Exhibit 10.8 AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT, made and entered into this 21st day of August, 1998, by and between German American Bancorp, a bank holding company incorporated pursuant to the laws of the State of Indiana, (hereinafter "German American") and George W. Astrike (hereafter "Astrike"). WITNESSETH: WHEREAS, it is the consensus of the Board of Directors of German American that Astrike's services in the past have been of exceptional merit and have constituted an invaluable contribution to the growth and profitability of German American, and have brought it to its present status of operating efficiency and its present position of exceptional stature in the community; and, WHEREAS, the experience of Astrike, his knowledge of the affairs of German American, and his reputation and contacts in the industry are so valuable that assurance of his continued services is essential for German American's future growth and profitability, and it is in the best interest of German American to arrange terms of continued service for Astrike so as to reasonably assure his remaining availability to German American as Chairman of the Board of Directors and as a Consultant; and, WHEREAS, Astrike is willing to continue to provide services to German American in accordance with the terms and conditions hereinafter set forth; NOW THEREFORE, in consideration of services performed in the past and to be performed in the future as well as of the mutual promises and covenants herein contained, it is agreed as follows: I. For the period commencing with the date hereof and ending on December 31, 1998, Astrike shall be, and remain, Chairman of the Board and Chief Executive Officer of German American. Astrike shall be compensated for the services during the period described in Paragraph I hereinabove in an amount not less than, and in the same manner as he is being compensated on the date hereof, including all existing fringe benefits offered by German American and all fringe benefits offered by German American through December 31, 1998 to the executive officers of German American. II. For the period commencing on January 1, 1999 and ending on the last day of the month in which the 1999 Annual Meeting of German American is held, Astrike shall be and remain as the Chairman of the Board and a full-time employee of German American concentrating on bank acquisitions, real estate development and the transition of the new Chief Executive Officer. Astrike shall be compensated for the services during the period described in Paragraph II hereinabove in an amount not less than, and in the same manner as he is being compensated on the date hereof, including all existing fringe benefits offered by German American and all fringe benefits offered by German American through the date of the 1999 Annual Meeting to the executive officers of German American. 1 III. For the period commencing on the 1st of the month immediately following the 1999 Annual Meeting of German American and ending September 1, 2003 (Consulting Period), Astrike shall be a Consultant to German American. A. From the beginning of the Consulting Period until the Annual Meeting in 2001, Astrike agrees to act as Chairman of the Board of German American. B. During that portion of the Consulting Period ending September 1, 2000, (the "Prime Period") Astrike shall provide services during a maximum of ten (10) days per month to German American. For the remainder of the Consulting Period, Astrike will provide services during a maximum of three (3) days per month. During these days of service, he will be available at reasonable times and places as may be mutually agreed upon to provide services to the Senior Management and Board of Directors of German American. C. During the Prime Period of the Consulting Period, German American shall pay Astrike Twenty Thousand Two Hundred Fifty Dollars ($20,250.00) per month. Following the Prime Period and for the remainder of the Consulting Period, German American will pay Astrike One Thousand Two Hundred and Fifty Dollars ($1,250.00) per month. Payments made to Astrike under the Consulting Agreement will be subject to withholding for applicable Federal, State and Local income taxes and will be reportable on form W2. D. Astrike will keep himself informed concerning the affairs of German American by reference to reports, which German American will supply, and such other means as may be agreed upon. Astrike shall not be required to travel from whatever place he may then be living or staying for the purposes of such consultation unless all expenses incurred by him shall be paid by German American. E. During the Consulting Period, Astrike shall not become the owner of, nor engage, directly or indirectly, in any business which is substantially similar to the business of German American either as a partner, greater than a 5% stockholder, officer, director, employee or otherwise, within an area of one hundred (100) miles from German American's principal location, unless German American has first consented, in writing, thereto. F. German American shall not merge or consolidate into or with another corporation, or reorganize, or sell substantially all of its assets to another corporation, firm, or person unless it agrees to assume and discharge the obligations of German American under this Agreement. 2 IV. Within thirty (30) days of the date hereof, German American shall implement the following programs by written agreement for the benefit of Astrike, which shall be in addition to any existing retirement plan that Astrike is participating in : A. Non-Statutory (Non-Qualified) Stock Option Plan that grants Astrike the right to purchase no fewer than 58,000 shares of German American for a price equal to the current fair market value as of the date of grant. B. BENMARK Non-Qualified Deferred Contribution Index Executive Supplemental Retirement Plan with a single premium of no less that $1,305,000 providing for lifetime annual supplemental benefit payments commencing September 1, 2003 in substantially the form and substance as illustrated on the attached indicative Participant Plan Summary. Said benefit payments shall be based upon an accumulated cash surrender value equal to the single premium amount plus accumulated premium earnings which shall be calculated annually utilizing the weighted average portfolio yield on all company owned life insurance policies in effect for the full calendar year. The amount of the lifetime annual supplemental benefit payments shall be computed by multiplying the accumulated cash surrender value by a benefit crediting rate equal to the weighted average portfolio yield on all company owned life insurance policies in effect for the full calendar year less an after-tax opportunity rate based upon a rate of interest equal to the average annual two-year treasury instrument plus 37.5 basis points. C. BENMARK Endorsement Split Dollar Life Insurance Plan that will provide Astrike with a life insurance benefit of at least $1 million on his death; payable to Astrike's designated beneficiary(ies). V. This Agreement shall be binding upon and inure to the benefit of Astrike and German American and any successor organization which shall succeed to substantially all of its assets and business. During the lifetime of Astrike, this Agreement may be amended or revoked at any time, in whole or in part, by mutual written agreement of the parties. VI. Any notice, consent or demand required or permitted to be given under the provisions of this Agreement shall be in writing, and shall be signed by the party giving or making the same. If such notice, consent or demand is mailed to a party hereto, it shall be sent by United States certified mail, postage prepaid, addressed to such party's last known address as shown on the records of German American. The date of such mailing shall be deemed the date of notice, consent or demand. 3 VII. This Agreement shall be governed by the laws of the State of Indiana. This Agreement is solely between German American and Astrike and shall not be assignable by either, but shall be binding upon the designated recipients, beneficiaries, heirs, executors and administrators of the Consultant and upon the successors of German American. GERMAN AMERICAN BANCORP ATTEST __________________________ BY THE HUMAN RESOURCE COMMITTEE Mark A. Schroeder, President OF THE BOARD OF DIRECTORS _________________________Chairman -------------------------- -------------------------- -------------------------- -------------------------- WITNESS - -------------------------- ------------------------------ George W. Astrike Participant Plan Summary German American Bancorp Plan begins in September George W. Astrike Premium: $ 1,305,000 Single Premium October 20, 1999 Current Age: 63 Retirement Age: 68 Age at Death: 85 5.88% Bank's After-Tax Benefit Split FICA and Policy Portion of Annual Annual Index Annual From Index Total Dollar Tax On Surrender Death Policy Opportunity Liability Index Pre-Retire Post-Retire Annual Death Economic Value Benefit Income Cost Balance Expense Index Accrual Benefit Benefit Benefit Value ----- ------- ------ ---- ------- ------- ------------- ------- ------- --------- -------- 1998 1 63 1,317,716 2,781,743 12,716 (15,447) 1,000,000 924 1999 2 64 1,375,968 2,812,944 58,252 (46,888) 14,063 14,063 1,000,000 1,257 2000 3 65 1,437,761 2,625,441 61,794 (48,553) 35,630 21,568 1,000,000 1,394 2001 4 66 1,507,216 1,995,785 69,454 (50,277) 66,868 31,238 1,000,000 1,825 2002 5 67 1,580,213 2,080,078 72,998 (52,063) 100,970 34,102 1,000,000 2,136 2003 6 68 1,655,824 2,167,211 75,611 (53,911) 80,776 35,347 20,194 35,347 55,541 1,000,000 1,887 2004 7 69 1,733,200 2,257,209 77,377 (57,017) 60,582 33,165 20,194 33,165 53,359 1,000,000 2,104 2005 8 70 1,813,786 2,350,031 80,585 (60,185) 40,388 33,230 20,194 33,230 53,424 1,000,000 2,296 2006 9 71 1,898,153 2,445,626 84,367 (63,468) 20,194 34,043 20,194 34,043 54,237 1,000,000 2,580 2007 10 72 1,985,560 2,543,878 87,407 (66,885) 33,429 20,194 33,429 53,623 1,000,000 2,846 2008 11 73 2,078,651 2,646,438 93,091 (70,410) 36,946 36,946 36,946 1,000,000 3,122 2009 12 74 2,184,569 2,759,012 105,918 (73,702) 52,477 52,477 52,477 1,000,000 3,497 2010 13 75 2,295,851 2,879,529 111,282 (77,445) 55,118 55,118 55,118 1,000,000 3,917 2011 14 76 2,411,604 3,003,892 115,753 (81,377) 55,997 55,997 55,997 1,000,000 4,386 2012 15 77 2,532,265 3,131,976 120,661 (85,467) 57,328 57,328 57,328 1,000,000 4,911 2013 16 78 2,656,418 3,263,636 124,153 (89,732) 56,070 56,070 56,070 1,000,000 5,499 2014 17 79 2,785,916 3,398,895 129,498 (94,120) 57,628 57,628 57,628 1,000,000 6,160 2015 18 80 2,919,803 3,537,640 133,887 (98,698) 57,321 57,321 57,321 1,000,000 7,462 2016 19 81 3,058,133 3,679,975 138,330 (103,432) 56,846 56,846 56,846 1,000,000 12,107 2017 20 82 3,200,941 3,825,927 142,808 (108,324) 56,172 56,172 56,172 1,000,000 14,308 2018 21 83 3,350,315 3,977,896 149,375 (113,375) 58,641 58,641 58,641 1,000,000 16,776 2019 22 84 3,512,127 4,142,351 161,811 (118,658) 70,293 70,293 70,293 1,000,000 19,614 <FN> Benmark Projected values are based primarily on current non-guaranteed elements and assumptions. (See Introduction Section for more details) </FN>