Document:

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                                                                    EXHIBIT 10.8

                                    AGREEMENT

         This Agreement, dated as of October 3, 2002, between Blue River
Bancshares, Inc. (the "Company"), and Randy J. Collier (the "Executive").

RECITALS

         The Executive has recently been employed by the Company as its
Executive Vice President. Because of the Executive's extensive experience and
his familiarity with the affairs of the Company, the Company wishes to assure
that, in the event of a "Change in Control" as hereinafter defined, it will
continue to have the Executive available to perform duties substantially similar
to those currently being performed by him and to continue to contribute to the
Company's growth and success. The Executive is willing to commit to continue in
the performance of his services for the Company upon the terms and conditions
set forth herein.

COVENANTS

         NOW, THEREFORE, in consideration of the mutual promises herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

         1.       EMPLOYMENT.

            (A)   The Company hereby agrees that, effective upon a "Change in
                  Control," (as defined in Section 1(B)) and provided that the
                  Executive is still serving as an executive officer of the
                  Company at that time, it will continue to employ the Executive
                  as an executive officer of the Company to perform the duties
                  described herein, and the Executive hereby accepts such
                  employment on the terms and conditions stated herein. It is
                  understood that prior to such "Change in Control," this
                  Agreement shall confer no rights of employment or other
                  benefits (or obligations) whatsoever upon the Executive, and
                  that the Executive shall remain subject to termination at
                  will.

            (B)   The term "Change in Control" used herein shall mean (i) any
                  merger, consolidation or similar transaction which involves
                  the Company and in which persons who are the shareholders of
                  the Company immediately prior to such transaction own,
                  immediately after such transaction, shares of the surviving or
                  combined entity which possess voting rights equal to or less
                  than fifty percent of the voting rights of all shareholders of
                  such entity, determined on a fully diluted basis; (ii) any
                  sale, lease, exchange, transfer or other disposition of all or
                  any substantial part of the assets of the Company; (iii) any
                  tender, exchange, sale or other disposition (other than
                  dispositions of the stock of the Company in connection with
                  bankruptcy, insolvency, foreclosure, receivership or other
                  similar transactions) or purchases (other than purchases by
                  the Company or any company-sponsored employee benefit plan, or
                  purchases by members of the Board of Directors of the Company)
                  of more than twenty-five percent of the common stock of the
                  Company; (iv) during any period of two consecutive years while
                  the Executive is employed by the Company, individuals who at
                  the date hereof constitute the Board of Directors cease for
                  any reason to constitute at least a majority thereof, unless
                  the election of each director at the beginning of such period
                  has been approved by directors representing at least a
                  majority of the directors then in office who were directors on
                  the date here above. Notwithstanding the foregoing, a Change
                  in Control shall not occur as a result of the issuance of
                  stock by the Company or the Bank in connection with any

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                  private placement offering of its stock or any public offering
                  of its stock.

         2. TERM OF EMPLOYMENT. Subject to provisions for termination set forth
herein, the term of the Executive's employment hereunder (the "Term") shall
commence on the date of a Change in Control and shall extend until three (3)
years after the date of such Change in Control. The Term shall be renewed at the
end of the initial Term and each extension thereof for an additional one (1)
year if the Company's Board of Directors determines by resolution to extend this
Agreement prior to such anniversary.

         3. DUTIES OF EXECUTIVE. The Executive shall be an executive officer of
the Company and shall perform such duties and responsibilities for the Company
as may be assigned to him by the Company. During the Term, the Executive shall
devote substantially all of his business time, attention and energy, and his
reasonable best efforts, to the interests and business of the Company and to the
performance of his duties and responsibilities on behalf of the Company.

         4. COMPENSATION. Throughout the Term, the Company shall pay the
Executive, for services to be rendered by him hereunder, a guaranteed minimum
salary at an annual rate of Twelve Thousand Seven Hundred Fifty and No/100
Dollars ($12,750.00), less all applicable federal and state income tax
withholding, FICA taxes and other payroll taxes. The guaranteed minimum salary
shall be reviewed by the Board of Directors of the Company on a yearly basis to
ascertain if any adjustment in the annual rate is in order, and if any change is
made, the new annual rate shall become the guaranteed minimum salary under this
Section 4. Such compensation shall be payable bi-weekly.

         5. VACATION. During the period of the Executive's employment hereunder,
the Executive shall be entitled to the number of paid vacation days in each
calendar year, determined by the Company from time to time for its senior
executive officers, but not less than that number of weeks of vacation each year
to which the Executive is currently entitled. The Executive shall also be
entitled to all paid holidays given by the Company to its executive officers.

         6. OTHER BENEFITS. During the Term, the Company shall make available to
the Executive such other benefits as it makes available generally to executive
officers of the Company.

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         7. EXPENSES. The Company shall pay or reimburse the Executive for all
reasonable expenses actually incurred or paid by him in the performance of
services rendered by him pursuant to this Agreement. Such expenses shall be
supported by the documentary evidence required to substantiate them as income
tax deductions.

         8.       COVENANT RESTRICTING COMPETITION; NONDISCLOSURE OF
CONFIDENTIAL INFORMATION.

         (A)      For a period of one (1) year after termination of the
                  Executive's employment or the expiration of the Term, the
                  Executive shall not divulge or furnish any trade secrets (as
                  defined in IND. CODE Section 24-2-3-2) of the Company or any
                  confidential information acquired by him while employed by the
                  Company concerning the policies, plans, procedures or
                  customers of the Company to any person, firm or corporation,
                  other than the Company or upon its written request, or use any
                  such trade secret or confidential information directly or
                  indirectly for the Executive's own benefit or for the benefit
                  of any person, firm or corporation other than the Company,
                  since such trade secrets and confidential information are
                  confidential and shall at all times remain the property of the
                  Company.

         (B)      For a period of one (1) year after termination of the
                  Executive's employment or expiration of the Term, the
                  Executive shall not directly or indirectly provide banking or
                  bank-related services to or solicit the banking or
                  bank-related business of any customer of the Company at the
                  time of such provision of services or solicitation which the
                  Executive served either alone or with others while employed by
                  the Company in any city, town, borough, township, village or
                  other place in which the Executive performed services for the
                  Company while employed by it, or assist any actual or
                  potential competitor of the Company to provide banking or
                  bank-related services to or solicit any such customer's
                  banking or bank-related business in any such place.

         (C)      For a period of one (1) year after termination of the
                  Executive's employment or expiration of the Term, the
                  Executive shall not, directly or indirectly, as principal,
                  agent, or trustee, or through the agency of any corporation,
                  partnership, trade association, agent or agency, engage in any
                  banking or bank-related business or venture which competes
                  with the business of the Company as conducted during the
                  Executive's employment by the Company within a radius of fifty
                  (50) miles of the Company's main office or its branch offices.

         (D)      Upon the Executive's termination of employment, the Executive
                  will immediately turn over to the Company all business
                  correspondence, letters, papers, reports, customers' lists,
                  financial statements, credit reports or other confidential
                  information or documents of the Company or its affiliates in
                  the possession or control of the Executive, all of which
                  writings are and will continue to be the sole and exclusive
                  property of the Company or its affiliates.

         (E)      In the event of a breach of the covenants contained in this
                  Section 8, the Company shall be entitled to an injunction
                  restraining such breach in addition to any other remedies
                  provided by law.

         (F)      If any provision of this Section 8 is adjudged by a court to
                  be invalid or unenforceable, the same will in no way affect
                  any other provision of this Section 8 or any other part of

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                  this Agreement, the application of such provision in any other
                  circumstances or the validity or enforceability of this
                  Agreement. If any such provision, or any part thereof, is held
                  to be unenforceable because of the duration of such provision
                  or the area covered thereby, the parties agree that the court
                  making such determination will have the power to reduce the
                  duration and/or area of such provision, and/or to delete
                  specific words or phrases, and in its reduced form such
                  provision will then be enforceable and will be enforced.

         9. TERMINATION BY THE COMPANY. Subject to the respective continuing
obligations of the parties, including but no limited to those set forth in
subsections 8(A) through (F) hereof, the Executives employment by the Company
may be terminated prior to the expiration of the Term of this Agreement as
follows:

         (A)           The Company, by action of its Board of Directors and upon
                   written notice to the Executive, may terminate the
                   Executive's employment with the Company immediately for
                   cause. For purposes of this subsection 9(A), "cause" shall be
                   defined as (i) personal dishonesty, (ii) incompetence, (iii)
                   willful misconduct, (iv) breach of fiduciary duty involving
                   personal profit, (v) intentional failure to perform stated
                   duties, (vi) willful violation of any law, rule, or
                   regulation (other than traffic violations or similar
                   offenses) or final cease-and-desist order, (vii) any material
                   breach of any term, condition or covenant of this Agreement,
                   or (viii) termination of the employment of the Executive with
                   Shelby County Bank for cause, as that term is defined in that
                   certain change of control agreement entered into by and
                   between the Executive and Shelby County Bank.

         (B)       The Company, by action of its Board of Directors, may
                   terminate the Executive's employment with the Company without
                   cause at any time; provided, however, that the "Date of
                   Termination" for purposes of determining benefits payable to
                   the Executive under subsection 9(B) hereof shall be the date
                   which is 30 days after the Executive receives written notice
                   of such termination.

         (C)       The Executive, by written notice to the Company, may
                   terminate his employment with the Company immediately for
                   cause provided, however, that the Company shall have thirty
                   (30) days, after the giving of written notice to the Company
                   by the Executive of the Executive's intention to terminate
                   this Agreement for cause which notice shall indicate the
                   specific provision of this Agreement which will be relied
                   upon and shall set forth in reasonable detail the facts and
                   circumstances claimed to provide a basis for such
                   termination, to cure the facts and circumstances relied upon
                   for establishing cause. For purposes of this subsection 9(C),
                   "cause" shall be defined as (i) any action by the Company to
                   remove the Executive as Executive Vice President and Chief
                   Credit Officer of the Company, except where the Company's
                   Board of Directors properly acts to remove the Executive from
                   such office for "cause" as defined in subsection 9(A) hereof,
                   (ii) any action by the Company's Board of Directors to
                   materially limit, increase, or modify the Executive's duties
                   and/or authority as Executive Vice President and Chief Credit
                   Officer of the Company (including his authority, subject to
                   corporate controls no more restrictive than those in effect
                   on the date hereof), (iii) any failure of the Company to
                   obtain the assumption of the obligation to perform this
                   Agreement by any successor, as contemplated in Section 18
                   hereof; or (iv) any intentional breach by the Company of a
                   term, condition

         (D)       The Executive, upon sixty (60) days written notice to the
                   Company, may terminate his

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                   employment with the Company without cause.

         (E)       The Executive's employment with the Company shall terminate
                   in the event of the Executive's death or disability. For
                   purposes hereof, "disability" shall be defined as the
                   Executive's inability by reason of illness or other physical
                   or mental incapacity to perform the duties required by his
                   employment for any consecutive One Hundred Eighty (180) day
                   period, provided that notice of any termination by the
                   Company because of the Executive's "disability" shall have
                   been given to the Executive prior to the full resumption by
                   him of the performance of such duties.

10. COMPENSATION UPON TERMINATION. In the event of termination of the
Executive's employment with the Company pursuant to Section 9 hereof,
compensation shall continue to be paid by the Company to the Executive as
follows:

         (A)      In the event of termination pursuant to subsection 9(A) or
                  9(D), compensation provided for herein (including Base
                  Compensation) shall continue to be paid, and the Executive
                  shall continue to participate in the employee benefit,
                  retirement, and compensation plans and other perquisites as
                  provided in Sections 5 and 6 hereof, through the date of
                  termination specified in the notice of termination. Any
                  benefits payable under insurance, health, retirement and bonus
                  plans as a result of the Executive's participation in such
                  plans through such date shall be paid when due under those
                  plans. The date of termination specified in any notice of
                  termination pursuant to subsection 9(A) shall be no later than
                  the last business day of the month in which such notice is
                  provided to the Executive.

         (B)      In the event of termination pursuant to subsection 9(B) or
                  9(C), compensation provided for herein (including Base
                  Compensation) shall continue to be paid, and the Executive
                  shall continue to participate in the employee benefit,
                  retirement, and compensation plans and other perquisites as
                  provided in Sections 5 and 6 hereof, through the date of
                  termination specified in the notice of termination. Any
                  benefits payable under insurance, health, retirement and bonus
                  plans as a result of the Executive's participation in such
                  plans through such date shall be paid when due under those
                  plans. In addition, the Executive shall be entitled to
                  continue to receive from the Company at his Base Compensation
                  at the rates in effect at the time of termination for the
                  remaining Term of the Agreement. In addition, during such
                  periods, the Company will maintain in full force and effect
                  for the continued benefit of the Executive each employee
                  welfare benefit plan (as such term is defined in the Employee
                  Retirement Income Security Act of 1974, as amended) in which
                  the Executive was entitled to participate immediately prior to
                  the date of his termination, unless an essentially equivalent
                  and no less favorable benefit is provided by a subsequent
                  employer of the Executive. If the terms of any employee
                  welfare benefit plan of the Company do not permit continued
                  participation by the Executive, the Company will arrange to
                  provide to the Executive a benefit substantially similar to,
                  and no less favorable than, the benefit he was entitled to
                  receive under such plan at the end of the period of coverage.

         (C)      In the event of termination pursuant to subsection 9(E),
                  compensation provided for herein (including Base Compensation)
                  shall continue to be paid, and the Executive shall continue to
                  participate in the employee benefit, retirement, and
                  compensation plans and other perquisites as provided in
                  Sections 5 and 6 hereof, (i) in the event of the Executive's
                  death, through the date of death, or (ii) in the event of the
                  Executive's disability, through the date of proper notice of
                  disability as required by subsection 7(E).

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                  Any benefits payable under insurance, health, retirement and
                  bonus plans as a result of the Executive's participation in
                  such plans through such date shall be paid when due under
                  those plans.

11. SUSPENSION. If Executive is suspended and/or temporarily prohibited from
participating in the conduct of Company's or any affiliates' affairs by a notice
served under section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12
U.S.C. Section 1818(e)(3) and (g)(1)), Employer's obligations under this
Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Company
shall (i) pay Executive all of the compensation withheld while its obligations
under this Agreement were suspended and (ii) reinstate (in whole or in part) any
of its obligations which were suspended.

12. REMOVAL. If the Executive is removed and/or permanently prohibited from
participating in the conduct of the Company's or any affiliates' affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1818(e)(4) or (g)(1)), all obligations of the Company
under this Agreement shall terminate as of the effective date of the order, but
vested rights of the parties to the Agreement shall not be affected.

         13. ASSIGNMENT. This Agreement is binding upon and shall be for the
benefit of the successors and assigns of the Company, including any corporation
or any other form of business organization with which the Company may merge or
consolidate, or to which it may transfer substantially all of its assets. The
Executive shall not assign his interest in this Agreement or any part thereof.

         14. CONSENT OF THE COMPANY. Any act, request, approval, consent or
opinion of the Company under this Agreement, must be in writing and may be
authorized, given or expressed only by resolution of the board of directors of
the Company, or by such other person as the board of directors of the Company
may designate.

         15.      NOTICES. Any notice required hereunder to be given shall be in
                  writing and if:

         (A)      by the Company to the Executive shall be directed to him at
                  his address set forth below, or to such other address as he
                  shall have furnished in writing to the Company; or

         (B)      by the Executive to the Company shall be directed to the
                  Shelby County Bank, 29 East Washington Street, Shelbyville,
                  Indiana 46176, Attn: President, or to such designee or other
                  address as the Company shall name and have furnished in
                  writing to the Executive.

         16. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana applicable to contracts made
and to be performed therein.

         17. ENFORCEMENT EXPENSES. The Company agrees to reimburse the Executive
for all costs and expenses incurred by him (including the reasonable fees of his
counsel) in successfully enforcing any of his rights under this Agreement or any
claim arising out of the breach thereof. Provided, however, that reimbursement
will not be made to the Executive in the absence of a legal judgment or
settlement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

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                                     BLUE RIVER BANCSHARES, INC.

                                     /s/ Steven R. Abel
                                     -------------------------------------------

                                     EXECUTIVE

                                     /s/ Randy J. Collier
                                     -------------------------------------------

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                                    AGREEMENT

         This Agreement, dated as of October 3, 2002, between Shelby County Bank
(the "Company"), and Randy J. Collier (the "Executive").

RECITALS

         The Executive has recently been employed by the Company as its Chief
Credit Officer. Because of the Executive's extensive experience and his
familiarity with the affairs of the Company, the Company wishes to assure that,
in the event of a "Change in Control" as hereinafter defined, it will continue
to have the Executive available to perform duties substantially similar to those
currently being performed by him and to continue to contribute to the Company's
growth and success. The Executive is willing to commit to continue in the
performance of his services for the Company upon the terms and conditions set
forth herein.

COVENANTS

         NOW, THEREFORE, in consideration of the mutual promises herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

         1.    EMPLOYMENT.

            (A)   The Company hereby agrees that, effective upon a "Change in
                  Control," (as defined in Section 1(B)) and provided that the
                  Executive is still serving as an executive officer of the
                  Company at that time, it will continue to employ the Executive
                  as an executive officer of the Company to perform the duties
                  described herein, and the Executive hereby accepts such
                  employment on the terms and conditions stated herein. It is
                  understood that prior to such "Change in Control," this
                  Agreement shall confer no rights of employment or other
                  benefits (or obligations) whatsoever upon the Executive, and
                  that the Executive shall remain subject to termination at
                  will.

            (B)   The term "Change in Control" used herein shall mean (i) any
                  merger, consolidation or similar transaction which involves
                  the Company and in which persons who are the shareholders of
                  the Company immediately prior to such transaction own,
                  immediately after such transaction, shares of the surviving or
                  combined entity which possess voting rights equal to or less
                  than fifty percent of the voting rights of all shareholders of
                  such entity, determined on a fully diluted basis; (ii) any
                  sale, lease, exchange, transfer or other disposition of all or
                  any substantial part of the assets of the Company; (iii) any
                  tender, exchange, sale or other disposition (other than
                  dispositions of the stock of the Company in connection with
                  bankruptcy, insolvency, foreclosure, receivership or other
                  similar transactions) or purchases (other than purchases by
                  the Company or any company-sponsored employee benefit plan, or
                  purchases by members of the Board of Directors of the Company)
                  of more than twenty-five percent of the common stock of the
                  Company; (iv) during any period of two consecutive years while
                  the Executive is employed by the Company, individuals who at
                  the date hereof constitute the Board of Directors cease for
                  any reason to constitute at least a majority thereof, unless
                  the election of each director at the beginning of such period

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                  has been approved by directors representing at least a
                  majority of the directors then in office who were directors on
                  the date here above. Notwithstanding the foregoing, a Change
                  in Control shall not occur as a result of the issuance of
                  stock by the Company or the Bank in connection with any
                  private placement offering of its stock or any public offering
                  of its stock.

         2. TERM OF EMPLOYMENT. Subject to provisions for termination set forth
herein, the term of the Executive's employment hereunder (the "Term") shall
commence on the date of a Change in Control and shall extend until three (3)
years after the date of such Change in Control. The Term shall be renewed at the
end of the initial Term and each extension thereof for an additional one (1)
year if the Company's Board of Directors determines by resolution to extend this
Agreement prior to such anniversary.

         3. DUTIES OF EXECUTIVE. The Executive shall be an executive officer of
the Company and shall perform such duties and responsibilities for the Company
as may be assigned to him by the Company. During the Term, the Executive shall
devote substantially all of his business time, attention and energy, and his
reasonable best efforts, to the interests and business of the Company and to the
performance of his duties and responsibilities on behalf of the Company.

         4. COMPENSATION. Throughout the Term, the Company shall pay the
Executive, for services to be rendered by him hereunder, a guaranteed minimum
salary at an annual rate of One Hundred Fourteen Thousand Seven Hundred Fifty
and No/100 Dollars ($114,750.00), less all applicable federal and state income
tax withholding, FICA taxes and other payroll taxes. The guaranteed minimum
salary shall be reviewed by the Board of Directors of the Company on a yearly
basis to ascertain if any adjustment in the annual rate is in order, and if any
change is made, the new annual rate shall become the guaranteed minimum salary
under this Section 4. Such compensation shall be payable bi-weekly. Provided,
however, that any payments made to the Executive pursuant to this Agreement, or
otherwise, are subject to and conditioned upon their compliance with 12 USC
Section 1828 (k) and FDIC regulation 12 CFR 359, Golden Parachute and
Indemnification Payments.

         5. VACATION. During the period of the Executive's employment hereunder,
the Executive shall be entitled to the number of paid vacation days in each
calendar year, determined by the Company from time to time for its senior
executive officers, but not less than that number of weeks of vacation each year
to which the Executive is currently entitled. The Executive shall also be
entitled to all paid holidays given by the Company to its executive officers.

         6. OTHER BENEFITS. During the Term, the Company shall make available to
the Executive such other benefits as it makes available generally to executive
officers of the Company.

         7. EXPENSES. The Company shall pay or reimburse the Executive for all
reasonable expenses actually incurred or paid by him in the performance of
services rendered by him pursuant to this Agreement. Such expenses shall be
supported by the documentary evidence required to substantiate them as income
tax deductions.

         8. COVENANT RESTRICTING COMPETITION; NONDISCLOSURE OF CONFIDENTIAL
INFORMATION.

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         (A)      For a period of one (1) year after termination of the
                  Executive's employment or the expiration of the Term, the
                  Executive shall not divulge or furnish any trade secrets (as
                  defined in IND. CODE Section 24-2-3-2) of the Company or any
                  confidential information acquired by him while employed by the
                  Company concerning the policies, plans, procedures or
                  customers of the Company to any person, firm or corporation,
                  other than the Company or upon its written request, or use any
                  such trade secret or confidential information directly or
                  indirectly for the Executive's own benefit or for the benefit
                  of any person, firm or corporation other than the Company,
                  since such trade secrets and confidential information are
                  confidential and shall at all times remain the property of the
                  Company.

         (B)      For a period of one (1) year after termination of the
                  Executive's employment or expiration of the Term, the
                  Executive shall not directly or indirectly provide banking or
                  bank-related services to or solicit the banking or
                  bank-related business of any customer of the Company at the
                  time of such provision of services or solicitation which the
                  Executive served either alone or with others while employed by
                  the Company in any city, town, borough, township, village or
                  other place in which the Executive performed services for the
                  Company while employed by it, or assist any actual or
                  potential competitor of the Company to provide banking or
                  bank-related services to or solicit any such customer's
                  banking or bank-related business in any such place.

         (C)      For a period of one (1) year after termination of the
                  Executive's employment or expiration of the Term, the
                  Executive shall not, directly or indirectly, as principal,
                  agent, or trustee, or through the agency of any corporation,
                  partnership, trade association, agent or agency, engage in any
                  banking or bank-related business or venture which competes
                  with the business of the Company as conducted during the
                  Executive's employment by the Company within a radius of fifty
                  (50) miles of the Company's main office or its branch offices.

         (D)      Upon the Executive's termination of employment, the Executive
                  will immediately turn over to the Company all business
                  correspondence, letters, papers, reports, customers' lists,
                  financial statements, credit reports or other confidential
                  information or documents of the Company or its affiliates in
                  the possession or control of the Executive, all of which
                  writings are and will continue to be the sole and exclusive
                  property of the Company or its affiliates.

         (E)      In the event of a breach of the covenants contained in this
                  Section 8, the Company shall be entitled to an injunction
                  restraining such breach in addition to any other remedies
                  provided by law.

         (F)      If any provision of this Section 8 is adjudged by a court to
                  be invalid or unenforceable, the same will in no way affect
                  any other provision of this Section 8 or any other part of
                  this Agreement, the application of such provision in any other
                  circumstances or the validity or enforceability of this
                  Agreement. If any such provision, or any part thereof, is held
                  to be unenforceable because of the duration of such provision
                  or the area covered thereby, the parties agree that the court
                  making such determination will have the power to reduce the
                  duration and/or area of such provision, and/or to delete
                  specific words or phrases, and in its reduced form such
                  provision will then be enforceable and will be enforced.

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         9. TERMINATION BY THE COMPANY. Subject to the respective continuing
obligations of the parties, including but no limited to those set forth in
subsections 8(A) through (F) hereof, the Executives employment by the Company
may be terminated prior to the expiration of the Term of this Agreement as
follows:

         (A)      The Company, by action of its Board of Directors and upon
                  written notice to the Executive, may terminate the Executive's
                  employment with the Company immediately for cause. For
                  purposes of this subsection 9(A), "cause" shall be defined as
                  (i) personal dishonesty, (ii) incompetence, (iii) willful
                  misconduct, (iv) breach of fiduciary duty involving personal
                  profit, (v) intentional failure to perform stated duties, (vi)
                  willful violation of any law, rule, or regulation (other than
                  traffic violations or similar offenses) or final
                  cease-and-desist order, (vii) any material breach of any term,
                  condition or covenant of this Agreement, or (viii) termination
                  of the employment of the Executive with Blue River Bancshares
                  for cause, as that term is defined in that certain change of
                  control agreement entered into by and between the Executive
                  and Blue River Bancshares, Inc.

         (B)      The Company, by action of its Board of Directors, may
                  terminate the Executive's employment with the Company without
                  cause at any time; provided, however, that the "Date of
                  Termination" for purposes of determining benefits payable to
                  the Executive under subsection 9(B) hereof shall be the date
                  which is 30 days after the Executive receives written notice
                  of such termination.

         (C)      The Executive, by written notice to the Company, may terminate
                  his employment with the Company immediately for cause
                  provided, however, that the Company shall have thirty (30)
                  days, after the giving of written notice to the Company by the
                  Executive of the Executive's intention to terminate this
                  Agreement for cause which notice shall indicate the specific
                  provision of this Agreement which will be relied upon and
                  shall set forth in reasonable detail the facts and
                  circumstances claimed to provide a basis for such termination,
                  to cure the facts and circumstances relied upon for
                  establishing cause. For purposes of this subsection 9(C),
                  "cause" shall be defined as (i) any action by the Company to
                  remove the Executive as Executive Vice President and Chief
                  Credit Officer of the Company, except where the Company's
                  Board of Directors properly acts to remove the Executive from
                  such office for "cause" as defined in subsection 9(A) hereof,
                  (ii) any action by the Company's Board of Directors to
                  materially limit, increase, or modify the Executive's duties
                  and/or authority as Executive Vice President and Chief Credit
                  Officer of the Company (including his authority, subject to
                  corporate controls no more restrictive than those in effect on
                  the date hereof), (iii) any failure of the Company to obtain
                  the assumption of the obligation to perform this Agreement by
                  any successor, as contemplated in Section 18 hereof; or (iv)
                  any intentional breach by the Company of a term, condition

         (D)      The Executive, upon sixty (60) days written notice to the
                  Company, may terminate his employment with the Company without
                  cause.

         (E)      The Executive's employment with the Company shall terminate in
                  the event of the Executive's death or disability. For purposes
                  hereof, "disability" shall be defined as the Executive's
                  inability by reason of illness or other physical or mental
                  incapacity to perform the duties required by his employment
                  for any

                                      103
<PAGE>

                  consecutive One Hundred Eighty (180) day period, provided that
                  notice of any termination by the Company because of the
                  Executive's "disability" shall have been given to the
                  Executive prior to the full resumption by him of the
                  performance of such duties.

10. COMPENSATION UPON TERMINATION. In the event of termination of the
Executive's employment with the Company pursuant to Section 9 hereof,
compensation shall continue to be paid by the Company to the Executive as
follows:

         (A)      In the event of termination pursuant to subsection 9(A) or
                  9(D), compensation provided for herein (including Base
                  Compensation) shall continue to be paid, and the Executive
                  shall continue to participate in the employee benefit,
                  retirement, and compensation plans and other perquisites as
                  provided in Sections 5 and 6 hereof, through the date of
                  termination specified in the notice of termination. Any
                  benefits payable under insurance, health, retirement and bonus
                  plans as a result of the Executive's participation in such
                  plans through such date shall be paid when due under those
                  plans. The date of termination specified in any notice of
                  termination pursuant to subsection 9(A) shall be no later than
                  the last business day of the month in which such notice is
                  provided to the Executive.

         (B)      In the event of termination pursuant to subsection 9(B) or
                  9(C), compensation provided for herein (including Base
                  Compensation) shall continue to be paid, and the Executive
                  shall continue to participate in the employee benefit,
                  retirement, and compensation plans and other perquisites as
                  provided in Sections 5 and 6 hereof, through the date of
                  termination specified in the notice of termination. Any
                  benefits payable under insurance, health, retirement and bonus
                  plans as a result of the Executive's participation in such
                  plans through such date shall be paid when due under those
                  plans. In addition, the Executive shall be entitled to
                  continue to receive from the Company at his Base Compensation
                  at the rates in effect at the time of termination for the
                  remaining Term of the Agreement. In addition, during such
                  periods, the Company will maintain in full force and effect
                  for the continued benefit of the Executive each employee
                  welfare benefit plan (as such term is defined in the Employee
                  Retirement Income Security Act of 1974, as amended) in which
                  the Executive was entitled to participate immediately prior to
                  the date of his termination, unless an essentially equivalent
                  and no less favorable benefit is provided by a subsequent
                  employer of the Executive. If the terms of any employee
                  welfare benefit plan of the Company do not permit continued
                  participation by the Executive, the Company will arrange to
                  provide to the Executive a benefit substantially similar to,
                  and no less favorable than, the benefit he was entitled to
                  receive under such plan at the end of the period of coverage.

         (C)      In the event of termination pursuant to subsection 9(E),
                  compensation provided for herein (including Base Compensation)
                  shall continue to be paid, and the Executive shall continue to
                  participate in the employee benefit, retirement, and
                  compensation plans and other perquisites as provided in
                  Sections 5 and 6 hereof, (i) in the event of the Executive's
                  death, through the date of death, or (ii) in the event of the
                  Executive's disability, through the date of proper notice of
                  disability as required by subsection 7(E). Any benefits
                  payable under insurance, health, retirement and bonus plans as
                  a result of the Executive's participation in such plans
                  through such date shall be paid when due under those plans.

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<PAGE>

11. SUSPENSION. If Executive is suspended and/or temporarily prohibited from
participating in the conduct of Company's or any affiliates' affairs by a notice
served under section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12
U.S.C. Section 1818(e)(3) and (g)(1)), Employer's obligations under this
Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Company
shall (i) pay Executive all of the compensation withheld while its obligations
under this Agreement were suspended and (ii) reinstate (in whole or in part) any
of its obligations which were suspended.
12. REMOVAL. If the Executive is removed and/or permanently prohibited from
participating in the conduct of the Company's or any affiliates' affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1818(e)(4) or (g)(1)), all obligations of the Company
under this Agreement shall terminate as of the effective date of the order, but
vested rights of the parties to the Agreement shall not be affected.

13. DEFAULT. If the Company is in default (as defined in section 3(x)(1) of the
Federal Deposit Insurance Act), all obligations under this Agreement shall
terminate as of the date of default, but this provision shall not affect any
vested rights of the Company or the Executive.

14.      CONTINUED OBLIGATIONS. All obligations under this Agreement may be
terminated, except to the extent determined that the continuation of the
Agreement is necessary for the continued operation of the Company

         (A)     By the Director or his designee, at the time the Federal
                 Deposit Insurance Corporation or Resolution Trust Corporation
                 enters into an agreement to provide assistance to or on behalf
                 of the Company under authority contained in 13(c) of the
                 Federal Deposit Insurance Act; or

         (B)     By the Director or his designee, at the time the Director or
                 his designee approves a supervisory merger to resolve problems
                 related to the operation of the Company or when the Company is
                 determined by the Director to be in an unsafe or unsound
                 condition. Any rights of the Company or the Executive that have
                 already vested, however, shall not be affected by such action.

         15. ASSIGNMENT. This Agreement is binding upon and shall be for the
benefit of the successors and assigns of the Company, including any corporation
or any other form of business organization with which the Company may merge or
consolidate, or to which it may transfer substantially all of its assets. The
Executive shall not assign his interest in this Agreement or any part thereof.

         16. CONSENT OF THE COMPANY. Any act, request, approval, consent or
opinion of the Company under this Agreement, must be in writing and may be
authorized, given or expressed only by resolution of the board of directors of
the Company, or by such other person as the board of directors of the Company
may designate.

         17. NOTICES. Any notice required hereunder to be given shall be in
writing and if:

         (A)      by the Company to the Executive shall be directed to him at
                  his address set forth below, or to such other address as he
                  shall have furnished in writing to the Company; or

                                      105
<PAGE>

         (B)      by the Executive to the Company shall be directed to the
                  Shelby County Bank, 29 East Washington Street, Shelbyville,
                  Indiana 46176, Attn: President, or to such designee or other
                  address as the Company shall name and have furnished in
                  writing to the Executive.

         18. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana applicable to contracts made
and to be performed therein.

         19. ENFORCEMENT EXPENSES. The Company agrees to reimburse the Executive
for all costs and expenses incurred by him (including the reasonable fees of his
counsel) in successfully enforcing any of his rights under this Agreement or any
claim arising out of the breach thereof. Provided, however, that reimbursement
will not be made to the Executive in the absence of a legal judgment or
settlement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                                     SHELBY COUNTY BANK

                                                     /s/ Larry T. Toombs
                                                     ---------------------------

                                                     EXECUTIVE

                                                     /s/ Randy J. Collier
                                                     ---------------------------

                                      106<PAGE>

                                                                    EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), entered into and effective
as of August 2, 2002, by and between Blue River Bancshares, Inc. (the "Employer"
or "Blue River" as the context requires), an Indiana corporation and Lawrence T.
Toombs ("Employee"), a resident of Johnson County, Indiana.

                                   WITNESSETH

         WHEREAS, Employer desires to encourage Employee to make valuable
contributions to Employer's business operations and not to seek or accept
employment elsewhere;

         WHEREAS, Employee desires to be assured of a secure minimum
compensation from Employer for his services over a defined term;

         WHEREAS, Employer desires to provide fair and reasonable benefits to
Employee on the terms and subject to the conditions set forth in this Agreement;
and

         WHEREAS, Employer desires reasonable protection of its confidential
business and customer information which it will develop over the years at
substantial expense and assurance that Employee will not compete with Employer
for a reasonable period of time after termination of his employment with
Employer, except as otherwise provided herein.

         NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants and undertakings herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Employer and Employee, each intending to be legally bound, covenant and agree as
follows:

         1. Upon the terms and subject to the conditions set forth in this
Agreement, Employer employs Employee as President of Blue River, and Employee
accepts such employment.

         2. Employee agrees to serve as the President of Blue River and to
perform such duties in that office as may reasonably be assigned to him by
Employer's Board of Directors, provided, however, that such duties shall be
performed in or from the principal executive offices of Employer, currently
located in Shelbyville, Indiana, and shall be of the character as those
generally associated with the office of President and or Chief Executive Office,
as the case may be. Employee shall not be required to be absent from the
location of the principal executive offices of employer on travel status or
otherwise more than 45 days in any calendar year. While employed by Employer,
Employee shall devote that amount of his business time and efforts as are
reasonably determined by the Employer to be necessary and appropriate to
Employer's business and shall not engage in any other related business. Employee
may, however, use his discretion in fixing his hours and schedule of work
consistent with the proper discharge of his duties.

         3. The term of this Agreement shall begin on August 2, 2002 (the
"Effective Date") and shall end on the date which is three years following such
date.

<PAGE>

         4. Employee shall receive a minimum annual salary in an amount equal to
$32,500.00 ("Base Compensation") payable at regular intervals in accordance with
Employer's normal payroll practices in effect from time to time.

In connection with its annual review of the performance of the Employee, the
Board of Directors of the Employer shall ascertain if any adjustment to the
minimum annual salary of the Employee is necessary. Any and all adjustments to
the Employee's salary pursuant to this section shall cause the level of Base
Compensation to be adjusted by an equal amount for purposes of this Agreement.
The adjusted level of Base Compensation as provided in this section shall become
the level of Base Compensation for the remainder of the Term of this Agreement
until there is a further adjustment to Base Compensation as provided herein. If
applicable, Employee shall not receive director's fees for his services as a
director of Employer or any of the Employer's subsidiaries, and any committees
of the Boards of Directors.

         5. During the term of this Agreement, Employee shall be entitled to
participate in or receive benefits under (i) any life, health, hospitalization,
medical, dental, disability or other insurance policy or plan, (ii) pension,
retirement or employee stock ownership plan, (iii) bonus or profit-sharing plan
or program, (iv) deferred compensation plan or arrangement, and (v) any other
employee benefit plan, program or arrangement, made available by Employer on the
date of this Agreement and from time to time in the future to Employer's
directors, officers and employees on a basis consistent with the terms,
conditions and overall administration of the foregoing plans, programs or
arrangements and with respect to which Employee is otherwise eligible to
participate or receive benefits.

         6.(A) So long as Employee is employed by Employer pursuant to this
Agreement, Employee shall receive reimbursement from Employer for all reasonable
business expenses incurred in the course of his employment by Employer, upon
submission to Employer of written vouchers and statements for reimbursement.
Employee shall attend, at the Board of Directors' discretion, those professional
meetings, conventions, and/or similar functions that the Board of Directors
deems appropriate and useful for purposes of keeping abreast of current
developments in the industry and/or promoting the interests of Employer.

         (B) So long as Employee is employed by Employer pursuant to this
Agreement, Employee shall be entitled to office space and working conditions
consistent with his position as President and/or Chief Executive Officer, as the
case may be. During the term of this Agreement and the Shelby County Employment
Agreement (as defined herein), Employee shall be entitled to an aggregate of
five (5) weeks per calendar year of paid vacation, which shall be utilized at
such times when his absence will not materially impair Employer's normal
business functions. Any unused vacation time in any calendar year may be carried
over and must be used prior to March 31 of the succeeding calendar year. If any
unused vacation time is not used by March 31 of the succeeding calendar year,
such unused vacation time shall lapse, and Employee shall not be entitled to any
additional compensation for any such unused and lapsed vacation time. In
addition to the vacation described above, Employee also shall be entitled to all
paid holidays customarily given by Employer to its officers.

         (C) So long as Employee is employed by Employer pursuant to this
Agreement, Employee shall be provided with a membership at the Columbia Club,
and all membership fees, dues and assessments shall be paid by Employer so long
as Employee utilizes such membership primarily in furtherance of his duties
under this Agreement.

                                      108
<PAGE>

         7. Subject to the respective continuing obligations of the parties,
including but not limited to those set forth in subsections 9(A), 9(B), 9(C),
and (D) hereof, Employee's employment by Employer may be terminated prior to the
expiration of the Term of this Agreement as follows:

         (A) Employer, by action of its Board of Directors and upon written
notice to Employee, may terminate Employee's employment with Employer
immediately for cause. For purposes of this subsection 7(A), "cause" shall be
defined as (i) personal dishonesty, (ii) incompetence, (iii) willful misconduct,
(iv) breach of fiduciary duty involving personal profit, (v) intentional failure
to perform stated duties, (vi) willful violation of any law, rule, or regulation
(other than traffic violations or similar offenses) or final cease-and-desist
order, (vii) any material breach of any term, condition or covenant of this
Agreement, or (viii) termination of the employment of the Employee with Shelby
County Bank for cause, as that term is defined in that certain employment
agreement entered into by and between the Employee and Shelby County Bank (the
"Shelby County Employment Agreement").

         (B) Employer, by action of its Board of Directors, may terminate
Employee's employment with Employer without cause at any time; provided,
however, that the "date of termination" for purposes of determining benefits
payable to Employee under subsection 8(B) hereof shall be the date which is 30
days after Employee receives written notice of such termination.

         (C) Employee, by written notice to Employer, may terminate his
employment with Employer immediately for cause provided, however, that Employer
shall have thirty (30) days, after the giving of written notice to Employer by
Employee of Employee's intention to terminate this Agreement for cause which
notice shall indicate the specific provision of this Agreement which will be
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for such termination, to cure the facts and
circumstances relied upon for establishing cause. For purposes of this
subsection 7(C), "cause" shall be defined as (i) any action by Employer to
remove the Employee as President of Blue River, except where the Employer's
Board of Directors properly acts to remove Employee from such office for "cause"
as defined in subsection 7(A) hereof, (ii) any action by Employer's Board of
Directors to materially limit, increase, or modify Employee's duties and/or
authority as President of Blue River (including his authority, subject to
corporate controls no more restrictive than those in effect on the date hereof),
(iii) Employer, without the written consent of Employee, relocating or
transferring Employee to a location more than 30 miles from the Employer's
current place of business, (iv) any failure of Employer to obtain the assumption
of the obligation to perform this Agreement by any successor, as contemplated in
section 18 hereof; or (v) any intentional breach by Employer of a term,
condition or covenant of this Agreement.

         (D) Employee, upon sixty (60) days written notice to Employer, may
terminate his employment with Employer without cause.

         (E) Employee's employment with Employer shall terminate in the event of
Employee's death or disability. For purposes hereof, "disability" shall be
defined as Employee's inability by reason of illness or other physical or mental
incapacity to perform the duties required by his employment for any consecutive
One Hundred Eighty (180) day period, provided that notice of any termination by
Employer because of Employee's "disability" shall have been given to Employee
prior to the full resumption by him of the performance of such duties.

                                      109
<PAGE>

         8. In the event of termination of Employee's employment with Employer
pursuant to section 7 hereof, compensation shall continue to be paid by Employer
to Employee as follows:

         (A) In the event of termination pursuant to subsection 7(A) or 7(D),
compensation provided for herein (including Base Compensation) shall continue to
be paid, and Employee shall continue to participate in the employee benefit,
retirement, and compensation plans and other perquisites as provided in sections
5 and 6 hereof, through the date of termination specified in the notice of
termination. Any benefits payable under insurance, health, retirement and bonus
plans as a result of Employee's participation in such plans through such date
shall be paid when due under those plans. The date of termination specified in
any notice of termination pursuant to subsection 7(A), termination for cause,
shall be no later than the date of delivery of such notice of termination.

         (B) In the event of termination pursuant to subsection 7(B) or 7(C),
compensation provided for herein (including Base Compensation) shall continue to
be paid, and Employee shall continue to participate in the employee benefit,
retirement, and compensation plans and other perquisites as provided in sections
5 and 6 hereof, through the date of termination specified in the notice of
termination. Any benefits payable under insurance, health, retirement and bonus
plans as a result of Employee's participation in such plans through such date
shall be paid when due under those plans. In addition, Employee shall be
entitled to continue to receive from Employer at his Base Compensation at the
rates in effect at the time of termination for the remaining Term of the
Agreement. In addition, during such periods, Employer will maintain in full
force and effect for the continued benefit of Employee each employee welfare
benefit plan (as such term is defined in the Employee Retirement Income Security
Act of 1974, as amended) in which Employee was entitled to participate
immediately prior to the date of his termination, unless an essentially
equivalent and no less favorable benefit is provided by a subsequent employer of
Employee. If the terms of any employee welfare benefit plan of Employer do not
permit continued participation by Employee, Employer will arrange to provide to
Employee a benefit substantially similar to, and no less favorable than, the
benefit he was entitled to receive under such plan at the end of the period of
coverage.

         (C) In the event of termination pursuant to subsection 7(E),
compensation provided for herein (including Base Compensation) shall continue to
be paid, and Employee shall continue to participate in the employee benefit,
retirement, and compensation plans and other perquisites as provided in sections
5 and 6 hereof, (i) in the event of Employee's death, through the date of death,
or (ii) in the event of Employee's disability, through the date of proper notice
of disability as required by subsection 7(E). Any benefits payable under
insurance, health, retirement and bonus plans as a result of Employer's
participation in such plans through such date shall be paid when due under those
plans.

         9. In order to induce Employer (for purposes of this Section includes
Employer's affiliates) to enter into this Agreement, Employee hereby agrees as
follows:

         (A) While Employee is employed by Employer and for a period of three
years after termination of such employment or the expiration of the Term,
Employee shall not divulge or furnish any trade secrets (as defined in IND. CODE
Section 24-2-3-2) of Employer or any confidential information acquired by him
while employed by Employer concerning the policies, plans, procedures or
customers of employer to any person, firm or corporation, other than Employer or
upon its written request, or use any such trade secret or confidential
information directly or indirectly for Employee's own benefit or for the benefit
of any person, firm or corporation other than Employer, since such trade secrets
and confidential information are confidential and shall at

                                      110
<PAGE>

all times remain the property of Employer.

         (B) For a period of three years after termination of Employee's
employment by Employer for reasons other than those set forth in subsections
7(B) or (C) of this Agreement or expiration of the Term, Employee shall not
directly or indirectly provide banking or bank-related services to or solicit
the banking or bank-related business of any customer of Employer at the time of
such provision of services or solicitation which Employee served either alone or
with others while employed by Employer in any city, town, borough, township,
village or other place in which Employee performed services for Employer while
employed by it, or assist any actual or potential competitor of Employer to
provide banking or bank-related services to or solicit any such customer's
banking or bank-related business in any such place.

         (C) While Employee is employed by Employer and for a period of one year
after termination of Employee's employment by Employer for reasons other than
those set forth in subsections 7(B) or (C) of this Agreement, Employee shall
not, directly or indirectly, as principal, agent, or trustee, or through the
agency of any corporation, partnership, trade association, agent or agency,
engage in any banking or bank-related business or venture which competes with
the business of Employer as conducted during Employee's employment by Employer
within a radius of fifty (50) miles of Employer's main office or any of
Employer's subsidiaries' branch offices.

         (D) Upon Employee's termination of employment or the expiration of the
Term, Employee will turn over immediately thereafter to Employer all business
correspondence, letters, papers, reports, customers' lists, financial
statements, credit reports or other confidential information or documents of
Employer or its affiliates in the possession or control of Employee, all of
which writings are and will continue to be the sole and exclusive property of
Employer or its affiliates.

If Employee's employment by Employer is terminated during the Term of this
Agreement for reasons set forth in subsections 7(B) or (C) or this Agreement,
Employee shall have no obligations to Employer with respect to or noncompetition
under this section 9.

         10. Any termination of Employee's employment with Employer as
contemplated by section 7 hereof, except in the circumstances of Employee's
death, shall be communicated by written "Notice of Termination" by the
terminating party to the other party hereto. Any "Notice of Termination"
pursuant to subsections 7(A), 7(C) or 7(E) shall indicate the specific
provisions of this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination.

         11. If Employee is suspended and/or temporarily prohibited from
participating in the conduct of Employer's or any affiliates' affairs by a
notice served under section 8(e)(3) or (g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1818(e)(3) and (g)(1)), Employer's obligations under this
Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Employer
shall (i) pay Employee all of the compensation withheld while its obligations
under this Agreement were suspended and (ii) reinstate (in whole or in part) any
of its obligations which were suspended.

         12. If Employee is removed and/or permanently prohibited from
participating in the conduct of Employer's or any affiliates' affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1818(e)(4) or (g)(1)), all obligations of Employer under
this Agreement shall terminate as of the effective date of the order, but vested
rights of the parties to the Agreement shall not be affected.

                                      111
<PAGE>

         13. If Employer is in default (as defined in section 3(x)(1) of the
Federal Deposit Insurance Act), all obligations under this Agreement shall
terminate as of the date of default, but this provision shall not affect any
vested rights of Employer or Employee.

         14. All obligations under the contract shall be terminated, except to
the extent determined that the continuation of the contract is necessary for the
continued operation of the Employer:

         (A) By the Director or his designee, at the time the Federal Deposit
Insurance Corporation for the Resolution Trust Corporation enters into an
agreement to provide assistance to or on behalf of the Employer under the
authority contained in 13(c) of the Federal Deposit Insurance Act; or

         (B) By the Director or his designee, at the time the Director or his
designee approves a supervisory merger to resolve problems related to the
operation of the Employer or when the Employer is determined by the Director to
be in an unsafe or unsound condition. Any rights of the parties that have
already vested, however, shall not be affected by such action.

         15. If a dispute arises regarding the termination of Employee pursuant
to section 7 hereof or as to the interpretation or enforcement of this Agreement
and Employee obtains a final judgment in his favor in a court of competent
jurisdiction or his claim is settled by Employer prior to the rendering of a
judgment by such a court, all reasonable legal fees and expenses incurred by
Employee is contesting or disputing any such termination or seeking to obtain or
enforce any right or benefit provided for in this Agreement or otherwise
pursuing his claim shall be paid by Employer, to the extent permitted by law.

         16. Should Employee die after termination of his employment with
Employer while any amounts are payable to him hereunder, this Agreement shall
inure to the benefit of and be enforceable by Employee's executors,
administrators, heirs, distributees, devisees and legatees and all amounts
payable hereunder shall be paid in accordance with the terms of this Agreement
to Employee's devisee, legatee or other designee or, if there is no such
designee, to his estate.

         17. For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been given when delivered or mailed by United States registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

If to Employee:            Mr. Lawrence T. Toombs
                           1260 Diablo Road
                           Greenwood, Indiana 46143

If to Employer:            Blue River Bancshares, Inc.
                           29 East Washington Street
                           Shelbyville, Indiana  46176

or to such other address as either party hereto may have furnished to the other
party in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

         18. The validity, interpretation, and performance of this Agreement
shall be governed by the laws of the State of Indiana to the extent that federal
banking law and the regulations of the Office of Thrift Supervision are
inapplicable.

                                      112
<PAGE>

         19. Employer shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of Employer, by agreement in form and in substance
satisfactory to Employee to expressly assume and agree to perform this Agreement
in the same manner and same extent that Employer would be required to perform it
if no such succession had taken place. Failure of Employer to obtain such
agreement prior to the effectiveness of any such succession shall be a material
intentional breach of this Agreement and shall entitle Employee to terminate his
employment with Employer pursuant to subsection 7(C) hereof. As used in this
Agreement, "Employer" shall mean Employer as hereinbefore defined and any
successor to its business or assets as aforesaid.

         20. No provision of this agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by Employee and Employer. No waiver by either party hereto at any time of
any breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a wavier of dissimilar provisions or conditions at the same or any prior
subsequent time. No agreements or representation, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement. The Change of Control
Agreement, dated October 2000, by and between Blue River and Employee is hereby
terminated and of no further force or effect.

         21. The invalidity or unenforceability of any provisions of this
Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement which shall remain in full force and effect.

         22. Any payments made to the Employee pursuant to this Agreement, or
otherwise, are subject to and conditioned upon their compliance with 12 USC
Section 1828(k) and FDIC regulation 12 CRF 359, "Golden Parachute and
Indemnification Payments".

         23. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same agreement.

         24. This Agreement is personal in nature and neither party hereto
shall, without consent of the other, assign or transfer this Agreement or any
rights or obligations hereunder except as provided in section 15 and section 18
above. Without limiting the foregoing, Employee's right to receive compensation
hereunder shall not be assignable or transferable, whether by pledge, creation
of a security interest or otherwise, other than a transfer by his will or by the
laws of descent or distribution as set forth in section 14 hereof, and in the
event of any attempted assignment or transfer contrary to this paragraph,
Employer shall have no liability to pay any amounts so attempted to be assigned
or transferred.

         25. Anything in this Agreement to the contrary notwithstanding in the
event Employer's independent public accountants determine that any payment by
Employer to or for the benefit of Employee, whether paid or payable pursuant to
the terms of this Agreement, would be non-deductible by employer for federal
income tax purposes because of Section 280G of the Code, then the amount payable
to or for the benefit of Employee pursuant to the Agreement shall be reduced
(but not below zero) to the Reduced Amount. For purposes of this section 23, the
"Reduced Amount" shall be the amount which maximizes the amount payable without
causing the payment to be non-deductible by Employer because of Section 280G of
the Code.

                                      113
<PAGE>

IN WITNESS WHEREOF, the parties have caused the Agreement to be executed and
delivered as of the 2nd day of August, 2002.

                                                     BLUE RIVER BANCSHARES, INC.

                                                     /s/ Steve R. Abel, Chairman

                                                              "Employer"

                                                     /s/ Lawrence T. Toombs

                                                              "Employee"

                                      114
<PAGE>

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), entered into and effective
as of August 2, 2002, by and between Shelby County Bank (the "Employer" or the
"Bank" as the context requires), a federal savings bank, and Lawrence T. Toombs
("Employee"), a resident of Johnson County, Indiana.

                                   WITNESSETH

         WHEREAS, Employer desires to encourage Employee to make valuable
contributions to Employer's business operations and not to seek or accept
employment elsewhere;

         WHEREAS, Employee desires to be assured of a secure minimum
compensation from Employer for his services over a defined term;

         WHEREAS, Employer desires to provide fair and reasonable benefits to
Employee on the terms and subject to the conditions set forth in this Agreement;
and

         WHEREAS, Employer desires reasonable protection of its confidential
business and customer information which it will develop over the years at
substantial expense and assurance that Employee will not compete with Employer
for a reasonable period of time after termination of his employment with
Employer, except as otherwise provided herein.

         NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants and undertakings herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Employer and Employee, each intending to be legally bound, covenant and agree as
follows:

         1. Upon the terms and subject to the conditions set forth in this
Agreement, Employer employs Employee as President and Chief Executive Officer of
the Bank, and Employee accepts such employment.

         2. Employee agrees to serve as the President and Chief Executive
Officer of the Bank and to perform such duties in that office as may reasonably
be assigned to him by Employer's Board of Directors, provided, however, that
such duties shall be performed in or from the principal executive offices of
Employer, currently located in Shelbyville, Indiana, and shall be of the
character as those generally associated with the office of President and or
Chief Executive Office, as the case may be. Employee shall not be required to be
absent from the location of the principal executive offices of employer on
travel status or otherwise more than 45

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<PAGE>

days in any calendar year. While employed by Employer, Employee shall devote
that amount of his business time and efforts as are reasonably determined by the
Employer to be necessary and appropriate to Employer's business and shall not
engage in any other related business. Employee may, however, use his discretion
in fixing his hours and schedule of work consistent with the proper discharge of
his duties.

         3. The term of this Agreement shall begin on August 2, 2002 (the
"Effective Date") and shall end on the date which is three years following such
date.

         4. Employee shall receive a minimum annual salary in an amount equal to
$97,500.00 ("Base Compensation") payable at regular intervals in accordance with
Employer's normal payroll practices in effect from time to time.

In connection with its annual review of the performance of the Employee, the
Board of Directors of the Employer shall ascertain if any adjustment to the
minimum annual salary of the Employee is necessary. Any and all adjustments to
the Employee's salary pursuant to this section shall cause the level of Base
Compensation to be adjusted by an equal amount for purposes of this Agreement.
The adjustment to the level of Base Compensation as provided in this section
shall become the level of Base Compensation for the remainder of the Term of
this Agreement until there is a further adjustment to Base Compensation as
provided herein. If applicable, Employee shall not receive director's fees for
his services as a director of Employer or any of the Employer's subsidiaries,
and any committees of the Boards of Directors.

         5. During the term of this Agreement, Employee shall be entitled to
participate in or receive benefits under (i) any life, health, hospitalization,
medical, dental, disability or other insurance policy or plan, (ii) pension,
retirement or employee stock ownership plan, (iii) bonus or profit-sharing plan
or program, (iv) deferred compensation plan or arrangement, and (v) any other
employee benefit plan, program or arrangement, made available by Employer on the
date of this Agreement and from time to time in the future to Employer's
directors, officers and employees on a basis consistent with the terms,
conditions and overall administration of the foregoing plans, programs or
arrangements and with respect to which Employee is otherwise eligible to
participate or receive benefits.

         6.(A)    So long as Employee is employed by Employer pursuant to
                  this Agreement, Employee shall receive reimbursement from
                  Employer for all reasonable business expenses incurred in the
                  course of his employment by Employer, upon submission to
                  Employer of written vouchers and statements for reimbursement.
                  Employee shall attend, at the Board of Directors' discretion,
                  those professional meetings, conventions, and/or similar
                  functions that the Board of Directors deems appropriate and
                  useful for purposes of keeping abreast of current developments
                  in the industry and/or promoting the interests of Employer.

         (B)      So long as Employee is employed by Employer pursuant to this
                  Agreement, Employee shall be entitled to office space and
                  working conditions consistent with his position as President
                  and/or Chief Executive Officer, as the case may be. During the
                  term of this Agreement and the Blue River Employment Agreement
                  (as defined herein), Employee shall be entitled to an
                  aggregate of five (5) weeks per calendar year of paid
                  vacation, which shall be utilized at such times when his
                  absence will not materially impair Employer's normal business
                  functions. Any unused vacation time in any calendar year may
                  be carried over and must be used prior to March 31 of the
                  succeeding calendar year. If any unused vacation time is

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<PAGE>

                  not used by March 31 of the succeeding calendar year, such
                  unused vacation time shall lapse, and Employee shall not be
                  entitled to any additional compensation for any such unused
                  and lapsed vacation time. In addition to the vacation
                  described above, Employee also shall be entitled to all paid
                  holidays customarily given by Employer to its officers.

         (C)      So long as Employee is employed by Employer pursuant to this
                  Agreement, Employee shall be provided with a membership at the
                  Columbia Club, and all membership fees, dues and assessments
                  shall be paid by Employer so long as Employee utilizes such
                  membership primarily in furtherance of his duties under this
                  Agreement.

         7. Subject to the respective continuing obligations of the parties,
including but not limited to those set forth in subsections 9(A), 9(B), 9(C),
and (D) hereof, Employee's employment by Employer may be terminated prior to the
expiration of the Term of this Agreement as follows:

         (A)      Employer, by action of its Board of Directors and upon written
                  notice to Employee, may terminate Employee's employment with
                  Employer immediately for cause. For purposes of this
                  subsection 7(A), "cause" shall be defined as (i) personal
                  dishonesty, (ii) incompetence, (iii) willful misconduct, (iv)
                  breach of fiduciary duty involving personal profit, (v)
                  intentional failure to perform stated duties, (vi) willful
                  violation of any law, rule, or regulation (other than traffic
                  violations or similar offenses) or final cease-and-desist
                  order, (vii) any material breach of any term, condition or
                  covenant of this Agreement, or (viii) termination of the
                  employment of the Employee with Blue River Bancshares for
                  cause, as that term is defined in that certain employment
                  agreement entered into by and between the Employee and Blue
                  River Bancshares (the "Blue River Employment Agreement").

         (B)      Employer, by action of its Board of Directors, may terminate
                  Employee's employment with Employer without cause at any time;
                  provided, however, that the "date of termination" for purposes
                  of determining benefits payable to Employee under subsection
                  8(B) hereof shall be the date which is 30 days after Employee
                  receives written notice of such termination.

         (C)      Employee, by written notice to Employer, may terminate his
                  employment with Employer immediately for cause provided,
                  however, that Employer shall have thirty (30) days, after the
                  giving of written notice to Employer by Employee of Employee's
                  intention to terminate this Agreement for cause which notice
                  shall indicate the specific provision of this Agreement which
                  will be relied upon and shall set forth in reasonable detail
                  the facts and circumstances claimed to provide a basis for
                  such termination, to cure the facts and circumstances relied
                  upon for establishing cause. For purposes of this subsection
                  7(C), "cause" shall be defined as (i) any action by Employer
                  to remove the Employee as President and Chief Executive
                  Officer of the Bank except where the Employer's Board of
                  Directors

                                      117
<PAGE>

                  properly acts to remove Employee from such office for "cause"
                  as defined in subsection 7(A) hereof, (ii) any action by
                  Employer's Board of Directors to materially limit, increase,
                  or modify Employee's duties and/or authority as President and
                  Chief Executive Officer of the Bank (including his authority,
                  subject to corporate controls no more restrictive than those
                  in effect on the date hereof), (iii) Employer, without the
                  written consent of Employee, relocating or transferring
                  Employee to a location more than 30 miles from the Employer's
                  current place of business, (iv) any failure of Employer to
                  obtain the assumption of the obligation to perform this
                  Agreement by any successor, as contemplated in section 18
                  hereof; or (v) any intentional breach by Employer of a term,
                  condition or covenant of this Agreement.

         (D)      Employee, upon sixty (60) days written notice to Employer, may
                  terminate his employment with Employer without cause.

         (E)      Employee's employment with Employer shall terminate in the
                  event of Employee's death or disability. For purposes hereof,
                  "disability" shall be defined as Employee's inability by
                  reason of illness or other physical or mental incapacity to
                  perform the duties required by his employment for any
                  consecutive One Hundred Eighty (180) day period, provided that
                  notice of any termination by Employer because of Employee's
                  "disability" shall have been given to Employee prior to the
                  full resumption by him of the performance of such duties.

         8. In the event of termination of Employee's employment with Employer
pursuant to section 7 hereof, compensation shall continue to be paid by Employer
to Employee as follows:

         (A)      In the event of termination pursuant to subsection 7(A) or
                  7(D), compensation provided for herein (including Base
                  Compensation) shall continue to be paid, and Employee shall
                  continue to participate in the employee benefit, retirement,
                  and compensation plans and other perquisites as provided in
                  sections 5 and 6 hereof, through the date of termination
                  specified in the notice of termination. Any benefits payable
                  under insurance, health, retirement and bonus plans as a
                  result of Employee's participation in such plans through such
                  date shall be paid when due under those plans. The date of
                  termination specified in any notice of termination pursuant to
                  subsection 7(A), termination for cause, shall be no later than
                  the date of delivery of such notice of termination.

         (B)      In the event of termination pursuant to subsection 7(B) or
                  7(C), compensation provided for herein (including Base
                  Compensation) shall continue to be paid, and Employee shall
                  continue to participate in the employee benefit, retirement,
                  and compensation plans and other perquisites as provided in
                  sections 5 and 6 hereof, through the date of termination
                  specified in the notice of termination. Any benefits payable
                  under insurance, health, retirement and bonus plans as a
                  result of

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<PAGE>

                  Employee's participation in such plans through such date shall
                  be paid when due under those plans. In addition, Employee
                  shall be entitled to continue to receive from Employer at his
                  Base Compensation at the rates in effect at the time of
                  termination for the remaining Term of the Agreement. In
                  addition, during such periods, Employer will maintain in full
                  force and effect for the continued benefit of Employee each
                  employee welfare benefit plan (as such term is defined in the
                  Employee Retirement Income Security Act of 1974, as amended)
                  in which Employee was entitled to participate immediately
                  prior to the date of his termination, unless an essentially
                  equivalent and no less favorable benefit is provided by a
                  subsequent employer of Employee. If the terms of any employee
                  welfare benefit plan of Employer do not permit continued
                  participation by Employee, Employer will arrange to provide to
                  Employee a benefit substantially similar to, and no less
                  favorable than, the benefit he was entitled to receive under
                  such plan at the end of the period of coverage.

         (C)      In the event of termination pursuant to subsection 7(E),
                  compensation provided for herein (including Base Compensation)
                  shall continue to be paid, and Employee shall continue to
                  participate in the employee benefit, retirement, and
                  compensation plans and other perquisites as provided in
                  sections 5 and 6 hereof, (i) in the event of Employee's death,
                  through the date of death, or (ii) in the event of Employee's
                  disability, through the date of proper notice of disability as
                  required by subsection 7(E). Any benefits payable under
                  insurance, health, retirement and bonus plans as a result of
                  Employer's participation in such plans through such date shall
                  be paid when due under those plans.

         9. In order to induce Employer (for purposes of this Section includes
Employer's affiliates) to enter into this Agreement, Employee hereby agrees as
follows:

         (A)      While Employee is employed by Employer and for a period of
                  three years after termination of such employment or the
                  expiration of the Term, Employee shall not divulge or furnish
                  any trade secrets (as defined in IND. CODE Section 24-2-3-2)
                  of Employer or any confidential information acquired by him
                  while employed by Employer concerning the policies, plans,
                  procedures or customers of employer to any person, firm or
                  corporation, other than Employer or upon its written request,
                  or use any such trade secret or confidential information
                  directly or indirectly for Employee's own benefit or for the
                  benefit of any person, firm or corporation other than
                  Employer, since such trade secrets and confidential
                  information are confidential and shall at all times remain the
                  property of Employer.

         (B)      For a period of three years after termination of Employee's
                  employment by Employer for reasons other than those set forth
                  in subsections 7(B) or (C) of this Agreement or expiration of
                  the Term, Employee shall not directly or indirectly provide
                  banking or bank-related services to or solicit

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<PAGE>

                  the banking or bank-related business of any customer of
                  Employer at the time of such provision of services or
                  solicitation which Employee served either alone or with others
                  while employed by Employer in any city, town, borough,
                  township, village or other place in which Employee performed
                  services for Employer while employed by it, or assist any
                  actual or potential competitor of Employer to provide banking
                  or bank-related services to or solicit any such customer's
                  banking or bank-related business in any such place.

         (C)      While Employee is employed by Employer and for a period of one
                  year after termination of Employee's employment by Employer
                  for reasons other than those set forth in subsections 7(B) or
                  (C) of this Agreement, Employee shall not, directly or
                  indirectly, as principal, agent, or trustee, or through the
                  agency of any corporation, partnership, trade association,
                  agent or agency, engage in any banking or bank-related
                  business or venture which competes with the business of
                  Employer as conducted during Employee's employment by Employer
                  within a radius of fifty (50) miles of Employer's main office
                  or any of Employer's subsidiaries' branch offices.

         (D)      Upon Employee's termination of employment or the expiration of
                  the Term, Employee will turn over immediately thereafter to
                  Employer all business correspondence, letters, papers,
                  reports, customers' lists, financial statements, credit
                  reports or other confidential information or documents of
                  Employer or its affiliates in the possession or control of
                  Employee, all of which writings are and will continue to be
                  the sole and exclusive property of Employer or its affiliates.

If Employee's employment by Employer is terminated during the Term of this
Agreement for reasons set forth in subsections 7(B) or (C) or this Agreement,
Employee shall have no obligations to Employer with respect to or noncompetition
under this section 9.

         10. Any termination of Employee's employment with Employer as
contemplated by section 7 hereof, except in the circumstances of Employee's
death, shall be communicated by written "Notice of Termination" by the
terminating party to the other party hereto. Any "Notice of Termination"
pursuant to subsections 7(A), 7(C) or 7(E) shall indicate the specific
provisions of this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination.

         11. If Employee is suspended and/or temporarily prohibited from
participating in the conduct of Employer's or any affiliates' affairs by a
notice served under section 8(e)(3) or (g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1818(e)(3) and (g)(1)), Employer's obligations under this
Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Employer
shall (i) pay Employee all of the compensation withheld while its obligations
under this Agreement were suspended and (ii) reinstate (in whole or in part) any
of its obligations which were suspended.

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<PAGE>

         12. If Employee is removed and/or permanently prohibited from
participating in the conduct of Employer's or any affiliates' affairs by an
order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1818(e)(4) or (g)(1)), all obligations of Employer under
this Agreement shall terminate as of the effective date of the order, but vested
rights of the parties to the Agreement shall not be affected.

         13. If Employer is in default (as defined in section 3(x)(1) of the
Federal Deposit Insurance Act), all obligations under this Agreement shall
terminate as of the date of default, but this provision shall not affect any
vested rights of Employer or Employee.

         14. All obligations under the contract shall be terminated, except to
the extent determined that the continuation of the contract is necessary for the
continued operation of the Employer:

         (A) By the Director or his designee, at the time the Federal Deposit
Insurance Corporation or the Resolution Trust Corporation enters into an
agreement to provide assistance to or on behalf of the Employer under the
authority contained in 13(c) of the Federal Deposit Insurance Act; or

         (B) By the Director or his designee, at the time the Director or his
designee approves a supervisory merger to resolve problems related to the
operation of the Employer or when the Employer is determined by the Director to
be in an unsafe or unsound condition. Any rights of the parties that have
already vested, however, shall not be affected by such action.

         15. If a dispute arises regarding the termination of Employee pursuant
to section 7 hereof or as to the interpretation or enforcement of this Agreement
and Employee obtains a final judgment in his favor in a court of competent
jurisdiction or his claim is settled by Employer prior to the rendering of a
judgment by such a court, all reasonable legal fees and expenses incurred by
Employee is contesting or disputing any such termination or seeking to obtain or
enforce any right or benefit provided for in this Agreement or otherwise
pursuing his claim shall be paid by Employer, to the extent permitted by law.

         16. Should Employee die after termination of his employment with
Employer while any amounts are payable to him hereunder, this Agreement shall
inure to the benefit of and be enforceable by Employee's executors,
administrators, heirs, distributees, devisees and legatees and all amounts
payable hereunder shall be paid in accordance with the terms of this Agreement
to Employee's devisee, legatee or other designee or, if there is no such
designee, to his estate.

         17. For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been given when delivered or mailed by United States registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

If to Employee:            Mr. Lawrence T. Toombs
                           1260 Diablo Road
                           Greenwood, Indiana 46143

If to Employer:            Shelby County Bank
                           29 East Washington Street
                           Shelbyville, Indiana  46176

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<PAGE>

or to such other address as either party hereto may have furnished to the other
party in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

         18. The validity, interpretation, and performance of this Agreement
shall be governed by the laws of the State of Indiana to the extent that federal
banking law and the regulations of the Office of Thrift Supervision are
inapplicable.

         19. Employer shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of Employer, by agreement in form and in substance
satisfactory to Employee to expressly assume and agree to perform this Agreement
in the same manner and same extent that Employer would be required to perform it
if no such succession had taken place. Failure of Employer to obtain such
agreement prior to the effectiveness of any such succession shall be a material
intentional breach of this Agreement and shall entitle Employee to terminate his
employment with Employer pursuant to subsection 7(C) hereof. As used in this
Agreement, "Employer" shall mean Employer as hereinbefore defined and any
successor to its business or assets as aforesaid.

         20. No provision of this agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by Employee and Employer. No waiver by either party hereto at any time of
any breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a wavier of dissimilar provisions or conditions at the same or any prior
subsequent time. No agreements or representation, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement. The Change of Control
Agreement, dated October 2002 by and between Blue River and Employee is hereby
terminated and of no further force or effect.

         21. The invalidity or unenforceability of any provisions of this
Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement which shall remain in full force and effect.

         22. Any payments made to the Employee pursuant to this Agreement, or
otherwise, are subject to an conditioned upon their compliance with 12 USC
Section 1828(k) and FDIC regulation 12 CFR 359, "Golden Parachute and
Indemnification Payments".

         23. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same agreement.

         24. This Agreement is personal in nature and neither party hereto
shall, without consent of the other, assign or transfer this Agreement or any
rights or obligations hereunder except as provided in section 15 and section 18
above. Without limiting the foregoing, Employee's right to receive compensation
hereunder shall not be assignable or transferable, whether by pledge, creation
of a security interest or otherwise, other than a transfer by his will or by the
laws of descent or distribution as set forth in section 14 hereof, and in the
event of any attempted assignment or transfer contrary to this paragraph,
Employer shall have no liability to pay any amounts so attempted to be assigned
or transferred.

         25. Anything in this Agreement to the contrary notwithstanding in the
event Employer's independent public accountants determine that any payment by
Employer to or for the benefit of Employee, whether paid or payable pursuant to
the terms of this Agreement, would be non-deductible by employer for federal
income tax purposes because of Section 280G of the

                                      122
<PAGE>

Code, then the amount payable to or for the benefit of Employee pursuant to the
Agreement shall be reduced (but not below zero) to the Reduced Amount. For
purposes of this section 23, the "Reduced Amount" shall be the amount which
maximizes the amount payable without causing the payment to be non-deductible by
Employer because of Section 280G of the Code.

         IN WITNESS WHEREOF, the parties have caused the Agreement to be
executed and delivered as of the 2nd day of August, 2002.

                                                     SHELBY COUNTY BANK

                                                     /s/ Steve R. Abel, Chairman
                                                     ---------------------------

                                                              "Employer"

                                                     /s/ Lawrence T. Toombs
                                                     ---------------------------

                                                              "Employee"

                                      123

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