<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into as of
October 27, 1999, by and between JOCK BROWN ("Executive") and FIRST NATIONAL
BANK OF OTTAWA, an Illinois banking institution (the "Bank") and FIRST OTTAWA
BANCSHARES, INC. (the "Holding Company") (the Bank and the Holding Company
shall collectively be referred to as the "Corporation," which shall be deemed
to include any affiliate or related entity of the Bank or the Holding Company
whether currently in existence or later created or acquired), the terms of
which are as follows:

1.       EMPLOYMENT TERM. Subject to the terms and conditions set forth herein,
         including Section 9, the Corporation will employ Executive for a term
         commencing on November 1, 1999, and ending on October 31, 2002 (the
         "Employment Term").

2.       EMPLOYMENT DUTIES. During the Employment Term, Executive will serve as
         President and Chief Officer of the Bank and the Holding Company,
         subject to the terms of this Agreement and to the direction of the
         Board of Directors of the Corporation (the "Board"), and to the
         direction of the Chairman of the Board (the "Chairman"). Executive
         shall, during the Employment Term, perform such duties commensurate
         with his position and title as are reasonable and customary, including,
         but not limited to personnel and expense occasions, pricing, loan
         approval, etc. and shall, on a full-time basis, serve the Corporation
         faithfully, diligently and competently and to the best of his ability.
         Executive shall serve as a member of the Board of Directors of the Bank
         and the Holding Company (a "Director"), and as an ex-officio member of
         each committee of each of such Boards, excepting audit committee.

3.       COMPENSATION. In exchange for Executive's services as President and
         Chief Executive Officer and as a Director, Executive shall be
         compensated as follows:

         (a)      The Corporation shall pay Executive an annual base salary of
                  $180,000 (the "Base Salary"), which amount shall be deemed to
                  be inclusive of any and all fees normally paid to Directors.
                  The Base Salary shall be adjusted on January 1, 2001 and
                  annually thereafter to the greater of the previous year's Base
                  Salary or the average of the third quartile for a president
                  and chief executive officer of an independent bank for
                  similarly-situated institutions in Illinois as reported in the
                  most recent Illinois Banker's Association Annual Survey. The
                  Base Salary shall be payable in accordance with the
                  Corporation's ordinary payment practices and shall be subject
                  to withholding and employment taxes.

         (b)      The Corporation will establish an employee bonus plan in which
                  the Executive will participate, for calendar year 2000 and
                  thereafter. The plan will be similar to a stock appreciation
                  rights plan, to consist of 150,000


<PAGE>

                  phantom shares. Employees will receive annual bonuses based on
                  the appreciation in book value of those shares. Executive
                  shall be a participant in the "Impact Group" for allocation of
                  those bonuses, the "Impact Group" shall be entitled an
                  allocation of 50% of the total, and Executive shall receive
                  and shall be entitled to 50% of the "Impact Group" allocation.
                  The Corporation may adjust the allocation, as necessary, to
                  accommodate non-operating fluctuations in book value.

         (c)      The Corporation shall arrange for and pay all reasonable
                  moving expenses for Executive and his wife's relocation to the
                  Ottawa, Illinois area, which move shall be completed by July
                  1, 2000.

         (d)      The Corporation shall make available to Executive, for
                  purchase within twelve (12) months of the date hereof, up to
                  4,000 shares of common stock of the Holding Company at fair
                  market value.

4.       BENEFITS.

         (a)      Executive also shall be entitled to participate in all
                  coverages, including life, health, and disability insurance
                  and employee benefit plans and programs as offered from time
                  to time to executive officers of the Corporation or to
                  directors. Executive's and his dependents' participation in
                  any such plan or program shall be subject to the provisions,
                  rules, regulations and laws applicable thereto.

         (b)      Executive shall be entitled to paid vacation in accordance
                  with Corporation policies applicable to its executive
                  officers, during each twelve (12) month period of the
                  Employment Term and any extension thereof.

         (c)      The Corporation shall provide Executive with a monthly
                  automobile allowance of $600.00 through the Employment Term
                  and any extension thereof.

         (d)      The Corporation shall pay reasonable expenses related to
                  Executive's participation in business and business-related
                  social events and for such club, community and professional
                  association dues and expenses that Executive and the Chairman
                  agree are in the best interests of the Corporation, including,
                  but not limited to, the CEO Network Program.

         (e)      The Board shall consider the adoption of an employee stock
                  option plan in which Executive would be allowed to
                  participate.

5.       RESTRICTIVE COVENANTS. Executive acknowledges and agrees that in the
         course of his employment he will learn valuable trade secrets and other
         proprietary information, and that the Corporation would be irreparably
         damaged if Executive were to use or disclose such information and/or to
         provide services to any person or entity in violation of the
         restrictions contained in this Agreement. Accordingly,


                                      -2-
<PAGE>

         Executive agrees that duing the term of this Agreement and for twelve
         (12) months thereafter (the "Restricted Period"), Executive shall not,
         directly or indirectly, either for himself or for any other person or
         entity:

         (a)      engage or participate in any activity or business, or assist,
                  advise or be connected with (including as an employee, owner,
                  partner, shareholder, officer, directs, advisor, consultant,
                  agent or otherwise), or permit his name to be used by or
                  otherwise render services, directly or indirectly, for any
                  person or entity which directly competes with the Corporation
                  and which has a facility located within twenty (20) miles of
                  any facility of the Corporation or within twenty (20) miles of
                  any facility that the Corporation plans to acquire, merge
                  with, or establish within the twelve (12)- month period
                  following Executive's termination of employment, the location
                  of such future facilities are identified to Executive in
                  writing by the Corporation within sixty (60) days following
                  Executive's termination (a "Competitor");

         (b)      solicit or attempt to solicit business from any customer of
                  the Corporation with which Executive has had contact during
                  the six (6) months prior to Executive's termination of
                  employment with the Corporation for the purpose of having such
                  customer or other business relation of the Corporation to
                  cease doing business with the Corporation; or

         (c)      solicit or attempt to solicit any officer, employee or
                  agent of the Corporation who is an officer, employee or agent
                  of the Corporation as of the effective date of Executive's
                  termination to cease employment or association with the
                  Corporation.

6.       CONFIDENTIAL INFORMATION. Executive recognizes that, as a result of his
         employment by the Corporation, he will gain possession of Confidential
         Information as defined below. Accordingly, Executive agrees as follows:

         (a)      Executive shall not at any time during or after termination of
                  this Agreement, in any form or manner, whether directly or
                  indirectly, disclose or communicate any Confidential
                  Information to any third party, or otherwise utilize any
                  Confidential Information for Executive's benefit or for the
                  benefit of any third party. For purposes of this Agreement,
                  "Confidential Information" shall include, any financial data,
                  business plans and strategies, and lists of actual or
                  potential customers of the Corporation and information
                  concerning relationships therewith, any of which (i) derives
                  independent economic value, actual or potential, from not
                  being generally known to the public and (ii) is the subject of
                  efforts that are reasonably under the circumstances to
                  maintain its secrecy. "Confidential information" shall also
                  include any information concerning a third party that has been
                  disclosed to the Corporation in confidence which the
                  Corporation has an obligation to treat as confidential.


                                      -3-
<PAGE>

         (b)      Executive shall, immediately following a request from the
                  Corporation, return to the Corporation, without retaining
                  copies, all tangible items of Corporation property which are
                  or which contain Confidential Information. Executive shall
                  destroy any Confidential Information stored in electronic,
                  magnetic, or other mechanical medium.

7.       SPECIFIC PERFORMANCE. Executive agrees that any violation by him of
         Section 5 or 6 of this Agreement, as applicable, would be highly
         injurious to the Corporation and would cause irreparable harm to the
         Corporation. By reason of the foregoing, Executive consents and agrees
         that if he violates any provision of Section 5 or 6 of this Agreement,
         the Corporation shall be entitled, in addition to any other rights and
         remedies that it may have, to apply to any court of competent
         jurisdiction for specific performance and/or injunctive or other
         equitable relief in order to enforce, or prevent any continuing
         violation of, the provisions of such Section. In the event Executive
         breaches Section 5 of this Agreement, the Restricted Period shall be
         extended to include the period of such breach.

8.       ENFORCEMENT. Executive acknowledges that the territorial, time and
         scope limitations set forth in Sections 5 and 6, as applicable, are
         reasonable and are properly required for the protection of the
         Corporation and in the event that any such territorial, time or scope
         limitation is deemed to be unreasonable by a court of competent
         jurisdiction, the Corporation and Executive agree, and Executive
         submits, to the reduction of any or all of said territorial, time or
         scope limitations to such an area, period or scope as said court shall
         deem reasonable and enforceable under the circumstances.

9.       TERMINATION; SEVERANCE. Notwithstanding the provisions of Section 1 and
         the other provisions of this Agreement, Executive's employment with the
         Corporation and this Agreement may be terminated prior to the
         expiration of the Employment Term or any extension thereof:

         (a)      by the Board at any time for "cause," which shall be defined
                  as (i) Executive's conviction for, or plea of nolo contendere
                  to, a felony or crime involving moral turpitude; (ii)
                  Executive's commission of an act involving self-dealing, fraud
                  or personal profit that is injurious to the Corporation; (iii)
                  Executive's commission of an act of willful and wanton
                  misconduct of his duties hereunder; and (iv) Executive's
                  breach of any material provision of this Agreement. Any
                  termination by the Corporation under this Section 9(a) shall
                  be in writing. In the event of termination under this Section
                  9(a), the Corporation's obligations under this Agreement and
                  this Agreement shall cease, except that Executive shall be
                  entitled to his Base Salary for services performed through the
                  date of such termination.

         (b)      by the Board at any time, without cause, upon ninety (90)
                  days' written notice to Executive. In the event of termination
                  pursuant to this Section 9(b), Executive shall be entitled to
                  his Base Salary and all other compensation and benefits for
                  the remainder of the Employment Term.


                                      -4-
<PAGE>

         (c)      in the event of Executive's death or "total disability", which
                  for purposes of this Section 9(c) shall be defined as
                  Executive's inability to perform the essential functions of
                  his job, with or without reasonable accommodation, due to
                  illness, injury or other physical or mental incapacity, for a
                  period of ninety (90) or more days in any twelve (12) month
                  period.

         (d)      by Executive or the Board in the event Executive elects to
                  resign or the Board terminates Executive's employment within
                  ninety (90) days of a "change of control", which for purposes
                  of this Section 9(d) shall be defined as: (i) the acquisition
                  by one or more persons or entitles of 50% or more of the
                  outstanding capital stock of the corporation or of all or
                  substantially all of the Corporation's assets within a twelve
                  (12) month period; (ii) any other transaction or series of
                  transactions the result of which is the loss of control of the
                  Corporation of the Bank or the Holding Company by its current
                  shareholders. In the event of Executive's termination pursuant
                  to this Section 9(d), Executive shall be entitled to receive
                  his Base Salary and all other compensation and benefits for
                  the remainder of the Employment Term, including any extension
                  thereof.

10.      PRIOR BUSINESS RELATIONSHIPS. Executive represents that there are no
         claims or actions, whether pending, threatened or potential, with
         respect to any of his prior employment, independent contractor or other
         business relationships that prevent him, or that would prevent him,
         from carrying out his duties under this Agreement or that subjects the
         Corporation to any potential or actual liability. Executive agrees and
         understands that any such claim or action shall be reviewed by the
         Board and may be grounds for his termination of employment.
         Notwithstanding the foregoing, this Section 10 shall not prevent the
         Corporation from pursuing any other remedy available at law or in
         equity.

11.      MISCELLANEOUS.

         (a)      All notices hereunder shall be in writing and shall be deemed
                  given when delivered in person or when telecopied with hard
                  copy to follow, or three business days after being deposited
                  in the United States mail, postage prepaid, registered or
                  certified mail, or two business days after delivery to a
                  nationally recognized express courier, expenses prepaid,
                  addressed as follows:

                  If to Executive:
                  Jock Brown
                  231 S. 7th
                  La Grange


                                      -5-
<PAGE>

                  If the Corporation:

                  and/or at such addresses as may be designated by notice given
                  in accordance with the provisions hereof.

         (b)      This Agreement shall be binding upon and inure to the benefit
                  of the parties hereto and their respective heirs, successors
                  and permitted assigns. No party shall assign this Agreement or
                  its rights hereunder without the prior written consent of the
                  other party hereto; provided, however, that the Corporation
                  will require any person or entity acquiring all or
                  substantially all of the business of the Corporation (whether
                  by sale of stock, sale of assets, merger, consolidation or
                  otherwise) to assume its obligations pursuant to this
                  Agreement upon closing.

         (c)      This Agreement contains all of the agreements between the
                  patties with respect to the subject matter hereof and this
                  Agreement supersedes all other agreements, oral or written,
                  between the parties hereto with respect to the subject matter
                  hereof.

         (d)      No change or modification of this Agreement shall be valid
                  unless the same shall be in writing and signed by the parties
                  hereto. No waiver of any provision of this Agreement shall be
                  valid unless in writing and signed by the waiving party. No
                  waiver of any of the provisions of this Agreement shall be
                  deemed or shall constitute a waiver of any other provision,
                  nor shall any waiver constitute a continuing waiver, unless so
                  provided in the waiver.

         (e)      If any provision of this Agreement (or portion thereof) shall,
                  for any reason, be considered invalid or unenforceable by any
                  court of competent jurisdiction and such provision is not
                  subject to revision pursuant to Section 9, such provision (or
                  portion thereof) shall be ineffective only to the extent of
                  such invalidity or unenforceability, and the remaining
                  provisions of this Agreement (or portions thereof) shall
                  nevertheless be valid, enforceable and of full force and
                  effect.

         (f)      The section headings or titles herein are for convenience of
                  reference only and shall not be deemed a part of this
                  Agreement.

         (g)      This Agreement shall be governed and controlled as a validity,
                  enforcement, interpretation, construction, effect and in all
                  other respects by the laws of the State of Illinois applicable
                  to contracts made in that State (other than any conflict of
                  laws rule which might result in the application of the laws of
                  any other jurisdiction).


                                      -6-
<PAGE>

         The parties have executed this Agreement on the date first above
         written.

                                                   FIRST NATIONAL BANK OF OTTAWA
                                                   (the "Bank")

                                                   /s/ W.J. Walsh
                                                   -----------------------------
                                                   -----------------------------
                                                   -----------------------------
                                                   (the "Holding Company")

                                                   -----------------------------
                                                   -----------------------------
                                                   -----------------------------
                                                   EXECUTIVE

                                                   /s/ Jock Brown
                                                   -----------------------------
                                                   JOCK BROWN


                                      -7-