Document:

Unassociated Document

    Exhibit
      10.2

    
 

    KESSELRING
      HOLDING CORPORATION

    EMPLOYEE
      NONSTATUTORY STOCK OPTION AGREEMENT

    
      

    

    

    This
      Employee Nonstatutory
      Stock Option Agreement ("Agreement") is made and
      entered into as of the date set forth below, by and between KESSELRING HOLDING
      CORPORATION, a Delaware corporation (the "Company"), and the
      following employee of the Company ("Optionee"):

    

    In
      consideration of the covenants
      herein set forth, the parties hereto agree as follows:

    

    1.  Option
      Information.

    
      	
               

            	
              (a)

            	
              Date
                of Option:

            	
              December
                12, 2007

            

    

    
      	
               

            	
              (b)

            	
              Optionee:

            	
              Douglas
                Badertscher

            

    

    
      	
               

            	
              (c)

            	
              Number
                of Shares:

            	
              2,500,000
                of which 625,000 shall vest on

            

    

    
      	
               

            	
              November
                15, 2007, 625,000 shall vest on February 15, 2008, 625,000 shall
                vest on
                May 15, 2008 and 625,000 shall vest on August 15,
                2008

            

    

    
      	
               

            	
              (d)

            	
              Exercise
                Price:

            	
              $0.30

            

    

    

    2.  Acknowledgements.

    (a)
      Optionee is an employee of the
      Company.

    

    
      	
               

            	
              (b)
                The Board of Directors (the "Board" which term shall
                include an authorized committee of the Board of Directors) and
                shareholders of the Company have heretofore adopted a 2007 Incentive
                Stock
                Plan (the "Plan"), pursuant to which this Option is being
                granted; and

            

    

    

    
      	
               

            	
              (c)
                The Board has authorized the granting to Optionee of a nonstatutory
                stock
                option ("Option") to purchase shares of common stock of
                the Company ("Stock") upon the terms and conditions
                hereinafter stated and pursuant to an exemption from registration
                under
                the Securities Act of 1933, as amended (the "Securities
                Act") provided by Rule 701
                thereunder.

            

    

    

    3.  Shares;
      Price.  Company hereby grants to Optionee the right to purchase,
      upon and subject to the terms and conditions herein stated, the number of shares
      of Stock set forth in Section 1(c) above (the "Shares") for
      cash (or other consideration as is authorized under the Plan and acceptable
      to
      the Board of Directors of the Company, in their sole and absolute discretion)
      at
      the price per Share set forth in Section 1(d) above (the "Exercise
      Price).

    

    4.  Term
      of Option;
      Continuation of Service.  This Option shall expire, and all rights
      hereunder to purchase the Shares shall terminate, five (5) years from the date
      hereof. This Option shall earlier terminate subject to Sections 7 and 8 hereof
      upon, and as of the date of, the termination of Optionee's employment if such
      termination occurs prior to the end of such five (5) year period. Nothing
      contained herein shall confer upon Optionee the right to the continuation of
      his
      or her employment by the Company or to interfere with the right of the Company
      to terminate such employment or to increase or decrease the compensation of
      Optionee from the rate in existence at the date hereof.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    5.  Vesting
      of
      Option.  Subject to the provisions of Sections 7 and 8 hereof,
      this Option shall become exercisable as set forth under Section 1(c) of this
      Agreement.

    

    6.  Exercise.  This
      Option shall be exercised by delivery to the Company of (a) written notice
      of
      exercise stating the number of Shares being purchased (in whole shares only)
      and
      such other information set forth on the form of Notice of Exercise attached
      hereto as Appendix A, (b) a check or cash in the amount of the Exercise
      Price of the Shares covered by the notice (or such other consideration as has
      been approved by the Board of Directors consistent with the Plan) and (c) a
      written investment representation as provided for in Section 13 hereof.
      Notwithstanding anything to the contrary contained in this Option, this Option
      may be exercised by presentation and surrender of this Option to the Company
      at
      its principal executive offices with a written notice of the holder’s intention
      to effect a cashless exercise, including a calculation of the number of shares
      of Common Stock to be issued upon such exercise in accordance with the terms
      hereof (a “Cashless Exercise”).  In the event of a Cashless Exercise,
      in lieu of paying the Exercise Price in cash, the holder shall surrender this
      Option for that number of shares of Common Stock determined by multiplying
      the
      number of Shares to which it would otherwise be entitled by a fraction, the
      numerator of which shall be the difference between the then current Market
      Price
      per share of the Common Stock and the Exercise Price, and the denominator of
      which shall be the then current Market Price per share of Common
      Stock.  For example, if the holder is exercising 100,000 Options with
      a per Warrant exercise price of $0.75 per share through a cashless exercise
      when
      the Common Stock’s current Market Price per share is $2.00 per share, then upon
      such Cashless Exercise the holder will receive 62,500 shares of Common
      Stock.  Market Price is defined as the average of the last reported
      sale prices on the principal trading market for the Common Stock during the
      five
      (5) trading days immediately preceding such date.  This Option shall
      not be assignable or transferable, except by will or by the laws of descent
      and
      distribution, and shall be exercisable only by Optionee during his or her
      lifetime, except as provided in Section 8 hereof.

    

    7.  Termination
      of
      Employment.  If Optionee is terminated "for cause" or the Optionee
      resigns without “good reason”, as such terms are defined in the certain Amended
      and Restated Employment Agreement entered by and between the Company and
      Optionee (the “Employment Agreement”), this Option shall automatically terminate
      as to all Shares covered by this Option that have not vested in accordance
      with
      Section 1(c) prior to such termination.  If the Optionee is terminated
“without cause” or if the Employment Agreement is terminated for “good reason”
by the Optionee, as such terms are defined in the Employment Agreement, then
      the
      Optionee shall continue to have rights as set forth under this Agreement with
      respect to all Shares covered by this Option regardless of whether such Options
      have vested pursuant to Section 1(c).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Unless
      earlier terminated, all rights
      under this Option shall terminate in any event on the expiration date of this
      Option as defined in Section 4 hereof.

    

    8.  Death
      of
      Optionee.  If the Optionee shall die while in the employ of the
      Company, Optionee's personal representative or the person entitled to Optionee's
      rights hereunder may at any time within six (6) months after the date of
      Optionee's death, or during the remaining term of this Option, whichever is
      the
      lesser, exercise this Option and purchase Shares to the extent, but only to
      the
      extent, that Optionee could have exercised this Option as of the date of
      Optionee's death; provided, in any case, that this Option may be so exercised
      only to the extent that this Option has not previously been exercised by
      Optionee.

    

    9.  No
      Rights as
      Shareholder.  Optionee shall have no rights as a shareholder with
      respect to the Shares covered by any installment of this Option until the
      effective date of issuance of the Shares following exercise of this Option,
      and
      no adjustment will be made for dividends or other rights for which the record
      date is prior to the date such stock certificate or certificates are issued
      except as provided in Section 10 hereof.

    

    10.  Recapitalization.  Subject
      to any required action by the shareholders of the Company, the number of Shares
      covered by this Option, and the Exercise Price thereof, shall be proportionately
      adjusted for any increase or decrease in the number of issued shares resulting
      from a subdivision or consolidation of shares or the payment of a stock
      dividend, or any other increase or decrease in the number of such shares
      effected without receipt of consideration by the Company; provided however
      that
      the conversion of any convertible securities of the Company shall not be deemed
      having been "effected without receipt of consideration by the
      Company".

    

    In
      the event of a proposed dissolution
      or liquidation of the Company, a merger or consolidation in which the Company
      is
      not the surviving entity, or a sale of all or substantially all of the assets
      or
      capital stock of the Company (collectively, a
      "Reorganization"), this option shall fully vest.

    

    If
      the Company shall be the surviving
      entity in any merger or consolidation, this Option thereafter shall pertain
      to
      and apply to the securities to which a holder of Shares equal to the Shares
      subject to this Option would have been entitled by reason of such merger or
      consolidation, and the installment provisions of Section 5 shall continue to
      apply.

    

    In
      the event of a change in the shares
      of the Company as presently constituted, which is limited to a change of all
      of
      its authorized Stock without par value into the same number of shares of Stock
      with a par value, the shares resulting from any such change shall be deemed
      to
      be the Shares within the meaning of this Option.

    

    To
      the extent that the foregoing
      adjustments relate to shares or securities of the Company, such adjustments
      shall be made by the Board, whose determination in that respect shall be final,
      binding and conclusive. Except as hereinbefore expressly provided, Optionee
      shall have no rights by reason of any subdivision or consolidation of shares
      of
      Stock of any class or the payment of any stock dividend or any other increase
      or
      decrease in the number of shares of stock of any class, and the number and
      price
      of Shares subject to this Option shall not be affected by, and no adjustments
      shall be made by reason of, any dissolution, liquidation, merger, consolidation
      or sale of assets or capital stock, or any issue by the Company of shares of
      stock of any class or securities convertible into shares of stock of any
      class.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    The
      grant of this Option shall not
      affect in any way the right or power of the Company to make adjustments,
      reclassifications, reorganizations or changes in its capital or business
      structure or to merge, consolidate, dissolve or liquidate or to sell or transfer
      all or any part of its business or assets.

    

    11.  Taxation
      upon
      Exercise of Option.  Optionee understands that, upon exercise of
      this Option, Optionee will recognize income, for Federal and state income tax
      purposes, in an amount equal to the amount by which the fair market value of
      the
      Shares, determined as of the date of exercise, exceeds the Exercise Price.
      The
      acceptance of the Shares by Optionee shall constitute an agreement by Optionee
      to report such income in accordance with then applicable law and to cooperate
      with Company in establishing the amount of such income and corresponding
      deduction to the Company for its income tax purposes. In the event that the
      Company should become liable with respect to withholding for federal or state
      income and employment tax purposes (the “Tax Liability”) as a result of the
      Optionee’s exercise of this Option, the Optionee shall reimburse the Company for
      the Tax Liability prior to such Tax Liability becoming due.

    

    12.  Modification,
      Extension and Renewal of Options.  The Board or Committee, as
      described in the Plan, may modify, extend or renew this Option or accept the
      surrender thereof (to the extent not theretofore exercised) and authorize the
      granting of a new option in substitution therefore (to the extent not
      theretofore exercised), subject at all times to the Plan and the
      Code.  Notwithstanding the foregoing provisions of this Section 12, no
      modification shall, without the consent of the Optionee, alter to the Optionee's
      detriment or impair any rights of Optionee hereunder.

    

    13.  Investment
      Intent;
      Restrictions on Transfer.

    

    
      	
               

            	
              (a)  Optionee
                represents and agrees that if Optionee exercises this Option in whole
                or
                in part, Optionee will in each case acquire the Shares upon such
                exercise
                for the purpose of investment and not with a view to, or for resale
                in
                connection with, any distribution thereof; and that upon such exercise
                of
                this Option in whole or in part, Optionee (or any person or persons
                entitled to exercise this Option under the provisions of Sections
                7 and 8
                hereof) shall furnish to the Company a written statement to such
                effect,
                satisfactory to the Company in form and substance. If the Shares
                represented by this Option are registered under the Securities Act,
                either
                before or after the exercise of this Option in whole or in part,
                the
                Optionee shall be relieved of the foregoing investment representation
                and
                agreement and shall not be required to furnish the Company with the
                foregoing written statement.

            

    

    

    
      	
               

            	
              (b)  Optionee
                further represents that Optionee has had access to the financial
                statements or books and records of the Company, has had the opportunity
                to
                ask questions of the Company concerning its business, operations
                and
                financial condition, and to obtain additional information reasonably
                necessary to verify the accuracy of such
                information

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              (c)  Unless
                and until the Shares represented by this Option are registered under
                the
                Securities Act, all certificates representing the Shares and any
                certificates subsequently issued in substitution therefor and any
                certificate for any securities issued pursuant to any stock split,
                share
                reclassification, stock dividend or other similar capital event shall
                bear
                legends in substantially the following
                form:

            

    

    

    
      	
            	
              
                THESE
                  SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER
                  THE
                  SECURITIES ACT OF 1933 (THE 'SECURITIES ACT') OR UNDER THE APPLICABLE
                  OR
                  SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR ANY
                  INTEREST
                  THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED
                  OF IN THE
                  ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE
                  SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO EXEMPTIONS
                  THEREFROM.

              

            	
               

            

    

    

    and/or
      such other legend or legends as the Company and its counsel deem necessary
      or
      appropriate. Appropriate stop transfer instructions with respect to the Shares
      have been placed with the Company's transfer agent.

    

    14.  Stand-off
      Agreement.  Optionee agrees that, in connection with any
      registration of the Company's securities under the Securities Act pursuant
      to a
      public offering, and upon the request of the Company or any underwriter managing
      an underwritten offering of the Company's securities, Optionee shall not sell,
      short any sale of, loan, grant an option for, or otherwise dispose of any of
      the
      Shares (other than Shares included in the offering) without the prior written
      consent of the Company or such managing underwriter, as applicable, for a period
      of at least one year following the effective date of registration of such
      offering.

    

    15.  Notices.  Any
      notice required to be given pursuant to this Option or the Plan shall be in
      writing and shall be deemed to be delivered upon receipt or, in the case of
      notices by the Company, five (5) days after deposit in the U.S. mail, postage
      prepaid, addressed to Optionee at the address last provided by Optionee for
      his
      or her employee records.

    

    16.  Agreement
      Subject to
      Plan; Applicable Law.  This Option is made pursuant to the Plan
      and shall be interpreted to comply therewith. A copy of such Plan is available
      to Optionee, at no charge, at the principal office of the Company. Any provision
      of this Option inconsistent with the Plan shall be considered void and replaced
      with the applicable provision of the Plan. This Option has been granted,
      executed and delivered in the State of Delaware, and the interpretation and
      enforcement shall be governed by the laws thereof and subject to the exclusive
      jurisdiction of the courts therein.

    

    In
      Witness Whereof,
      the parties hereto have executed this Option as of the date first above
      written.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              COMPANY:

            	
              KESSELRING
                HOLDING CORPORATION,

              a
                Delaware corporation

            	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Cliff
              Wildes	 
	 	 	Name:
              Cliff Wildes	 
	 	 	Title:
              Chairman	 
	 	 	 	 

    

     

    
      	
              OPTIONEE:

            	 	 	 
	 	
              By:
                

            	/s/ Douglas
              Badertscher	 
	 	 	
              (signature)

            	 
	 	 	
              Name: Douglas
                Badertscher

            	 
	 	 	 	 

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    Appendix
      A

    

    NOTICE
      OF EXERCISE

    

    KESSELRING
      HOLDING CORPORATION

    _________________

    _________________

    _________________

    

    Re:
      Nonstatutory Stock
      Option

    

    1)           Notice
      is hereby given pursuant to Section 6 of my Nonstatutory Stock Option Agreement
      that I elect to purchase the number of shares set forth below at the exercise
      price set forth in my option agreement:

    

    Nonstatutory
      Stock Option Agreement
      dated: ____________

    

    Number
      of shares being purchased:
      ____________

    

    Exercise
      Price:
      $____________

    

    A
      check in the amount of the aggregate
      price of the shares being purchased is attached.

    

    OR

    

    2)           I
      elect a cashless exercise pursuant to Section 6 of my Nonstatutory Stock Option
      Agreement.  The Average Market Price as of _______ was
      $_____.

    

    I
      hereby confirm that such shares are
      being acquired by me for my own account for investment purposes, and not with
      a
      view to, or for resale in connection with, any distribution thereof. I will
      not
      sell or dispose of my Shares in violation of the Securities Act of 1933, as
      amended, or any applicable federal or state securities laws. Further, I
      understand that the exemption from taxable income at the time of exercise is
      dependent upon my holding such stock for a period of at least one year from
      the
      date of exercise and two years from the date of grant of the
      Option.

    

    I
      understand that the certificate
      representing the Option Shares will bear a restrictive legend within the
      contemplation of the Securities Act and as required by such other state or
      federal law or regulation applicable to the issuance or delivery of the Option
      Shares.

    

    I
      agree to provide to the Company such
      additional documents or information as may be required pursuant to the Company's
      2007 Incentive Stock Plan.

     

    
      	 	 	 
	 	 	 	 
	 	
              By:
                

            	/s/ 	 
	 	 	
              (signature)

            	 
	 	 	Name: 	 
	 	 	 	 

    

     

     

     

    7letter_agreement.htm

    SUN
      BANCORP, INC.

    226
      Landis Avenue

    Vineland,
      New Jersey 08360

    

    

    December
      5, 2007

    

    Mr.
      Thomas X. Geisel

    25
      Newell Court

    Menands,
      New York   12204

    

    Dear
      Tom:

    

    On
      behalf of the Board of Directors of Sun National Bank ("Bank") and Sun Bancorp,
      Inc.  (the “Company”), I am pleased to offer you this opportunity to
      serve as the President and Chief Executive Officer of the Bank and the
      Company. The details of this offer are summarized below:

     

    1.   Position.  You
      will serve in a full-time capacity as the President and Chief Executive Officer
      of the Bank and of the Company. You will report directly to the Chairman of
      the Board of the Bank and the Company. By signing this letter agreement,
      you represent and warrant to the Bank and the Company as a condition of our
      offer that as of your first day of employment you will be under no
      contractual commitments or limitations inconsistent with your obligations as
      an
      employee and officer of the Company and the Bank.

     

    2.  
      Salary.  You will be paid an initial salary by the Bank at the
      annual rate of $500,000, payable not less frequently than in monthly
      installments in accordance with the Bank's standard payroll practices for
      salaried employees.

     

    3.  
      Sign-On Bonus.  We will pay you a sign-on bonus in the amount
      of $250,000 payable as of 

    March
      10, 2008 as an employee of the Bank at such time.

     

    4.  
      Stock Options.  Upon your commencement of employment, you will
      be granted a stock option to purchase 185,000 shares of the Company’s common
      stock at an exercise price equal to the last reported sale price of such Company
      common stock determined at the close of trading on your first date of employment
      (“Initial Option Award”).  Separately, you will receive a Stock Option
      Award Agreement detailing the terms of such award consistent with the Company's
      2004 Stock-Based Incentive Plan (“Stock Plan”). Such options will be first
      earned and exercisable at the rate of 25% on the second anniversary of your
      employment commencement date, and 25% annually thereafter,  provided
      that you are still employed by the Company at such time.  The maximum
      permissible number of options in each vesting sequence will be deemed "incentive
      stock options" and the remainder of such options in each vesting sequence will
      not be deemed "incentive stock options." Such options will be immediately
      exercisable upon a "change in control" of the Company (as defined in accordance
      with the Company’s Stock Plan). In the event of death or
      disability prior to the next vesting event, a pro rata portion of such awards
      that would have vested at the next vesting event shall vest upon such death
      or
      disability.  For example, if 25% of the time has passed until the next
      vesting event, then upon death or disability, 25% of such awards that would
      have
      vested at the next vesting event shall vest upon death or disability. If your
      employment is involuntarily terminated by the Company within the first two
      years
      of employment (absent termination for “cause”), you will nevertheless be 25%
      vested in the Initial Option Award.  In addition, beginning in January
      2009 (or as soon as possible following the completion of the Company’s fiscal
      year and its annual audit), you will be eligible to

    
      
        

      

    

     

    receive
      the first of five (5) annual awards of stock options to purchase additional
      shares of Company common stock at an exercise price equal to the last reported
      sale price determined
      at the close of trading on the date of grant of such options.   The
      number of such options subject to each annual award of options shall be
      determined based upon the Company’s attainment of annually agreed upon financial
      targets (based upon earnings per share), provided that you remain employed
      by
      the Company and the Bank as of the date of determination of achieving such
      performance.  For example, upon attainment of 100% of the Company’s
      agreed upon financial targets, you will receive an additional award of 25,000
      stock options; attainment of 110% of the approved financial targets will result
      in an award of 33,333  stock options; attainment of 90% of the
      approved financial targets will result in an award of 20,000 stock
      options.  The attached chart also details the award determination upon
      attainment of 105% and 95% of the approved financial targets. Attainment of
      Company performance below 90% of the approved financial targets may result
      in an
      award of stock options determined within the discretion of the Compensation
      Committee.  Such annual awards will be 100% earned and exercisable as
      of the third anniversary of the date of grant,  provided that you are
      still employed by the Company at such time, and such options will be immediately
      earned and exercisable upon a "change in control" of the
      Company.  Upon termination of employment with the Company (unrelated
      to a Change in Control transaction), any Options that are then exercisable
      shall
      cease being exercisable not later than one year after the date of termination
      of
      employment; provided that such exercisability will cease upon the Executive
      commencing an employment, directorship, advisory or consulting relationship
      with
      a financial  services enterprise (including but not limited to a
      savings and loan association, bank,  credit union, or insurance
      company) whereby the Executive will have a work location within 25 miles of
      any
      office of the Company, the Bank, or any subsidiary of such entities existing
      as
      of the date of such termination of employment..  Upon Disability, all
      unvested options shall become immediately exercisable and remain exercisable
      for
      one year thereafter; Upon death, all unvested options shall become immediately
      exercisable and remain exercisable for the remaining term of such
      options;  Upon a change in control of the Company, all unvested
      options shall become immediately exercisable and remain exercisable
      for  the remaining term of such options.

     

    5.  
      Restricted Stock Awards.  Upon your commencement of employment,
      you will be granted a restricted stock award with a value of $500,000, with
      the
      number of shares subject to such award calculated based upon the last reported
      sale price of the Company’s common stock determined at the close of trading on
      your first date of employment (“Initial Stock Award”).  Separately,
      you will receive a Restricted Stock Award Agreement detailing the terms of
      such
      award consistent with the Company's Stock Plan.   Such shares of
      Company stock will be first earned and non-forfeitable at the rate of 25% on
      the
      second anniversary of your employment commencement date, and 25% annually
      thereafter, provided that you are still employed by the Company at such
      time.  Such restricted stock awards will be immediately earned and
      non-forfeitable upon a "change in control" of the
      Company. In the event of death or disability prior to the
      next vesting event, a pro rata portion of such awards that would have vested
      at
      the next vesting event shall vest upon such death or disability.  For
      example, if 25% of the time has passed until the next vesting event, then upon
      death or disability, 25% of such awards that would have vested at the next
      vesting event shall vest upon death or disability. If your employment is
      involuntarily terminated by the Company within the first two years of employment
      (absent termination for “cause”), you will nevertheless be 25% vested in the
      Initial Stock Award. In addition, beginning in January 2009 (or as soon as
      possible following the completion of the Company’s fiscal year and its annual
      audit), you will be eligible to receive the first of five (5) annual awards
      of
      restricted stock.   The number of such stock awards subject to
      each annual award of restricted stock shall be determined based upon the
      Company’s attainment of annually agreed upon 

    
      
        

      

    

     

    financial
      targets, provided that you remain employed by the Company and the Bank as of
      the
      date of determination of achieving such performance.  For example,
      upon attainment of 100% of the Company’s agreed upon financial targets, you will
      receive an award of 5,000 shares of restricted stock; attainment of 110% of
      the
      approved financial targets will result in an award of 6,667 shares of restricted
      stock; attainment of 90% of the approved financial targets will result
in
      an award of 4,000 shares of restricted stock.  The attached chart also
      details the award determination upon attainment of 105% and 95% of the approved
      financial targets. Attainment of Company performance below 90% of the approved
      financial targets may result in an award
      of restricted stock determined within the discretion of the Compensation
      Committee. Such annual awards will be 100% earned and non-forfeitable as of
      the
      third anniversary of the date of grant of each such award, provided that you
      are
      still employed by the Company at such time, and such awards will be immediately
      100% earned upon a "change in control" of the Company.

     

    6.  
      Period of Employment.  Your employment with the Company and the
      Bank will be “at will,” meaning that either you, or the Company or the Bank will
      be entitled to terminate your employment at any time and for any reason, with
      or
      without cause.  Any contrary representations which may have been made
      to you are superseded by this offer.  This is the full and complete
      agreement between you and the Company and the Bank on this
      matter.  Although your job duties, title, compensation and benefits,
      as well as the Company’s and the Bank's  personnel policies and
      procedures, may change from time to time, the “at will” nature of your
      employment may only be changed by an express written agreement signed by you
      and
      the Chairman of the Board of the Company.

     

    7.  
      Performance Bonus Plan.  As we have discussed, the Compensation
      Committee of the Board has developed a performance bonus plan.  Such
      plan will provide for a payment of a cash bonus to you calculated as a
      percentage of your base salary and dependent upon the Company’s attainment of
      annually agreed upon financial targets, provided that you remain employed as
      by
      the Company and the Bank through the payment date of such bonus.  For
      example, upon attainment of 100% of the Company’s agreed upon financial targets,
      you will receive a bonus of 70% of base salary; attainment of 110% of the
      approved financial targets will result in a bonus of 100% of base salary;
      attainment of 105% of the approved financial targets will result in a bonus
      of
      80% of base salary; attainment of 95% of the approved financial targets will
      result in a bonus of 65% of salary; attainment of 90% of the approved financial
      targets will result in a bonus of 60% of salary.   Attainment of
      Company performance below 90% of the approved financial targets may result
      in a
      bonus payment determined within the discretion of the Compensation Committee;
      attainment of Company performance above 110% of the approved financial targets
      may result in an additional bonus payment (in addition to a bonus of 100% of
      base salary) determined within the discretion of the Compensation
      Committee.  Such bonus will be paid to you on or before March 15
      following the completion of the Company’s fiscal year and its annual
      audit.

     

    8.  
      Other Perks.  We are pleased to offer you the following
      additional benefits:

    

    
      a)
        We will assume the lease payments for your current business-use automobile,and
        reimburse you for expenses related to its operations, including
        gas,repairs and insurance.

       

      
        b)
          Enrollment in medical/dental program and all other Company sponsoredbenefit
          plans available to our employees (including our 401K plan with amatching
          contribution of 50% of the employee deferral up to 6% of pay withthe match
          paid
          in Company stock.).

        
          
            

          

        

         

        
          c)
            Company sponsored term life insurance (currently equal to two timesyour
            annual
            base salary to a maximum death benefit of $900,000).

           

          d)
            Company paid annual membership dues in a local Country Club to a maximum
            of
            $12,000 per year.  Payment of a reasonable initiation fees, subject to
            approval by the Chairman, and that any future refund or repayment of
            such fee
            will be paid back to the Company, when applicable.

           

          
            e)
              A Company stock purchase plan permitting employees to make an annual
              investment
              of up to $25,000 in Company stock with a 5% discount frommarket value
              on the
              purchase price.

             

          

          9.  
            Board Seats.  Following commencement of employment, the Board
            of the Bank and the Company 

          will
            appoint you as a member of each Board of
            Directors.

        

      

    

     

    10. Severance
      Protection.  Separately, we will enter into a Severance Agreement
      between you and the Company and you and the Bank ("Severance
      Agreement").  Such Severance Agreement will provide that if your
      employment is terminated involuntarily (absent "cause") within the
      first year of employment, you will be paid a severance payment equal to 24
      months of base salary plus bonus, with the bonus amount calculated as 70% of
      such base salary (assumes a bonus calculated on 100% of Target
      performance).  In turn, you will agree not to compete with the
      business of the Bank and the Company for a period of fifteen (15) months
      following your date of termination of employment within 25
      miles of any Bank branch office.  After one year
      of employment, but less than three years, such severance payment amount will
      be
      equal to 21 months of base salary plus bonus, and will be calculated based
      upon
      the average base salary plus the average bonus paid for such prior two year
      period.  After three years of employment, such severance payment
      amount will be equal to 18 months of base salary plus bonus, and will be
      calculated based upon the average base salary plus the average bonus paid for
      such prior three year period.  Also, as will be detailed
      more fully in the Severance Agreement, upon termination of employment following
      a change in control transaction, you will receive a severance benefit equal
      to
      2.99 times your five year average annualized taxable compensation calculated
      in
      accordance with Section 280G of the Internal Revenue Code of 1986, as amended
      (and comparable to the change in control benefits payable to other senior
      officers of the Company).

     

    11. Relocation
      Assistance.  To assist you in the relocation of you and your family,
      the Bank will directly 

    pay
      for the following:

     

    a)
      The realtor commission on the sale of your current house.  Please
      exclude the Company and the Bank from payment of a real estate commission under
      any broker listing agreements that you sign.  We will reserve the
      right to purchase your home at 94% of the average of two current market
      appraisals.

     

    b)
      Customary closing costs on the purchase of your new home (excluding any interest
      buy-down points on the purchase of a new home).

     

    c)
      Customary closing costs on the sale of your current home (excluding
      any “points” paid by the seller on the sale of the home).

     

    d)
      The reasonable moving expenses associated with your household goods packing
      and
      relocation. Please provide us with three (3) written estimates.

    
      
        

      

    

     

    e)
      Temporary housing expenses associated with your relocation anticipated to be
      for
      a period not to exceed four (4) months.

     

    f)
      Reimbursement for your periodic travel expense to and from your current home
      while living in temporary housing.

     

    g)
      If you relocate your family to New Jersey but find yourself also paying the
      costs of a home in Albany, New York, pending its sale, we will assist with
      the
      monthly carrying costs of the New York home through reimbursement of real estate
      taxes, utilities, homeowner’s insurance and mortgage interest expense for a
      period of up to nine months. Also, the Bank will assist you by providing a
      “bridge” loan (subject to the limitations under Regulation ‘O’) as may be
      necessary to assist you in the purchase of a new home before the sale of your
      current home.  Also, we will reimburse you for any interest charges
      related to this bridge loan from Sun National Bank or any third party lender
      (related to interest charges applicable to up to $250,000 of loan principal)
      pending the sale of your current home for a period of up to nine
      months.

     

    12. Amendment
      and Governing Law.  This letter agreement may not be amended or
      modified except by an express written agreement signed by you and a duly
      authorized officer of the Company.  The terms of this letter agreement
      and the resolution of any disputes will be governed by New Jersey
      law.

     

    13. Contingencies.  This
      offer of employment is subject to our receipt of satisfactory results regarding
      customary pre-employment drug screen testing, a criminal background review
      and a
      financial credit review, and final approval of this offer by the Board of
      Directors of the Company and the Bank.

    

    We
      hope that you find the foregoing offer of employment in accordance with our
      discussions and understandings. You may indicate your acceptance of these terms
      and our offer by signing and dating the enclosed duplicate original of this
      letter and returning it to me. Please note that the terms of this offer will
      be
      the subject of public disclosure at a time and in a manner determined by the
      Company.

     

    We
      look forward to having you join our management team as soon as
      possible.   If you have any questions, please call me directly at
      (856)794-4727.

    

    Very
      truly yours,

    

    /s/
      Sidney R.
      Brown

    Sidney
      R. Brown

    Vice
      Chairman, Treasurer and Secretary

    

    Attachment:

    Chart
      related to Annual Performance

    and
      related Bonus, Option and Stock Awards.

     

    I
      have read and accept this offer of employment on the terms detailed
      herein.  My anticipated starting date will be January 7,
      2008.

     

    
      /s/
        Thomas  X. Geisel

      Mr.
        Thomas X. Geisel

       

    

    Dated:
      December 5, 2007

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