Document:

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                                                                    EXHIBIT 4.25

                            SENIOR EXCHANGEABLE NOTE

                             DUE NOVEMBER 15, 2008

                                 [FACE OF NOTE]

                       EOP OPERATING LIMITED PARTNERSHIP

                 SENIOR EXCHANGEABLE NOTE DUE NOVEMBER 15, 2008

NO. 001                           PRINCIPAL AMOUNT $0 (OR SUCH GREATER PRINCIPAL
                            BALANCE REFLECTED ON SCHEDULE A ATTACHED HERETO FROM
                                                                   TIME TO TIME)

CUSIP NO. 268766BR2

         UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO EOP OPERATING
LIMITED PARTNERSHIP (THE "ISSUER") OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND
ANY PAYMENT IS MADE TO CEDE CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE CO., HAS AN INTEREST HEREIN.

         UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES
IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC
TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR
BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.

         THIS NOTE REPRESENTS TRANSFERS OF PRINCIPAL AMOUNTS OUTSTANDING UNDER
THE NOTES BEARING CUSIP NO. 268766BP6, AS REFLECTED ON THE BOOKS OF THE SECURITY
REGISTRAR AS THE OUTSTANDING PRINCIPAL BALANCE HEREOF FROM TIME TO TIME AND AS
EVIDENCED BY NOTATION OF THE SECURITY REGISTRAR REFLECTED ON SCHEDULE A TO THIS
NOTE. NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, THE AGGREGATE
PRINCIPAL AMOUNT OF THIS NOTE, TOGETHER WITH THE AGGREGATE PRINCIPAL AMOUNTS OF
THE NOTES BEARING CUSIP NO. 268766BP6, SHALL IN NO EVENT EXCEED $325,000,000.

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         EOP Operating Limited Partnership, a Delaware limited partnership (the
"Issuer," which term includes any successor under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede Co. or
registered assigns, the principal sum of $0 (or such greater principal balance
reflected on Schedule A attached hereto from time to time not to exceed Three
Hundred Twenty-Five Million Dollars) unless previously exchanged into common
shares of beneficial interest, par value $.01 per share ("Common Shares"), of
Equity Office Properties Trust, a Maryland real estate investment trust ("Equity
Office"), in accordance with the terms specified on the reverse hereof and in
the Indenture, on November 15, 2008 (the "Stated Maturity Date"), or any
Redemption Date (as defined on the reverse hereof), or any earlier date of
acceleration of maturity (each such date being referred to as the "Maturity
Date" with respect to the principal repayable on such date), and to pay interest
thereon from August 23, 2000 (or from the most recent Interest Payment Date (as
defined below) to which interest has been paid or duly provided for),
semiannually in arrears on May 15 and November 15 of each year, commencing on
November 15, 2000 (each, an "Interest Payment Date"), and on the Maturity Date,
in an amount equal to the greater of (i) 7.25% per annum (or $36.25 per $1,000
outstanding principal amount semiannually) and (ii) the product of (A) two times
the regular cash distribution most recently paid by Equity Office on a Common
Share for a fiscal quarter and (B) the number of Common Shares into which each
$1,000 outstanding principal amount is exchangeable, until payment of said
principal sum has been made or duly provided for. Any cash distribution (or
portion thereof) that is properly designated by Equity Office as extraordinary
and not expected to be recurring shall not be taken into account for purposes of
clause (A) of the preceding sentence. Interest on this Note will be computed on
the basis of a 360-day year of twelve 30-day months.

         The interest so payable and punctually paid or duly provided for on an
Interest Payment Date will, subject to certain exceptions described below, be
paid to the Holder in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on the "Regular Record Date" for such
payment, which will be the May 1 or November 1 (regardless of whether such day
is a Business Day (as defined below)) next preceding such Interest Payment Date.
Any interest not so punctually paid or duly provided for on an Interest Payment
Date ("Defaulted Interest") shall forthwith cease to be payable to the Holder on
such Regular Record Date, and shall be paid to the Holder in whose name this
Note (or one or more predecessor Notes) is registered at the close of business
on a special record date (the "Special Record Date") for the payment of such
Defaulted Interest to be fixed by the Trustee hereinafter referred to, notice
whereof shall be given to the Holder of this Note by the Trustee not less than
10 calendar days prior to such Special Record Date or may be paid at any time in
any other lawful manner, all as more fully provided for in the Indenture.

         The principal of this Note payable on the Maturity Date will be paid
against presentation and surrender of this Note at the office or agency of the
Issuer maintained for that purpose in Boston, Massachusetts with a drop facility
maintained in New York, New York. The Issuer hereby initially designates the
Corporate Trust Office of the Trustee in Boston, Massachusetts as the office to
be maintained by it where Notes may be presented for payment, exchange or
registration of transfer or exchange and where notices or demands to or upon the
Issuer or Equity Office in respect of the Notes or the Indenture may be served.

         Interest payable on this Note on any Interest Payment Date and on the
Maturity Date, as the case may be, will be the amount of interest accrued during
the applicable Interest Period (as defined below). An "Interest Period" is each
period from and including the immediately preceding Interest Payment Date (or
from and including August 23, 2000 in the case of the initial Interest Period)
to but excluding the applicable

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Interest Payment Date or the Maturity Date, as the case may be. If any Interest
Payment Date or the Maturity Date falls on a day that is not a Business Day,
principal and interest payable on such date will be paid on the succeeding
Business Day with the same force and effect as if it were paid on the date such
payment was due, and no interest will accrue on the amount so payable for the
period from and after such date to such succeeding Business Day. "Business Day"
means any day, other than a Saturday or a Sunday, on which banking institutions
in New York, New York and Boston, Massachusetts are not required or authorized
by law or executive order to close.

         Payments of principal and interest in respect of this Note will be made
in immediately available funds in such coin or currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place. Capitalized terms used herein,
including on the reverse hereof, and not defined herein or on the reverse hereof
shall have the respective meanings given to such terms in the Indenture.

         This Note shall not be entitled to the benefits of the Indenture or the
Guarantee of Equity Office or be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed by the
Trustee.

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         IN WITNESS WHEREOF, each of the Issuer and Equity Office has caused
this Note to be signed manually or by facsimile by an authorized signatory.

Dated: December 5, 2000             EOP OPERATING LIMITED PARTNERSHIP,
                                    as Issuer

Attest:                             By:  EQUITY OFFICE PROPERTY TRUST, not
                                    individually but as Managing General Partner

By: /s/ ROBIN MARIELLA              By:  /s/ RICHARD D. KINCAID
   ----------------------------        -----------------------------------------
Name: Robin Mariella                Name: Richard D. Kincaid
Title: Assistant Secretary          Title: Executive Vice President and Chief
                                    Financial Officer

                                    EQUITY OFFICE PROPERTIES TRUST

By: /s/ ROBIN MARIELLA              By: /s/ RICHARD D. KINCAID
   ----------------------------        -----------------------------------------
Name: Robin Mariella                Name: Richard D. Kincaid

Title: Assistant Secretary          Title: Executive Vice President and Chief
                                    Financial Officer

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes of the series designated herein referred to in
the within-mentioned Indenture.

Dated: December 5, 2000             STATE STREET BANK AND TRUST COMPANY,
                                    as Trustee

                                    By: /s/
                                       -----------------------------------------
                                       Authorized Officer

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                               [REVERSE OF NOTE]

                       EOP OPERATING LIMITED PARTNERSHIP

                 Senior Exchangeable Note due November 15, 2008

         This Note is one of a duly authorized issue of senior debt securities
of the Issuer of the series hereinafter specified, all issued or to be issued
under and pursuant to an Indenture, dated as of August 23, 2000 (as amended, the
"Indenture"), duly executed and delivered by the Issuer and Equity Office to
State Street Bank and Trust Company, as Trustee (herein called the "Trustee,"
which term includes any successor trustee under the Indenture with respect to
the series of Notes of which this Note is a part), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties, and immunities
thereunder of the Trustee, the Issuer, Equity Office and the Holders of the
Notes, and of the terms upon which the Notes are, and are to be, authenticated
and delivered. The debt securities issuable under the Indenture may be issued in
one or more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at
different rates or formulas, may be subject to different redemption or exchange
provisions (if any), and may otherwise vary as provided in the Indenture. This
Note is one of a series designated as "Senior Exchangeable Notes due November
15, 2008" of the Issuer (the "Notes"), limited in aggregate principal amount to
$375,000,000, subject to the provisions in the Indenture, and is a Guaranteed
Security within the meaning of, and subject to the provisions applicable to
Equity Office as Guarantor thereof contained in, the Indenture.

         In case an Event of Default with respect to the Notes shall have
occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect, and
subject to the conditions provided in the Indenture.

         The Issuer may redeem this Note, at any time after November 15, 2004 in
whole or from time to time in part in integral multiples of $1,000 (provided
that any remaining principal amount is at least $100,000), at the option of the
Issuer, at a redemption price (the "Redemption Price") equal to 100% of the
principal amount being redeemed plus unpaid interest accrued thereon to the date
fixed for redemption (the "Redemption Date"); provided, however, that interest
installments due on an Interest Payment Date which is on or prior to the
Redemption Date will be payable to the Holder hereof (or one or more predecessor
Notes) as of the close of business on the Regular Record Date preceding such
Interest Payment Date. If notice has been given as provided in the Indenture and
funds for the redemption of this Note or any part hereof called for redemption
shall have been made available on the Redemption Date, this Note or such part
will cease to bear interest on the Redemption Date referred to in such notice
and the only right of the Holder will be to receive payment of the Redemption
Price. Notice of any optional redemption of any Notes will be given to the
Holder hereof (in accordance with the provisions of the Indenture) not more than
60 nor less than 30 days prior to the Redemption Date. In the event of
redemption of this Note in part only, a new Note of like tenor for the
unredeemed portion hereof and otherwise having the same terms and provisions as
this Note shall be issued by the Issuer in the name of the Holder hereof upon
the presentation and surrender hereof.

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         The Indenture contains provisions permitting the Issuer, Equity Office
and the Trustee, with the consent of the Holders of not less than a majority of
the aggregate principal amount of debt securities issued under the Indenture at
the time Outstanding of all series to be affected (voting as one class),
evidenced as provided in the Indenture, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or modifying in any
manner the rights of the Holders of the Notes of each series; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Note at the time Outstanding if so affected, (i) change the Stated Maturity
of any principal or interest payment on any Note, or reduce the principal amount
thereof or the rate or amount (or manner of calculation of the amount) of any
interest thereon, or change the timing or reduce the amount payable upon the
redemption thereof, or change the Place of Payment or currency for payments
thereon, or impair or affect the rights of any Holder to institute suit for the
payment on or exchange of any Note, or (ii) reduce the percentage in principal
amount of Outstanding Notes the Holders of which are required to consent to any
such supplemental indenture or any waiver of compliance with certain provisions
of the Indenture or any waiver of certain defaults thereunder, or (iii) modify
this provision or the provisions applicable to waivers except to increase the
required percentages, or (iv) modify Equity Office's Guarantee of the Notes, or
(v) change the exchange provisions applicable to the Notes in a manner adverse
to the Holders thereof. It is also provided in the Indenture that, with respect
to certain defaults or Events of Default regarding the debt securities of any
series, the Holders of a majority in aggregate principal amount Outstanding of
the debt securities of such series (or, in the case of certain defaults or
Events of Default, all series of debt securities) may on behalf of the Holders
of all the debt securities of such series (or all of the debt securities, as the
case may be) waive any such past default or Event of Default and its
consequences, prior to any declaration accelerating the maturity of such debt
securities, or, subject to certain conditions, may rescind a declaration of
acceleration and its consequences with respect to such debt securities. The
preceding sentence shall not, however, apply to a default in or Event of Default
relating to the payment of the principal of or interest on any of the debt
securities or in delivery by Equity Office of Common Stock and cash, if
applicable, upon an exchange of debt securities or in respect of a covenant or
provision contained in the Indenture that cannot be modified or amended without
the consent of the Holders of each debt security at the time Outstanding
affected thereby. Any such consent or waiver by the Holder of this Note (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such
Holder and upon all future Holders and owners of this Note and any Note that may
be issued in exchange or substitution herefor, irrespective of whether or not
any notation thereof is made upon this Note or such other Notes.

         The principal amount (or portion of the principal amount that is an
integral multiple of $1,000, provided any remaining principal amount is at least
$100,000) of this Note will be exchangeable (unless it has matured or has been
previously redeemed by the Issuer), in whole or in part at any time on or after
the 90th day following the initial issuance of the Notes on August 23, 2000, at
the option of the Holder hereof, into Common Shares of Equity Office at an
initial exchange price of $34.00 per share, subject to adjustment under certain
conditions specified in the Indenture (the "Exchange Price"). The right to
exchange any or all of this Note if called for redemption will terminate at the
close of business on the Business Day preceding the applicable Redemption Date,
unless the Issuer defaults in the payment of the requisite Redemption Price

                                       6

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when due, in which case the Holder's exchange rights will terminate at the close
of business on the date such payment is made.

         Notwithstanding the preceding paragraph, if the Current Market Price
per Common Share on the New York Stock Exchange on the date, if any, that the
Holder elects to exercise its exchange rights is less than the Exchange Price,
then the exchanging Holder will receive, in lieu of Common Shares, cash in an
amount equal to 97% of the product of (i) the number of Common Shares into which
the principal amount of this Note subject to the election would otherwise be
exchangeable and (ii) such Current Market Price per Common Share.

         Owners of beneficial interests herein may exercise their exchange
rights by delivery to DTC of the appropriate instructions for exchange pursuant
to the procedures of DTC and its direct and indirect participants.

         The Holder of this Note at the close of business on a Regular Record
Date will be entitled to receive the interest payable on the related Interest
Payment Date notwithstanding the exchange of all or any portion of this Note
following such Regular Record Date and prior to such Interest Payment Date.
However, if this Note is surrendered for exchange during the period between the
close of business on any Regular Record Date and ending with the opening of
business on the related Interest Payment Date (unless this Note is exchanged
after the issuance of a notice of redemption with respect to a Redemption Date
during such period or coinciding with such Interest Payment Date) must be
accompanied by payment of an amount equal to the interest payable thereon on
such Interest Payment Date. The Holder of this Note on a Regular Record Date who
(or whose transferee) presents and surrenders all or any portion of this Note
for exchange on such Interest Payment Date will receive the interest payable on
such date, and the exchanging Holder need not include payment of the amount of
such interest upon presenting and surrendering all or any portion of this Note
for exchange. Except as provided above, neither the Issuer nor Equity Office
will make any payment or allowance for unpaid interest, whether or not in
arrears, on the principal amount of this Note presented and surrendered for
exchange or for any distribution on the Common Shares that are issued upon such
exchange if the record date for such distribution was prior to the effective
time of such exchange, as determined pursuant to the Indenture.

         Fractional Common Shares will not be issued upon exchange but, in lieu
thereof, Equity Office will pay a cash adjustment based on the Current Market
Price of the Common Share at the close of business on the Trading Day prior to
such exchange.

         No reference herein to the Indenture and no provision of this Note or
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of, and interest on, this Note
in the manner, at the respective times, at the rate and in the coin or currency
herein prescribed or alter or impair the obligations of Equity Office in respect
of

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its unconditional guarantee of the aforementioned payments or its delive ry of
Common Shares and cash, if applicable, upon an exchange of this Note.

         This Note is issuable only in fully registered form, without coupons,
in denominations of $100,000 and integral multiples of $1,000 thereof. This Note
may be exchanged for a like aggregate principal amount of Notes of other
authorized denominations at the office or agency of the Issuer in Boston,
Massachusetts, in the manner and subject to limitations provided herein and in
the Indenture, but without the payment of any change except for any tax or other
governmental charge imposed in connection therewith.

         Upon due presentment for registration of transfer of this Note at the
office or agency of the Issuer in Boston, Massachusetts, one or more new Notes
of authorized denominations in an equal aggregate principal amount will be
issued to the transferee in exchange therefor, subject to the limitations
provided herein and in the Indenture, but without the payment of any service
charge except for any tax or other governmental charge imposed in connection
therewith.

This Note is not subject to a sinking fund requirement.

         No recourse under or upon any obligation, covenant or agreement
contained in the Indenture or any Note, or because of any indebtedness evidenced
hereby or thereby (including, without limitation, any obligation or indebtedness
relating to the principal of, or interest or any other amounts due, or claimed
to be due, on this Note), or for any claim based thereon or otherwise in respect
thereof, shall be had (i) against the any partner other than Equity Office, as
Guarantor, or any Person which owns an interest, directly or indirectly, in any
partner, in the Issuer, or (ii) against any promoter, as such, or against any
past, present or future shareholder, officer, trustee or partner, as such, of
the Issuer or Equity Office or any successor, either directly or through the
Issuer or Equity Office or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal
or equitable proceeding or otherwise, all such liability being expressly waived
and released by the acceptance hereof and as part of the consideration for the
issue hereof.

         The Issuer, Equity Office, the Trustee and any authorized agent of the
Issuer, Equity Office or the Trustee may deem and treat the Person in whose name
this Note is registered as the Holder and absolute owner of this Note (whether
or not this Note shall be overdue and notwithstanding any notation of ownership
or other writing hereon), for the purpose of receiving payment of, or on account
of, the principal hereof and, subject to the provisions herein and on the face
hereof, interest hereon, and for all other purposes, and none of the Issuer,
Equity Office or the Trustee nor any authorized agent of the Issuer, Equity
Office or the Trustee shall be affected by any notice to the contrary, except as
required by law.

         THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS.

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                  ASSIGNMENT FORM AND CERTIFICATE OF TRANSFER

        To assign this Note fill in the form below:

        (I)  or (we) assign and transfer this Note to

--------------------------------------------------------------------------------
        (Insert assignee's social security or tax identification number, if any)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
        (Print or type assignee's name, address and zip code)

Your signature:
              ------------------------------------------------------------------
              (Sign exactly as your name appears on the other side of this Note)

Date:
      --------------------------------------------

Signature Guarantee:*
                     -----------------------------

-------------------

*  Signature must be guaranteed by a commercial bank, trust company or member
   firm or a major stock exchange.

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                                                                      SCHEDULE A

                          SCHEDULE OF PRINCIPAL AMOUNT

<table>
<caption>

   Amount of increase                 Total aggregate                Signature of              Signature of
(decrease) in principal             principal amount of          authorized officer of      authorized officer of
  amount of this Note              this Note (CUSIP No.          the Security Registrar      Trustee or Common
(CUSIP No. 268766BR2)                  268766BR2)                                            Shares custodian
<S>                              <C>                            <C>                        <C>

</table>

                                       10<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

      EMPLOYMENT AGREEMENT, dated this 18th day of April 2001, between First
BancTrust Corporation, a Delaware chartered corporation (the "Corporation"),
First Bank & Trust, S. B., an Illinois chartered savings bank (the "Bank"), and
Terry J. Howard (the "Executive").

                                   WITNESSETH

      WHEREAS, the Executive is presently an officer of the Bank (the
"Employer"); and

      WHEREAS, the Employer desires to be ensured of the Executive's continued
active participation in the business of the Employer; and

      WHEREAS, in order to induce the Executive to serve in the employ of the
Employer and in consideration of the Executive's agreeing to serve in the employ
of the Employer, the parties desire to specify the terms under which Executive
shall be employed and the severance benefits which shall be due the Executive by
the Employer in the event that his employment with the Employer is terminated
under specified circumstances;

      NOW THEREFORE, in consideration of the premises and the mutual agreements
herein contained, and upon the other terms and conditions hereinafter provided,
the parties hereby agree as follows:

      1. DEFINITIONS. The following words and terms shall have the meanings set
forth below for the purposes of this Agreement:

      (a) AVERAGE ANNUAL COMPENSATION. The Executive's "Average Annual
Compensation" for purposes of this Agreement shall be deemed to mean the average
level of compensation paid to the Executive by the Employer or any subsidiary
thereof during the most recent five taxable years preceding the Date of
Termination and which was either (i) included in the Executive's gross income
for tax purposes, including but not limited to Base Salary, bonuses and amounts
taxable to the Executive under any qualified or non-qualified employee benefit
plans of the Employer, or (ii) deferred at the election of the Executive.

      (b) BASE SALARY. "Base Salary" shall have the meaning set forth in Section
3(a) hereof.

      (c) CAUSE. Termination of the Executive's employment for "Cause" shall
mean termination because of personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule or
regulation (other than traffic violations or similar offenses) or final
cease-and-desist order or material breach of any provision of this Agreement.

      (d) CHANGE IN CONTROL OF THE CORPORATION. "Change in Control of the
Corporation" shall mean a change in control of a nature that would be required
to be reported in response to Item

<PAGE>

1(a) of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the
Securities Exchange Act of 1934, as amended ("Exchange Act"), or any successor
thereto, whether or not any class of securities of the Corporation is registered
under the Exchange Act; provided that, without limitation, such a change in
control shall be deemed to have occurred if (i) any "person" (as such term is
used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation's then outstanding securities; or (ii)
during any period of three consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Corporation cease for
any reason to constitute at least a majority thereof unless the election, or the
nomination for election by stockholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.

      (e) CODE. "Code" shall mean the Internal Revenue Code of 1986, as amended.

      (f) DATE OF TERMINATION. "Date of Termination" shall mean (i) if the
Executive's employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive's employment
is terminated for any other reason, the date on which a Notice of Termination is
given or as specified in such Notice.

      (g) DISABILITY. Termination by the Employer of the Executive's employment
based on "Disability" shall mean termination because of any physical or mental
impairment which qualifies the Executive for disability benefits under the
applicable long-term disability plan maintained by the Employer or any
subsidiary or, if no such plan applies, which would qualify the Executive for
disability benefits under the Federal Social Security System.

      (h) GOOD REASON. Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive within
twenty-four (24) months following a Change in Control of the Corporation based
on:

            (i)   Without the Executive's express written consent, the failure
                  to elect or to re-elect or to appoint or to re-appoint the
                  Executive to the offices of President and Chief Executive
                  Officer of the Employer or a material adverse change made by
                  the Employer in the Executive's functions, duties or
                  responsibilities as President and Chief Executive Officer of
                  the Employer;

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<PAGE>

            (ii)  Without the Executive's express written consent, a material
                  reduction by either of the Employer in the Executive's Base
                  Salary as the same may be increased from time to time or,
                  except to the extent permitted by Section 3(b) hereof, a
                  material reduction in the package of fringe benefits provided
                  to the Executive, taken as a whole;

            (iii) Without the Executive's express written consent, the Employer
                  requires the Executive to work in an office which is more than
                  30 miles from where the Employer's principal executive office
                  is located, except for required travel on business of the
                  Employer to an extent substantially consistent with the
                  Executive's present business travel obligations;

            (iv)  Any purported termination of the Executive's employment for
                  Cause, Disability or Retirement which is not effected pursuant
                  to a Notice of Termination satisfying the requirements of
                  paragraph (j) below; or

            (v)   The failure by the Employer to obtain the assumption of and
                  agreement to perform this Agreement by any successor as
                  contemplated in Section 9 hereof.

      (i)   IRS. IRS shall mean the Internal Revenue Service.

      (j) NOTICE OF TERMINATION. Any purported termination of the Executive's
employment by the Employer for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written "Notice of
Termination" to the other party hereto. For purposes of this Agreement, a
"Notice of Termination" shall mean a dated notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated, (iii)
specifies a Date of Termination, which shall be not less than thirty (30) nor
more than ninety (90) days after such Notice of Termination is given, except in
the case of the Employer's termination of Executive's employment for Cause,
which shall be effective immediately; and (iv) is given in the manner specified
in Section 10 hereof.

      (k) RETIREMENT. "Retirement" shall mean voluntary termination by the
Executive in accordance with the Employer's retirement policies, including early
retirement, generally applicable to the Employer's salaried employees.

                                       3
<PAGE>

      2.    TERM OF EMPLOYMENT.

      (a) The Employer hereby employs the Executive as President and Chief
Executive Officer, and the Executive hereby accepts said employment and agrees
to render such services to the Employer on the terms and conditions set forth in
this Agreement. The term of this Agreement shall be a period of two years
commencing as of the date hereof (the "Commencement Date"), subject to earlier
termination as provided herein. Beginning on the day which is one year
subsequent to the Commencement Date, and on each annual anniversary thereafter,
the term of this Agreement shall be extended for a period of one year in
addition to the then-remaining term, provided that the Employer has not given
notice to the Executive in writing at least 60 days prior to such day that the
term of the Agreement shall not be extended further. Reference herein to the
term of this Agreement shall refer to both such initial term and such extended
terms. The Board of Directors of the Employer shall review on a periodic basis
(and no less frequently than annually) whether to permit further extensions of
the term of this Agreement. As part of such review, the Board of Directors shall
consider all relevant factors, including the Executive's performance hereunder,
and shall either expressly approve further extensions of the time of this
Agreement or decide to provide notice to the contrary. Effective upon the
Commencement Date, any and all prior agreements with the Employer shall
terminate, with no obligations to the Executive thereunder on the part of the
Employer.

      (b) During the term of this Agreement, the Executive shall perform such
executive services for the Employer as may be consistent with his titles and
from time to time assigned to him by the Employer's Board of Directors.

      3.    COMPENSATION AND BENEFITS.

      (a) The Employer shall compensate and pay the Executive for his services
during the term of this Agreement at a minimum base salary of $_107,500 per year
("Base Salary"), which may be increased from time to time in such amounts as may
be determined by the Board of Directors of the Employer and may not be decreased
without the Executive's express written consent. In addition to his Base Salary,
the Executive shall be entitled to receive during the term of this Agreement
such bonus payments as may be determined by the Board of Directors of the
Employer.

      (b) During the term of this Agreement, the Executive shall be entitled to
participate in and receive the benefits of any pension or other retirement
benefit plan, profit sharing, management recognition, stock option, employee
stock ownership, or other plans, benefits and privileges given to employees and
executives of the Employer, to the extent commensurate with his then duties and
responsibilities, as fixed by the Board of Directors of the Employer. The
Employer shall not make any changes in such plans, benefits or privileges which
would adversely affect the Executive's rights or benefits thereunder, unless
such change occurs pursuant to a program applicable to all executive officers of
the Employer and does not result in a proportionately greater adverse change in
the rights of or benefits to the Executive as compared with any other executive
officer of the Employer. Nothing paid to the Executive under any plan or
arrangement presently in effect or made available in

                                       4
<PAGE>

the future shall be deemed to be in lieu of the salary payable to the Executive
pursuant to Section 3(a) hereof.

      (c) During the term of this Agreement, the Executive shall be entitled to
paid annual vacation in accordance with the policies as established from time to
time by the Board of Directors of the Employer. The Executive shall not be
entitled to receive any additional compensation from the Employer for failure to
take a vacation, nor shall the Executive be able to accumulate unused vacation
time from one year to the next, except to the extent authorized by the Board of
Directors of the Employer.

      (d) In the event the Executive's employment is terminated due to
Disability or Retirement, the Employer shall provide continued life, medical,
dental and disability coverage substantially identical to the coverage
maintained by the Employer for the Executive immediately prior to his
termination. Such coverage shall cease upon the expiration of the remaining term
of this Agreement.

      4. EXPENSES. The Employer shall reimburse the Executive or otherwise
provide for or pay for all reasonable expenses incurred by the Executive in
furtherance of or in connection with the business of the Employer, including,
but not by way of limitation, automobile expenses and other traveling expenses,
and all reasonable entertainment expenses (whether incurred at the Executive's
residence, while traveling or otherwise), subject to such reasonable
documentation and other limitations as may be established by the Board of
Directors of the Employer. If such expenses are paid in the first instance by
the Executive, the Employer shall reimburse the Executive therefor.

      5.    TERMINATION.

      (a) The Employer shall have the right, at any time upon prior Notice of
Termination, to terminate the Executive's employment hereunder for any reason,
including without limitation termination for Cause, Disability or Retirement,
and the Executive shall have the right, upon prior Notice of Termination, to
terminate his employment hereunder for any reason.

      (b) In the event that (i) the Executive's employment is terminated by the
Employer for Cause or (ii) the Executive terminates his employment hereunder
other than for Disability, Retirement, death or Good Reason, the Executive shall
have no right pursuant to this Agreement to compensation or other benefits for
any period after the applicable Date of Termination.

      (c) In the event that the Executive's employment is terminated as a result
of Disability, Retirement or the Executive's death during the term of this
Agreement, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination, except as provided for in Section 3(d) hereof.

      (d) In the event that (i) the Executive's employment is terminated by the
Employer for other than Cause, Disability, Retirement or the Executive's death
or (ii) such employment is terminated by the Executive (a) due to a material
breach of this Agreement by the Employer, which

                                       5
<PAGE>

breach has not been cured within fifteen (15) days after a written notice of
non-compliance has been given by the Executive to the Employer, or (b) for Good
Reason, then the Employer shall, subject to the provisions of Section 6 hereof,
if applicable

            (A) pay to the Executive, in either twenty-four (24) equal monthly
      installments beginning with the first business day of the month following
      the Date of Termination or in a lump sum within five business days of the
      Date of Termination (at the Executive's election), a cash severance amount
      equal to two (2) times that portion of the Executive's Average Annual
      Compensation paid by the Employer, and

            (B) maintain and provide for a period ending at the earlier of (i)
      the expiration of the remaining term of employment pursuant hereto prior
      to the Notice of Termination or (ii) the date of the Executive's full-time
      employment by another employer (provided that the Executive is entitled
      under the terms of such employment to benefits substantially similar to
      those described in this subparagraph (B)), at no cost to the Executive,
      the Executive's continued participation in all group insurance, life
      insurance, health and accident insurance, disability insurance and other
      employee benefit plans, programs and arrangements offered by the Employer
      in which the Executive was entitled to participate immediately prior to
      the Date of Termination (excluding (x) stock option and restricted stock
      plans of the Employer, (y) bonuses and other items of cash compensation
      included in Average Annual Compensation and (z) other benefits, or
      portions thereof, included in Average Annual Compensation), provided that
      in the event that the Executive's participation in any plan, program or
      arrangement as provided in this subparagraph (B) is barred, or during such
      period any such plan, program or arrangement is discontinued or the
      benefits thereunder are materially reduced, the Employer shall arrange to
      provide the Executive with benefits substantially similar to those which
      the Executive was entitled to receive under such plans, programs and
      arrangements immediately prior to the Date of Termination.

      6. LIMITATION OF BENEFITS UNDER CERTAIN CIRCUMSTANCES. If the payments and
benefits pursuant to Section 5 hereof, either alone or together with other
payments and benefits which the Executive has the right to receive from the
Employer, would constitute a "parachute payment" under Section 280G of the Code,
the payments and benefits payable by the Employer pursuant to Section 5 hereof
shall be reduced, in the manner determined by the Executive, by the amount, if
any, which is the minimum necessary to result in no portion of the payments and
benefits payable by the Employer under Section 5 being non-deductible to the
Employer pursuant to Section 280G of the Code and subject to the excise tax
imposed under Section 4999 of the Code. The parties hereto agree that the
present value of the payments and benefits payable pursuant to this Agreement to
the Executive upon termination shall be limited to three times the Executive's
Average Annual Compensation. The determination of any reduction in the payments
and benefits to be made pursuant to Section 5 shall be based upon the opinion of
independent counsel selected by the Employer's independent public accountants
and paid by the Employer. Such counsel shall be reasonably acceptable to the
Employer and the Executive; shall promptly prepare the foregoing opinion, but in
no event later than thirty (30) days from the Date of Termination; and may use
such actuaries as such counsel deems necessary or advisable for the purpose.
Nothing contained herein shall result in a reduction of any payments or

                                       6
<PAGE>

benefits to which the Executive may be entitled upon termination of employment
under any circumstances other than as specified in this Section 6, or a
reduction in the payments and benefits specified in Section 5 below zero.

      7.    MITIGATION; EXCLUSIVITY OF BENEFITS.

      (a) The Executive shall not be required to mitigate the amount of any
benefits hereunder by seeking other employment or otherwise, nor shall the
amount of any such benefits be reduced by any compensation earned by the
Executive as a result of employment by another employer after the Date of
Termination or otherwise.

      (b) The specific arrangements referred to herein are not intended to
exclude any other benefits which may be available to the Executive upon a
termination of employment with the Employer pursuant to employee benefit plans
of the Employer or otherwise.

      8. WITHHOLDING. All payments required to be made by the Employer hereunder
to the Executive shall be subject to the withholding of such amounts, if any,
relating to tax and other payroll deductions as the Employer may reasonably
determine should be withheld pursuant to any applicable law or regulation.

      9. ASSIGNABILITY. The Employer may assign this Agreement and its rights
and obligations hereunder in whole, but not in part, to any corporation, bank or
other entity with or into which the Employer may hereafter merge or consolidate
or to which the Employer may transfer all or substantially all of its assets, if
in any such case said corporation, bank or other entity shall by operation of
law or expressly in writing assume all obligations of the Employer hereunder as
fully as if it had been originally made a party hereto, but may not otherwise
assign this Agreement or its rights and obligations hereunder. The Executive may
not assign or transfer this Agreement or any rights or obligations hereunder.

                                       7
<PAGE>

      10. NOTICE. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by certified or
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below:

      To the Employer:  Board of Directors
                        First Bank & Trust, S. B.
                        101 South Central Avenue
                        Paris, Illinois 61944

      To the Executive: Terry J. Howard
                        19624 N Dunlap Rd
                        Dennison, IL 62423

      11. AMENDMENT; WAIVER. No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and such officer or officers as may be
specifically designated by the Board of Directors of the Employer to sign on
their behalf. No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

      12. GOVERNING LAW. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the United States
where applicable and otherwise by the substantive laws of the State of Illinois.

      13. NATURE OF OBLIGATIONS. Nothing contained herein shall create or
require the Employer to create a trust of any kind to fund any benefits which
may be payable hereunder, and to the extent that the Executive acquires a right
to receive benefits from the Employer hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employer.

      14. HEADINGS. The section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

      15. VALIDITY. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect.

      16. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

                                       8
<PAGE>

      17. REGULATORY PROHIBITION. Notwithstanding any other provision of this
Agreement to the contrary, any payments made to the Executive pursuant to this
Agreement, or otherwise, are subject to and conditioned upon their compliance
with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. Section
1828(k)) and the regulations promulgated thereunder, including 12 C.F.R. Part
359.

      18. PAYMENT OF COSTS AND LEGAL FEES AND REINSTATEMENT OF BENEFITS. In the
event any dispute or controversy arising under or in connection with the
Executive's termination is resolved in favor of the Executive, whether by
judgment, arbitration or settlement, the Executive shall be entitled to the
payment of (a) all legal fees incurred by the Executive in resolving such
dispute or controversy, and (2) any back-pay, including Base Salary, bonuses and
any other cash compensation, fringe benefits and any compensation and benefits
due to the Executive under this Agreement.

      19. ENTIRE AGREEMENT. This Agreement embodies the entire agreement between
the Employer and the Executive with respect to the matters agreed to herein. All
prior agreements between the Employer and the Executive with respect to the
matters agreed to herein are hereby superseded and shall have no force or
effect.

      IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.

Attest:                                 FIRST BANCTRUST CORPORATION

/s/ Karen Camerer                       By: /s/ Robert E. Sprague
----------------------------------          ------------------------------------

Attest:                                 FIRST BANK & TRUST, S. B.

/s/ Karen Camerer                       By: /s/ Robert E. Sprague
-----------------------------------         ------------------------------------

                                        EXECUTIVE

                                        /s/ Terry J. Howard
                                        ----------------------------------------
                                        Terry J. Howard

                                       9

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