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                                                                  EXHIBIT 10.18

                          YARDVILLE NATIONAL BANCORP
                            1997 STOCK OPTION PLAN
                      (as Amended Effective May 2, 2000)

(1) Purpose of Plan

     The 1997 Stock Option Plan (the "Plan") is designed to assist Yardville
National Bancorp (the "Company") in attracting and retaining highly qualified
persons as employees of the Company and its Subsidiaries and to provide such
key employees with incentives to contribute to the growth and development of
the business of the Company. This Plan provides for the granting of both
incentive stock options under Section 422 of the Code and non-qualified stock
options.

(2) Definitions

     Unless the context otherwise indicates, the following terms have the
following meanings:

     "Board" -- means the Board of Directors of the Company as constituted from
time to time.

     "Business Day" -- means a day (other than a Saturday or Sunday) on which
the principal office of the Company is open for the conduct of normal business.

     "Change of Control" -- means the acquisition by any person or group acting
in concert of beneficial ownership (as defined in Rule 13d-3 under the Exchange
Act) of forty percent (40%) or more of any class of equity security of the
Company.

     "Code" -- means the Internal Revenue Code of 1986, as the same may from
time to time be amended.

     "Committee" -- means the Committee referred to in Section 4 hereof.

     "Common Stock" -- means the Common Stock, no par value, of the Company.

     "Designated Beneficiary" -- means the person designated by an optionee to
be entitled on his death to any remaining rights arising out of an option, such
designation to be made in accordance with such regulations as the Committee may
implement from time to time.

     "Director" -- means a member of the Board, who is not currently an officer
of the Company or Subsidiary of the Company, or otherwise currently employed by
the Company or Subsidiary of the Company; who does not receive compensation
either directly or indirectly from the Company or Subsidiary of the Company,
for services rendered as a consultant or in any other capacity other than as a
Director; and otherwise qualifies as a "Non-Employee director" under Rule 16b-3
under the Exchange Act.

     "Employee" -- means any employee (including any officer) of the Company or
any Subsidiary of the Company.

     "Exchange Act" -- means the Securities and Exchange Act of 1934, as it may
be amended from time to time, or any successor act or statute.

     "Fair Market Value" -- means the fair market value of Common Stock as
determined by the Committee in accordance with Section 6(b) hereof.

     "Incentive Stock Options" -- means stock options which constitute
incentive stock options within the meaning of Section 422, or any successor
section, of the Code having the provisions specified in the Plan for such
incentive stock options.

     "Non-Qualified Stock Options" -- means stock options to purchase shares of
Common Stock granted to a participant under the Plan which are not intended to
be Incentive Stock Options.

     "Parent" -- means "Parent Corporation" as defined in Section 424(e), or
any successor section, of the Code.

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     "Stock Option Agreement" -- means a stock option agreement entered into
between the Company and an employee pursuant to the Plan period.

     "Subsidiary" -- means "Subsidiary Corporation" as defined in Section
424(f), or any successor section, of the Code.

     "Ten Percent Shareholder" -- shall mean any person who, immediately after
any option is granted to such person, owns within the meaning of Section 422
(b) (6), (or any successor section of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company, its Parent, if
any, or its Subsidiaries.

(3) Stock Subject to Plan

     The shares to be issued upon exercise of the options granted under the
Plan shall be Common Stock. The maximum number of shares of Common Stock for
which options may be granted under the Plan shall be 1,070,000 shares (subject
to adjustment as provided in section 9 hereof). The Common Stock to be issued
upon exercise of the options may be authorized but unissued shares or treasury
shares, as determined from time to time by the Committee. If any option granted
under the Plan shall expire or terminate for any reason whatsoever without
having been exercised in full, the unpurchased shares of Common Stock
previously subject to such option shall become available for new options.

(4) Administration

     (a) The Plan shall be administered by a Stock Option Committee (the
"Committee") of not less than two Directors. The Board shall annually appoint
the members of the Stock Option Committee at the annual reorganization meeting
of the Board.

     (b) The Board shall fill all vacancies on the Committee and may remove any
member of the Committee at any time with or without cause. The Committee shall
select its own chairman and shall adopt, alter or repeal such rules and
procedures as it may deem proper and shall hold its meetings at such times and
places as it may determine. The Committee shall keep minutes of its
proceedings. Action by a majority of the Committee members present at any
meeting at which a quorum is present, or action approved in writing by all
members of the Committee without a meeting, shall constitute the acts of the
Committee.

     (c) Subject to the provisions of the Plan, the Committee shall have the
full and final authority to (i) determine the Employees to whom, and the times
at which, options shall be granted and the number of shares subject to each
option; (ii) prescribe, amend and determine the provisions of options granted
under the Plan (which need not be identical) and, with the consent of the
holder thereof, amend or modify any option; (iii) determine the provisions of
options granted under the Plan (which need not be identical) and with the
consent of the holder thereof, amend or modify any option; (iv) interpret the
Plan and the respective options; and (v) make all other determinations
necessary or advisable for administering the Plan. All determinations and
interpretations by the Committee shall be binding upon all parties. No member
of the Committee or the Board shall be liable for any action or determination
made in good faith in respect of the Plan or any option granted under it.

     (d) The provisions of this Section 4 shall survive any termination of the
Plan.

(5) Eligibility for Award of Options

     (a) Options may be granted only to Employees. Any reference in the Plan to
"employment by the Company" shall also be deemed to include employment by any
Subsidiary of the Company. Determination by the Committee or the Board, as to
who are eligible Employees shall be conclusive.

     (b) A person who is a director of the Company or any Subsidiary shall not
be considered an employee for the purpose of the Plan solely because he or she
is a director. However, a person who is an employee shall not be disqualified
by virtue of being a director of the Company or any Subsidiary.

     (c) More than one option may be granted to any eligible employee.

(6) Option Price

     (a) The purchase price of the Common Stock under each option shall be
determined by the Committee. The purchase price shall be at least 100 percent
(100%) of the Fair Market Value on the date of the grant of the option. The
purchase price under an Incentive Stock Option granted to an employee who is a
Ten Percent Stockholder shall be at least 110% of the Fair Market Value on the
date of the grant of the Incentive Stock Option.

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     (b) "Fair Market Value", as of the time of any determination by the
Committee, shall mean the closing price of a share of Common Stock on the
immediately preceding business day as reported by the National Association of
Securities Dealers, Inc. through the National Association of Securities Dealers
Automated Quotation System ("NASDAQ") or a similar organization if NASDAQ is no
longer reporting such information.

(7) Federal Income Tax Consequences Under the Plan

     The aggregate Fair Market Value of shares of Common Stock with respect to
which Incentive Stock Options are exercisable for the first time by a
Participant during the calendar year (under the Plan or any other plan of the
Company, its Parent, if any and its Subsidiaries) shall not exceed the sum of
$100,000. Such aggregate Fair Market Value shall be determined as of the date
such Options is granted.

     Incentive Stock Options

     For Incentive Stock Options, the optionee will not realize any taxable
income upon receipt of shares upon the exercise of the option. However, the
excess of the Fair Market Value of the stock on the date of exercise over the
exercise price is an item of adjustment to be taken into account in determining
whether the "alternative minimum tax" will apply for the year of exercise. If
the shares acquired upon exercise are held at least two years from the date of
grant and one year from the date of exercise, any gain or loss upon the sale of
such shares, if held as capital assets, will be long-term capital gain or loss
(measured by the difference between the sales price of the stock and the
exercise price). If the two year and one year holding periods are not met (a
"disqualifying disposition"), an optionee will realize ordinary income in the
year of disposition in an amount equal to the lesser of (i) the Fair Market
Value of the stock on the date of exercise minus the exercise price or (ii) the
amount realized on disposition minus the exercise price. The remainder of the
gain will be treated as long-term or short-term gain depending upon whether the
stock has been held for more than twelve months. If an optionee makes a
disqualifying disposition, the Company will be entitled to a tax deduction
equal to the amount of ordinary income recognized by the optionee.

     In general, if an optionee in exercising an Incentive Stock Option tenders
shares of Common Stock in partial or full payment of the option price, no gain
or loss will be recognized on the tender. However, if the tendered shares were
previously acquired upon the exercise of another Incentive Stock Option and the
tender is within two years from the date of grant or one year after the date of
exercise of the other Incentive Stock Options, the tender will be a
disqualifying disposition of the shares acquired upon exercise of the other
Incentive Stock Option.

     As noted above, the exercise of an Incentive Stock Option could subject
the optionee to the alternative minimum tax. The application of the alternative
minimum tax to any particular optionee depends upon the particular facts and
circumstances which exist with respect to the optionee in the year of exercise.
However, as a general rule, the amount by which the Fair Market Value of the
Common Stock on the date of exercise of an option exceeds the exercise price of
the option will constitute an item of adjustment for purposes of the
alternative minimum tax. As such, this item will enter into the tax base on
which the alternative minimum tax is computed, and may therefore cause the
alternative minimum tax to become applicable in a given year. (alternative
minimum tax, if applicable, would be incurred equal to 26% of the excess
alternative minimum taxable income up to $175,000 and 28% for any amount in
excess of $175,000).

     Non-Qualified Stock Options

     Non-Qualified Stock Options granted under the 1997 Plan do not qualify as
Incentive Stock Options and will not qualify for any special tax benefits to
the optionee. An optionee generally will not recognize any taxable income at
the time he or she is granted an Non-Qualified Stock Option. However, upon its
exercise, the optionee will recognize ordinary income for Federal tax purposes
measured by the excess of the then Fair Market Value of the shares over the
exercise price. The income realized by the optionee will be subject to income
and other employee withholding taxes. Generally upon exercise of a
Non-Qualified Stock Option, the Company will be entitled to a deduction for
Federal income tax purposes equal to the amount of ordinary income that an
optionee is required to recognize as a result of the exercise.

     The optionee's basis for determination of gain or loss upon the subsequent
disposition of shares acquired upon the exercise of a Non-Qualified Stock
Option will be the amount paid for such shares plus any ordinary

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income recognized as a result of the exercise of such option. Upon disposition
of any shares acquired upon the exercise of a Non-Qualified Stock Option, the
difference between the sale price and the optionee's basis in the shares will
be treated as a capital gain or loss and generally will be characterized as a
long-term capital gain or loss if the shares have been held for more than one
year at their disposition.

     Tax Rates

     Under current law, the maximum marginal Federal income tax rate on
ordinary income is 39.6%. The maximum Federal income tax imposed on adjusted
net capital gains, however, is 20%. Net capital gains means the excess of net
long-term capital gains over net short-term capital loss. Net short-term
capital gains may be taxed at rates for ordinary income. Capital losses may be
offset only against capital gains and may be deducted against ordinary income
only to the extent of three thousand dollars ($3,000) per year.

     The foregoing Federal income tax information is a summary only, and does
not purport to be a complete statement of the relevant provisions of the Code.
Because of the complexity of the Federal income tax laws and the application of
various state income tax laws, optionees are advised to consult their personal
tax advisors before exercising an option or disposing of any stock received
pursuant to the exercise of an option.

(8) Terms and Exercise of Options

     (a) Maximum 10 Year Termination Date. Each option shall expire no later
than ten years after the date on which it shall have been granted, but the
Committee in its discretion may prescribe a shorter period for any individual
option or options. Any Incentive Stock Option granted to a person who is a Ten
Percent Stockholder shall terminate no later than 5 years after the date on
which the Incentive Stock Option was granted. The date of termination pursuant
to this paragraph is referred to hereinafter as the "termination date of the
option."

     (b) Vesting.

        (i) Options shall be exercisable at such times and in such installments,
        if any, as the Committee may determine. In the event any option is
        exercisable in installments, any shares which may be purchased during
        any year or other period which are not purchased during such year or
        other period may be purchased at any time or from time to time during
        any subsequent year or period during the term of the option unless
        otherwise provided in the Stock Option Agreement.

        (ii) While the Committee may set any vesting schedule which it wishes,
        it is the expectation of the Board in adopting this Plan that the
        options vest during a period of up to five years after the date of
        grant. For example, the Committee may provide that only 25% of the
        shares granted under the option may be purchased during the first year
        after the date of grant, an additional 25% of the shares may be
        purchased commencing two years after the date of grant and 100% of the
        stock may be purchased only 4 years after the date of the grant.

        (iii) In connection with any proposed sale or conveyance of all or
        substantially all of the assets of the Company or of any proposed
        consolidation or merger of the Company or of any proposed Change
        Control of the Company, the Board in its discretion may accelerate the
        vesting schedule of any or all options. In the event the Board does
        determine to accelerate the vesting schedule, it shall notify each
        holder of an option whose vesting schedule has been accelerated.

     (c) Means of Exercise of Option. An option shall be exercised by written
notice to the Secretary or Treasurer of the Company at its principal office.
The notice shall specify the number of shares as to which the option is being
exercised and shall be accompanied by payment in full of the purchase price for
such shares. An optionee at his discretion may, in lieu of cash payment,
deliver Common Stock already owned, with a Fair Market Value (on the date of
exercise) equal to the purchase price for the shares being acquired pursuant to
exercise of the option, as payment for the exercise of any option. In the event
an option is being exercised in whole or in part, by any person other than the
optionee, a notice of election shall be accompanied by proof satisfactory to
the Company of the rights of such person to exercise said option. An optionee
shall not, by virtue of granting of an option, be entitled to any rights of a
shareholder in the Company and he shall not be

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considered a record holder of shares purchased by him until the date on which
he shall actually be recorded as the holder of such shares upon the stock
records of the Company. The Company shall not be required to issue any
fractional shares upon exercise of any option and shall not be required to pay
to the person exercising the option the cash equivalent of any fractional share
interest unless so determined by the Committee.

     (d) Options are Non-Transferable. No stock option may be transferred by
the optionee (except in connection with death or disability as provided in
Section 8 (j).

     (e) Options Lapse 3 Months After Termination of Employment. In the event
of the termination of an optionee's employment by the Company or its
Subsidiaries at any time for any reason (excluding disability or death), his
option and all rights thereunder shall be exercisable by the optionee at any
time within three (3) months thereafter but only to the extent exercisable by
him on the date of termination of his employment and in no event later than the
termination date of his option.

     (f) Options Exercisable 12 Months After Termination in the Event of
Disability. In the event an employee is permanently and totally disabled
(within the meaning of Section 422 (c) (6), or any successor section, of the
Code), his option and all rights thereunder shall be exercisable by the
optionee at any time within twelve (12) months of his termination of
employment, but in no event later than the termination date of the option.

     (g) Options Exercisable 12 Months After Date of Death. If an optionee
shall die while in the employ of the Company or any of its Subsidiaries, his
option may be exercised within twelve (12) months after the date of his death,
but only to the extent exercisable by the optionee at his death and the option
may not be exercised later than the termination date of the option.

     (h) No Right to Continued Employment. Nothing in the Plan or in any option
granted pursuant hereto shall confer on any individual any right to continue in
the employ of the Company or any of its Subsidiaries or prevent or interfere in
any way with the right of the Company or its Subsidiaries to terminate his
employment at any time, with or without cause.

     (i) Options Must Be Evidenced by Writing. Each option granted pursuant to
the Plan shall be evidenced by a written Stock Option Agreement, duly executed
by the Company and the optionee, in such form and containing such provisions as
the Committee may from time to time authorize or approve.

     (j) In the event of an Employee's death or disability (within the meaning
of Section 422(c)(6), or any successor section, of the Code), such Employee's
Designated Beneficiaries, legal representative or executor shall have the right
to exercise such Employee's options to the same extent as such Employee would
have under Sections 8(e), (f) or (g), as applicable, as of the date on which
such Employee's employment by the Company or any Subsidiary terminated.

(9) Adjustments

     The Stock Option Agreement shall contain appropriate provisions for the
adjustment of the kind and number of shares subject to each outstanding option
and the purchase price under each option in the event of any changes in the
outstanding Common Stock of the Company by reason of stock dividends, stock
splits, recapitalization, reorganizations, mergers, consolidations,
combinations or exchanges of shares, and the like. In the event of any such
change or changes in the outstanding Common Stock, and as often as the same
shall occur, the kind and aggregate number of shares available under the Plan
shall be appropriately adjusted by the Committee or Board, whose determination
shall be binding and conclusive.

(10) Amendment and Termination

     (a) Unless the Plan shall have been sooner terminated as provided herein,
no incentive stock option shall be granted hereunder after April 24, 2007. The
Board may at any time suspend or terminate the Plan as it may deem advisable,
except that it may not without further shareholder approval (i) increase the
maximum number of shares subject to the Plan (except for changes pursuant to
Section 9), (ii) extend the period during which options may be granted or
exercised or (iii) make any other change unless the Board determines that the
change would not materially increase the cost of the Plan to the Company.
Except as otherwise hereinafter provided, no

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alteration, suspension or termination of the Plan may, without the consent of
the Employee to whom any option shall have theretofore been granted (or the
person or persons entitled to exercise such option under Section 8 (f) or (g)
of the Plan), terminate his option or adversely affect his rights thereunder.

     (b) Anything herein to the contrary notwithstanding, in the event that the
Board shall at any time declare it advisable to do so in connection with any
proposed sale or conveyance of all or substantially all of the assets of the
Company or of any proposed consolidation or merger of the Company, the Company
may give written notice to the holder of any option that his option may be
exercised only within thirty (30) days after the date of such notice but not
thereafter, and all rights under said option which shall not have been so
exercised shall terminate at the expiration of such thirty (30) days, provided
that the proposed sale, conveyance, consolidation or merger to which such
notice shall relate shall be consummated within six (6) months after the date
of such notice.

     In the event such notice shall have been given, any such option may be
exercised either in whole or in part notwithstanding the vesting period
required under the terms of the option for the exercise thereof. If such
proposed sale, conveyance, consolidation or merger shall not be consummated
within said time period, no unexercised rights under any option shall be
affected by such notice except that such option may not be exercised between
the date of expiration of such thirty (30) days and the date of the expiration
of such six (6) months.

(11) Indemnification

     Any member of the Committee or the Board who is made, or threatened to be
made, a party to any action or proceeding, whether civil or criminal, by reason
of the fact that he is or was a member of the Committee or the Board insofar as
relates to the Plan shall be indemnified by the Company, and the Company may
advance his related expenses, to the full extent permitted by law and/or the
By-Laws of the Company.

(12) Effective Date of the Plan

     The Plan shall become effective on, and options may be granted thereunder
after April 24, 1997, provided, however, that if the Plan shall not be approved
by the holders of a majority of the outstanding voting stock of the Company
within twelve months of said date, the Plan and all options granted thereunder
shall be and become null and void, and provided, further, that no options
granted by the Committee may be exercised prior to the approval of the Plan by
shareholders.

(13) Expenses

     The Company shall pay all fees and expenses incurred in connection with
the establishment and administration of the Plan.

(14) Government Regulations, Registration, and Listing of Stock

     (a) The Plan, and the grant and exercise of options thereunder, and the
Company's obligation to sell and deliver stock under such options, shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any regulatory or governmental agency as may be required.

     (b) Unless a registration statement under the Securities Act of 1933 and
the applicable rules and regulations thereunder (collectively the "Act") is
then in effect with respect to shares issued upon exercise of any option (which
registration shall not be required), the Company shall require that the offer
and sale of such shares be exempt from the registration provisions of said Act.
In furtherance of such exemption, the Company may require, as a condition
precedent to the exercise of any option, that the person exercising the option
give to the Company a written representation and undertaking, satisfactory form
and substance to the Company, that he is acquiring the shares for his own
resale thereof and otherwise establish to the Company's satisfaction that the
offer or sale of the shares issuable upon exercise of the option will not
constitute or result in any breach or violation of the Act of any similar state
act or statute of any rules or regulations thereunder. In the event a
registration statement under the Act is not then in effect with respect to the
shares of Common Stock issued upon exercise of an option, the Company shall
place upon any stock certificate an appropriate legend referring to the
restrictions on disposition under the Act.

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     (c) In the event the class of shares issuable upon the exercise of any
option is listed on any national securities exchange, the Company shall not be
required to issue or deliver any certificate for shares upon the exercise of
any option prior to the listing of the shares so issuable on such national
securities exchange and prior to the registration of the same under the
Securities Exchange Act of 1934 or any similar act or statute.

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Yardville National Bancorp Subsidiaries                    Exhibit 10.31

1.                   Yardville National Bank

2.                   Yardville Capital Trust

3.                   Yardville National Investment Corporation
                     (wholly-owned subsidiary of Bank)

4.                   YNB Real Estate Corporation
                     (wholly-owned subsidiary of Bank)

5.                   Brendan, Inc.
                     (wholly-owned subsidiary of Bank)

6.                   YNB Financial, Inc.
                     (wholly-owned subsidiary of Bank)

7.                   Nancy-Beth, Inc.
                     (wholly-owned subsidiary of Bank)

8.                   YNB Realty, Inc.
                     (wholly-owned subsidiary of Bank)

9.                   Jim Mary, Inc.
                     (wholly-owned subsidiary of Bank)

10.                  YNB Capital Development, Inc.
                     (wholly-owned subsidiary of Bank)

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