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EXHIBIT 10.8 FORM OF OPTION GRANT AGREEMENT UNDER 2003 OMNIBUS PLAN

HORIZON BANCORP

2003 OMNIBUS EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

     THIS AGREEMENT (the “Agreement”), made and executed this
                     day of August, 2004, between
Horizon Bancorp, an Indiana corporation (the “Company”), and
                                        
, an officer or
employee of the Company or one of its Affiliates (the “Optionee”);

WITNESSETH:

WHEREAS, the Company has adopted the Horizon Bancorp 2003 Omnibus Equity Incentive Plan (the
“Plan”), to further the growth and financial success of the Company and its Affiliates by aligning
the interests of Participants, through the ownership of Shares and through other incentives, with
the interests of the Company’s shareholders; to provide Participants with an incentive for
excellence in individual performance; to promote teamwork among Participants; to provide
flexibility to the Company in its ability to motivate, attract and retain the services of
Participants who make significant contributions to the Company’s success; and to allow Participants
to share in the success of the Company; and

WHEREAS, it is the view of the Company that this goal may be achieved by granting incentive and
nonqualified stock options to eligible officers and other key employees from time to time; and

WHEREAS, the Optionee has been designated by the Committee as an individual to whom stock options
should be granted under the Plan as determined from the duties performed, the initiative and
industry of the Optionee, the extraordinary nature of the Optionee’s service, and the Optionee’s
potential contribution to the future development, growth and prosperity of the Company;

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the
Company and the Optionee agree as follows:

1. Grant of Option.

a) Aggregate Number of Shares. Subject to the provisions of Sections 5 and 7 of this
Agreement, the Company hereby grants to the Optionee the right and option (“Option”) to purchase
all or any part of an aggregate of
                                        
 shares of common stock of the Company subject
to the terms and conditions of this Agreement and the provisions of the Plan. All provisions of
the Plan, including defined terms, are incorporated and are expressly made a part of this Agreement
by reference. The Optionee hereby acknowledges that he has received a copy of the Plan.

b) Designation of Character of Options. Pursuant to the authority of the Committee to
determine the character of the options granted as incentive stock options (“ISO’s”) or nonqualified
stock options (“NSO’s”), of the total options granted
under subsection (a),               shares
shall be ISO’s and
                                        
 shares shall be NSO’s.

c) Tax Advice. The Optionee acknowledges and agrees that he shall be solely responsible
for obtaining tax advice in connection with the grant and exercise of the Option and any
disposition of the shares acquired in connection with the Option.

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2. Option Price.

a) Purchase Price. The purchase price of the shares of common stock represented by the
Option granted under Section 1 shall be Twenty-three and 56/100 Dollars ($23.56) (which is the Fair
Market Value per share on the date the Option is granted).

b) Payment of Purchase Price. The exercise price for the stock covered by the Option
granted under this Agreement shall be paid in cash by the Optionee at the time the Option is
exercised; provided, however, with the approval of the Committee, and to the extent not prohibited
under the Code or regulations issued thereunder, the Optionee may exercise part or all of this
Option by tendering whole shares of common stock of the Company owned by the Optionee and which
have been owned by the Optionee for more than six months, or by a combination of whole shares of
Company common stock and cash, which have a Fair Market Value equal to the cash exercise price for
the stock with respect to which the Option is exercised. For this purpose, any shares of the
Company’s common stock so tendered shall be valued by the Committee at their Fair Market Value
according to valuation criteria set forth in the Plan. The exercise of this Option shall be
subject to such rules and procedures as shall be adopted from time to time by the Committee.

c) Cashless Exercise. Notwithstanding the provisions of Section 2(b) of this Agreement,
the payment of the exercise price for the stock covered by the Option may be made, (a) through a
“same day sale” commitment from the Optionee and an NASD dealer whereby the Optionee irrevocably
elects to exercise the Option and to sell a portion of the shares so purchased in order to pay the
exercise price, and whereby the NASD dealer irrevocably commits upon receipt of such stock to
forward the exercise price directly to the Company, or (b) through a “margin” commitment from the
Optionee and an NASD dealer whereby the Optionee irrevocably elects to exercise the Option and to
pledge the shares so purchased to the NASD dealer in a margin account as security for a loan from
the NASD dealer in the amount of the exercise price and whereby the NASD dealer irrevocably commits
upon receipt of such shares to forward the exercise price directly to the Company.

d) Issuance of Certificates. Certificates evidencing the shares of stock purchased under
this Option will not be delivered to the Optionee until full payment has been made for them and the
Optionee shall have none of the rights of a shareholder with respect to such shares until those
shares are issued to the Optionee. The Company shall not be required to issue or deliver any
certificate(s) for shares of the stock purchased upon exercise of the Option prior to (i)
completing any registration or other qualification of the shares, which the Company deems necessary
or advisable under any federal or state law or under the rulings or regulations of the Securities
and Exchange Commission or any other governmental regulatory body; and (ii) obtaining any approval
or other clearance from any federal or state governmental agency or body, which the Company
determines to be necessary or advisable. The Company shall have no obligation to obtain the
fulfillment of the conditions specified in the preceding sentence.

3. Income and Employment Tax Withholding.

a) The Optionee shall be solely responsible for paying to the Company all required federal, state,
city and local taxes applicable to (i) exercise of an NSO under the Plan and (ii) disposition of
shares acquired pursuant to the exercise of an ISO in a disqualifying disposition of the shares
under Code Section 422(a)(1).

b) Notwithstanding the provisions of subsection (a), with respect to stock to be issued pursuant to
the exercise of a NSO, the Committee, in its discretion and subject to such rules as it may adopt
from time to time, will require the Optionee to satisfy any withholding tax obligation which may
arise in connection with the exercise of the NSO by having the Company retain shares of stock which
would otherwise be issued in connection with the exercise of the NSO or accept delivery from the
Optionee of shares of Company stock which have a Fair Market Value, determined as of the date of
the delivery of such shares, equal to the amount of the withholding tax to be satisfied by that
retention or delivery.

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4. Nontransferability. The Option granted hereunder shall not be assignable or transferable by the
Optionee, except by will or by the laws of descent and distribution. The Option shall not be
pledged or hypothecated in any way, nor shall it be subject to execution, attachment or similar
process. Any attempted assignment, transfer, pledge or other disposition of the Option in
violation of this provision or the levy of execution, attachment or similar process upon the Option
shall be null and void and without effect and shall cause the Option to be terminated.

5. Exercise of Option.

a) Maximum Term and Vesting. The Option may not be exercised after the expiration of ten
(10 ) years from the date of this Agreement, subject to earlier termination as provided in the Plan
and this Agreement. Subject to the provisions of this Section 5 and Section 6, the Option shares
shall vest and be exercisable by the Optionee in accordance with the following schedule:

	 	 	 	 	 
	 	 	Percentage of Option
	 	 	Shares Vested and Exercisable
	Date of Vesting	 	Percent Vested	 	Cumulative
	8/02/05

	 	20 percent
	 	  20 percent
	8/02/06

	 	20 percent
	 	  40 percent
	8/02/07

	 	20 percent
	 	  60 percent
	8/02/08

	 	20 percent
	 	  80 percent
	8/02/09

	 	20 percent
	 	100 percent

Notwithstanding the foregoing, the Option shares shall also vest and be exercisable upon the
Optionee’s death, Permanent and Total Disability or Retirement. In addition, the Option shares
shall vest and be exercisable upon a Change in Control of the Company.

b) Limitations on Exercise. The Option may be exercised during the lifetime of the
Optionee only by the Optionee or his guardian or attorney-in-fact in the event the Optionee becomes
Permanently and Totally Disabled. In the case of the Optionee’s death, the Option may be exercised
by the Optionee’s personal representative or administrator.

c) Legal Requirements. Notwithstanding any other provision of this Agreement, the Option
may not be exercised in whole or in part if the issuance of the shares would constitute a violation
of any applicable federal or state securities law or other applicable laws, rules or regulations.
As a condition to the exercise of the Option, the Company may require the person exercising the
Option to make any representation or warranty to the Company as may be required by any applicable
law or regulation or as may be advised to the Company.

6. Restrictive Legend. In the event the Optionee is an “affiliate” of the Company (as defined by
Rule 144 promulgated under the Securities Act of 1933, as amended), the Company may require that
the shares to be issued to such Optionee contain a legend in substantially the following form:

	 	 	 	 	 
	 

	 	“THE HOLDER OF THE SHARES EVIDENCED BY THIS CERTIFICATE IS AN
“AFFILIATE” OF THE COMPANY (AS DEFINED BY RULE 144 PROMULGATED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED), AND THEREFORE, THE SHARES ARE
SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS.”
	 	 

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7. Early Termination of Option.

a) In General. All rights to exercise this Option shall terminate thirty (30) days after
the effective date of the Optionee’s termination of employment with the Company and its Affiliates,
but not later than the date the Option expires pursuant to its terms, unless the termination is For
Cause or on account of the Permanent and Total Disability, death or Retirement of the Optionee.
The transfer of the Optionee from the Company to an Affiliate or vice versa, or from one Affiliate
to another, shall not be deemed a termination of employment.

b) For Cause Termination. If the Optionee’s employment is terminated For Cause, no
previously unexercised Option granted under the Plan and this Agreement may be exercised. Rather,
any unexercised Options, or part thereof, shall terminate effective on the date the Optionee
receives notice of his termination For Cause.

c) Exercise on Disability or Death. If the Optionee becomes Permanently and Totally
Disabled or dies while employed by the Company or any of its Affiliates, the Option shall be
exercisable in full within one (1) year after the date of his termination of employment due to
Permanent and Total Disability or death (but not later than the date the Option expires pursuant to
its terms) at which time the Option or any portion thereof remaining unexercised shall terminate.
During such one (1) year period immediately following the termination of employment due to
Permanent and Total Disability or death of the Optionee, the Option may be exercised in full,
subject to the limitations of this Option, by the Optionee, by the Optionee’s guardian or
attorney-in-fact, or by the Optionee’s personal representative or administrator, as the case may
be; provided, however, the Option shall not be exercised after the expiration of ten (10) years
from the date of this Agreement. Notwithstanding the foregoing, in the case of an ISO, such Option
shall be exercisable as to the number of shares designated as ISO’s only during the three (3) month
period following the Optionee’s death. During the remainder of the one (1) year period, the Option
may be exercised as to the NSO’s designated thereunder.

d) Exercise on Retirement. If the Optionee’s employment is terminated on or after
satisfying the requirements for Retirement, the Option shall be exercisable in full within five (5)
years after the date of the Optionee’s termination of employment due to Retirement (but not later
than the date on which the Option expires pursuant to its terms) at which time the Option, or any
portion thereof remaining unexercised, shall terminate.

8. Optionee’s Representations. The Optionee represents to the Company that:

a) The terms and arrangements relating to the grant of this Option and the stock to which it
relates, and the offer thereof, have been arrived at or made through direct communication with the
Company or person acting in its behalf and such Optionee;

b) The Optionee has received a balance sheet and income statement of the Company and as an officer
or key employee of the Company or its Affiliates:

(1) is thoroughly familiar with the Company’s business affairs and financial condition;

(2) has been provided with or has access to such information (and has enough knowledge and
experience in financial and business matters that he is capable of utilizing such information) as
is necessary to evaluate the risks, and make an informed investment decision with respect to, the
grant of this Option and the stock to which it relates; and

(3) has sufficient financial resources so that he is able to bear the economic risks of his
investment in this Option and such stock; and

105

 

c) This Option and the stock to which it relates is being acquired in good faith for investment
purposes and not with a view to, or for sale in connection with, any distribution thereof.

9. Indemnity. The Optionee hereby agrees to indemnify and hold harmless the Company and its
Affiliates (and their respective directors, officers and employees), and the Committee, from and
against any and all losses, claims, damages, liabilities and expenses based upon or arising out of
the incorrectness or alleged incorrectness of any representation made by him to the Company or any
failure on the part of him to perform any agreements contained herein. The Optionee hereby further
agrees to release and hold harmless the Company and its Affiliates (and their respective directors,
officers and employees) from and against any tax liability, including without limitation, interest
and penalties, incurred by the Optionee in connection with his participation in the Plan.

10. Financial Information. The Company hereby undertakes to deliver to the Optionee, at such time
as they become available and so long as this Option is in effect and is unexercised in whole or in
part, a balance sheet and income statement of the Company with respect to any fiscal year of the
Company ending on or after the date of this Agreement.

11. Conditions Precedent. In no event shall the Company be obligated to issue stock pursuant to
this Option until it is satisfied that all conditions precedent to the issuance of the stock, as
provided in the Plan and this Agreement, have been performed and completed, including the approval
and adoption of the Plan by the shareholders and the Board of Directors of the Company.

12. Changes in Stock. In the event of any change in the common stock of the Company, as described
in Section 4.6 of the Plan, the Committee shall make the appropriate adjustment or substitution in
the number, kind and price of shares under this Option, all as provided in the Plan. The
Committee’s determination in this respect shall be final and conclusive upon all parties.

13. Effect of Headings. The descriptive headings of the paragraphs of this Agreement are inserted
for convenience and identification only and do not constitute a part of this Agreement for purposes
of interpretation.

14. Gender and Number. Where the context admits, words in the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall include the plural.

15. Controlling Laws. Except to the extent superseded by the laws of the United States, the
laws of Indiana shall be controlling in all matters relating to this Agreement.

16. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which
shall be deemed an original, but all of which collectively shall constitute one and the same
instrument.

     IN WITNESS WHEREOF, the Company, by its officer thereunder duly authorized, and the Optionee,
have caused this Horizon Bancorp Stock Option Agreement to be executed on the day and year first
above written, which is the date on which the Option is granted.

	 	 	 	 	 
	 	 	HORIZON BANCORP
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	Craig M. Dwight, President and Chief Executive
Officer

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	 	OPTIONEE
	 
	 	 
	 
	 	 
	

	 	 

107exv10w9

EXHIBIT 10.9 DESCRIPTION OF BONUS PLAN

DESCRIPTION OF HORIZON BANCORP

EXECUTIVE OFFICER BONUS PLAN

     The Compensation Committee (the “Committee”) of the Board of Directors of Horizon Bancorp
(the “Company”) adopted an Executive Officer Bonus Plan (the “Plan”) in 2003 after consultations
with a nationally recognized executive compensation consulting firm. The Plan permits executive
officers to earn as a bonus a percentage of their salary based on the achievement of corporate and
individual goals in the relevant year. Participants in the Plan are not eligible to participate in
the Company’s annual discretionary bonus plan (but do receive the annual holiday bonus, which was
$250 for 2004). To receive a bonus under the Plan, the executive officer must be employed by the
Company or one of its subsidiaries on the date the annual bonus payment is made and must not be
subject to a performance warning or suspension. The Committee and/or the Company’s Chief Executive
Officer may adjust and amend the Plan at any time in their sole discretion. All Executive
Officers’ Bonuses are subject to final approval by the Committee.

     At the beginning of each year, the Committee establishes the minimum earnings target the
Company must achieve before any bonuses will be paid out under the Plan for that year. The
Committee also approves a target bonus matrix for each executive officer to be used to calculate
the executive officer’s bonus (if any) for the year (assuming that the minimum earnings target has
been met). The matrix for each executive officer specifies the performance measures applicable to
the executive officer, the targets for each performance measure and the weight to be assigned to
each performance measure in calculating the bonus if the specified target levels are achieved.

     For 2005, an executive officer may earn a bonus under the Plan of up to 48% of his base
salary. Each of the executive officers has as a performance goal the achievement of a specified
level of corporate net income for the year, with the weighting of such goal for 2005 being 40% for
the Chief Executive Officer of the Company; 20% for the President and Chief Operating Officer of
Horizon Bank, N.A., the Company’s bank subsidiary (the “Bank”); 20% for the Chief Executive Officer
of the Bank’s trust and investment subsidiary; and 10% for the Chief Financial Officer of the
Company. The matrix for each of the executive officers also specifies from three to five other
performance measures, each of which is dependent upon the executive officer’s areas of
responsibilities and varies from year to year to reflect changes in the primary responsibilities of
the office that the executive officer holds.

     The amounts of the bonuses paid each year under the Plan are reported in the “Bonus” column of
the Summary Compensation Table included in the Company’s Proxy Statement. The Plan bonuses for
2004 were paid in January 2005 and the executive officers who participated in the Plan received the
following bonuses, as reported in the Proxy Statement for the 2005 Annual Meeting of Shareholders:
Craig M. Dwight, President and Chief Executive Officer of the Company: $65,000; Lawrence J. Mazur,
President and Chief Executive Officer of Horizon Trust & Investment Management, N.A.: $72,066;
James H. Foglesong, Chief Financial Officer of the Company: $24,000; and Thomas H. Edwards,
Executive Vice President of the Company and President and Chief Operating Officer of the Bank:
$32,000.

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