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                                                                   Exhibit 10.14
                                    AGREEMENT

                                     BETWEEN

                                   F&M BANCORP
                        FARMERS & MECHANICS NATIONAL BANK

                                       AND

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


         AGREEMENT, dated as of the 18th day of August 1998, between F&M
Bancorp, a Maryland corporation, Farmers & Mechanics National Bank, a national
bank (together or separately hereinafter referred to as the "Employers") and
_____________________ (the "Executive").

                                   WITNESSETH:

         WHEREAS, the Executive is presently an executive officer of the
Employers; and

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

         WHEREAS, in order to induce the Executive to remain in the employ of
the Employers and in consideration of the Executive's agreeing to remain in the
employ of the Employers, the parties desire to specify the severance benefits
which shall be due the Executive in the event that the Executive's employment
with the Employers is terminated under specified circumstances detailed herein:

         NOW THEREFORE, in consideration of the premises and the mutual
agreements herein contained, 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 Employers or any subsidiary
thereof during the three consecutive calendar years preceding the Date of
Termination which yield the highest such average. If the Executive has worked
for less than three consecutive calendar years, the "Average Annual
Compensation" shall mean the sum of total compensation received, divided by the
number of months worked, and multiplied 


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by 12. Alternatively, at the Executive's election, the Executive's compensation
for the 12 calendar months prior to the Change-In-Control may be used to
constitute "Average Annual Compensation." Compensation shall include base salary
and bonuses under the Incentive Compensation Program originally adopted in 1996
and any other employee benefit plans of the Employers. Compensation shall not
include fringe benefits such as automobiles or other perquisites, but shall
include any pre-tax reduction for contributions to any tax qualified retirement
plan, deferred compensation plan, or flexible benefits plan.

         (b) Cause. Cause shall mean (i) the willful and continued failure by
the Executive to substantially perform the Executive's duties with the Employers
(other than any such failure resulting from the Executive's incapacity due to
physical or mental illness) after a written demand for substantial performance
is delivered to the Executive by the Board of Directors of F&M Bancorp, which
demand specifically identifies the manner in which the Board of Directors of F&M
Bancorp believes that the Executive has not substantially performed the
Executive's duties or (ii) the engaging by the Executive in conduct which is
demonstrably and materially injurious to the Employers or their subsidiaries,
monetarily or otherwise. For purposes of clauses (i) and (ii) of this
definition, no act, or failure to act, on the Executive's part shall be deemed
"willful" unless done, or omitted to be done, by the Executive not in good faith
and without reasonable belief that the Executive's act, or failure to act, was
in the best interest of the Employers.

         (c) Change-in-Control of the Employers. Change-in-Control shall be
deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred relative to either or both of the Employers:

                  (i)      any Person is or becomes the Beneficial Owner,
                           directly or indirectly, of securities of the
                           Employers (not including in the securities
                           beneficially owned by such Person any securities
                           acquired directly from the Employers or their
                           Affiliates) representing 25% or more of the combined
                           voting power of the Employers' then outstanding
                           securities, excluding any Person who becomes such a
                           Beneficial Owner in connection with a transaction
                           described in clause (A) of paragraph (iii) below; or

                  (ii)     the following individuals cease for any reason to
                           constitute a majority of the number of directors then
                           serving on the Board; individuals who, on the date
                           hereof, constitute the Board and any new director
                           (other than a director whose initial assumption of
                           office is in connection with an actual or threatened
                           election contest, including but not limited to a
                           consent solicitation, relating to the election of
                           directors of the Employers) whose appointment or
                           election by the Board or nomination for election by
                           the Employers' shareholders was approved or
                           recommended 




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                           by a vote of at least two-thirds (2/3) of the
                           directors then still in office who either were
                           directors on the date hereof or whose appointment,
                           election or nomination for election was previously so
                           approved or recommended; or

                  (iii)    there is consummated a merger or consolidation of the
                           Employers or any direct or indirect subsidiary of the
                           Employers with any other corporation, other than (A)
                           a merger or consolidation which would result in the
                           voting securities of the Employers outstanding
                           immediately prior to such merger or consolidation
                           continuing to represent (either by remaining
                           outstanding or by being converted into voting
                           securities of the surviving entity or any parent
                           thereof), in combination with the ownership of any
                           trustee or other fiduciary holding securities under
                           an employee benefit plan of the Employers or any
                           subsidiary of the Employers, at least 60% of the
                           combined voting power of the securities of the
                           Employers or such surviving entity or any parent
                           thereof outstanding immediately after such merger or
                           consolidation, or (B) a merger or consolidation
                           effected to implement a recapitalization of the
                           Employers (or similar transaction) in which no Person
                           is or becomes the Beneficial Owner, directly or
                           indirectly, of securities of the Employers (not
                           including in the securities Beneficially Owned by
                           such Person any securities acquired directly from the
                           Employers or their Affiliates) representing 25% or
                           more of the combined voting power of the Employers'
                           then outstanding securities.

                  (iv)     the shareholders of the Employers approve a plan of
                           complete liquidation or dissolution of the Employers
                           or there is consummated an agreement for the sale or
                           disposition by the Employers of all or substantially
                           all of the Employers' assets, other than a sale or
                           disposition by the Employers of all or substantially
                           all of the Employers' assets to an entity, at least
                           60% of the combined voting power of the voting
                           securities of which are owned by shareholders of the
                           Employers in substantially the same proportions as
                           their ownership of the Employers immediately prior to
                           such sale;

                  (v)      the Employers ceases to own, directly or indirectly,
                           securities of any subsidiary representing 50% or more
                           of the combined voting power of the subsidiary's then
                           outstanding securities; or

                  (vi)     there is consummated an agreement for the sale or
                           disposition by the Employers of all or substantially
                           all of a subsidiary's assets, other than a sale or
                           disposition by the Employers of all or substantially
                           all of the subsidiary's assets to an entity, at least
                           60% of the combined voting power of the voting
                           securities of



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                           which are owned by shareholders of the Employers in
                           substantially the same proportions as their ownership
                           of the subsidiary immediately prior to such sale;
                           provided however, that such a sale or disposition
                           should only be effective for those Executives, if
                           any, employed by the subsidiary whose assets are so
                           sold or otherwise disposed of, and not all
                           participating Executives.

                           "Affiliate" shall have the meaning set forth in Rule
                           12b-2 promulgated under Section 12 of the Exchange
                           Act.

                           "Beneficial Owner" shall have the meaning set forth
                           in Rule 13d-3 under the Exchange Act.

                           "Board" shall mean the boards of directors of either
                           or both of the Employers as applicable.

                           "Exchange Act" shall mean the Securities Exchange Act
                           of 1934, as amended from time to time.

                           "Person" shall have the meaning given in Section
                           3(a)(9) of the Exchange Act, as modified and used in
                           Sections 13(d) and 14(d) thereof, except that such
                           term shall not include (i) the Employers or any of
                           their subsidiaries, (ii) a trustee or other fiduciary
                           holding securities under an employee benefit plan of
                           the Employers or any of their Affiliates, (iii) an
                           underwriter temporarily holding securities pursuant
                           to an offering of such securities, or (iv) a
                           corporation owned, directly or indirectly, by the
                           shareholders of the Employers in substantially the
                           same proportions as their ownership of stock of the
                           Employers.

                  A "Potential Change-in-Control" shall be deemed to have
         occurred if the event set forth in any one of the following paragraphs
         shall have occurred:

                  (i)      the Employers enter into an agreement, the
                           consummation of which would result in the occurrence
                           of a Change-in-Control;

                  (ii)     the Employers or any Person publicly announces an
                           intention to take or to consider taking actions
                           which, if consummated, would constitute a
                           Change-in-Control;

                  (iii)    any Person becomes the Beneficial Owner, directly or
                           indirectly, of securities of the Employers
                           representing 15% or more of either the then
                           outstanding shares of common stock of the Employers
                           or the combined voting power of the Employers' then
                           outstanding securities (not including in the
                           securities beneficially owned by such Person any
                           securities acquired directly from the Employers or
                           their affiliates); or

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                  (iv)     the Board adopts a resolution to the effect that a
                           Potential Change-in-Control has occurred.

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

         (e) 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.

         (f) DISABILITY. Termination by the Employers 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 Employers or, if no
such plan applies, which would qualify the Executive for disability benefits
under the Federal Social Security System.

         (g) GOOD REASON. Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive based on:

                  (i) without the Executive's express written consent, the
assignment by the Employers to the Executive of any duties which are materially
inconsistent with the Executive's positions, duties, responsibilities and status
with the Employers immediately prior to a Change-in-Control of the Employers, or
a material change in the Executive's reporting responsibilities, titles or
offices as an employee and as in effect immediately prior to such a
Change-in-Control, or any removal of the Executive from or any failure to
re-elect or re-appoint the Executive to any of such responsibilities, titles or
offices, except in connection with the termination of the Executive's employment
for Cause, Disability or Retirement or as a result of the Executive's death or
by the Executive other than for Good Reason, or assignment by the Employers to
the Executive of duties which cannot effectively be performed at the Bank's
principal office at Frederick County, Maryland, (ii) without the Executive's
express written consent, a reduction by the Employers in the Executive's
compensation as in effect on the date of the Change-in-Control of the Employers
or as the same may be increased from time to time thereafter, (iii) without the
Executive's express written consent, a failure by the Employers to provide the
Executive with the same fringe benefits that were provided to the Executive
immediately prior to a Change-in-Control of the Employers, or with a package of
fringe benefits (including paid vacations) that, though one or more of such
benefits may vary from those in effect immediately prior to such
Change-in-Control, is substantially comparable in all material respects to such
fringe benefits taken as a whole, (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 (i)
below; or (v) the failure by the Employers



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<PAGE>

to obtain the assumption of and agreement to perform this Agreement by any
successor as contemplated in Section 6 hereof.

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

         (i) NOTICE OF TERMINATION. Any purported termination by the Employers
for Cause, Disability or Retirement or by the Executive 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 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
Employers' termination of Executive's employment for Cause, and (iv) is given in
the manner specified in Section 7 hereof.

         2. BENEFITS UPON TERMINATION. If the Executive's employment by the
Employers shall be terminated subsequent to a Change-in-Control or Potential
Change-In-Control of the Employers (i) by the Employers other than for Cause,
Disability, or as a result of the Executive's death, or (ii) by the Executive
for Good Reason, then the Employers shall, subject to the provisions of Section
3 hereof, if applicable, pay to the Executive, in a lump sum within five (5)
business days following the Date of Termination, a cash amount equal to the sum
of 3.0 times the Executive's Average Annual Compensation plus the cash value of
the Executive's unused vacation calculated by multiplying the number of unused
hours by the Executive's hourly compensation expressed as a fraction the
numerator of which is the Executive's Average Annual Compensation and the
denominator of which is 2080, plus a pro-rata bonus for the year of termination
based on the amount of the prior year's bonus multiplied by the fraction of the
year concluded between January 1 and the Date of Termination.

         3.  EXCISE TAX PAYMENT PROVISION

         A.       1. Whether or not the Executive becomes entitled to payments
                  under this Agreement, if any of the payments or benefits
                  received or to be received by the Executive in connection with
                  a Change-in-Control or the Executive's termination of
                  employment (whether pursuant to the terms of this Agreement or
                  any other plan, arrangement or agreement with the Employers,
                  any Person whose actions result in a Change-in-Control or any
                  Person affiliated with the Employers or such Person) (such
                  payments or benefits, excluding the Excise Tax Payment, being
                  hereinafter referred to as the "Total Payments") will be
                  subject to any excise tax imposed under Section 4999 of the
                  Code (the "Excise Tax"), the



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                  Employers shall pay to the Executive an additional amount (the
                  "Excise Tax Payment") equal to the Excise Tax imposed.



                  2. For purposes of determining whether any of the Total
                  Payments will be subject to the Excise Tax and the amount of
                  such Excise Tax, (i) all of the Total Payments shall be
                  treated as "parachute payments" (within the meaning of section
                  280G(b)(2) of the Code) unless, in the opinion of tax counsel
                  ("Tax Counsel") reasonably acceptable to the Executive and
                  selected by the accounting firm which was, immediately prior
                  to the Change-in-Control, the Employers' independent auditor
                  (the "Auditor"), such payments or benefits (in whole or in
                  part) do not constitute parachute payments, including by
                  reason of section 280G(b)(4)(A) of the Code, (ii) all "excess
                  parachute payments" within the meaning of section 280G(b)(1)
                  of the Code shall be treated as subject to the Excise Tax
                  unless, in the opinion of Tax Counsel, such excess parachute
                  payments (in whole or in part) represent reasonable
                  compensation for services actually rendered (within the
                  meaning of section 280G(b)(4)(B) of the Code) in excess of the
                  Base Amount (within the meaning of Section 280G(b)(3) of the
                  Code) allocable to such reasonable compensation, or are
                  otherwise not subject to the Excise Tax, and (iii) the value
                  of any noncash benefits or any deferred payment or benefit
                  shall be determined by the Auditor in accordance with the
                  principles of sections 280G(d)(3) and (4) of the Code.

                  3. In the event that the Excise Tax is finally determined to
                  be less than the amount taken into account hereunder in
                  calculating the Excise Tax Payment, the Executive shall repay
                  to the Employers, within five (5) business days following the
                  time that the amount of such reduction in the Excise Tax is
                  finally determined, the portion of the Excise Tax Payment
                  attributable to such reduction. In the event that the Excise
                  Tax is determined to exceed the amount taken into account
                  hereunder in calculating the Excise Tax Payment (including by
                  reason of any payment the existence or amount of which cannot
                  be determined at the time of the Excise Tax Payment), the
                  Employers shall make an additional Excise Tax Payment in
                  respect of such excess (plus any interest, penalties or
                  additions payable by the Executive with respect to such
                  excess) within five (5) business days following the time that
                  the amount of such excess is finally determined. The Executive
                  and the Employers shall each reasonably cooperate with the
                  other in connection with any administrative or judicial
                  proceedings concerning the existence or amount of liability
                  for Excise Tax with respect to the Total Payments.

         B.       The payments provided in Section 3A. shall be made not later
                  than the fifth (5th) day following the Date of Termination;
                  PROVIDED, HOWEVER, that if the amounts of such payments cannot
                  be finally determined on or 



                                       7
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                  before such day, the Employers shall pay to the Executive on
                  such day an estimate of the minimum amount of such payments to
                  which the Executive is clearly entitled and shall pay the
                  remainder of such payments (together with interest on the
                  unpaid remainder (or on all such payments to the extent the
                  Employers fails to make such payments when due) at 120% of the
                  rate provided in section 1274(b)(2)(B) of the Code) as soon as
                  the amount thereof can be determined but in no event later
                  than the thirtieth (30th) day after the Date of Termination.
                  In the event that the amount of the estimated payments exceeds
                  the amount subsequently determined to have been due, such
                  excess shall constitute a loan by the Employers to the
                  Executive, payable on the fifth (5th) business day after
                  demand by the Employers (together with interest at 120% of the
                  rate provided in section 1274(b)(2)(B) of the Code.) At the
                  time that payments are made under this Agreement, the
                  Employers shall provide the Executive with a written statement
                  setting forth the manner in which such payments were
                  calculated and the basis for such calculations including,
                  without limitation, any opinions or other advice the Employers
                  has received from Tax Counsel, the Auditor or other advisors
                  or consultants (and any such opinions or advice which are in
                  writing shall be attached to the statement).


         4. 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 Employers pursuant to employee benefit plans
of the Employers or otherwise.

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

         6. ASSIGNABILITY. The Employers may assign this Agreement and their
rights hereunder in whole, but not in part, to any corporation, bank or other
entity with or into which the Employers may hereafter merge or consolidate or to
which the Employers may transfer all or substantially all of their 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 Employers hereunder as
fully as if it had been originally 



                                       8
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made a party hereto, but may not otherwise assign this Agreement or their rights
hereunder. The Executive may not assign or transfer this Agreement or any rights
or obligations hereunder.

         7. 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 Employers: F&M Bancorp
                                    Attn:  Faye E. Cannon, President
                                    P.O. Box 518
                                    Frederick, Maryland 21705

                  To the Executive:
                                   ---------------------
                                   ---------------------        
                                   ---------------------

         8. AMENDMENT; WAIVER. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and such officer or officers as may be
specifically designated by the Boards of Directors of the Employers 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.

         9. GOVERNING LAW. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Maryland.

         10. NATURE OF EMPLOYMENT AND OBLIGATIONS.

         (a) Nothing contained herein shall be deemed to create other than a
terminable at will employment relationship between the Employers and the
Executive, and the Employers may, subject to such other arrangements as may
exist between the Employers and the Executive, terminate the Executive's
employment at any time, subject to providing any payments specified herein in
accordance with the terms hereof.

         (b) Nothing contained herein shall create or require the Employers 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 Employers hereunder, such right shall be no greater than the right of any
unsecured general creditor of the Employers.

                                       9
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         (c) The obligations of the Employers under the terms of this Agreement
shall be enforceable by the Executive on the basis of the respective Employers'
joint and severable liability.

         11. TERM OF AGREEMENT. This Agreement shall terminate three (3) years
after the date first above written; provided that on or prior to the first
anniversary of the date first above written and each anniversary thereafter, the
Boards of Directors of the Employers shall consider (with appropriate corporate
documentation thereof, and after taking into account all relevant factors,
including Executive's performance as an employee) renewal of the term of this
Agreement for an additional one (1) year, and the term of this Agreement shall
be so extended unless the Boards of Directors of Employers do not approve such
renewal and provide written notice to the Executive, or the Executive gives
written notice to the Employers, thirty (30) days prior to the date of any such
anniversary, or such party's or parties' election not to extend the term beyond
their then scheduled expiration date; and provided further that, notwithstanding
the foregoing to the contrary, this Agreement shall be automatically extended
for an additional one (1) year upon a Change-in-Control of the Employers.

         12. 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.

         13. 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.

         14. 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.

         15. REGULATORY PROHIBITION. Notwithstanding any other provision of this
Agreement to the contrary, the obligations of the Employers and the Executive
hereunder shall be suspended or limited, as the case may be, in the event that
the FDIC prohibits or limits, by regulation or order, any payment hereunder
pursuant to Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)).



                                       10
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         IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

Attest:                                     F&M BANCORP


                                          By:
----------------------                       ------------------------------
                                            Faye E. Cannon, President
                                            and Chief Executive Officer


Attest:                                     FARMERS & MECHANICS
                                            NATIONAL BANK


                                    By:
----------------------                       ------------------------------
                                             Faye E. Cannon, President
                                             and Chief Executive Officer


----------------------              ---------------------------------------
Witness                             Executive



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                                  SCHEDULE I TO

                                   F&M BANCORP

                      CHANGE IN CONROL EMPLOYMENT AGREEMENT


         The following persons participate in the F&M Bancorp Change in Control
Employment Agreement.



Gordon M. Cooley
Karen L. Korrell
David L. Spilman
Alice E. Stonebreaker
Patti A. Stuckey