Document:

Employmeet Agreement

    Exhibit
      10.1

    
 

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of the 1st
      day of December, 2006 by and between HORIZON BANK, N.A. (the “Bank”), a national
      banking association organized under the laws of the United States of America,
      HORIZON BANCORP (the “Holding Company”) a corporation formed under the laws of
      the State of Indiana and a registered bank holding company (jointly referred
      to
      herein as the “Company”) and CRAIG M. DWIGHT (the “Executive”), a resident of
      the State of Indiana,

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      Bank is a wholly-owned subsidiary of the Holding Company; and

     

    WHEREAS,
      the Executive is currently employed as an employee-at-will by the Company and
      is
      currently serving as the President and Chief Executive Officer of the Holding
      Company and as Chairman and Chief Executive Officer of the Bank;
      and

     

    WHEREAS,
      the Company desires to continue the employment of the Executive, and the
      Executive desires to continue to be employed by the Company, in accordance
      with
      the provisions of this Agreement; and

     

    WHEREAS,
      in addition to the employment provisions contained herein, the Company and
      the
      Executive have agreed to certain restrictions, covenants, agreements and
      severance payments, as set forth in this Agreement; and

     

    WHEREAS,
      the Executive is willing to commit to continue in the performance of such
      services for the Company upon the terms and conditions set forth
      herein;

     

    NOW,
      THEREFORE, in consideration of the foregoing premises, the mutual covenants,
      agreements and obligations contained herein, the continued employment of the
      Executive by the Company pursuant to this Agreement and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Company and the Executive, each intending to be legally bound,
      hereby agree as follows:

     

    
      	
              Section
                1.

            	
              Employment;
                Term.

            

    

     

    (a) Employment.
      Unless
      terminated earlier as provided herein, the Company hereby agrees to employ
      the
      Executive, and the Executive hereby agrees to be employed by the Company, on
      a
      full-time basis in accordance with the provisions of this
      Agreement.

     

    (b) Term.
      Unless
      terminated earlier as provided herein, the initial term of the Executive’s
      employment with the Company hereunder will begin on the date of this Agreement
      and will end on the date which is three years following the date hereof;
      provided, however, that on each annual anniversary of the date of this Agreement
      until the year in which the Executive attains age 63, the Executive’s term of
      employment will be extended for an additional one-year period beyond the
      then-effective expiration date, upon the same agreements, covenants and
      provisions set forth herein, unless at least 60 days prior to the expiration
      of
      any one-year period 

     

    

    
      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

    

    

    during
      the term thereof, the Company delivers to the Executive written notice that
      the
      term of this Agreement will not be so extended for a one-year period (the
      initial term of this Agreement and all extensions thereof, if any, are
      hereinafter referred to individually and collectively as the
“Term”).

     

    
      	
              Section
                2.

            	
              Position;
                Duties;
                Responsibilities.

            

    

     

    (a) Position.
      During
      the Term, the Executive will be the Chairman and Chief Executive Officer of
      the
      Bank and the President and Chief Executive Officer of the Holding Company and
      will perform such duties and responsibilities as may be assigned by the board
      of
      directors of the Bank or the Holding Company and which are not unreasonably
      inconsistent with the duties currently being performed by the
      Executive.

     

    (b) Duties
      and Responsibilities.
      During
      the Term, the Executive will devote substantially all business time, attention
      and energy, and reasonable best efforts, to the interests and business of the
      Bank, the Holding Company and their affiliates and subsidiaries (collectively
      “Affiliates”) and to the performance of the Executive’s duties and
      responsibilities on behalf of the Company and Affiliates. The Executive may
      use
      his discretion in fixing the hours and schedule of work consistent with the
      proper discharge of the Executive’s duties. The Executive, subject to the
      direction and control of the board of directors of the Bank and of the Holding
      Company, will have all power and authority commensurate with the Executive’s
      status and necessary to perform his duties hereunder. During the Term the
      Executive will not serve on the board of directors of any for-profit
      organization without the prior consent of the Holding Company’s board of
      directors (‘Board”).

     

    (c) Working
      Conditions.
      So long
      as the Executive is employed by the Company pursuant to this Agreement, the
      Executive will be entitled to office space and working conditions consistent
      with his position as President and Chief Executive Officer of the Holding
      Company and Chairman and Chief Executive Officer of the Bank. The Company will
      provide the Executive with such assistance and working accommodations as are
      suitable to the character of his positions with the Company and as are adequate
      for the performance of the Executive’s duties. The Executive will not be
      required to be absent from the location of the principal executive offices
      of
      the Company on travel status or otherwise more than 30 days in any calendar
      year. The Company will not, without the written consent of the Executive,
      relocate or transfer Executive to a location more than 30 miles from his
      principal residence.

     

    
      	
              Section
                3.

            	
              Compensation
                and Employee Benefits.

            

    

     

    (a) Base
      Salary.
      During
      the Term, for all services rendered to or on behalf of the Company by the
      Executive in all capacities pursuant to this Agreement or otherwise, the Company
      will pay to the Executive an annual base salary equal to the amount being paid
      the Executive as of the date of this Agreement (the “Base Salary”), and will be
      adjusted in accordance with this Section. At approximately annual intervals,
      after the end of each fiscal year of the Bank during the Term, the Board will
      review, or will cause to be reviewed, the Base Salary payable to the Executive,
      giving attention to all factors that the Board deems pertinent, including,
      without limitation, any recommendations of the Board or the compensation
      committee of the 

     

    

    
      
        
          
          

        

        
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    Board,
      the performance of the Bank, the Holding Company and their Affiliates, the
      performance of the Executive and the compensation practices inside and outside
      of the Company. The Board will, after such annual review, determine the Base
      Salary to be paid until the completion of the next annual review, but such
      new
      Base Salary will not be less than the Base Salary as of the date hereof. The
      Base Salary will be paid to the Executive in accordance with the Bank’s usual
      and customary payroll practices applicable to its employees
      generally.

     

    (b) Incentive
      Compensation.
      During
      the Term, the Executive will be entitled to participate in all incentive
      compensation plans and programs in effect from time to time and generally
      available to executive officers of the Company, subject to the terms and
      conditions of such plans and programs.

     

    (c) Employee
      Benefit Plans.
      During
      the Term, the Executive will be entitled to participate in all employee benefit
      plans and programs in effect from time to time and generally available to
      executive officers of the Company, subject to the terms and conditions of such
      plans and programs.

     

    (d) Other
      Policies.
      All
      other matters relating to the employment of the Executive by the Company not
      specifically addressed in this Agreement, or in the plans and programs
      referenced above (including, without limitation, vacation, sick and other paid
      time off), will be subject to the employee handbooks, rules, policies and
      procedures of the Company in effect from time to time.

     

    (e) Taxes
      and Other Amounts.
      All
      taxes (other than the Company’s portion of FICA taxes) on the Base Salary and
      other amounts payable to the Executive pursuant to this Agreement or any plan
      or
      program will be paid by the Executive. The Company will be entitled to withhold
      from the Base Salary and all other amounts payable to the Executive pursuant
      to
      this Agreement or any plan or program (i) applicable withholding taxes, and
      (ii)
      such other amounts as may be authorized by the Executive in
      writing.

     

    (f) Acknowledgment
      by the Executive.
      Notwithstanding anything herein to the contrary, the Executive hereby
      understands, acknowledges and agrees that the Bank or Holding Company may,
      each
      in its sole discretion, amend, modify, freeze, suspend or terminate any or
      all
      of the incentive compensation, stock option, employee benefit and other plans
      and programs referenced herein at any time and from time to time in the future
      as provided in such plans and programs. Provided, however, that any such
      amendment, modification, freezing, suspension or termination will not affect
      any
      of the Executive’s vested or accrued benefits under any such plans or
      programs.

     

    
      	
              Section
                4.

            	
              Termination
                of Employment.

            

    

     

    Subject
      to the respective continuing obligations of the parties hereto set forth in
      this
      Agreement, the Executive’s employment with the Company may be terminated during
      the Term in any of the following ways:

     

    

    
      
        
          
          

        

        
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    (a) Termination
      by the Company for Cause.
      The
      Company, upon written notice to the Executive, may terminate the Executive’s
      employment with the Company immediately (except as otherwise expressly provided
      herein with respect to the Executive’s limited right to cure) for Cause. For
      purposes of this Section 4, “Cause” is defined as any of the following which, in
      the case of (iii) below, has not been expressly consented to in advance by
      the
      Company in writing:

     

    (i) An
      intentional act of fraud, embezzlement, theft, or personal dishonesty; willful
      misconduct, or breach of fiduciary duty involving personal profit by the
      Executive in the course of his employment. No act or failure to act will be
      deemed to have been intentional or willful if it was due primarily to an error
      in judgment or negligence. An act or failure to act will be considered
      intentional or willful if it is not in good faith and if it is without a
      reasonable belief that the action or failure to act is in the best interest
      of
      the Company or Affiliates;

     

    (ii) Intentional
      wrongful damage by the Executive to the business or property of the Company
      or
      any Affiliates, causing material harm to the Company or any
      Affiliates;

     

    (iii) Breach
      by
      the Executive of any provision of this Agreement, as in effect from time to
      time
      with the Company (other than a breach justifying termination pursuant to any
      other provision of this subsection 4(a));

     

    (iv) Gross
      negligence or insubordination by the Executive in the performance of his duties,
      or the Executive’s refusal or repeated failure to carry out lawful directives of
      the Board;

     

    (v) Removal
      or permanent prohibition of the Executive from participating in the conduct
      of
      the affairs of the Bank or its Affiliates by an order issued under subsection
      8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 USC §§ 1818(e)(4)
      and (g)(1).

     

    (b) Termination
      by the Company Without Cause.
      The
      Company, upon not less than 30 days prior written notice to the Executive,
      may
      terminate the Executive’s employment with the Company without
      Cause.

     

    (c) Termination
      by the Executive for Good Reason.
      The
      Executive, upon written notice to the Company, may terminate his employment
      with
      the Company immediately (except as otherwise expressly provided herein with
      respect to the Company’s limited right to cure) for Good Reason. For purposes of
      this Section 4, “Good Reason” means the occurrence of any of the following
      events, which has not been expressly consented to in advance by the Executive
      in
      writing:

     

    (i) The
      requirement that the Executive move his office to a location more than 30 miles
      from his principal residence;

     

    

    
      
        
          
          

        

        
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    (ii) A
      reduction of ten percent or more in the Executive’s then current annual Base
      Salary, unless part of an institution-wide reduction and proportionate to the
      reduction in the Base Salary of all other executive officers of the
      Company;

     

    (iii) The
      removal of the Executive from participation in any incentive compensation or
      performance-based compensation plans unless the Company terminates participation
      in the plan or plans with respect to all other executive officers of the
      Company;

     

    (iv) The
      taking of any action by the Bank or Holding Company which would directly or
      indirectly reduce any material benefit plan or program or deprive the Executive
      of any such benefit enjoyed by him, unless part of an institution-wide reduction
      and applied similarly to all other executive officers of the
      Company;

     

    (v) The
      assignment to the Executive of duties and responsibilities materially different
      from those normally associated with his position as referenced in Section
      2;

     

    (vi) A
      material diminution or reduction in the Executive’s responsibilities or
      authority (including reporting responsibilities) in connection with his
      employment with the Company;

     

    (vii) A
      material reduction in the secretarial or administrative support of the
      Executive; or

     

    (viii) Breach
      by
      the Company of any provision of this Agreement, as in effect from time to time
      with the Executive, other than a breach justifying termination pursuant to
      any
      other provision of this subsection 4(c).

     

    (d) Termination
      by the Executive Without Good Reason.
      The
      Executive, upon not less than 30 days prior written notice to the Bank, may
      terminate his employment with the Company without Good Reason.

     

    (e) Termination
      in the Event of Death or Disability.
      The
      Executive’s employment hereunder will terminate immediately upon the death of
      the Executive. The Executive’s employment with the Company may be terminated by
      the Company in the event of the occurrence of a Disability of the Executive.
      For
      purposes hereof, a “Disability” is defined as the Executive’s inability to
      engage in any substantial gainful activity by reason of any medically
      determinable physical or mental impairment which can be expected to result
      in
      death or can be expected to last for a continuous period of not less than 12
      months. If, by reason of any medically determinable physical or mental
      impairment that can be expected to result in death or last for a continuous
      period of not less than 12 months, the Executive is receiving income replacement
      benefits for a period of not less than three months under an accident and health
      plan sponsored by the Company, the Executive will be deemed to be Disabled.
      The
      Compensation Committee of the Board will be the sole and final judge of whether
      the Executive is Disabled for purposes of this Agreement, after consideration
      of
      any evidence it may require, including the reports of any physician or
      physicians it may designate.

     

    

    
      
        
          
          

        

        
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    (f) Termination
      by the Executive in the Event of a Change in Control.

     

    (i) Following
      a Change in Control (as hereinafter defined), the Executive, upon 30 days prior
      written notice to the Company, may terminate his employment with the Company
      immediately upon the occurrence of any of the following events after a Change
      in
      Control, unless the Executive consents in writing to the occurrence of any
      such
      events:

     

    (A) the
      assignment to the Executive of duties or responsibilities that are inconsistent
      with the Executive’s positions as Chairman and Chief Executive Officer of the
      Bank and President and Chief Executive Officer of the Holding Company, or a
      substantial reduction in the nature or status of the Executive’s duties and
      responsibilities from those in effect immediately prior to a Change in
      Control;

     

    (B) a
      reduction by the Company in the Executive’s Base Salary in effect on the date
      preceding the date of the Change in Control;

     

    (C) the
      Company requires the Executive to be based anywhere other than the location
      at
      which he was based immediately prior to the Change in Control; or

     

    (D) the
      failure by the Bank or Holding Company to continue to provide the Executive
      with
      benefits substantially similar to those described in subsections 3(b), (c)
      and
      (d) which are provided to the Executive immediately prior to a Change in
      Control.

     

    (ii) Following
      a Change in Control (as hereinafter defined), the Executive, upon written notice
      to the Company, may terminate his employment with the Company, during a 30-day
      period beginning on a date six months following the date of the Change in
      Control and ending at midnight on the date that is six months and 30 days
      following the date of the Change in Control.

     

    (g) Termination
      by the Company Upon a Change in Control.
      The
      Company, upon 30 days prior written notice to the Executive, may terminate
      the
      Executive’s employment with the Company during the six-month period immediately
      following a Change in Control.

     

    (h) Notice
      of Termination.
      Any
      termination of the Executive’s employment with the Company as contemplated by
      this Section 4, except in the event of the Executive’s death, will be
      communicated by a written “Notice of Termination” by the terminating party to
      the other party hereto. Any Notice of Termination will indicate the specific
      provisions of this Agreement relied upon and, if applicable, will set forth
      in
      reasonable detail the facts and circumstances claimed to provide a basis for
      such termination. The last day of the Executive’s employment with the Company
      will be referred to herein as the “Date of Termination.”

     

    (i) Limited
      Right to Cure by the Company and the Executive.

     

    

    
      
        
          
          

        

        
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    (i) In
      the
      event that the Company desires to terminate the Executive’s employment for Cause
      pursuant to subsection 4(a)(iii), the Company will first deliver to the
      Executive a written notice which will (A) indicate the specific provisions
      of
      this Agreement relied upon for such termination, (B) set forth in reasonable
      detail the facts and circumstances claimed to provide a basis for such
      termination, and (C) describe the steps, actions, events or other items that
      must be taken, completed or followed by the Executive to correct or cure the
      basis for such termination. The Executive will then have 30 days following
      the
      effective date of such notice to fully correct and cure the basis for the
      termination of his employment. If the Executive does not fully correct and
      cure
      the basis for the termination of his employment within such 30-day period,
      then
      the Company will have the right to terminate the Executive’s employment with the
      Company immediately for Cause upon delivering to the Executive a written Notice
      of Termination and without any further cure period. Notwithstanding the
      foregoing, the Executive will be entitled to so correct and cure only a maximum
      of two times during any calendar year.

     

    (ii) In
      the
      event that the Executive desires to terminate his employment with the Company
      for Good Reason pursuant to subsection 4(c) or upon a Change in Control pursuant
      to subsection 4(f), the Executive will first deliver to the Company a written
      notice which will (A) indicate the specific provisions of this Agreement relied
      upon for such termination, (B) set forth in reasonable detail the facts and
      circumstances claimed to provide a basis for such termination, and (C) describe
      the steps, actions, events or other items that must be taken, completed or
      followed by the Company to correct or cure the basis for such termination.
      The
      Company will then have 30 days following the effective date of such notice to
      fully correct and cure the basis for the termination of the Executive’s
      employment. If the Company does not fully correct and cure the basis for the
      termination of the Executive’s employment within such 30-day period, then the
      Executive will have the right to terminate his employment with the Company
      immediately upon delivering to the Company a written Notice of Termination
      and
      without any further cure period. Notwithstanding the foregoing, the Company
      will
      be entitled to so correct and cure only a maximum of two times during any
      calendar year.

     

    (j) Change
      in Control.
      For
      purposes of this Agreement, a “Change in Control” will be deemed to have
      occurred if the conditions or events set forth in any one or more of the
      following subsections occur:

     

    (i) Any
      merger, consolidation or similar transaction which involves the Bank or Holding
      Company and in which persons who are the shareholders of the Bank or Holding
      Company immediately prior to the transaction own, immediately after the
      transaction, shares of the surviving or combined entity which possess voting
      rights equal to or less than 50 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 consolidated assets of the Bank or Holding Company;

     

    

    
      
        
          
          

        

        
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    (iii) Any
      tender, exchange, sale or other disposition (other than disposition of the
      stock
      of the Holding Company or the Bank in connection with bankruptcy, insolvency,
      foreclosure, receivership or other similar transactions) or purchase (other
      than
      purchases by the Holding Company or any Holding Company or Bank sponsored
      employee benefit plan, or purchases by members of the board of directors of
      the
      Holding Company or the Bank) of shares which represent more than 25 percent
      of
      the voting power of the Holding Company or the Bank; or

     

    (iv) During
      any period of two consecutive years individuals who at the date of this
      Agreement constitute the Board cease for any reason to constitute at least
      a
      majority thereof, unless the election of each director at the beginning of
      the
      period has been approved by directors representing at least a majority of the
      directors then in office.

     

    Notwithstanding
      the foregoing, a Change in Control (A) will not occur as a result of the
      issuance of stock by the Holding Company in connection with any public offering
      of its stock; (B) will not be deemed to have occurred with respect to any
      transaction unless such transaction has been approved or shares have been
      tendered by a majority of the shareholders who are not Section 16(b) Persons;
      or
      (C) will not occur due to stock ownership by the Horizon Bancorp Employees’
Stock Bonus Plan Trust, which forms a part of the Horizon Bancorp Employees’
Stock Bonus Plan or any other employee benefit plan.

     

    “Section
      16(b)” Person means a person subject to potential liability under Section 16(b)
      of the 1934 Act with respect to transactions which involve equity securities
      of
      the Holding Company.

     

    
      	
              Section
                5.

            	
              Payment
                Upon Termination of
                Employment.

            

    

     

    Upon
      the
      termination of the Executive’s employment with the Company pursuant to Section
      4, the Executive will receive the following:

     

    (a) Termination
      by the Company for Cause, by the Executive Without Good Reason or Due to Death
      or Disability of the Executive.
      Upon
      the termination of the Executive’s employment by the Company for Cause pursuant
      to subsection 4(a), by the Executive without Good Reason pursuant to subsection
      4(d) or in the event of termination due to the death or disability of the
      Executive pursuant to subsection 4(e), the Company will pay or provide to the
      Executive the following amounts and benefits:

     

    (i) that
      portion of the Executive’s Base Salary earned through the Date of Termination,
      payable in accordance with normal payroll practices;

     

    (ii) all
      amounts that have vested or accrued prior to the Date of Termination under
      all
      incentive compensation or employee benefit plans of the Bank or Holding Company
      in accordance with the provisions of such plans; and

     

    (iii) notwithstanding
      the foregoing, all options granted to the Executive to purchase shares of common
      stock of the Holding Company and all shares of restricted 

     

    

    
      
        
          
          

        

        
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    stock
      of
      the Holding Company (whether such options and restricted shares are vested
      or
      unvested) shall be treated in accordance with the applicable plan and award
      agreement(s) between the Holding Company and the Executive. 

     

    It
      is
      noted that nothing in this Agreement will serve to prevent the Executive from
      receiving long term disability payments from the Company’s long term disability
      program, if any, if the Executive is otherwise eligible to receive benefits
      under such a program.

    

      (b) Termination
        by the Company Without Cause or by the Executive With Good Reason and
        Termination by the Executive or the Company Upon a Change in Control. Upon
        the termination of the Executive’s employment by the Company without Cause
        pursuant to subsection 4(b) or upon a Change in Control pursuant to subsection
        4(g), or by the Executive with Good Reason pursuant to subsection 4(c) or
        upon a
        Change in Control pursuant to subsection 4(f), the Company will pay or provide
        to the Executive the following amounts and benefits:

       

    

    (i) that
      portion of the Executive’s Base Salary earned through the Date of Termination,
      payable in accordance with normal payroll practices;

     

    (ii) an
      amount
      equal to two times the Executive’s annual Base Salary in effect as of the date
      immediately preceding the Date of Termination plus an amount equal to the
      Executive’s Bonus paid or payable for the last two calendar years preceding the
      Date of Termination, payable in a single sum as of the date of the first payroll
      that is not less than 60 days following the Date of Termination, or as soon
      as
      administratively practicable thereafter;

     

    (iii) continued
      participation in the group health insurance and group life insurance benefits
      which the Executive would have been eligible to participate in or receive on
      the
      day prior to the Date of Termination (“Insurance Programs”) beginning on the
      Date of Termination and continuing for a period of two years, but only to the
      extent the Executive continues to qualify for participation therein. The Company
      will obtain a fully-insured group health insurance policy and group life
      insurance benefits for the Executive if he is not permitted to continue
      participation in those Insurance Programs for a period of two years from the
      Date of Termination;

     

    (iv) all
      amounts that have vested or accrued prior to the Date of Termination under
      all
      incentive compensation or employee benefit plans of the Holding Company or
      Bank
      in accordance with the provisions of such plans; and

     

    (v) cash
      reimbursement for reasonable expenses (as determined by the Board in its sole
      discretion) actually incurred by the Executive in searching for new employment
      during the two-year period following the Date of Termination and limited to
      no
      greater than $30,000. Each reimbursement will be paid to the Executive within
      30
      days following the receipt by the Company of a valid claim substantiating the
      expense; and

     

    

    
      
        
          
          

        

        
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    (vi) notwithstanding
      the foregoing, all options granted to the Executive to purchase shares of common
      stock of the Holding Company and all shares of restricted stock of the Holding
      Company (whether such options and restricted shares are vested or unvested)
      shall be treated in accordance with the applicable plan and award agreement(s)
      between the Holding Company and the Executive. 

     

    (c) Delay
      of Payment of Benefits in Certain Circumstances.

     

    (i) Separation
      from Service.
      “Separation from Service” means the date on which the Executive dies, retires or
      otherwise experiences a Termination of Employment with the Company. Provided,
      however, a Separation from Service does not occur if the Executive is on
      military leave, sick leave or other bona fide leave of absence (such as
      temporary employment by the government) if the period of such leave does not
      exceed six months, or if the leave is for a longer period, so long as the
      individual’s right to reemployment with the Company is provided either by
      statute or by contract. If the period of leave exceeds six months and the
      Executive’s right to reemployment is not provided either by statute or contract,
      there will be a Separation from Service on the first date immediately following
      such six-month period. The Executive will incur a “Termination of Employment”
when a termination of employment is incurred under Proposed Treasury Regulation
      1.409A-1(h)(ii) or any final version of such Proposed Regulation.

     

    (ii) Suspension
      of Payments to Specified Employees.
      To the
      extent such suspension is required by Section 409A of the Internal Revenue
      Code
      of 1986, as amended (“Code”) or Treasury Regulations issued pursuant to Code
      Section 409A, if an amount is payable to the Executive due to the Executive’s
      Separation from Service for a reason other than the Executive’s death, and if at
      the time of the Separation from Service the Executive is a “Specified Employee,”
payment of all amounts to the Executive under the Plan will be suspended for
      six
      months following such Separation from Service. The Executive will receive
      payment of such amounts on the first day following the six-month suspension
      period. 

     

    (A) A
      “Specified Employee” means an individual who is a “Key Employee” of the Company
      at a time when the Holding Company’s stock is publicly traded on an established
      securities market. The Executive will be a Specified Employee on the first
      day
      of the fourth month following any “Identification Date” on which the Executive
      is a Key Employee.

     

    (B) The
      Executive is a “Key Employee” if at any time during the 12-month period ending
      on an Identification Date the Executive is: (i) an officer of the Company having
      annual compensation greater than $130,000 (as adjusted in the same manner as
      under Code Section 415(d) except that the base period will be the calendar
      quarter beginning July 1, 2001, and any increase under this sentence which
      is
      not a multiple of $5,000 will be rounded to the next lower multiple of $5,000);
      (ii) a five-percent owner of the Company; or (iii) a one-percent owner of the
      Company having an annual compensation greater than $150,000. For 

     

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    purposes
      of determining whether an Executive is an officer under clause (i), nor more
      than 50 employees (or, if lesser, the greater of three or ten percent of the
      employees) will be treated as officers, and those categories of employees listed
      in Code Section 414(q)(5) will be excluded.

     

    (C) The
      “Identification Date” for purposes of this Agreement is December 31 of each
      calendar year.

     

    (d) Certain
      Limitations.
      All
      amounts payable to the Executive pursuant to this Section 5 will be subject
      to
      the following limitations: 

     

    (i) amounts
      payable pursuant to this subsection will be subject to the terms of subsection
      13(q) and paid only so long as the Executive is not in breach of any of the
      provisions of this Agreement; and

     

    (ii) payment
      will be made pursuant to this subsection only if the Executive executes a
      release of claims satisfactory to the Bank.

     

    (e) Waiver
      of Other Rights.
      In
      consideration of the payments and benefits provided for in this Section, the
      Executive (i) hereby waives any right to, and agrees not to file any claim
      for,
      unemployment compensation in the event of any termination of his employment
      with
      the Company, and (ii) hereby waives any right to, and agrees not to file any
      claim for, any severance pay or other compensation to which he may be entitled
      under federal labor law.

     

    
      	
              Section
                6.

            	
              Non-Disclosure;
                Return of Confidential Information and Other
                Property.

            

    

     

    (a) Access
      to Confidential Information.
      The
      Executive understands, acknowledges and agrees that during the course of his
      employment with the Company he has gained or will gain information regarding,
      knowledge of and familiarity with the Confidential Information (as hereinafter
      defined) of the Company and any Affiliates and that if the Confidential
      Information was disclosed by the Executive, the Company or Affiliate would
      suffer irreparable damage and harm. The Executive understands, acknowledges
      and
      agrees that the Confidential Information derives substantial economic value
      from, among other reasons, not being known or readily ascertainable by proper
      means by others who could obtain economic value therefrom upon disclosure.
      The
      Executive acknowledges and agrees that the Company and all Affiliates use
      reasonable means to maintain the secrecy and confidentiality of the Confidential
      Information.

     

    (b) Non-Disclosure.
      At all
      times while the Executive is employed by the Company or any Affiliate, and
      at
      all times thereafter, the Executive will not (i) directly or indirectly
      disclose, provide or discuss any Confidential Information with or to any Person
      other than those directors, officers, employees, representatives and agents
      of
      the Company and any Affiliates who need to know such Confidential Information
      for a proper corporate purpose, and (ii) directly or indirectly use any
      Confidential Information (A) to compete against the Company or any Affiliates,
      or (B) for the Executive’s own benefit or for the benefit of any Person other
      than the Company or any Affiliate.

     

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    (c) Confidential
      Information Defined.
      For
      purposes of this Agreement, the term “Confidential Information” means any and
      all:

     

    (i) materials,
      records, data, documents, lists, writings and information (whether in writing,
      printed, verbal, electronic, computerized, on disk or otherwise) (A) relating
      or
      referring in any manner to the business, operations, affairs, financial
      condition, results of operation, cash flow, assets, liabilities, sales,
      revenues, income, estimates, projections, policies, strategies, techniques,
      methods, products, developments, suppliers, relationships and/or customers
      of
      the Company or any Affiliate that are confidential, proprietary or not otherwise
      publicly available, in any event not without a breach of this Agreement, or
      (B)
      that the Company or any Affiliate has deemed confidential, proprietary or
      nonpublic;

     

    (ii) trade
      secrets of the Company or any Affiliate, as defined in Indiana Code Section
      24-2-3-2, as amended, or any successor statute; and

     

    (iii) any
      and
      all copies, summaries, analyses and extracts which relate or refer to or reflect
      any of the items set forth in (i) or (ii) above. The Executive agrees that
      all
      Confidential Information is confidential and is and at all times will remain
      the
      property of, as applicable, the Company or any of the Affiliates.

     

    (d) Definition
      of Person.
      For
      purposes of this Agreement, the term “Person” will mean any natural person,
      proprietorship, partnership, corporation, limited liability corporation, bank,
      organization, firm, business, joint venture, association, trust or other entity
      and any government agency, body or authority.

     

    (e) Return
      of Confidential Information and Other Property.
      The
      Executive covenants and agrees:

     

    (i) to
      keep
      all Confidential Information subject to the Company’s or any Affiliate’s custody
      and control and to promptly return to the Company or the appropriate Affiliate
      all Confidential Information that is still in the Executive’s possession or
      control at the termination of the Executive’s employment with the Company;
      and

     

    (ii) promptly
      upon termination of the Executive’s employment with the Company, to return to
      the Company, at the Company’s principal office, all vehicles, equipment,
      computers, credit cards and other property of the Company and to cease using
      any
      of the foregoing.

     

    
      	
              Section
                7.

            	
              Non-Competition.

            

    

     

    (a) Agreement
      Not to Compete.
      The
      Executive hereby understands, acknowledges and agrees that, by virtue of his
      positions with the Company and any Affiliates, the Executive has and will have
      advantageous familiarity and personal contacts with the customers, wherever
      located, of the Company and any Affiliates and has and will have advantageous
      familiarity with the business, operations and affairs of the Company and any
      Affiliates. In addition, the Executive understands, acknowledges and agrees
      that
      the business of the Company and its 

     

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    Affiliates
      is highly competitive. Accordingly, at all times while the Executive is employed
      by the Company and for a two-year period following the termination of the
      Executive’s employment with the Company, the Executive will not, in any county
      in which the Holding Company or the Bank has an office (such counties to be
      limited, in the event of a Change in Control, to those counties in which the
      Holding Company or the Bank have an office and not also limited by the counties
      in which the acquiring company and its other affiliates have an office),
      directly or indirectly, or individually or together with any other Person,
      as
      owner, shareholder, investor, member, partner, proprietor, principal, director,
      officer, employee, manager, agent, representative, independent contractor,
      consultant or otherwise:

     

    (i) Engage
      in
      or assist another Person in engaging in, or use or permit his name to be used
      in
      connection with, any business, operation or activity which competes with any
      business, operation or activity conducted or proposed to be conducted by the
      Company or any Affiliates or which is in the same or a similar line of business
      as the Company or any Affiliates, at any time during the Executive’s employment
      with the Company or any Affiliates or during such two-year period following
      the
      Date of Termination; or

     

    (ii) Finance,
      join, operate or control any business, operation or activity which competes
      with
      any business, operation or activity conducted or proposed to be conducted by
      the
      Company or any Affiliates or which is in the same or a similar line of business
      as the Company or any Affiliates, at any time during the Executive’s employment
      with the Company or any Affiliates or during such two-year period following
      the
      Date of Termination; or

     

    (iii) Offer
      or
      provide employment to, hire or engage (whether on a full-time, part-time or
      consulting basis or otherwise) any individual who has been an employee of the
      Company or any Affiliates within two years prior to such offer, hiring or
      engagement.

     

    (b) Enforceability.
      The
      Executive acknowledges the regional scope of the business of the Company and
      the
      Affiliates. Notwithstanding the foregoing, in the event that any provision
      of
      this Section is found by a court of competent jurisdiction to exceed the time,
      geographic or other restrictions permitted by applicable law in any
      jurisdiction, then such court will have the power to reduce, limit or reform
      (but not to increase or make greater) such provision to make it enforceable
      to
      the maximum extent permitted by law, and such provision will then be enforceable
      against the Executive in its reduced, limited or reformed manner; provided,
      however, that a provision will be enforceable in its reduced, limited or
      reformed manner only in the particular jurisdiction in which a court of
      competent jurisdiction makes such determination. In addition, the parties agree
      that the provisions of this Section will be severable in accordance with
      subsection 13(e).

     

    
      	
              Section
                8.

            	
              Non-Solicitation.

            

    

     

    The
      Executive hereby understands, acknowledges and agrees that, by virtue of his
      positions with the Company and any Affiliates, the Executive has and will have
      advantageous familiarity and personal contacts with the customers, wherever
      located, of the Company or any of the Affiliates 

     

    

    
      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

    

    and
      has
      and will have advantageous familiarity with the business, operations and affairs
      of the Company or any of the Affiliates. In addition, the Executive understands,
      acknowledges and agrees that the business of the Company and the Affiliates
      is
      highly competitive. Accordingly, at all times while the Executive is employed
      by
      the Company or any of the Affiliates and for a two-year period following the
      Date of Termination, the Executive will not, directly or indirectly, or
      individually or together with any other Person, as owner, shareholder, investor,
      member, partner, proprietor, principal, director, officer, employee, manager,
      agent, representative, independent contractor, consultant or
      otherwise:

     

    Solicit
      in any manner, seek to obtain or service any business of any Person who is
      or
      was a customer or an active prospective customer of the Company or any of the
      Affiliates during the two-year period prior to the Date of Termination;
      or

     

    Request
      or advise any customers, suppliers, vendors or others who were doing business
      with the Company or any of the Affiliates during the two-year period prior
      to
      the Date of Termination, or any other Person, to terminate, reduce, limit or
      change their business or relationship with the Company or any of the Affiliates;
      or

     

    Induce,
      request or attempt to influence any employee of the Company or any of the
      Affiliates who was employed by the Company or any Affiliates during the two-year
      period prior to the Date of Termination, to terminate his or her employment
      with
      the Company or any of the Affiliates.

     

    
      	
              Section
                9.

            	
              Periods
                of Noncompliance and Reasonableness of
                Periods.

            

    

     

    The
      restrictions and covenants contained in Sections 7 and 8 will be deemed not
      to
      run during all periods of noncompliance, the intention of the parties hereto
      being to have such restrictions and covenants apply during the Term of this
      Agreement and for the full periods specified in Sections 7 and 8. The Company
      and the Executive understand, acknowledge and agree that the restrictions and
      covenants contained in Sections 7 and 8 are reasonable in view of the nature
      of
      the business in which the Company and the Affiliates are engaged, the
      Executive’s positions with the Company and the Affiliates and the Executive’s
      advantageous knowledge of and familiarity with the business, operations, affairs
      and customers of the Company and the Affiliates.

     

    The
      Company’s obligation to pay the amounts otherwise payable to the Executive
      pursuant to this Agreement will immediately terminate in the event that the
      Executive breaches any of the provisions of Sections 6, 7 or 8. Notwithstanding
      the foregoing:

     

    the
      covenants of the Executive set forth in Sections 6, 7 and 8 will continue in
      full force and effect and be binding upon the Executive;

     

    the
      Company will be entitled to the remedies specified in Section 11;
      and

     

    the
      Company will be entitled to its damages, costs and expenses (including, without
      limitation, reasonable attorneys fees and expenses) resulting from or relating
      to the Executive’s breach of any of the provisions of Sections 6, 7 or
      8.

     

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Section
                10.

            	
              Survival
                of Certain Provisions.

            

    

     

    Upon
      any
      termination of the Executive’s employment with the Company, the Executive and
      the Company hereby expressly agree that the provisions of Sections 5, 6, 7,
      8,
      9, 10, 11, 12 and 13 will continue to be in full force and effect and binding
      upon the Executive and the Company in accordance with the applicable respective
      provisions of such Sections.

     

    
      	
              Section
                11.

            	
              Remedies.

            

    

     

    The
      Executive agrees that the Company or an Affiliate will suffer irreparable damage
      and injury and will not have an adequate remedy at law in the event of any
      actual, threatened or attempted breach by the Executive of any provision of
      Sections 6, 7 or 8. Accordingly, in the event of a breach or a threatened or
      attempted breach by the Executive of any provision of Sections 6, 7 or 8, in
      addition to all other remedies to which the Company and Affiliates are entitled
      at law, in equity or otherwise, the Company and Affiliates may be entitled
      to a
      temporary restraining order and a permanent injunction or a decree of specific
      performance of any provision of Sections 6, 7 or 8. The foregoing remedies
      will
      not be deemed to be the exclusive rights or remedies of the Company or an
      Affiliate for any breach of or noncompliance with this Agreement by the
      Executive but will be in addition to all other rights and remedies available
      to
      the Company or Affiliate at law, in equity or otherwise.

     

    
      	
              Section
                12.

            	
              Indemnification.

            

    

     

    The
      Company will indemnify the Executive (and his legal representatives or other
      successors) to the fullest extent permitted (including payment of expenses
      in
      advance of final disposition of the proceeding) by the Articles of Incorporation
      and By-Laws of the Company as in effect at such time. The Executive will be
      entitled to the protection of any insurance policies the Company may elect
      to
      maintain generally for the benefit of its directors and officers, against all
      costs, charges and expenses whatsoever incurred or sustained by him or his
      legal
      representatives in connection with any action, suit or proceeding to which
      he
      (or his legal representatives or other successors) may be made a party by reason
      of his being or having been a director, officer or employee of the Company
      or
      any of its subsidiaries. If any action, suit or proceeding is brought or
      threatened against the Executive in respect of which indemnity may be sought
      against the Company pursuant to the foregoing, the Executive will notify the
      Company promptly in writing of the institution of such action, suit or
      proceeding, and the Company will assume the defense hereof and the employment
      of
      counsel and payment of all fees and expenses.

     

    
      	
              Section
                13.

            	
              Miscellaneous.

            

    

     

    (a) Assignment.
      This
      Agreement is personal in nature and no party hereto will, without the prior
      written consent of the other party hereto, assign or transfer this Agreement
      or
      any rights or obligations hereunder, except as provided pursuant to subsection
      13(p) or as otherwise provided herein. Without limiting the foregoing, the
      Executive’s right to receive compensation hereunder will not be assignable or
      transferable by the Executive, whether by pledge, creation of a security
      interest or otherwise, other than a transfer by the Executive’s will or by the
      laws of descent, and in the event of any attempted assignment or transfer
      contrary to this 

     

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    Section,
      the Company will have no liability to pay any amounts so attempted to be
      assigned or transferred. Notwithstanding the foregoing or anything herein to
      the
      contrary, this Agreement may be assigned by the Company to any Affiliate without
      the prior consent of the Executive.

     

    (b) Waiver.
      Either
      party hereto may, by a writing signed by the waiving party, waive the
      performance by the other party of any of the covenants or agreements to be
      performed by such other party under this Agreement. The waiver by either party
      hereto of a breach of or noncompliance with any provision of this Agreement
      will
      not operate or be construed as a continuing waiver or a waiver of any other
      or
      subsequent breach or noncompliance hereunder. The failure or delay of either
      party at any time to insist upon the strict performance of any provision of
      this
      Agreement or to enforce its rights or remedies under this Agreement will not
      be
      construed as a waiver or relinquishment of the right to insist upon strict
      performance of such provision, or to pursue any of its rights or remedies for
      any breach hereof, at a future time.

     

    (c) Amendment.
      This
      Agreement may be amended, modified or supplemented only by a written agreement
      executed by all of the parties hereto.

     

    (d) Headings.
      The
      headings in this Agreement have been inserted solely for ease of reference
      and
      will not be considered in the interpretation or construction of this
      Agreement.

     

    (e) Severability.
      In case
      any one or more of the provisions (or any portion thereof) contained herein
      will, for any reason, be held to be invalid, illegal or unenforceable in any
      respect, such invalidity, illegality or unenforceability will not affect any
      other provision of this Agreement, but this Agreement will be construed as
      if
      such invalid, illegal or unenforceable provision or provisions (or portion
      thereof) had never been contained herein. If any provision of this Agreement
      will be determined by a court of competent jurisdiction to be unenforceable
      because of the provision’s scope, duration or other factor, then such provision
      will be considered divisible and the court making such determination will have
      the power to reduce or limit (but not increase or make greater) such scope,
      duration or other factor or to reform (but not increase or make greater) such
      provision to make it enforceable to the maximum extent permitted by law, and
      such provision will then be enforceable against the appropriate party hereto
      in
      its reformed, reduced or limited form; provided, however, that a provision
      will
      be enforceable in its reformed, reduced or limited form only in the particular
      jurisdiction in which a court of competent jurisdiction makes such
      determination.

     

    (f) Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which will
      be
      an original, but such counterparts will together constitute one and the same
      agreement.

     

    (g) Construction.
      This
      Agreement will be deemed to have been drafted by both parties hereto. This
      Agreement will be construed in accordance with the fair meaning of its
      provisions and its language will not be strictly construed against, nor will
      ambiguities be resolved against, any party.

     

    (h) Review
      and Consultation.
      The
      Executive hereby acknowledges and agrees that he (i) has read this Agreement
      in
      its entirety prior to executing it, (ii) understands the provisions,

     

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    effects
      and restrictions of this Agreement, (iii) has consulted with such of his own
      attorneys, accountants and financial and other advisors as he has deemed
      appropriate in connection with his execution of this Agreement, and (iv) has
      executed this Agreement voluntarily. THE
      EXECUTIVE HEREBY UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT HE HAS NOT RECEIVED
      ANY ADVICE, COUNSEL OR RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM ANY
      DIRECTOR OR EMPLOYEE OF, OR ANY ATTORNEY, ACCOUNTANT OR ADVISOR FOR, THE BANK
      OR
      THE HOLDING COMPANY.

     

    (i) Attorneys’
      Fees.
      Each
      party hereto will pay the other party’s reasonable costs and expenses
      (including, without limitation, reasonable attorneys’ fees and disbursements) in
      connection with such other party successfully enforcing any provision or
      provisions of this Agreement (except as otherwise provided herein) against
      the
      breaching party (whether by litigation, arbitration, mediation, settlement
      or
      negotiation).

     

    (j) Entire
      Agreement.
      This
      Agreement supersedes all other prior understandings, commitments,
      representations, negotiations, contracts and agreements, whether oral or
      written, between the parties hereto relating to the matters contemplated hereby
      and constitute the entire understanding and agreement between the parties hereto
      relating to the subject matter hereof.

     

    (k) Certain
      References.
      Whenever in this Agreement a singular word is used, it also will include the
      plural wherever required by the context and vice-versa. All references to the
      masculine, feminine or neuter genders herein will include any other gender,
      as
      the context requires. Unless expressly provided otherwise, all references in
      this Agreement to days will mean calendar, not business, days.

     

    (l) Governing
      Law.
      This
      Agreement will be governed by and construed in accordance with the laws of
      the
      State of Indiana applicable to contracts made and to be performed
      therein.

     

    (m) Notices.
      All
      notices, requests and other communications hereunder will be in writing (which
      will include facsimile communication) and will be deemed to have been duly
      given
      if (i) delivered by hand; (ii) sent by certified United States Mail, return
      receipt requested, first class postage pre-paid; (iii) sent by overnight
      delivery service; or (iv) sent by facsimile transmission if such fax is
      confirmed immediately thereafter by also mailing a copy of such notice, request
      or other communication by regular United States Mail, first class postage
      pre-paid, as follows:

     

    
      	 	
              If
                to the Company:

            	 	
              Horizon
                Bancorp

              Attention:
                Chairman of the Board of Directors

              515
                Franklin Square

              Michigan
                City, Indiana 46360

              Telephone:
                (219) 879-0211

              Facsimile:
                (219) 873-2628

            	 

    

    

    

    
      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

    

    

    
      	 	
              With
                a copy to (which will not constitute notice):

            	 	
              Krieg
                DeVault llp

              Attention:
                Sharon B. Hearn, Esq.

              One
                Indiana Square, Suite 2800

              Indianapolis,
                Indiana 46204

              Telephone:
                (317) 636-4341

              Facsimile:
                (317) 636-1507

            	 
	 	 	 	 	 
	 	
              If
                to the Executive:

            	 	
              Craig
                M. Dwight

              1412
                Jonathan Ct.

              LaPorte,
                IN 46350

            	 

    

     

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

     

    All
      such
      notices, requests and other communications will be effective (i) if delivered
      by
      hand, when delivered; (ii) if sent by mail in the manner provided herein, two
      business days after deposit with the United States Postal Service; (iii) if
      sent
      by overnight express delivery service, on the next business day after deposit
      with such service; or (iv) if sent by facsimile transmission, on the date
      indicated on the fax confirmation page of the sender if such fax also is
      confirmed by mail in the manner provided herein.

     

    (n) Jurisdiction
      and Venue.
      The
      parties hereto hereby agree that all demands, claims, actions, causes of action,
      suits, proceedings and litigation between or among the parties relating to
      this
      Agreement, will be filed, tried and litigated only in a federal or state court
      located in the State of Indiana. In connection with the foregoing, the parties
      hereto irrevocably consent to the jurisdiction and venue of such court and
      expressly waive any claims or defenses of lack of jurisdiction of or proper
      venue by such court.

     

    (o) Recitals.
      The
      recitals contained on page one of this Agreement are expressly incorporated
      into
      and made a part of this Agreement.

     

    (p) Successors.
      The
      Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation, share exchange, combination or otherwise) to all or
      substantially all of the business, assets or voting securities of the Bank
      or
      the Holding Company to expressly assume and agree, in writing, to perform this
      Agreement in, and any successor will absolutely and unconditionally assume
      all
      of the Company’s obligations hereunder to, the same manner and extent, and upon
      the same terms and conditions, that the Company would be required to perform
      it
      if no such succession had taken place. Failure of the Company to obtain such
      agreement prior to the effectiveness of any such succession will be a material
      breach of this Agreement by the Company and will entitle the Employee to
      terminate his employment with the Company for Good Reason pursuant to subsection
      4(c). As used in this Agreement, the Company will mean the Company as
      hereinbefore defined and any successor to their business, assets or voting
      securities as aforesaid.

     

    

    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    

    (q) Tax
      Payments.
      Anything in this Agreement to the contrary notwithstanding, in the event the
      Company’s independent public accountants determine that any payment by the
      Company to or for the benefit of the Executive, whether paid or payable pursuant
      to the terms of this Agreement, would be non-deductible by the Company for
      federal income tax purposes because of Code Section 280G, the amount payable
      to
      or for the benefit of the Executive pursuant to the Agreement will be reduced
      (but not below zero) to the Reduced Amount. For purposes of this Agreement,
      the
“Reduced Amount” will be the amount which maximizes the amount payable without
      causing the payment to be non-deductible by the Company because of Code Section
      280G.

     

    IN
      WITNESS WHEREOF, the parties hereto have made, entered into, executed and
      delivered this Agreement as of the day and year first above
      written.

     

    
      	 	
              HORIZON
                BANK, N.A.

            
	 	 	 
	 	
              By:

            	
              /s/
                Thomas H. Edwards

            
	 	 	
              Thomas
                H. Edwards,

            
	 	 	
              President
                and Chief Operating Officer

            
	 	 	 
	 	 	 
	 	
              HORIZON
                BANCORP

            
	 	 	 
	 	
              By:
                

            	
              /s/
                Robert C. Dabagia

            
	 	 	
              Robert
                C. Dabagia, Chairman

            
	 	 	 
	 	 
	 	
              EXECUTIVE

            
	 	 	 
	 	 	
              /s/
                Craig M. Dwight

            
	 	 	
              Craig
                M. Dwight

            

    

    

    
19Letter Agreement

    

      Exhibit
        10.2

      

      [Horizon
        Bank, N.A. letterhead]

      

      

      

      

      December
        1, 2006

      

      

      

      

      

      Mr. Craig
        M. Dwight

      1412
        N.
        Jonathan Court

      La
        Porte,
        IN 46350

      

      Dear
        Mr. Dwight,

      

      This
        letter is to advise you that your employment agreement dated December 1,
        2006
        supercedes, cancels and replaces your change of control agreement dated October
        7, 1999.

      

      Please
        acknowledge below that you have read and accepted this cancellation of the
        aforementioned change of control agreement.

      

      
        	
                Sincerely,

                 

                 

                /s/
                  Thomas H. Edwards

              	 
	
                Thomas
                  Edwards

                President
                  & Chief Operating Officer

              	 

      

      

      

      

      ACCEPTANCE

      

      The
        undersigned hereby acknowledges that they have read this letter agreement,
        have
        retained a copy for their records and accept the terms as outlined
        above.

      

      
        	
                /s/
                  Craig M. Dwight

              	 	
                December
                  1, 2006

              
	
                Craig
                  M. Dwight

              	 	
                Date

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