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PRIVACY POLICY

At German American Bancorp (GABC), we value your relationship and take very seriously our obligation to protect the privacy of your personal information. We recognize that you purchase our products and services because you trust that we will stand behind our promises. We also know that the basis of this trust comes not only from the ability of GABC to provide the products and services that are expected, but also from the ability to maintain the personal privacy of our customers.

The Privacy Policy which follows, covers the practices of all affiliates within the German American Bancorp Family* including our banking, insurance, investment and financial planning, asset management, and trust services companies, and applies to the nonpublic personal information of our customers and former customers.

RECOGNITION OF CUSTOMER'S EXPECTATION OF PRIVACY

Embedded in our culture is a tradition of protecting your personal privacy and confidential information. It has always been and will always be a top priority to maintain standards and procedures that are designed to keep your information secure. Since we do not sell or share your information with third parties not associated with services or activities of German American Bancorp, there is no need for you to tell us not to share your private information.

COLLECTION, RETENTION AND USE OF CUSTOMER INFORMATION

We collect and use various types of information to service your accounts, save you time and money and better understand your needs. We want to help you learn more about the products and services that may be of interest to you.

In the course of doing business, we collect and use various types of nonpublic personal information, such as:

" Information we receive from you on applications or other forms such as name, address, age, social security number and tax ID number, assets and income;
" Information about your transactions with us, our affiliates or others such as your account balance, payment history, types of transactions and products purchased;
" Information we receive from a consumer reporting agency such as credit worthiness, credit and payment history, and credit relationships;
" Information from other third party sources such as motor vehicle reports, property value, and demographic information;
" Information you provide us via German American Bancorp websites such as name, address and social security number.

SECURITY STANDARDS

We maintain physical, electronic, and procedural safeguards to protect the integrity and confidentiality of your information. German American Bancorp also limits access to your nonpublic personal information to those employees who need to know that information to provide products and services to you. All of our employees are trained to understand and comply with these information principles.

MAINTENANCE OF ACCURATE INFORMATION

German American Bancorp has implemented internal controls and procedures designed to maintain accurate records concerning your personal information. Should you ever believe that our records contain inaccurate, incomplete, or non-current information about you, please notify us. We will respond to requests to correct the information in a timely manner.

DISCLOSURE OF INFORMATION TO NONAFFILIATED THIRD PARTIES

We do not disclose any nonpublic personal information about our customers or former customers to nonaffiliated third parties, except as permitted by law or as described below.

Service Providers and Joint Marketing Agreements
We may disclose all of the information we collect, as described under the heading "Collection, Retention, and Use of Customer Information", to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. However, we do not share credit related information.

Beneficiaries of Trust
Certain information, such as fiduciary information, is subject to more restrictive information, both internally and externally. If you have questions regarding fiduciary information, please contact your Trust Relationship Manager.

Sharing as Required by Law
We may disclose information to nonaffiliated third parties as allowed by law. For example, this may include a disclosure in connection with a subpoena or similar legal process, a fraud investigation, recording of deeds or trust and mortgages in public records, an audit or examination, or the sale of your account to another financial institution. We may also share information:
" If you initiate a request for us to share information with an outside party; or
" If the information is provided to help complete a customer initiated transaction.

SHARING INFORMATION WITHIN GERMAN AMERICAN BANCORP

As permitted by law, we may share information about our experiences or transactions with you or your account such as account balance, payment history and services purchased, among our German American Bancorp family of companies including our banking, insurance, investment and financial planning, asset management and trust services companies. We may also share information, for example, to:
" Provide customer service or account maintenance; or
" Tell you about other products or services offered by German American Bancorp that we believe you will find useful.

We do not share among our affiliates other information you have given us in connection with an application for one of our products or services or information we have received from a consumer reporting agency or other third party. You will be notified if we intend to do so and be given the opportunity to prevent such sharing.

KEEPING UP-TO-DATE WITH OUR PRIVACY POLICY

German American Bancorp will provide notice of our privacy policy annually, as long as you maintain an ongoing relationship with us. You may view our policy and a current listing of our family of companies on our web site at www.germanamericanbancorp.com or contact us for another copy.

*German American Bancorp Family of Companies
The following is a list of the German
American Bancorp affiliates to which this policy applies:

Citizens State Bank
First American Bank
First State Bank
German American Bank
Peoples Bank
Stone City Bank
GABC Mortgage Services
German American Financial Advisors and Trust Company
German American Insurance
Stafford-Williams Agency
Knox County Insurance
Smith & Bell Insurance
The Doty Agency, Inc.
First Title Insurance Company