Document:

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                        FIRST NORTHERN COMMUNITY BANCORP

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                             PARTICIPATION AGREEMENT

_____ Original Application                         Enrollment Date:  _________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

     1. ____________________________ hereby elects to participate in the First
Northern Community Bancorp 2000 Employee Stock Purchase Plan (the "Employee
Stock Purchase Plan") and subscribes to purchase shares of the Company's Common
Stock in accordance with this Participation Agreement and the Employee Stock
Purchase Plan.

     2. I understand that the initial Participation Period will commence on
                   and end on
------------------            ------------------.

     3. I hereby authorize payroll deductions, as follows, from  paycheck(s)
(not to exceed 10% of compensation) during the Participation Period in
accordance with the Employee Stock Purchase Plan.

     $_________ from first paycheck of the month (not to exceed 10% of
compensation).

     $_________ from second paycheck of the month (not to exceed 10% of
compensation).

     4. I understand that said payroll deductions shall be accumulated for the
purchase of shares of Common Stock at the applicable purchase price determined
in accordance with the Employee Stock Purchase Plan. I understand that if I do
not withdraw from a Participation Period, any accumulated payroll deductions
will be used to automatically exercise my option.

     5. I have received a copy of the complete "First Northern Community Bancorp
2000 Employee Stock Purchase Plan." I understand that my participation in the
Employee Stock Purchase Plan is in all respects subject to the terms of the
Plan.

     6. Shares purchased for me under the Employee Stock Purchase Plan should be
issued in the name(s) of:
                          -----------------------------------------------------.
                                      -1-

                                      -99-
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     7. I understand that if I dispose of any shares received by me pursuant to
the Employee Stock Purchase Plan within 2 years after the Enrollment Date (the
first day of the Participation Period during which I purchased such shares), I
will be treated for federal income tax purposes as having received (i) ordinary
income at the time of such disposition in an amount equal to the excess of the
fair market value of the shares at the time such shares were purchased over the
price which I paid for the shares and (ii) capital gain (loss) at the time of
such disposition in an amount equal to the difference between the fair market
value of the shares on the date of disposition and their fair market value on
the date such shares were purchased. I hereby agree to notify the Company in
writing within 30 days after the date of any such disposition and I will make
adequate provision for federal, state or other tax withholding obligations, if
any, which arise upon the disposition of the Common Stock. The Company may, but
will not be obligated to, withhold from my compensation the amount necessary to
meet any applicable withholding obligation including any withholding necessary
to make available to the Company any tax deductions or benefits attributable to
sale or early disposition of Common Stock by me. If I dispose of such shares at
any time after the expiration of the 2-year holding period, I understand that I
will be treated for federal income tax purposes as having received income only
at the time of such disposition, and that such income will be taxed as ordinary
income only to the extent of an amount equal to the lesser of (1) the excess of
the fair market value of the shares at the time of such disposition over the
purchase price which I paid for the shares, or (2) 15% of the fair market value
of the shares on the first day of the Participation Period. The remainder of the
gain, if any, recognized on such disposition will be taxed as capital gain.

     8. I understand and agree that shares purchased pursuant to the Employee
Stock Purchase Plan may not be sold or transferred by me (except for transfers
resulting from my death) for a one-year period following the purchase of the
shares and, that during this one-year period, the shares will be held for my
account by the Plan Administrator.

     9. I hereby agree to be bound by the terms of the Employee Stock Purchase
Plan. The effectiveness of this Participation Agreement is dependent upon my
eligibility to participate in the Employee Stock Purchase Plan.

                                      -2-

                                     -100-
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     10. In the event of my death, I hereby designate the following as my
beneficiary(ies) to receive all payments and shares due me under the Employee
Stock Purchase Plan:

NAME:  (Please print)

-------------------------------------------------------------------------------
         (First)                    (Middle)                  (Last)

----------------------------       --------------------------------------------
         Relationship
                                   --------------------------------------------
                                                    (Address)

NAME:  (Please print)

-------------------------------------------------------------------------------
         (First)                    (Middle)                  (Last)

----------------------------       --------------------------------------------
         Relationship
                                   --------------------------------------------
                                                    (Address)

Employee's Social
Security Number:
                                   --------------------------------------------

Employee's Address:
                                   --------------------------------------------
                                   --------------------------------------------
                                   --------------------------------------------

I UNDERSTAND THAT THIS PARTICIPATION AGREEMENT SHALL REMAIN IN EFFECT
THROUGHOUT SUCCESSIVE PARTICIPATION PERIODS UNLESS TERMINATED BY ME IN
ACCORDANCE WITH THE EMPLOYEE STOCK PURCHASE PLAN.

Dated:
        -------------------        --------------------------------------------
                                               Signature of Employee

                                      -3-

                                     -101-
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                        FIRST NORTHERN COMMUNITY BANCORP

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

     The undersigned participant in the First Northern Community Bancorp 2000
Employee Stock Purchase Plan (the "Plan") during the Participation Period which
began on ________________, 20__ (the "Period Commencement") hereby notifies the
Company that he or she hereby withdraws from the Plan. He or she hereby directs
the Company to pay to the undersigned as promptly as practicable all the payroll
deductions credited to his or her account with respect to such Participation
Period. The undersigned understands and agrees that his or her right to purchase
shares for such Participation Period will be automatically terminated. The
undersigned understands further that no further payroll deductions will be made
for the purchase of shares in the current Participation Period and the
undersigned shall be eligible to participate in succeeding Participation Periods
only by delivering to the Company a new Participation Agreement.

                                   Name and Address of Participant

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

                                   Signature

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

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

                                       -4-

                                      -102-<PAGE>

                                                                   Exhibit 10.25

                      PROMISSORY NOTE - FEBRUARY 28, 2000

For Value Received, the undersigned, Harold L. Covert ("Employee" or
"Borrower"), promises to pay to Red Hat, Inc., a Delaware corporation (the
"Company" or the "Lender"), with its principal place of business at 2600
Meridian Parkway, Durham, NC 27713 (or at such other place as Lender may from
time to time designate by written notice to Borrower), in lawful money of the
United States of America, without abatement, demand, deduction, set-off or
counterclaim, the principal sum of One Million Dollars ($1,000,000) together
with interest at the rate of six percent per annum, compounded annually, from
the date first set forth above until all outstanding principal and accrued
interest under this Promissory Note are paid in full.

1.   Principal Payment.  On the Maturity Date (as defined below), the entire
principal amount of One Million Dollars ($1,000,000) and any unpaid and accrued
interest shall be immediately due and payable by the Borrower to the Company in
lawful money of the United States.  This shall be a full recourse loan.  Each
payment in connection with this Note shall be paid by the Borrower to the Lender
at the Lender's principal office or to such bank account as shall be notified by
the Lender to the Borrower in writing, such payments shall be made in
immediately available funds not later than 12:00 noon (Eastern Standard Time) on
the Maturity Date (as defined below).

2.   Interest Payment.  The outstanding principal amount of the Note shall bear
interest, for each day from the date of the Note's origination until its
principal amount is paid in full, at a rate per annum equal to 6.00%.  The
Borrower shall make quarterly interest payments to the Company, which payments
are due to the Company on the last business day of March, June, September and
December for each year that the Note is outstanding.

3.   Maturity Event.  The entire principal amount of the Loan and any interest
due shall become immediately due and payable without further demand or notice to
the Borrower on the earlier of February 28, 2003 or the date which a Maturity
Event occurs (the "Maturity Date"). To the extent permitted by law, the first to
occur of any of the following events shall be a "Maturity Date" under this
note:

a.   The Employee does not begin his employment relationship, by being present
or available to commence his duties as Chief Financial Officer for the Lender,
on or before March 16, 2000.

b.   The date that a Change in Control of the Company occurs.  For these
purposes a "Change in Control" shall be deemed to occur if the Company mergers
or consolidates with another company and at any time Harold L. Covert does not
hold the position of Chief Financial Officer of the surviving entity resulting
from the merger or consolidation; or the Company sells all or substantially all
of its assets to another company for cash and/or public securities.

c.   The date of termination or cessation of Employee's employment with the
Company (i) if the Employee terminates his employment for any reason, or (ii) if
the Company terminates the Employee's employment for Cause. For these purposes,
"Cause" shall mean that the Employee was terminated for one of the following
reasons: (1.) for willfully refusing or failing to carry out specific directions
of the Board of Directors or the Chief Executive Officer of the Company; (2.)
for acting fraudulently or dishonestly in his relations with the Company; (3.)
for committing larceny, embezzlement, conversion or any act involving the
misappropriation of funds from the Company in the course of his employment; (4.)
for having been convicted of a felony involving an act of moral turpitude, fraud
or misrepresentation; (5.) for willfully engaging in misconduct which materially
injured the reputation, business or business relationship of the Company.

d.   The date that Borrower (i) admits in writing his inability to pay debts,
(ii) makes an assignment for the benefit of creditors, (iii) files a voluntary
petition in bankruptcy, effects a plan or other arrangements with creditors,
liquidates his assets under arrangement with creditors, or liquidates his assets
under court
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supervision, (iv), has an involuntary petition in bankruptcy filed against him
that is not discharged within sixty (60) days after such petition is filed, or
(v) applies for or permits the appointment of a receiver or trustee or custodian
for any of his propriety or assets which shall not have been discharged within
(60) days after the date of appointment.

4.   Loan Extension.  On February 28, 2003 the loan shall automatically be
extended for a one-year period if the Total Spread (as hereafter defined) with
respect to the Borrower's vested stock options from initial date of employment
is not greater than $1 million for ninety (90) or more trading days during the
period ending February 28, 2003. "Total Spread" shall be equal to (a) the total
number of units or shares of equity securities underlying the Option(s) (without
regard to whether the Option(s) has been exercised in whole or in part),
multiplied by (b) the closing sales price of the equity securities of the
Lender, less the exercise price of the Option(s) (as such exercise price may be
adjusted from time to time).

5.   Loan Forgiveness.

a.   The loan shall be forgiven, to the extent described in 5.b. below, upon the
occurrence of one of the following events:  (i) the Company terminates the
Employee's employment with the Company for reasons other than for Cause; or (ii)
the Total Spread does not exceed the principal balance of the loan for ninety
(90) or more trading days during the period ending February 28, 2004; (iii) the
Employee dies; or (iv) the Employee's employment with the Company is terminated
due to Employee's physical or mental disability.  For these purposes, a medical
doctor mutually agreed upon by the Company and Employee or his designee shall
make the determination as to whether the Employee has become disabled.

b.   Upon the date of occurrence of one of the events listed in 5.a. above, in
the event that the principal balance of the loan minus the Total Spread is
greater than zero, then the loan shall be forgiven to the extent of that
difference, but in no event in an amount greater than $1,000,000 (one million
dollars).

c.   In the event that there is a Change of Control and the consideration given
for the Total Spread, or its equivalent computation, is less than the principal
balance of the loan, the loan shall be forgiven to the extent of such difference
between the Total Spread and the principal balance of the loan. In such an
event, the Employee shall be obligated to pay to the Company the amount of his
Total Spread or equivalent computation.

6.   Tax Liability.  Lender understands and agrees that any and all income tax
liability to Borrower resulting from the forgiveness of loan principal, due to
Employee's employment being terminated by the Company, for other than Cause,
prior to February 28, 2004, shall be reimbursed, and appropriately grossed-up,
by the Lender.  The gross-up shall ensure that the Employee is not adversely
impacted from a tax standpoint by forgiving loan principal due to Employee's
employment termination by the Company, for other than Cause, prior to February
28, 2004.

7.   Attorneys' Fees.  In the event any legal action or proceeding is required
to enforce or interpret any provision of this Promissory Note, including,
without limitation, any forgiveness of principal and interest hereunder, each
party shall be responsible for its own attorneys fees and costs.

8.   Miscellaneous.  If any provision of this Promissory Note shall be
unenforceable for any reasons, the same shall be ineffective, but the remainder
of this Promissory Note shall not be affected thereby and shall remain in full
force and effect. North Carolina law shall govern the provisions of this
Promissory Note.

9.   Prepayment.  Borrower may prepay all or any portion of this Note any time
prior to the stated maturity date, with no premium penalty.

In witness whereof, Borrower has executed this Promissory Note as of the date
first set forth above.

Borrower:

Harold L. Covert

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