Document:

Exhibit 10(xiv)

                                 MONROE BANCORP
                   EXECUTIVES' 2005 DEFERRED COMPENSATION PLAN
                             PARTICIPATION AGREEMENT

         This Agreement made this ____day of ______________, ________ (the
"Effective Date"), by and between Monroe Bancorp (the "Company") and
_________________________________ (the "Participant"):

                                   WITNESSETH
         WHEREAS, the Participant has been designated by the Company as eligible
to participate in the Monroe Bancorp Executives' 2005 Deferred Compensation Plan
(the "Plan"); and

         WHEREAS, the Participant desires to participate in the Plan;

         NOW, THEREFORE, the Company and the Participant hereby agree as
follows:

1. The Participant hereby elects to defer the receipt of the following portion
of his or her Compensation (as defined in Section 3.2 of the Plan) which he or
she would otherwise receive on account of services rendered to the Company or to
Monroe Bank (the "Bank") as an executive officer:

(a)      Base Salary Election

                                (SELECT ONLY ONE)

                  _____        Percent (_______%) of my base salary

                  _____        Dollars ($________) of my base salary

(b)      Bonus Election

                                (SELECT ONLY ONE)

                  _____        Percent (_______%) of my annual bonus

                  _____        Dollars ($________) of my annual bonus

The foregoing elections will apply for Compensation payable for the first Plan
Year beginning after the Effective Date and for each Plan Year thereafter.

The elections may be amended prospectively by the Participant by delivering a
new Participation Agreement to the Cashier of the Bank. However, a new Base
Salary Election will not be effective unless delivered prior to the commencement
of the Plan Year for which it is to apply. A new Bonus Election will not be
effective unless delivered on or before the June 30th of the Plan Year for which
the Bonus being deferred is payable.

         2. All compensation deferred under this Agreement will be distributed
to the Participant (or his or her designated beneficiaries) upon his or her
death or Disability or, if earlier, upon the following date selected by the
Participant:

<PAGE>

                                (SELECT ONLY ONE)

                  _____       As soon as practicable following the date the
                              Participant terminates employment with the Company
                              and Bank.

                  _____       ______________________ (Fill in a specific date at
                              least two years from the Effective Date).

This election may be changed, but only as provided in Section 4.1 of the Plan.

         3. In the event of the Participant's death before receipt of all
benefits payable to him or her under the Plan, any remaining benefits will be
paid to:

         Primary Beneficiary(s):
         ----------------------
         Name                                   Relationship        Percentage
         ___________________________________    ______________      __________

         Contingent Beneficiary(s)
         -------------------------
         Name                                   Relationship        Percentage

         ___________________________________    ______________      __________

         ___________________________________    ______________      __________

         ___________________________________    ______________      __________

         If more than one beneficiary is designated to receive payments, all
amounts due under the Plan will be paid in the percentages indicated, per
stirpes, to such beneficiaries. If the Participant wishes to make a beneficiary
designation other than as allowed by this section, the Participant should attach
an addendum to this Participation Agreement which clearly indicates the
person(s), trust(s) or the estate which is to receive death benefits under the
Plan and the percentage which is to be paid to each.

         In the event that no beneficiary is designated or all designated
beneficiary or beneficiaries predecease the Participant, such amount will be
paid as provided in the Plan.

         4. Payment of all amounts to the Participant under the Plan will be
made as elected below:

                                                 (SELECT ONLY ONE)
         ______       (a)      In a single sum.

         ______       (b)      In substantially equal installments over a period
                               of ___ years (not to exceed 20 years).

                               _______ Quarterly
                               _______ Semi-annually
                               _______ Annually

         ______       (c)      ______% in a single sum with the remainder paid
                               in substantially equal installments over a period
                               of _____ years (not to exceed 20 years).

                                      -2-
<PAGE>

                               _______ Quarterly
                               _______ Semi-annually
                               _______ Annually

This election may be changed, but only as provided in Section 4.3 of the Plan.

         5. If the Participant dies before receiving any payment from the Plan,
payment of all amounts to the beneficiary(s) will be made as elected below:

                                                 (SELECT ONLY ONE)
         _______      (a)      In a single sum.

         _______      (b)      In substantially equal installments over a period
                               of ______ years (not to exceed 20 years).

                               _______ Quarterly
                               _______ Semi-annually
                               _______ Annually
         _______      (c)      ______% in a single sum with the remainder paid
                               in substantially equal installments over a period
                               of _____ years (not to exceed 20 years).

                               _______ Quarterly
                               _______ Semi-annually
                               _______ Annually

         6. If the Participant dies after payments from the Plan have begun,
payment of any remaining amounts to the beneficiary(s) will be made as elected
below:

                                                 (SELECT ONLY ONE)
         _______      (a)      Continue installment payments in the same manner
                               as paid to Participant.

         _______      (b)      In a single sum.

         7. This Agreement shall be subject to and governed by all terms and
provisions of the Plan, including the terms defined therein, and the Plan is
hereby incorporated by reference and made a part hereof.

         8. Nothing in this Agreement shall obligate the Company or the Bank to
retain the Participant in his or her capacity as an executive officer or
employee of the Company or the Bank.

         9. This Agreement shall not be modified or amended except by an
agreement in writing signed by both parties prior to the Plan Year to which such
modification or amendment relates. This Agreement is binding upon the heirs,

                                      -3-
<PAGE>

administrators, executors and assigns of the Participant and the successors and
assigns of the Company and the Bank. Provided, however, the requirements of this
Paragraph shall not affect the Participant's right to amend this Agreement,
concerning the form and time of payment, pursuant to the applicable provisions
of the Plan, so long as such amendment is delivered to the Cashier of the Bank
as provided in Paragraph 1.

         10. The Participant shall not have any right to assign, pledge,
hypothecate, anticipate or in any way create a lien upon any amounts payable
under the Plan. No amounts payable under the Plan shall be subject to assignment
or transfer or otherwise be alienable, either by voluntary or involuntary act or
by operation of law, or subject to attachment, execution, garnishment,
sequestration or other seizure under legal, equitable or other process, or be
liable in any way for the debts or defaults of the Participant and his or her
beneficiaries. No loan shall be made by the Company or the Bank to the
Participant of any amounts payable to him or her under the Plan.

         11. The Participant acknowledges that he or she has read and received a
copy of the Plan.

         12. Elections under Paragraphs 2, 4, 5 and 6 shall be effective for the
Plan Year with respect to which the Agreement is executed and for all
compensation deferred, and earnings thereon, in prior years of participation in
the Plan, subject to the restrictions of the Plan. For such purpose, such
election shall constitute an amendment of all prior elections.

         IN WITNESS WHEREOF, the parties hereunto have executed this Agreement
on the day and year first above written.

                                   PARTICIPANT

                                   ___________________________________________

                                   MONROE BANCORP

                                   By:
                                       _______________________________________

                                   Title:
                                          ____________________________________EXHIBIT 10.18

 

Resolutions Adopted by Stock Option Committee Effective December 29, 2005

 

RESOLVED, that the Committee, pursuant to Section 9.02 of the 1999 Plan, hereby irrevocably waives the years of service requirements (sometimes referred to as vesting requirements) for the full exercisability of all outstanding stock options (whether considered to be incentive stock options or non-qualified options), and all of such outstanding stock options (to the extent not previously exercised) shall be deemed exercisable in full, effective immediately.

 

RESOLVED, that the Committee, pursuant to Section 9.02 of the 1999 Plan, similarly waives the satisfaction by all optionees of any unsatisfied portion of the one-year vesting requirement applicable to all outstanding Replacement Options that have been issued within the past twelve months under the 1999 Plan.

 

RESOLVED, that the Committee hereby determines that it would be in the Corporation’s best interests to discontinue its historical practice of granting new stock options to optionees who from time to time tender shares of common stock of the Corporation in payment of the exercise price of their stock options in order to replace such optionees' position in the tendered shares ("Replacement Options"), and the Committee, pursuant to Section 9.02 of the 1999 Plan, amends the terms of all outstanding stock options (including all outstanding Replacement Options), to add the following sentence as a new section to the conclusion thereof:  "Notwithstanding anything to the contrary in this Agreement,  the Company, effective January 1, 2006, shall have no further obligation under this Agreement to issue a replacement option to the Participant in respect of any exercise of this Option that occurs on or after January 1, 2006."

 

RESOLVED, that the President and Chief Executive Officer of the Corporation, and/or  the Chairman of the Committee, are each hereby authorized to execute and deliver to each of the persons who hold outstanding options granted by the Corporation under the 1999 Plan a letter confirming the waiver by the Committee of all vesting periods under their options effective the date of this Consent, and advising such optionees of the text of the amendment to their option grants terminating the Company's obligations thereunder to issue Replacement Options with respect to exercises of options on or after January 1, 2006, and to take all such other actions as they deem necessary or advisable to effectuate the intent and purpose of the foregoing resolutions.

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