Document:

EXHIBIT 10.1

                        INCENTIVE STOCK OPTION AGREEMENT

This AGREEMENT (the "Agreement") is made as of ______________________, by and
between MainSource Financial Group, Inc. an Indiana corporation (the "Company"),
and ___________________________, an employee of the Company or an Affiliate of
the Company (the "Optionee").

         Now, therefore, the parties hereto agree as follows:

     1. Grant of Stock Option. Subject to and upon the terms, conditions, and
restrictions set forth in this Agreement and in the MainSource Financial Group,
Inc. 2003 Stock Option Plan (the "Plan"), and in consideration, among other
things, of Optionee's covenants and agreements set forth in Section 21 of this
Agreement, the Company hereby grants to the Optionee as of the Date of Grant a
stock option (the "Option") to purchase ________ Common Shares, subject to
adjustment as hereinafter provided (the "Optioned Shares"). The Option may be
exercised from time to time in accordance with the terms of this Agreement. The
price at which the Optioned Shares may be purchased pursuant to this Option
shall be $______ per share subject to adjustment as hereinafter provided (the
"Option Price"). The Option is intended to be an "Incentive Stock Option" within
the meaning of that term under Section 422 of the Code, or any successor
provision thereto; this Agreement shall be construed in a manner that will
enable this Option to be so qualified.

     2. Term of Option. The term of the Option shall commence on the date hereof
(the "Date of Grant') and, unless earlier terminated in accordance with Section
6 hereof, shall expire ten (10) years from the Date of Grant.

     3. Right to Exercise. Subject to expiration or earlier termination, on
December 31, ____, if the Optionee is an employee of the Company or an Affiliate
of the Company on such date, the number of Optioned Shares equal to ten percent
(10%) multiplied by the number of Optioned Shares specified in this Agreement
shall become exercisable; on December 31, _____, if the Optionee is an employee
of the Company or an Affiliate of the Company on such date, the number of
Optioned Shares equal to twenty percent (20%) multiplied by the number of
Optioned Shares specified in this Agreement shall become exercisable on a
cumulative basis with all other Optioned Shares that have previously become
exercisable; on December 31, _____, if the Optionee is an employee of the
Company or an Affiliate of the Company on such date, the number of Optioned
Shares equal to thirty percent (30%) multiplied by the number of Optioned Shares
specified in this Agreement shall become exercisable on a cumulative basis with
all other Optioned Shares that have previously become exercisable; and on
December 31, _____, if the Optionee is an employee of the Company or an
Affiliate of the Company on such date, the number of Optioned Shares equal to
forty percent (40%) multiplied by the number of Optioned Shares specified in
this Agreement shall become exercisable on a cumulative basis with all other
Optioned Shares that have previously become exercisable. Therefore, on December
31, _____, it is intended that if the Optionee is an employee of the Company or
an Affiliate of the Company,

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on such date, all Optioned Shares shall be exercisable. To the extent the Option
is exercisable; it may be exercised in whole or in part. In no event shall the
Optionee be entitled to acquire a fraction of one Optioned Share pursuant to
this Option. The Optionee shall be entitled to the privileges of ownership with
respect to Optioned Shares purchased and delivered to him upon the exercise of
all or part of this Option.

     4. Option Nontransferable. The Option granted hereby shall be neither
transferable nor assignable by an Optionee other than by will or by the laws of
descent and distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee, or in the event of his or her legal incapacity,
by his or her guardian or legal representative acting on behalf of the Optionee
in a fiduciary capacity under state law and court supervision.

     5. Notice of Exercise; Payment.

     (1) To the extent then exercisable, the Option may be exercised by written
notice to the Company stating the number of Optioned Shares for which the Option
is being exercised and the intended manner of payment. Payment equal to the
aggregate Option Price of the Optioned Shares being exercised shall be tendered
in full with the notice of exercise to the Company in cash in the form of
currency or check or other cash equivalent acceptable to the Company. The
requirement of payment in cash shall be deemed satisfied if the Optionee makes
arrangements that are satisfactory to the Company with a broker that is a member
of the National Association of Securities Dealers, Inc. to sell a sufficient
number of Optioned Shares which are being purchased pursuant to the exercise and
deliver to the Company the amount of the aggregate Option Price not later than
the date on which the sale transaction will settle in the ordinary course of
business.

     (2) The Optionee may also tender the Option Price by (i) the actual or
constructive transfer to the Company of nonforfeitable, nonrestricted Common
Shares that have been owned by the Optionee for (x) more than one year prior to
the date of exercise and for more than two years from the date on which the
option was granted, if they were originally acquired by the Optionee pursuant to
the exercise of an Incentive Stock Option, or (y) more than six months prior to
the date of exercise, if they were originally acquired by the Optionee other
than pursuant to the exercise of an Incentive Stock Option, or (ii) by any
combination of the foregoing methods of payment, including a partial tender in
cash and a partial tender in nonforfeitable, nonrestricted Common Shares.

     (3) Within ten (10) days after notice, the Company shall direct the due
issuance of the Optioned Shares so purchased, which shares may be subject to
legal restrictions regarding their transfer only in accordance with the
requirements of the Securities Act of 1933, as amended.

     (4) Nonforfeitable, nonrestricted Common Shares that are transferred by the
Optionee in payment of all or any part of the Option Price shall be valued on
the basis of their Fair Market Value.

                                       -2-
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     (5) As a further condition precedent to the exercise of this Option, the
Optionee shall comply with all regulations and the requirements of any
regulatory authority having control of, or supervision over, the issuance of
Common Shares and in connection therewith shall execute any documents which the
Board shall in its sole discretion deem necessary or advisable. The date of such
notice shall be the exercise date.

     6. Termination of Agreement. The Agreement, except for the provisions of
Section 21 (Restrictive Covenants and Agreements) and Sections 15 (Amendments)
and 18 (Successors and Assigns), which shall survive the termination of any
other provisions of this Agreement, and the Option granted hereby, shall
terminate automatically and without further notice on the earliest of the
following dates:

     (1) One (1) year after the Optionee's death if the Optionee dies while in
the employ of the Company or an Affiliate;

     (2) One (1) year after the date of the Optionee's permanent and total
disability, within the meaning of Code Section 22(e)(3), as confirmed by a
licensed physician's statement, if the Optionee becomes permanently and totally
disabled while an employee of the Company;

     (3) Ninety (90) days after the Optionee's retirement under a retirement
plan of the Company at or after the earliest voluntary retirement age provided
for in such retirement plan or retirement at any earlier age with the consent of
the Board;

     (4) Except as provided on a case-by-case basis, ninety (90) days after the
date the Optionee ceases to be an employee of the Company, or an Affiliate, for
any reason other than as described in this Section; or

     (5) Ten (10) years from the Date of Grant.

In the event that the Optionee's employment is terminated for Cause, this
Agreement, except for the provisions of Section 21 (Restrictive Covenants and
Agreements) and Sections 15 (Amendments) and 18 (Successors and Assigns), which
shall survive the termination of any other provisions of this Agreement, shall
terminate at the time of such termination notwithstanding any other provision of
this Agreement. For purposes of this Agreement, "Cause" shall mean the Optionee
shall have committed prior to termination of employment any of the following
acts:

          (i) an act of fraud, embezzlement or theft, or any other material
     violation of law in connection with the Optionee's duties or in the course
     of the Optionee's employment that is intentional or the result, in the good
     faith opinion of the Company, of gross negligence;

          (ii) wrongful damage to material assets of the Company that is
     intentional or the result, in the good faith opinion of the Company, of
     gross negligence;

          (iii) wrongful disclosure of material confidential information of the
     Company that is intentional or the result, in the good faith opinion of the
     Company, of gross negligence;

                                       -3-
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          (iv) wrongful engagement in any competitive activity that would
     constitute a material breach of the duty of loyalty that is intentional or
     the result, in the good faith opinion of the Company, of gross negligence;
     or

          (v) any breach of any stated material employment policy of the Company
     that is intentional or the result, in the good faith opinion of the
     Company, of gross negligence.

Any determination of whether an Optionee's employment was terminated for Cause
shall be made by the Corporate CEO or the Board, whose determination shall be
binding and conclusive.

     This Agreement shall not be exercisable for any number of Optioned Shares
in excess of the number of Optioned Shares for which this Agreement is then
exercisable, pursuant to Sections 3, 7 and 8 hereof, on the date of termination
of employment. For the purposes of this Agreement, the continuous employment of
the Optionee with the Company shall not be deemed to have been interrupted, and
the Optionee shall not be deemed to have ceased to be an employee of the Company
or an Affiliate by reason of the transfer of his employment among the Company
and its Affiliates or a leave of absence of not more than ninety (90) days
approved by the Corporate CEO or the Board.

     7. Acceleration of Option. Notwithstanding Section 3, the Option granted
hereby shall become immediately exercisable in full in the event of a Change of
Control.

     For purposes of this Section, a "Change in Control" shall mean the
occurrence of any of the following events:

     (1) The Company is merged or consolidated or reorganized into or with
another corporation or other legal person, and as a result of such merger,
consolidation, or reorganization less than forty percent (40%) of the combined
voting power of the then-outstanding securities of such corporation or person
immediately after such transaction are held in the aggregate by the holders of
securities entitled to vote generally in the election of directors of the
Company immediately prior to such transaction;

     (2) The Company sells or otherwise transfers all or substantially all of
its assets to any other corporation or other legal person, and less than a
majority of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such sale or transfer is held in the
aggregate by the holders of shares of Common Shares immediately prior to such
sale or transfer;

     (3) There is a report filed on Schedule 13D or Schedule 14D-1 (or any
successor schedule, form or report), each as promulgated pursuant to the
Exchange Act, disclosing that any person (as the term "person" is used in
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the
beneficial owner (as the term "beneficial owner" is defined under Rule 13d-3 or
any successor rule or regulation promulgated under the Exchange Act) of
securities representing twenty-five percent (25%) or more of the voting power of
the then outstanding voting stock of the Company;

                                       -4-
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     (4) The Company files a report or proxy statement with the Securities and
Exchange Commission pursuant to the Exchange Act disclosing in response to Form
8-K or Schedule 14A (or any successor schedule, form or report or item therein)
that a change in control of the Company, other than through any event(s)
referred to in paragraphs (1) through (3) of this Section 7, has or may have
occurred or will or may occur in the future pursuant to any then-existing
contract or transaction; or

     (5) If during any period of two (2) consecutive years, individuals who at
the beginning of any such period constitute the directors (including for this
purpose any new director whose election or nomination for election by the
Company's shareholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who were directors at the beginning of such
period) cease for any reason to constitute at least a majority thereof
(excluding any director's seat that is vacant or otherwise unoccupied).

     Notwithstanding the foregoing provisions of (3) and (4) above, a "Change in
Control" shall not be deemed to have occurred for purposes of this Agreement (i)
solely because (A) the Company; (B) a subsidiary; or (C) any Company-sponsored
employee stock ownership plan or other employee benefit plan of the Company
either files or becomes obligated to file a report or proxy statement under or
in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any
successor schedule, form or report or item therein) under the Exchange Act,
disclosing beneficial ownership by it of shares, whether in excess of
twenty-five percent (25%) of the voting power or otherwise, or because the
Company reports that a change of control of the Company has or may have occurred
or will or may occur in the future by reason of such beneficial ownership or
(ii) solely because of a change in control of any subsidiary.

     8. Merger of Equals. Notwithstanding Section 3, the Option granted hereby
shall become immediately exercisable in full in the event that within 15 months
following the month in which a Merger of Equals occurs, the Optionee's
employment with the Company is terminated by the Company without Cause or by the
Optionee for Good Reason.

     For purposes of this Section 8:

     (1) A "Merger of Equals" shall have occurred if the Company is merged or
consolidated or reorganized into or with another corporation or other legal
person, and as a result of such merger, consolidation, or reorganization at
least forty percent (40%), but not more than sixty percent (60%), of the
combined voting power of the then-outstanding securities of such corporation or
person immediately after such transaction are held in the aggregate by the
holders of securities entitled to vote generally in the election of directors of
the Company immediately prior to such transaction; and

     (2) "Good Reason" shall mean the occurrence of any of the following events
without the Optionee's express written consent:

                                       -5-
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          (i) the assignment to the Optionee of duties inconsistent in any
     material respect with the position, authority, duties, or responsibilities
     vested in the Optionee immediately prior to the Merger of Equals, excluding
     for these purposes an isolated, insubstantial and inadvertent action not
     taken in bad faith that is remedied by the Company promptly after receipt
     of notice thereof given by the Optionee;

          (ii) a reduction by the Company in the Optionee's annual base salary
     as in effect on the date of the Merger of Equals or as the same may be
     increased from time to time;

          (iii) the Company's requiring the Optionee to (A) be based at any
     office or location that is more than twenty-five (25) miles from the
     Optionee's office or location immediately prior to the Merger of Equals, or
     (B) travel on business to a substantially greater extent than required
     immediately prior to the Merger of Equals; or

          (iv) the failure by the Company to continue to provide the Optionee
     with benefits comparable on an overall basis to those enjoyed by the
     Optionee under any of the Company's pension, life insurance, medical,
     disability or other employee benefit or fringe benefit plans, programs and
     arrangements that applied to the Optionee at the time of the Merger of
     Equals.

     11. No Employment Contract. Nothing contained in this Agreement shall
confer upon the Optionee any right with respect to continuance of employment by
the Company, nor limit or affect in any manner the right of the Company to
terminate the employment or adjust the compensation of the Optionee.

     12. Taxes and Withholding. If the Company shall be required to withhold any
federal, state, local or foreign tax in connection with the exercise of the
Option, and the amounts available to the Company for such withholding are
insufficient, the Optionee shall pay the tax or make provisions that are
satisfactory to the Company for the payment thereof. The Optionee may elect to
satisfy all or any part of any such withholding obligation by surrendering to
the Company a portion of the Optioned Shares that are issued or transferred to
the Optionee upon the exercise of the Option, and the Optioned Shares so
surrendered by the Optionee shall be credited against any such withholding
obligation at the Fair Market Value of such shares on the date of such
surrender; provided, however, that in no event shall the aggregate Fair Market
Value of the Optioned Shares surrendered pursuant to this Section 10 exceed the
minimum amount of taxes required to be withheld in connection with exercise of
the Option. The Company will pay any and all issue and other taxes in the nature
thereof which may be payable by the Company in respect of any issue or delivery
upon a purchase pursuant to this Option.

     13. Compliance with Law. The Company shall make reasonable efforts to
comply with all applicable federal and state securities laws; provided, however,
notwithstanding any other provision of this Agreement, the Option shall not be
exercisable if the exercise thereof would result in a violation of any such law.

                                       -6-
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     12. Adjustments. The Board may make or provide (and in the event of any
event described in clause (a) below, shall make or provide ) for such
adjustments in the number of Optioned Shares covered by this Option, in the
Option Price applicable to such Option, and in the kind of shares covered
thereby, as the Board determines is equitably required to prevent dilution or
enlargement of the Optionee's rights that otherwise would result from (a) any
stock dividend, stock split, combination of shares, recapitalization, or other
change in the capital structure of the Company, (b) any merger, consolidation,
spin-off, split-off, spin-out, split-up, reorganization, partial or complete
liquidation, or other distribution of assets or issuance of rights or warrants
to purchase securities, or (c) any other corporate transaction or event having
an effect similar to any of the foregoing. In the event of any such transaction
or event, the Board may provide in substitution for this Option such alternative
consideration as it may determine to be equitable in the circumstances and may
require in connection therewith the surrender of this Option.

     13. Relation to Other Benefits. Any economic or other benefit to the
Optionee under this Agreement shall not be taken into account in determining any
benefits to which the Optionee may be entitled under any profit-sharing,
retirement or other benefit or compensation plan maintained by the Company and
shall not affect the amount of any life insurance coverage available to any
beneficiary under any life insurance plan covering employees of the Company.

     14. Mandatory Notice of Disqualifying Disposition. Without limiting any
other provision hereof, the Optionee hereby agrees that, if the Optionee
disposes (whether by sale, exchange, gift or otherwise) of any of the Optioned
Shares within two (2) years of the Date of Grant or within one (1) year after
the transfer of such share or shares to the Optionee, the Optionee shall notify
the Company of such disposition in writing within thirty (30) days from the date
of such disposition. Such written notice shall state the principal terms of such
disposition and the type and amount of the consideration received for such share
or shares by the Optionee in connection therewith.

     15. Amendments. Any amendment to the Plan shall be deemed to be an
amendment to this Agreement to the extent that the amendment is applicable
hereto; provided, however, that no amendment shall adversely affect the rights
of the Optionee under this Agreement without the Optionee's consent.

     16. Severability. In the event that one or more of the provisions of this
Agreement shall be invalidated for any reason by a court of competent
jurisdiction, any provision so invalidated shall be deemed to be separable from
the other provisions hereof, and the remaining provisions hereof shall continue
to be valid and fully enforceable.

     17. Relation to Plan. This Agreement is subject to the terms and conditions
of the Plan. In the event of any inconsistent provisions between this Agreement
and the Plan, the Plan shall govern. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Plan. The Board
acting pursuant to the Plan, as constituted from time to time, shall, except as
expressly provided otherwise herein, have the right to determine any questions
which arise in connection with this option or its exercise.

                                       -7-
<PAGE>

     18. Successors and Assigns. The provisions of this Agreement shall inure to
the benefit of, and be binding upon, the successors, administrators, heirs,
legal representatives and assigns of the Optionee, and the successors and
assigns of the Company.

     19. Governing Law. The interpretation, performance, and enforcement of this
Agreement shall be governed by the laws of the State of Indiana, without giving
effect to the principles of conflict of laws thereof.

     20. Notices. Any notice to the Company provided for herein shall be in
writing to the Company, marked Attention: Corporate Secretary, and any notice to
the Optionee shall be addressed to said Optionee at his or her address currently
on file with the Company. Except as otherwise provided herein, any written
notice shall be deemed to be duly given if and when delivered personally or
deposited in the United States mail, first class registered mail, postage and
fees prepaid, and addressed as aforesaid. Any party may change the address to
which notices are to be given hereunder by written notice to the other party as
herein specified (provided that for this purpose any mailed notice shall be
deemed given on the third business day following deposit of the same in the
United States mail).

     21. Restrictive Covenants and Agreements.

     (1) Non-Competition and Non-Solicitation; Confidentiality. Optionee
acknowledges that without his or her making the covenants and agreements in this
Section 21, the Company would not have granted the Option and that such issuance
to Optionee is in reliance upon Optionee's compliance with the covenants and
agreements made in this Section 21. Optionee hereby covenants and agrees that
from and after his termination of employment and until the expiration of
eighteen months from the date of termination of employment with the Company of
any Affiliate (such later date being referred to herein as the "Ending Date" and
the period beginning on the date of termination of employment and ending on the
Ending Date being referred to herein as the "Limited Period"), or such perpetual
period in the case of Section 21(1)(iv) below, Optionee shall not, directly or
indirectly:

          (i) engage in, control, advise, manage, serve as a director, officer
     or employee of, act as a consultant to, any bank holding company, savings
     association holding company, financial services holding company, bank,
     savings bank, thrift or any other financial institution or other
     organization that is primarily engaged in the financial services industry,
     in competition with the Company, which is located within the county of the
     Optionee's designated office or any county adjacent to that "designated
     office" county. The "designated office" and county will be listed on the
     signature page of this document. This prohibition shall not prohibit
     Optionee or any of his affiliates, associates, agents or representatives
     from owning less than 1% of the publicly traded securities of any
     corporation or other entity engaged in such business;

          (ii) solicit, divert or attempt to solicit or divert any "past
     customers", "present customers", or "prospective customers" of the Company,
     as those terms are defined below, for the purpose of competing with the
     Company in providing financial services;

                                       -8-
<PAGE>

          (iii) employ, solicit for employment or encourage to leave his
     employment, any person who was, during the one-year period prior to such
     employment, solicitation or encouragement, or is, an officer or employee of
     the Company or an Affiliate; and/or

          (iv) divulge, furnish or make accessible to any person or entity
     (during the Limited Period or at any time thereafter) any knowledge or
     information about the business conducted by the Company or any Affiliate
     not otherwise in the public domain (except as required by law or order of
     any governmental entity), or any of any of their customers or with respect
     to any other aspect of the business conducted by the Company or any
     Affiliate.

For purposes of this Section 21(1), the term "directly or indirectly" shall
include acts or omissions as proprietor, partner, joint venture, employer,
salesman, agent, employee, officer, director, lender or consultant of, to or
for, or owner of any interest in, any person or entity. In addition, the term
"past customers" means any customer who was acquired during Optionee's last year
of employment, but who was not still a customer at the time of Optionee's
departure. The term "present customers" means any customer who was a customer
during Optionee's employment and who remained a customer at the time of
Optionee's departure. The term "prospective customer" means entities to which
the Company had made overtures during the last year of Optionee's employment.

     (2) Tolling of Limited Period. The running of the one (1) year Limited
Period prescribed in subparagraphs (1)(i) through (iii) above (but not
Optionee's obligations under Section 21(1)) shall be tolled and suspended by the
length of time Optionee is directly or indirectly involved in circumstances that
a court of competent jurisdiction subsequently finds to violate the terms of
Section 21(1).

     (3) Injunctive Relief. Optionee acknowledges that it would be difficult to
compensate fully the Company or any affected Affiliate for damages for any
violation of the provisions of 21(1) of this Agreement, and the Company and any
affected Affiliate in any such violation will not have an adequate remedy at
law. Accordingly, the Company and/or the affected Affiliate shall be entitled to
injunctive relief, both pendente lite and permanently, against Optionee.
Optionee hereby consents to any initiation by the Company and/or any affected
Affiliate in a court of appropriate jurisdiction of any action to enjoin
immediately any anticipatory, continuing or future breach of Section 21(1).
Optionee hereby releases the Company from the requirement of posting any bond in
connection with temporary or interlocutory injunctive relief, to the extent
permitted by law. This Section 21(3) with respect to injunctive relief shall
not, however, diminish the right of the Company and/or any affected Affiliate to
claim and recover damages in addition to injunctive relief.

     (4) Judicial Modification. If any of the provisions of this Section 21 is
held to be unenforceable because of the scope, duration or area of its
applicability, or otherwise, the court or other body having jurisdiction over
the matter making such determination shall have the power to modify such scope,
duration or area or other matter, or all of them, and such provisions shall then
be applicable in such modified form; and each Affiliated Shareholder agrees that
this Section 21, as so amended, shall be valid and binding as though any invalid
or unenforceable provision had not been included herein.

                                       -9-
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on
its behalf by its duly authorized officer and Optionee, after reviewing and
understanding, among other matters herein, the restrictions imposed and the
remedies granted in Section 21, has also executed this Agreement in duplicate,
as of the day and year first above written.

                                   MAINSOURCE FINANCIAL GROUP, INC.

                                   By:______________________________________
                                         James L. Saner Sr., President/CEO

                                   Date: ___________________________________

                                                     OPTIONEE
                                   By: _____________________________________
                                                     Optionee

                                   Date: ___________________________________

                                   Designated Office: ______________________

                                   County: _________________________________

                                   State: __________________________________

                                      -10-EXHIBIT 10.1

                               [INDEMNITEE'S NAME]

                            INDEMNIFICATION AGREEMENT

         INDEMNIFICATION AGREEMENT, effective as of _________________ __, 2005,
between MainSource Financial Group, Inc., an Indiana corporation (the
"Company"), and _____________________________________________ (the
"Indemnitee").

         WHEREAS, it is essential to the Company that it retain and attract as
directors and executive officers the most highly competent individuals the
Company can reasonably retain and attract, in the face of an increasing
reluctance by these individuals to serve or continue to serve publicly-held
corporations unless they are provided with adequate protection against
inordinate risks of claims and actions against them arising out of their service
to and activities on behalf of the Company;

         WHEREAS, the potential inability to retain and attract such individuals
is detrimental to the best interests of the Company's shareholders;

         WHEREAS, Indemnitee is or is willing to become a director and/or an
executive officer of the Company;

         WHEREAS, both the Company and Indemnitee recognize the increased risk
of litigation and other claims being asserted against directors and executive
officers of public companies in today's environment;

         WHEREAS, the Restated Articles of Incorporation and the Bylaws of the
Company require the Company to indemnify and advance expenses to its directors
and executive officers to the full extent permitted by law, and the Indemnitee
has been serving and continues to serve, or is willing to begin to serve, as a
director and/or an executive officer of the Company in part in reliance on such
Restated Articles of Incorporation and Bylaws;

         WHEREAS, in recognition of Indemnitee's need for substantial protection
against personal liability in order to enhance Indemnitee's service to the
Company in an effective manner, free from undue concern that he or she will not
be indemnified, and Indemnitee's reliance on the aforesaid Restated Articles of
Incorporation and Bylaws, and in part to provide Indemnitee with specific
contractual assurance that the protection promised by such Restated Articles of
Incorporation and Bylaws will be available to Indemnitee (regardless of, among
other things, any amendment to or revocation of such Restated Articles of
Incorporation and Bylaws or any change in the composition of the Company's Board
of Directors or acquisition transaction relating to the Company), and in order
to induce Indemnitee to continue to provide, or begin to provide, as applicable,
services to the Company as a director (or executive officer) thereof, the
Company wishes to provide in this Agreement for the indemnification of and the
advancing of expenses to Indemnitee to the full extent (whether partial or
complete) permitted by law and as set forth in this Agreement, and, to the
extent insurance is maintained, for the continued coverage

                                       1
<PAGE>

of Indemnitee under the Company's directors' and officers' liability insurance
policies;

         NOW, THEREFORE, in consideration of the premises and of Indemnitee
continuing or beginning to serve the Company directly or, at its request,
indirectly through another enterprise, and intending to be legally bound hereby,
the parties hereto agree as follows:

1.       Certain Definitions:

         (a)      Change in Control:  shall be deemed to have occurred if:

                  (i) The Company is merged, consolidated, or reorganized with
                  or into another corporation or other legal person through a
                  merger, consolidation, share exchange or similar form of
                  corporate transaction involving the Company or any of its
                  subsidiaries that requires the approval of the Company's
                  shareholders, whether for such transaction or the issuance of
                  securities in the transaction (a "Business Combination"),
                  unless immediately following such Business Combination: (A)
                  more than 40% of the total voting power of (x) the corporation
                  resulting from the consummation of such Business Combination
                  (the "Surviving Corporation ") or (y) if applicable, the
                  ultimate parent corporation that directly or indirectly has
                  beneficial ownership of 100% of the Voting Securities eligible
                  to elect directors of the Surviving Corporation (the "Parent
                  Corporation"), is represented by Company Voting Securities
                  that were outstanding immediately prior to such Business
                  Combination (or, if applicable, represented by shares into
                  which such Company Voting Securities were converted pursuant
                  to such Business Combination), and such voting power among the
                  holders thereof is in substantially the same proportion as the
                  voting power of such Company Voting Securities among the
                  holders thereof immediately prior to the Business Combination,
                  (B) no person (other than any employee benefit plan sponsored
                  or maintained by the Surviving Corporation or the Parent
                  Corporation or any employee stock benefit trust created by the
                  Surviving Corporation or the Parent Corporation) is or becomes
                  the beneficial owner, directly or indirectly, of twenty-five
                  percent (25%) or more of the total voting power of the
                  outstanding Voting Securities eligible to elect directors of
                  the Parent Corporation (or, if there is no Parent Corporation,
                  the Surviving Corporation) and (C) at least one-half of the
                  members of the board of directors of the Parent Corporation
                  (or, if there is no Parent Corporation, the Surviving
                  Corporation) were incumbent directors of the Company at the
                  time of the approval of the execution of the initial agreement
                  providing for such Business Combination by the Company's board
                  of directors (the circumstances described in clauses (A), (B)
                  and (C) are collectively referred to as the "Business
                  Combination Requirements");

                  (ii) The Company sells or otherwise transfers all or
                  substantially all of its assets to any other corporation or
                  other legal person, unless each of the Business Combination
                  Requirements specified in subsection (i) immediately above is
                  satisfied;

                                       2
<PAGE>

                  (iii) There is a report filed on Schedule 13D or Schedule
                  14D-l (or any successor schedule, form or report), each as
                  promulgated pursuant to the Securities Exchange Act of 1934,
                  as amended (the "Exchange Act"), disclosing that any person
                  (as the term "person" is used in Section 13(d)(3) or Section
                  14(d)(2) of the Exchange Act) has become the beneficial owner
                  (as the term "beneficial owner" is defined under Rule 13d-3 or
                  any successor rule or regulation promulgated under the
                  Exchange Act) of securities representing twenty-five percent
                  (25%) or more of the voting power of the then outstanding
                  Voting Securities of the Company;

                  (iv) The Company files a report or proxy statement with the
                  Securities and Exchange Commission pursuant to the Exchange
                  Act disclosing in response to Form 8-K or Schedule 14A (or any
                  successor schedule, form or report or item therein) that a
                  change in control of the Company, other than through any
                  event(s) referred to in paragraphs (i) through (iii) of this
                  Section l(a) hereof, has or may have occurred or will or may
                  occur in the future pursuant to any then-existing contract or
                  transaction; or

                  (v) If during any period of two (2) consecutive years,
                  individuals who at the beginning of any such period constitute
                  the directors (including for this purpose any new director
                  whose election or nomination for election by the Company's
                  shareholders was approved by a vote of at least two-thirds
                  (2/3) of the directors then still in office who were directors
                  at the beginning of such period) cease for any reason to
                  constitute at least a majority thereof (excluding any
                  director's seat that is vacant or otherwise unoccupied).

Notwithstanding the foregoing provisions of (iii) and (iv) above, a "Change in
Control" shall not be deemed to have occurred for purposes of this Agreement (x)
solely because (A) the Company, (B) a subsidiary, or (C) any Company-sponsored
employee stock ownership plan or other employee benefit plan of the Company
either files or becomes obligated to file a report or proxy statement under or
in response to Schedule 13D, Schedule 14D-l, Form 8-K or Schedule 14A (or any
successor schedule, form or report or item therein) under the Exchange Act,
disclosing beneficial ownership by it of shares, whether in excess of
twenty-five percent (25%) of the voting power or otherwise, or because the
Company reports that a change of control of the Company has or may have occurred
or will or may occur in the future by reason of such beneficial ownership or (y)
solely because of a change in control of any subsidiary.

         (a) Claim: any pending, completed or overtly threatened action, suit or
proceeding, or any inquiry, hearing or investigation, whether conducted by the
Company or any other party, that Indemnitee in good faith believes might lead to
the institution of any such action, suit or proceeding, whether civil, criminal,
administrative, investigative or other.

         (b)      Expense Advance is defined in Section 2(a) hereof.

                                       3
<PAGE>

         (c) Expenses include reasonable attorneys' fees and all other costs,
expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or
preparing to defend, be a witness in or participate in any Claim relating to any
Indemnifiable Event.

         (d) Indemnifiable Event: any event or occurrence related to the fact
that Indemnitee is or was a director, officer, employee, agent or fiduciary of
the Company, or is or was serving at the request of the Company as a director,
officer, employee, trustee, agent or fiduciary of another corporation,
partnership, joint venture, employee benefit plan, trust or other enterprise, or
by reason of anything done or not done by Indemnitee in any such capacity.

         (e) Potential Change in Control shall be deemed to have occurred if (i)
the Company enters into an agreement or arrangement, the consummation of which
would result in the occurrence of a Change in Control; (ii) any person
(including the Company) publicly announces an intention to take or to consider
taking actions which if consummated would constitute a Change in Control; (iii)
any person other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company acting in such capacity or a corporation
owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of shares of the Company,
who is or becomes the beneficial owner, directly or indirectly, of securities of
the Company representing 10% or more of the combined voting power of the
Company's then outstanding Voting Securities, increases his beneficial ownership
of such securities by or 5% or more of such outstanding Voting Securities over
the percentage so owned by such person on the date hereof; or (iv) the Board
adopts a resolution to the effect that, for purposes of this Agreement, a
Potential Change in Control has occurred.

         (f) Reviewing Party: any appropriate person or body consisting of a
member or members of the Company's Board of Directors or any other person or
body appointed by the Board (including the special, independent counsel referred
to in Section 3 hereof) who is not a party to the particular Claim for which
Indemnitee is seeking indemnification.

         (g) Voting Securities: any securities of the Company that vote
generally in the election of directors.

2.       Basic Indemnification Arrangement.

         (a) In the event Indemnitee was, is or becomes a party to or witness or
other participant in, or is threatened to be made a party to or witness or other
participant in, a Claim by reason of (or arising in part out of) an
Indemnifiable Event, the Company shall indemnify Indemnitee to the fullest
extent permitted by law, as soon as practicable but in any event no later than
30 days after written demand is presented to the Company, against any and all
judgments, fines, penalties, reasonable Expenses and, provided if the Company
has approved the amount to be paid in settlement (which approval shall not be
unreasonably withheld), amounts paid in settlement (including all interest,
assessments and other charges paid or payable in connection with or in respect
of such Expenses, judgments, fines, penalties or amounts paid in settlement) of
such Claim and any federal, state, local or foreign taxes imposed on the
Indemnitee as a result of

                                       4
<PAGE>

the actual or deemed receipt of any payments under this Agreement (including the
creation of the escrow contemplated by Section 4 hereof). Notwithstanding
anything in this Agreement to the contrary and except as provided in Section 5
hereof, prior to a Change in Control, Indemnitee shall not be entitled to
indemnification pursuant to this Agreement in connection with any Claim
initiated by Indemnitee against the Company or any director or officer of the
Company unless the Company has given its prior written consent (which consent
shall not be unreasonably withheld) to the initiation of such Claim. If so
requested by Indemnitee from time to time, the Company shall advance (promptly
and in any event within ten business days of such request) to Indemnitee or to
such person directed by Indemnitee any and all reasonable Expenses (an "Expense
Advance").

         (b) Notwithstanding the foregoing, (i) the obligations of the Company
under Section 2(a) hereof shall be subject to the condition that the Reviewing
Party shall not have determined (in a written opinion in any case in which the
special, independent counsel referred to in Section 3 hereof is involved) that
Indemnitee would not be permitted to be indemnified under applicable law, and
(ii) the obligation of the Company to make an Expense Advance pursuant to
Section 2(a) hereof shall be subject to the condition that, if, when and to the
extent that the Reviewing Party determines that Indemnitee would not be
permitted to be so indemnified under applicable law, the Company shall be
entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Company) for all such amounts theretofore paid; provided, however, that if
Indemnitee has commenced legal proceedings in a court of competent jurisdiction
to secure a determination that Indemnitee should be indemnified under applicable
law, any determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any Expense
Advance until a final judicial determination is made with respect thereto (as to
which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitee's obligation to reimburse the Company for Expense Advances shall be
unsecured and no interest shall be charged thereon for thirty (30) days after
such final determination, after which interest on the unpaid amount shall accrue
at the statutory judicial rate. If there has not been a Change in Control, the
Reviewing Party shall be selected by the Board of Directors, and if there has
been such a Change in Control (other than a Change in Control that has been
approved by a majority of the Company's Board of Directors who were directors
immediately prior to such Change in Control), the Reviewing Party shall be the
special, independent counsel referred to in Section 3 hereof. If there has been
no determination by the Reviewing Party or if the Reviewing Party determines
that Indemnitee substantively would not be permitted to be indemnified in whole
or in part under applicable law, Indemnitee shall have the right to commence
litigation in any court in the State of Indiana having subject matter
jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any such determination by the
Reviewing Party or any aspect thereof, and the Company hereby consents to
service of process and to appear in any such proceeding. Any determination by
the Reviewing Party otherwise shall be conclusive and binding on the Company and
Indemnitee.

3. Change in Control. The Company agrees that if there is a Change in Control of
the Company (other than a Change in Control that has been approved by a majority
of the Company's Board of Directors who were directors immediately prior to such
Change in Control), then with

                                       5
<PAGE>

respect to all matters thereafter arising concerning the rights of Indemnitee to
indemnity payments and Expense Advances under this Agreement or any other
agreement or under applicable law or the Company's Restated Articles of
Incorporation or Bylaws now or hereafter in effect relating to Claims for
Indemnifiable Events, the Company shall seek legal advice only from special,
independent counsel selected by the Company and approved by Indemnitee (which
approval shall not be unreasonably withheld), and who has not otherwise
performed services for the Company within the 10 years preceding engagement to
render such advice (other than in connection with such matters) or for
Indemnitee. Such independent counsel shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Company or Indemnitee in an
action to determine Indemnitee's rights under this Agreement. Such counsel, in
addition to any other matters to be addressed by such counsel, shall render its
written opinion to the Company and Indemnitee as to whether and to what extent
the Indemnitee would be permitted to be indemnified under applicable law. The
Company agrees to pay the reasonable fees of the special, independent counsel
referred to above and to indemnify fully such counsel against any and all
reasonable expenses (including attorneys' fees), claims, liabilities and damages
to third parties arising out of or relating to this Agreement or the engagement
of special, independent counsel pursuant hereto.

4. Indemnification for Additional Expenses. The Company shall indemnify
Indemnitee against any and all reasonable expenses (including attorneys' fees)
and, if requested by Indemnitee, shall (within two business days of such
request) advance such expenses to Indemnitee, that are incurred by Indemnitee in
connection with any Claim asserted against or action brought by Indemnitee
(subject to the limitations of Section 2(a) hereof) for (i) indemnification or
advance payment of Expenses by the Company under this Agreement or any other
agreement or under applicable law or the Company's Restated Articles of
Incorporation or By-laws now or hereafter in effect relating to Claims for
Indemnifiable Events and/or (ii) recovery under any directors' and officers'
liability insurance policies maintained by the Company, regardless of whether
Indemnitee ultimately is determined to be entitled to such indemnification,
advance expense payment or insurance recovery, as the case may be.

5. Partial Indemnity, Etc. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the
Expenses, judgments, fines, penalties and amounts paid in settlement of a Claim
but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled. Moreover, notwithstanding any other provision of this Agreement, to
the extent that Indemnitee has been successful on the merits or otherwise in
defense of any or all Claims relating in whole or in part to an Indemnifiable
Event or in defense of any issue or matter therein, including dismissal without
prejudice, Indemnitee shall be indemnified against all Expenses incurred in
connection therewith. In connection with any determination by the Reviewing
Party or otherwise as to whether Indemnitee is entitled to be indemnified
hereunder, the burden of proof shall be on the Company to establish that
Indemnitee is not so entitled.

6. No Presumption. For purposes of this Agreement, the termination of any Claim,
action, suit or proceeding, by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or its
equivalent, shall not create a presumption

                                       6
<PAGE>

that Indemnitee did not meet any particular standard of conduct or have any
particular belief or that a court has determined that indemnification is not
permitted by applicable law.

7. Non-exclusivity, Etc. The rights of the Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Company's Restated
Articles of Incorporation, Bylaws, the Indiana Business Corporation Law or
otherwise. To the extent that a change in the Indiana Business Corporation Law
(whether by statute or judicial decision) permits greater indemnification by
agreement than would be afforded currently under the Company's Restated Articles
of Incorporation and Bylaws and this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change.

8. Liability Insurance. To the extent the Company maintains an insurance policy
or policies providing directors' and officers' liability insurance, Indemnitee
shall be covered by such policy or policies in accordance with its or their
terms, to the maximum extent of the coverage available for any Company director
or officer.

9. Period of Limitations. No legal action shall be brought and no cause of
action shall be asserted by or on behalf of the Company or any affiliate of the
Company against Indemnitee, Indemnitee's spouse, heirs, executors or personal or
legal representatives after the expiration of two years from the date of accrual
of such cause of action, and any claim or cause of action of the Company or its
affiliate shall be extinguished and deemed released unless asserted by the
timely filing of a legal action within such two-year period; provided, however,
that if any shorter period of limitations is otherwise applicable to any such
cause of action such shorter period shall govern; and provided further that
nothing herein shall limit or prohibit the Company from asserting any defense
against a claim or demand by Indemnitee that would otherwise be available but
for the extinguishment or release thereof contemplated by this Section 10.

10. Amendments, Etc. No supplement, modification or amendment of this Agreement
shall be binding unless executed in writing by both of the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions hereof (whether or not similar) nor
shall such waiver constitute a continuing waiver.

11. Subrogation. In the event of payment under this Agreement, the Company shall
be subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required or reasonably required by the
Company and shall do everything that may be necessary to secure such rights,
including without limitation consenting to the jurisdiction of any court in
which the Company determines to file any action for recovery and the execution
of such documents necessary or reasonably requested by the Company to enable the
Company effectively to bring suit to enforce such rights.

12. No Duplication of Payments. The Company shall not be liable under this
Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, Bylaw or otherwise) of the amounts otherwise
indemnifiable hereunder.

                                       7
<PAGE>

13. Binding Effect, Etc. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company, spouses, heirs, and personal and legal
representatives. The Company shall use good faith and commercially reasonable
efforts to cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company, by written agreement in form and substance reasonably
satisfactory to the Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place, and in the absence of
such written agreement by such successor, the Company shall provide Indemnitee
with either a fully paid liability insurance policy providing coverage on terms
no less favorable than contemplated by this Agreement underwritten by an
insurance company rated A or better under A.M. Best Company's Financial Strength
Rating or an equivalent rating service, or a substantially equivalent risk
protection arrangement reasonably satisfactory to Indemnitee. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as
a director and/or an executive officer of the Company or of any other enterprise
at the Company's request.

14. Severability. The provisions of this Agreement shall be severable in the
event that any of the provisions hereof (including any provision within a single
section, paragraph or sentence) are held by a court of competent jurisdiction to
be invalid, void or otherwise unenforceable, and the remaining provisions shall
remain enforceable to the fullest extent permitted by law. Furthermore, to the
fullest extent possible, the provisions of this Agreement (including, without
limitation, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

15. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Indiana applicable to
contracts made to be performed in such State without giving effect to the
principles of conflicts of laws.

16. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed for all purposes to be an original, but all of
which together shall constitute one and the same Agreement. Only one counterpart
signed by the party against whom enforceability is sought needs to be produced
to evidence the existence of this Agreement.

17. Limitations on Company 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 Company by order of any
state or federal banking regulatory agency with supervision of the Company,
unless stayed by appropriate proceedings, and Company shall be under no
obligation to perform any of its obligations hereunder if it is informed in
writing by any state or federal banking regulatory agency with supervision of
the Company or as determined by the Company based upon the written advice of the
Company's legal counsel that performance of its obligations would constitute an
unsafe or unsound banking practice. If Company is in default (as defined in
section 3(x)(1) of the Federal Deposit Insurance

                                       8
<PAGE>

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 parties.
Notwithstanding anything herein to the contrary, (i) any payments made to
Indemnitee pursuant to this Agreement, or otherwise, shall be subject to and
conditional upon compliance with 12 USC Section 1828(k) and any regulation
promulgated thereunder, and (ii) the Company shall have no obligation to
indemnify the Indemnitee for any actions or omissions by Indemnitee which arise
out of or are connected with conduct which is criminal, fraudulent, willful
misconduct or bad faith or if such indemnification is otherwise against public
policy as determined by the Company based upon the written advice of the
Company's legal counsel].

         IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement as of the ___ day of ___________________, 2005.

                                       MAINSOURCE FINANCIAL GROUP, INC.

                                       By:
                                           ------------------------------------
                                           James L. Saner, Sr., President and
                                           Chief Executive Officer

                                           ------------------------------------
                                                  [Name of Indemnitee ]

                                       9

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