**Exhibit 10.18**SEPARATION AGREEMENT AND GENERAL RELEASEThis Separation Agreement and General Release (hereinafter “Agreement”) is made and entered intothis 20th day of October, 2005, by and between FIRST OAK BROOK BANCSHARES, INC.(hereinafter “FOBB”), OAK BROOK BANK (hereinafter the “Bank”) and BRIAN C. ENGLAND (hereinafter“Employee”):WHEREAS, Employee desires to receive severance pay in connection with his separation fromemployment by FOBB and the Bank; and     WHEREAS, the parties hereto desire amicably to resolve all disputes, claims or issues betweenthem arising out of or related to Employee’s employment by FOBB and the Bank and its termination;     NOW THEREFORE, in consideration of the mutual promises set forth in this Agreement and othergood and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, theparties hereto agree as follows:1. Resignation. Employee hereby resigns from his employment by FOBB and the Bankeffective the date hereof.2. Payments. As additional benefits and consideration beyond that to which Employeeis otherwise entitled upon termination, the Bank agrees: a. To continue Employee’s current salary through the first to occurof (i) April 30, 2006 or (ii) the date on which Employee either becomesself-employed or becomes employed by a person other than FOBB or the Bank,subject to all deductions required by law. Employee further agrees that theamount payable pursuant to the immediately preceding sentence of this Paragraph2 (a) shall be reduced by the amount of any unemployment compensation receivedby him pertaining to the period with respect to which he is entitled to receivepayments pursuant to this Paragraph 2 (a ) and by the amounts, if any, payableby him to the Bank from time to time pursuant to Paragraph 10 of this Agreement.  b. To continue to pay the Bank’s normal contribution toward monthlyhealth insurance premiums for Employee through October 31, 2005, and thereafterto provide him the opportunity to continue his health insurance coverage at hisexpense, as required by and subject to the provisions of COBRA.3. Stock Options; Restricted Stock Units. Pursuant to the FOBB IncentiveCompensation Plan and the Stock Option Agreements between FOBB and Employee, all stockoptions which have been granted to Employee prior to the date hereof which have not vestedshall terminate on the date hereof, and Employee shall have the right to exercise all ofsuch stock options which have vested until the 90th day immediately succeedingthe date hereof. Pursuant to the FOBB Incentive Compensation Plan and the Restricted StockUnit Award Agreement between FOBB and the Employee, none of the restricted stock units whichhave been granted to Employee before the date hereof have vested and all of such restrictedstock units shall terminate on the date hereof.
 

 
4. Non-Competition. This Agreement shall have no impact on the AgreementRegarding Confidentiality and Non-Solicitation of Customers and Employees between the Bank andEmployee, which shall remain in full force and effect for the term set forth therein.5. Transitional Employment Agreement. The Transitional Employment Agreementbetween FOBB and Employee is hereby terminated, effective the date hereof.6. Purchase Note and Security Agreement. As a result of the termination of theemployment of Employee, payment of all accrued unpaid principal and interest under thePurchase Note and Security Agreement between FOBB and Employee is due on the date hereof.FOBB is hereby authorized by Employee to retain such number of shares of FOBB common stockpledged by him to FOBB as collateral for such payment obligation as is necessary to satisfysuch payment obligation, and within 10 days after the date hereof, FOBB shall deliver astock certificate evidencing the balance of the shares pledged as collateral to Employee.For the purpose of this Paragraph 6, the stock shall be valued at $ 27.08 per share, itsreported closing price on the Nasdaq Stock Market on October 19, 2005.7. Medical Reimbursement Plan. No reimbursement or payment shall be made to oron behalf of Employee pursuant to the Exec-U-Care Medical Reimbursement Plan with respect tomedical, hospital or other health care costs incurred by Employee or his dependants after3:00 P.M. Central Daylight Time on the date hereof.8. Discretionary Bonus/Incentive Program. Employee acknowledges that the deferredportions of the bonuses awarded to him by the Bank in January, 2003, 2004 and 2005 whichhave not heretofore be paid to him are forfeited by him in accordance with his letteragreements with the Bank with respect to such bonuses dated January 31 of each of 2003,2004 and 2005.9. Return of Property and Confidentiality. On or before November 30, 2005,Employee shall return the automobile provided to him by the Bank to the Bank at itsheadquarters office at 1400 Sixteenth Street in Oak Brook, Illinois in the condition inwhich it is in on the date hereof, ordinary wear and tear excepted. Until that date,Employee may continue to use such automobile, but shall be responsible for the costs of fueland maintenance and Bank shall continue the insurance policy covering such automobile infull force and effect. On the date hereof, Employee shall return to the Bank all notes,reports, plans, books, unpublished memoranda or other documents or property which werecreated, developed, generated or received by Employee during his employment which arerelated to the business of the Bank or FOBB and which are confidential or proprietary innature.10. Credit Card. On the date hereof, Employee shall return the credit cardprovided to him by the Bank to the Bank. Subsequent to the date hereof, he shall be liablefor the payment of all amounts heretofore or hereafter billed with respect to such creditcard by the issuer of such credit card for which he has been reimbursed by the Bank butwhich he has not paid to such issuer and for the payment of all amounts hereafter billedwith respect to such credit card by the issuer of such credit card other than expensesincurred prior to 3:00 P.M. Central Daylight Time on the date hereof in connection with thefurtherance of the Bank’s business for which a written accounting in reasonable detail issubmitted to the Bank and approved by its Controller or its Chief Financial
 

 
Officer. In the sole discretion of the Bank, amounts due to the Bank pursuant to thisParagraph 10 may be set off against amounts payable by the Bank pursuant to Paragraph 2 (a)of this Agreement.11. Knowing and Voluntary. Employee acknowledges and agrees that: a. He is entering into this Agreement knowingly and voluntarily;