Document:

<PAGE>

                                                                  EXHIBIT 10. 19

                      SECOND AMENDMENT TO CREDIT AGREEMENT

         THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Second Amendment") is
dated as of the 23rd day of November, 1999 among GABLES REALTY LIMITED
PARTNERSHIP (the "Borrower"), WACHOVIA BANK, N.A., as Administrative Agent (the
"Administrative Agent"), FIRST UNION NATIONAL BANK, as Syndication Agent, CHASE
BANK OF TEXAS, NATIONAL ASSOCIATION, as Documentation Agent and WACHOVIA BANK,
N.A., FIRST UNION NATIONAL BANK, CHASE BANK OF TEXAS, NATIONAL ASSOCIATION,
COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES, PNC BANK, NATIONAL
ASSOCIATION, AMSOUTH BANK OF ALABAMA and GUARANTY FEDERAL BANK, F.S.B.
(collectively, the "Banks");

                              W I T N E S S E T H:

         WHEREAS, the Borrower, the Administrative Agent and the Banks executed
and delivered that certain Amended and Restated Credit Agreement, dated as of
May 13, 1998, as amended by First Amendment to Credit Agreement dated as of June
14, 1999 (as so amended, the "Credit Agreement");

         WHEREAS, the Borrower has requested and the Administrative Agent and
the Banks have agreed to certain amendments to the Credit Agreement to permit
Gables-Tennessee Properties ("Gables-TN") to bc released as a Guarantor and to
become a joint and several co-Borrower with Gables Realty Limited Partnership
(the "Parent"; Gables-TN and the Parent being referred to collectively as the
"Borrower"), subject to the terms and conditions hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Borrower, the Administrative
Agent and the Banks hereby covenant and agree as follows:

         1. DEFINITIONS. Unless otherwise specifically defined herein, each term
used herein which is defined in the Credit Agreement shall have the meaning
assigned to such term in the Credit Agreement. Each reference to "hereof",
"hereunder", "herein" and "hereby" and each other similar reference and each
reference to "this Agreement" and each other similar reference contained in the
Credit Agreement shall from and after the date hereof refer to the Credit
Agreement as amended hereby.

<PAGE>

          2.  Assumption, Release and Global Amendments.

         (a) Gables-TN hereby assumes all rights and obligations as a "Borrower"
under the Credit Agreement, on a joint and several basis with the Parent,
including all obligations to make payments on the Notes as and when due, and all
other payment and indemnification obligations of a Borrower under the Credit
Agreement and the Notes, as fully as if it had executed and delivered each such
document as an original Borrower, and the Parent and Gables-TN hereby agree to
execute and deliver to the Administrative Agent replacement Notes for each of
the Banks, jointly executed by them.

         (b) Gables-TN hereby is released from all of its rights and obligations
as a "Guarantor" under the Guaranty.

         (c) The Administrative Agent and the Banks hereby consent to the
foregoing, and release Gables-TN as a Guarantor, substituting Gables-TN as an
additional joint and several Borrower.

         (d) The term "Borrower", wherever used in the definitions of the terms
set forth below and in (or for purposes of) the Sections referenced below, in
all references to the Credit Agreement in each of the Loan Documents, and in the
Borrowing Base Certificate and the Compliance Certificate, hereby is deleted,
and the term "Parent" is substituted therefor (but the Borrowing Base
Certificates and the Compliance Certificates submitted hereafter need not
actually be revised accordingly, but shall be deemed to have been so revised):

<TABLE>
<CAPTION>

         Definition                                            Section
         ----------                                            -------

<S>                                                            <C>
         Change in Control                                     1.02
         Consolidated Debt                                     4.04
         Consolidated Fixed Charges                            4.06
         Consolidated Fixed Charges Coverage Ratio             4.08
         Consolidated Interest Expense                         5.01
         Consolidated Income Available for Debt Service        5.03
         Consolidated Income Available for Distribution        5.04
         Consolidated Total Assets                             5.05
         Debt Rating                                           5.06
         Fiscal Year                                           5.07 (clause (v) only)
         General Partner                                       5.09 (clause (E) only)
         Joint Venture                                         5.22
         Joint Venture Share                                   5.27
         Material Adverse Effect                               5.28
         Subsidiary
         Total Assets Value
         Total Debt (clauses (iii) and (vi) only)
         Wholly Owned Subsidiary
</TABLE>

         (e) The term Borrower, wherever used in the Credit Agreement, other
than in the definitions and Sections listed above in paragraph (d), hereby is
changed to "Borrowers".

                                       2

<PAGE>

         3. AMENDMENTS TO SECTION 1.01. Section 1.01 of the Credit Agreement
hereby is amended by deleting the definition of "Borrower" and adding the
following definitions of "Borrowers", "Gables-TN" and "Parent" in the
appropriate alphabetical sequence:

                           "Borrowers" means, individually and collectively, as
                  the context shall require, the Parent and Gables-TN, as joint
                  and several obligors for all purposes under this Agreement and
                  the Notes.

                           "Gables-TN" means Gables-Tennessee Properties, a
                  Tennessee general partnership, and its successors and
                  permitted assigns.

                           "Parent" means Gables Realty Limited Partnership, a
                  Delaware limited partnership, and its successors and permitted
                  assigns.

         4. AMENDMENT TO SECTION 4.01. Section 4.01 of the Credit Agreement
hereby is deleted, and the following is substituted therefor:

                           SECTION 4.01. PARTNERSHIP OR CORPORATE EXISTENCE AND
                  POWER. The Parent is a limited partnership duly created and
                  validly existing under the laws of Delaware, Gables-TN is a
                  general partnership duly created and validly existing under
                  the laws of Tennessee, GBP is a trust duly created, validly
                  existing and in good standing under the laws of Maryland, the
                  General Partner is a corporation duly organized, validly
                  existing and in good standing under the laws of Texas, and
                  each of the foregoing is duly qualified to transact business
                  in every jurisdiction where, by the nature of its business,
                  such qualification is necessary, and has all partnership
                  powers and all governmental licenses, authorizations, consents
                  and approvals required to carry on its business as now
                  conducted, except where any such failure does not have and is
                  not reasonably expected to cause a Material Adverse Effect.

         5. REPLACEMENT OF NOTES. EXHIBIT A-1 and EXHIBIT A-2 to the Credit
Agreement hereby are deleted, and EXHIBIT A-1 and EXHIBIT A-2 hereto are
substituted therefor.

         6. RESTATEMENT OF REPRESENTATIONS AND WARRANTIES. The Borrowers hereby
restate and renew each and every representation and warranty heretofore made by
it in the Credit Agreement and the other Loan Documents as fully as if made on
the date hereof (except to the extent such representations and warranties
expressly relate to an earlier date) and with specific reference to this Second
Amendment and all other loan documents executed and/or delivered in connection
herewith.

         7. EFFECT OF AMENDMENT. Except as set forth expressly hereinabove, all
terms of the Credit Agreement and the other Loan Documents shall be and remain
in full force and effect, and shall constitute the legal, valid, binding and
enforceable obligations of the Borrowers.

                                       2
<PAGE>

         8. RATIFICATION. The Borrowers hereby restate, ratify and reaffirm each
and every term, covenant and condition set forth in the Credit Agreement and the
other Loan Documents effective as of the date hereof.

         9. COUNTERPARTS. This Second Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered (which may be by telecopier pursuant to
Section 14 below) shall be deemed to be an original and all of which
counterparts, taken together, shall constitute but one and the same instrument.

         10. SECTION REFERENCES. Section titles and references used in this
Second Amendment shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

         11. NO DEFAULT. To induce the Administrative Agent and the Banks to
enter into this Second Amendment and to continue to make advances pursuant to
the Credit Agreement, the Borrowers hereby acknowledge and agree that, as of the
date hereof, and after giving effect to the terms hereof, there exists (i) no
Default or Event of Default and (ii) no right of offset, defense, counterclaim,
claim or objection in favor of the Borrowers arising out of or with respect to
any of the Loans or other obligations of the Borrowers owed to the Banks under
the Credit Agreement.

         12. FURTHER ASSURANCES. The Borrowers agree to take such further
actions as the Administrative Agent shall reasonably request in connection
herewith to evidence the amendments herein contained to the Borrowers.

         13. GOVERNING LAW. This Second Amendment shall be governed by and
construed and interpreted in accordance with, the laws of the State of Georgia.

         14. CONDITIONS PRECEDENT. This Second Amendment shall become effective
only upon (i) execution hereof by the Administrative Agent; (ii) execution and
return to the Administrative Agent at the telecopier number set forth below of a
copy hereof by the Borrowers and the Banks; (iii) execution and return to the
Administrative Agent at the telecopier number set forth below of a copy of the
Consent and Reaffirmation of Guarantors at the end hereof and (iv) execution by
the Borrowers and delivery to the Administrative Agent or replacement Notes for
each Bank in the form attached hereto as Exhibits A-1 and A-2. Executed copies
hereof shall be sent by facsimile to counsel for the Administrative Agent,
Jones, Day, Reavis & Pogue, Attention: Christopher l. Carson, at Telecopier
number 404-581-8868, Confirmation number 404-581-8035.

                       [SIGNATURES CONTAINED ON NEXT PAGE]

                                       3
<PAGE>

         IN WITNESS WHEREOF, the Borrower, the Administrative Agent and each of
the Banks has caused this Second Amendment to be duly executed, under seal, by
its duly authorized officer as of the day and year first above written.

<TABLE>
<CAPTION>

<S>                                                                       <C>
GABLES-TENNESSEE PROPERTIES (SEAL)                                         GABLES REALTY LIMITED
                                                                           PARTNERSHIP
<S>     <C>                                                                <C>
By:      Gables Realty Limited Partnership,
         a general partner                                                 By:      Gables GP, Inc., its sole general
         By:      Gables GP, Inc., its sole general partner                         partner

          By:     /s/ Marvin R. Banks, Jr.                                 By:      /s/ Marvin R. Banks, Jr.
                  -----------------------                                           ------------------------------
                  Marvin Banks, Jr.                                                 Marvin Banks, Jr.
                  Sr. Vice President                                                Sr. Vice President

WACHOVIA BANK, N.A.,                                                       GUARANTY FEDERAL BANK, F.S.B.,
as Administrative Agent and as a Bank                                      as a Bank

By:  /s/ Mary F. Hughes
   ---------------------------------------                                 By:  /s/ Randall S. Reid
       Name:  Mary F. Hughes                                                  ---------------------------------------
             -----------------------------
                                                                              Name: Randall S. Reid
       Title:  Vice president                                                 -----------------------------
             -----------------------------                                    Title:Vice President
                                                                              -----------------------------

CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION,                                                      FIRST UNION NATIONAL BANK,
as Documentation Agent and as a Bank                                       as Syndication Agent and as a Bank

By:  /s/ Susan M. Tate
   ---------------------------------------                                 By: /s/ Daniel J. Sullivan
       Name:   Susan M. Tate                                                  ---------------------------------------
             -----------------------------                                    Name:  Daniel J. Sullivan
       Title:  Vice President                                                 -----------------------------
             -----------------------------                                    Title:  Director
                                                                              -----------------------------

PNC BANK, NATIONAL ASSOCIATION,                                            AMSOUTH BANK OF ALABAMA,
as a Bank                                                                  as a Bank

By:  /s/ Wayne P. Robertson
   ---------------------------------------                                 By: /s/ J.R. Miller
       Name:  Wayne P. Robertson                                               ---------------------------------------
             -----------------------------                                     Name:  J.R. Miller
       Title:  Vice President                                                  -----------------------------
             -----------------------------                                     Title:   Vice President
                                                                                    -----------------------------

</TABLE>

                                       5

<PAGE>

COMMERZBANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES, as a Bank

By:  /s/ E. Marcus Perry
   _______________________________________

       Name:  E. Marcus Perry
             _____________________________

       Title:  Assistant Vice President
             _____________________________

By:  /s/ David Buettner
   _______________________________________

       Name:   David Buettner
             _____________________________

       Title:  Assistant Treasurer
             _____________________________

                                       6

<PAGE>

                                                                     EXHIBIT A-1

                              SYNDICATED LOAN NOTE

                                Atlanta, Georgia

                                November 23, 1999

         For value received, GABLES REALTY LIMITED PARTNERSHIP, a Delaware
limited partnership and GABLES-TENNESSEE PROPERTIES, a Tennessee general
partnership (collectively, the "Borrower"), jointly and severally promise to pay
to the order of __________________________________________ (the "Bank"), for the
account of its Lending Office, the principal sum of
_______________________________ AND NO/100 DOLLARS ($ ), or such lesser amount
as shall equal the unpaid principal amount of each Syndicated Loan made by the
Bank to the Borrowers (or either of them) pursuant to the Credit Agreement
referred to below, on the dates and in the amounts provided in the Credit
Agreement. The Borrowers promise to pay interest on the unpaid principal amount
of this Syndicated Loan Note on the dates and at the rate or rates provided for
in the Credit Agreement. Interest on any overdue principal of and, to the extent
permitted by law, overdue interest on the principal amount hereof shall bear
interest at the Default Rate, as provided for in the Credit Agreement. All such
payments of principal and interest shall be made in lawful money of the United
States in Federal or other immediately available funds at the office of Wachovia
Bank, N.A., 191 Peachtree Street, N.E., Atlanta, Georgia 30303-1757, or such
other address as may be specified from time to time pursuant to the Credit
Agreement.

         All Loans made by the Bank, the respective maturities thereof, the
interest rates from time to time applicable thereto, and all repayments of the
principal thereof shall be recorded by the Bank and, prior to any transfer
hereof, endorsed by the Bank on the schedule attached hereto, or on a
continuation of such schedule attached to and made a part hereof; PROVIDED that
the failure of the Bank to make any such recordation or endorsement shall not
affect the obligations of the Borrowers hereunder or under the Credit Agreement.

         This Syndicated Loan Note is one of the Syndicated Loan Notes referred
to in the Amended and Restated Credit Agreement dated as of even date herewith
among Gables Realty Limited Partnership, the Banks listed on the signature pages
thereof and Wachovia Bank, N.A., as Administrative Agent, as amended by First
Amendment to Credit Agreement dated as of June 14, 1999 and Second Amendment to
Credit Agreement dated of even date herewith (which added Gables-Tennessee
Properties as a Borrower) (as the same may hereafter be amended and modified
from time to time, the "Credit Agreement"). Terms defined in the Credit
Agreement are used herein with the same meanings. Reference is made to the
Credit Agreement for provisions for the optional and mandatory prepayment and
the repayment hereof and the acceleration of the maturity hereof, as well as the
obligation of the Borrower to pay all costs of collection, including reasonable
attorneys fees, in the event this Syndicated Loan Note is collected by law or
through an attorney at law.

                                       4
<PAGE>

         The Borrowers hereby waive presentment, demand, protest, notice of
demand, protest and nonpayment and any other notice required by law relative
hereto, except to the extent as otherwise may be expressly provided for in the
Credit Agreement.

         IN WITNESS WHEREOF, each of the Borrowers has caused this Syndicated
Loan Note to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

<TABLE>

<S>                                                           <C>
GABLES-TENNESSEE PROPERTIES (SEAL)                            GABLES REALTY LIMITED
By:      Gables Realty Limited Partnership,                   PARTNERSHIP                           (SEAL)
         a general partner                                    By:  Gables GP, Inc., its sole general partner
         By:  Gables GP, Inc., its sole general
              partner

By:                                                           By:
         ---------------------------------------                    ---------------------------------------
         Marvin Banks, Jr.                                          Marvin Banks, Jr.
         Vice President                                             Vice President
</TABLE>

                                       8
<PAGE>

                          Syndicated Loan Note (cont'd)

                   SYNDICATED LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
                     BASE RATE                AMOUNT            AMOUNT OF
                  OR EURO-DOLLAR                OF             PRINCIPAL       MATURITY        NOTATION
DATE                    LOAN                   LOAN              REPAID          DATE          MADE BY

<S>               <C>                         <C>             <C>              <C>            <C>

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________
</TABLE>

                                       9
<PAGE>

                                                                     EXHIBIT A-2

                             MONEY MARKET LOAN NOTE

                             As of November 23, 1999

         For value received, GABLES REALTY LIMITED PARTNERSHIP, a Delaware
limited partnership and GABLES-TENNESSEE PROPERTIES, a Tennessee general
partnership (collectively, the "Borrower"), jointly and severally promises to
pay to the order of _________________, a _______________ (the "Bank"), for
the account of its Lending Office, the principal sum of ONE HUNDRED TWELVE
MILLION, FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($112,500,000), or such
lesser amount as shall equal the unpaid principal amount of each Money Market
Loan made by the Bank to the Borrower (or either of them) pursuant to the
Credit Agreement referred to below, on the dates and in the amounts provided
in the Credit Agreement. The Borrowers promise to pay interest on the unpaid
principal amount of this Money Market Loan Note on the dates and at the rate
or rates provided for in the Credit Agreement referred to below. Interest on
any overdue principal of and, to the extent permitted by law, overdue
interest on the principal amount hereof shall bear interest at the Default
Rate, as provided for in the Credit Agreement. All such payments of principal
and interest shall be made in lawful money of the United States in Federal or
other immediately available funds at the office of Wachovia Bank, N.A., 191
Peachtree Street, N.E., Atlanta, Georgia 30303-1757, or such other address as
may be specified from time to time pursuant to the Credit Agreement.

         All Money Market Loans made by the Bank, the respective maturities
thereof, the interest rates from time to time applicable thereto, and all
repayments of the principal thereof shall be recorded by the Bank and, prior to
any transfer hereof, endorsed by the Bank on the schedule attached hereto, or on
a continuation of such schedule attached to and made a part hereof; PROVIDED
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

         This Money Market Loan Note is one of the Money Market Loan Notes
referred to in the Amended and Restated Credit Agreement dated as of even date
herewith among Gables Realty Limited Partnership, the Banks listed on the
signature pages thereof and Wachovia Bank, N.A., as Administrative Agent, as
amended by First Amendment to Credit Agreement dated as of June 14, 1999 and
Second Amendment to Credit Agreement dated of even date herewith (which added
Gables-Tennessee Properties as a Borrower) (as the same may hereafter be amended
and modified from time to time, the "Credit Agreement"). Terms defined in the
Credit Agreement are used herein with the same meanings. Reference is made to
the Credit Agreement for provisions for the optional and mandatory prepayment
and the repayment hereof and the acceleration of the maturity hereof, as well as
the obligation of the Borrowers to pay all costs of collection, including
reasonable attorneys fees, in the event this Money Market Loan Note is collected
by law or through an attorney at law.

                                       10
<PAGE>

         The Borrowers hereby waive presentment, demand, protest, notice of
demand, protest and nonpayment and any other notice required by law relative
hereto, except to the extent as otherwise may be expressly provided for in the
Credit Agreement.

         IN WITNESS WHEREOF, each of the Borrowers has caused this Money Market
Loan Note to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

<TABLE>
<CAPTION>
<S>                                                  <C>
GABLES-TENNESSEE PROPERTIES (SEAL)                   GABLES REALTY LIMITED
<S>                                                  <C>
By:      Gables Realty Limited Partnership,          PARTNERSHIP                           (SEAL)
         a general partner                           By:  Gables GP, Inc., its sole general partner
         By:  Gables GP, Inc., its sole general
                 partner

By:                                                  By:
         --------------------------------------           -------------------------------------------
         Marvin Banks, Jr.                                Marvin Banks, Jr.
         Vice President                                   Vice President
</TABLE>

                                       11
<PAGE>

                         Money Market Loan Note (cont'd)

                  MONEY MARKET LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
                                   AMOUNT     AMOUNT OF              STATED
                INTEREST             OF       PRINCIPAL             MATURITY        NOTATION
DATE              RATE              LOAN       REPAID                 DATE          MADE BY

<S>              <C>                   <C>     <C>                  <C>            <C>

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________
</TABLE>

                                       12
<PAGE>

<PAGE>

                     CONSENT AND REAFFIRMATION OF GUARANTORS

         Each of the undersigned (i) acknowledges receipt of the foregoing
Second Amendment to Credit Agreement (the "Second Amendment"), (ii) consents to
the execution and delivery of the Second Amendment by the parties thereto, the
release of Gables-TN as a Guarantor under the Guaranty and its addition as a
Borrower under the Credit Agreement and (iii) reaffirms all of its obligations
and covenants under the Guaranty Agreement dated as of May 13, 1998 executed by
it, and agrees that none of such obligations and covenants shall be affected by
the execution and delivery of the Second Amendment. This Consent and
Reaffirmation may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which counterparts, taken
together, shall constitute but one and the same instrument.

                                         GABLES GP, INC.                 (SEAL)

                                         By:    Marvin R. Banks, Jr.
                                              __________________________________
                                                Title: Senior Vice President

                                         GABLES RESIDENTIAL TRUST   (SEAL)

                                         By:    Marvin R. Banks, Jr.
                                              __________________________________
                                                Title: Senior Vice President

                                       13<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-

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