Common use of Election Options Clause in Contracts

Election Options. In the area marked “Election Options,” indicate whether you would like to receive in exchange for your shares of Community Bancshares common stock, (i) only shares of First Merchants common stock (“All Stock Election”), (ii) only cash (“All Cash Election”), (iii) a combination of common stock and cash (“Combination Stock/Cash Election”) or (iv) “No Election.” ▇▇▇▇ only one selection in this box. The Merger Agreement limits the amount of cash that can be issued in the Merger, and it may not be possible for all Cash Elections to be honored in full. To find out more about these limits and the adjustment, allocation and proration method that will be used, please see “The Merger—Exchange of Community Bancshares Common Stock” in the proxy statement and prospectus delivered with this Election Form.