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Exhibit 10.12

Summary Sheet of Director and Officer Compensation

Outside Directors

     On January 24, 2007, NorthWest Indiana Bancorp’s (the “Bancorp”) Directors approved an increase in annual director’s fees paid to outside directors. For 2007, $22,750 in annual fees will be paid to outside directors. Directors are reimbursed for expenses incurred in connection with attendance at Board and Committee meetings.

Inside Directors and Executive Officers

     On January 24, 2007, the Bancorp’s Compensation and Benefits Committee of the Board of Directors approved executive officer base compensation for 2007 and authorized payment of incentive compensation for 2006 performance. The individuals listed below will begin to receive their new base salary and incentive compensation payment on February 1, 2007:

		2007				2006
		Base				Incentive
Inside Directors and Executive Officer		Salary				Compensation
David A. Bochnowski, Director, Chairman and Chief Executive Officer		$	347,563			$	46,976
Joel Gorelick, Director, President and Chief Administrative Officer		$	209,575			$	22,205
Edward J. Furticella, Director and Consultant		$	85.59	(1)		$	8,260
Jon E. DeGuilio, Executive Vice President, General Counsel and Secretary		$	141,341			$	7,325
Robert T. Lowry, Senior Vice President and Chief Financial Officer		$	125,823			$	7,575

Incentive Compensation Plan

     The Bancorp’s Compensation and Benefits Committee has established an incentive compensation system designed to offer positive salary rewards for peak performance to all employees. The incentive compensation is geared towards rewarding performance that results in increased profitability of the Bancorp. In addition, incentive compensation is awarded for consistent performance tied to corporate goals rather than short-swing profits. The incentive compensation is discretionary and approved by the Board on an annual basis, as strategic goals are achieved. The incentive targets are set by the Board at the beginning of the fiscal year, but the Board retains the prerogative to review the incentive outlook at the end of the fiscal year.

     The incentive compensation is paid from a pool of funds created each year based on the Bancorp’s return on equity, return on assets, and increase in earnings per basic share. Each of the three measures is tied to a factor, which is then multiplied by the Bancorp’s annual net income after incentive compensation expense to determine the incentive compensation pool. The factors are set forth in the attached table. The Board also has the discretion to increase the size of the incentive compensation pool to reward outstanding performance consistent with long and short-range goals. No Board discretionary funds were included in the 2006 incentive compensation pool. The incentive

compensation pool is generally allocated to the Bancorp’s employees in the following manner: 30% to the Chief Executive officer, 52% to the Chief Administrative Officer and Vice Presidents and 18% to other employees. The Chief Executive Officer, with Board approval, may reallocate a portion of his incentive compensation pool to the other compensation pools.

     The allocated incentive compensation pools can be utilized to supplement the cash remuneration of the Bancorp’s management according to the following guidelines: Vice Presidents up to 10% of salary; Senior Vice Presidents up to 20% of salary; President and Executive Vice President up to 35% of salary; and Chief Executive Officer up to 50% of salary. The incentive compensation for Vice Presidents, Senior Vice Presidents, Executive Vice President and President is awarded based on a performance review by the Chief Executive Officer, which is reviewed and approved by the Bancorp’s Compensation Committee and Board. The performance review incorporates the following criteria: results achieved, goal attainment, and core competencies for leadership, management, communication, initiative and time management, commitment to stock ownership, community leadership and professional development. The Compensation and Benefits Committee and Board conduct the Chief Executive Officer’s performance review following the same criteria and determine his incentive compensation.

TABLE
COMPONENT PARTS
PEOPLES BANK INCENTIVE

Return on Assets		% of Profit		Return on Equity		% of Profit		Earnings Per Share		% of Profit
%		Added to Pool		%		Added to Pool		% Increase		Added to Pool
0.70		0.025		11.00		0.500		1.00		0.0000
0.75		0.500		11.25		0.625		2.00		0.0250
0.80		0.625		11.50		0.750		3.00		0.0500
0.85		0.750		11.75		0.875		4.00		0.0750
0.90		0.875		12.00		1.000		5.00		0.0100
0.95		1.000		12.25		1.125		6.00		0.0150
1.00		1.125		12.50		1.250		7.00		0.0200
1.05		1.250		12.75		1.375		8.00		0.0250
1.10		1.375		13.00		1.500		9.00		0.0300
1.15		1.500		13.25		1.625		10.00		0.0350
1.20		1.625		13.50		1.750		11.00		0.0400
1.25		1.750		13.75		1.875		12.00		0.0410
1.30		1.875		14.00		2.000		13.00		0.0420
1.35		2.000		14.25		2.125		14.00		0.0430
1.40		2.125		14.50		2.250		15.00		0.0440
1.45		2.250		14.75		2.375		16.00		0.0450
1.50		2.375		15.00		2.500		17.00		0.0460
				15.25		2.625		18.00		0.0470
				15.50		2.750
				15.75		2.875
				16.00		3.000