plan by signing in the space provided below and      returning the signed copy to theCompany. |
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|   | MUTUALFIRST FINANCIAL,      INC.  |   |
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