Document:

EX-10.5

 Exhibit 10.5 

SUN BANCORP, INC. 

DIRECTORS STOCK PURCHASE PLAN 

As Amended and Restated 
  

	1.	Purpose and Plan Summary. 

 The Sun Bancorp, Inc. Directors Stock Purchase Plan (the
“Plan”) offers a convenient and economical way for its directors and emeritus directors to increase their ownership of shares of the common stock of Sun Bancorp, Inc. (“Common Stock”). Once a director or emeritus director of Sun
Bancorp, Inc. (the “Company”) or Sun National Bank is enrolled as a participant in the Plan (collectively, the “Participants,” each a “Participant”), contributions of up to $2,000 per month may be made to the Plan and
such funds will be used to purchase Common Stock under the terms of the Plan. Participation in the Plan is strictly voluntary, and the Participant will pay 95% of the purchase price of the Common Stock purchased under the Plan. The Participant pays
no brokerage commissions or service charges for purchases made under the Plan. Any such charges will be paid by the Company. 
  

	2.	Administration. 

 The Company will serve as the Plan Administrator (“Plan
Administrator”) to administer the Plan and to make purchases of Common Stock as agent for the Participants. The Board of Directors of the Company (“Board of Directors”) has the authority to make changes in the Plan and to appoint or
to remove the Plan Administrator, at any time. Until changed by further notice, any notices or communications to the Plan should be directed to the Plan Administrator, Directors Stock Purchase Plan, c/o Corporate Secretary, Sun Bancorp, Inc., 226
Landis Avenue, Vineland, New Jersey 08360. 
 If a director or emeritus director decides to participate in the Plan, the Plan Administrator
will keep a continuous record of his/her participation and send him/her a statement of his/her account under the Plan for each calendar month in which a purchase of Common Stock under his/her Plan account occurs. The Plan Administrator will also
hold and act as custodian of shares purchased under the Plan. Certificates for shares purchased under the Plan will be held by the Plan Administrator. The number of shares credited to a Participant’s account under the Plan will be shown on
his/her statement of account. However, certificates for whole shares credited to a Participant’s account under the Plan will be issued to him/her upon his/her written request to the Plan Administrator, at the address set forth above.
Certificates for fractional share interests will not be issued. 
 The Plan Administrator reserves the right to interpret the provisions of
the Plan. The Plan Administrator may establish such procedures and make such other provisions for the administration and operation of the Plan as it deems appropriate to give effect to the Plan’s purpose. The Plan Administrator may rely on the
authority and correctness of written instructions received from the Company and Participants in administering the Plan. 
  

	3.	Eligibility. 

 All directors and emeritus directors of the Company and its subsidiaries
that, along with the Company, are members of a controlled group of corporations (as defined in Section 1563 of the Internal Revenue Code of 1986, as amended (the “Code”)), are eligible to participate in the Plan. 

 

	4.	Election to Participate. 

 An eligible director or emeritus director may join the Plan by completing the
Authorization Form provided by the Plan Administrator and returning it to the Plan Administrator at the address noted at Section 2 herein. Authorization Forms will be furnished to eligible directors and emeritus directors at any time upon
request to the Company. An eligible director or emeritus director may join the Plan at any time to become effective as of the first day of the next calendar month after the request is received by the Plan Administrator (the “Enrollment
Date”). 

	5.	Participant Contributions. 

 The Authorization Form directs the Company to pay to the
Plan Administrator the amount that the Participant elects to pay directly to the Company for investment in Common Stock under the Plan. The Authorization Form also directs the Plan Administrator to use these payments for the purchase of shares of
the Common Stock. 
 After an Authorization Form has been received by the Plan Administrator, the Company will pay to the Plan Administrator
all future payments received by the Company for participation under the Plan. The amounts paid by all Participants will be pooled and forwarded to the Plan Administrator to purchase shares of Common Stock for the accounts of all Participants under
the Plan not less frequently than monthly prior to the next “Investment Period.” The “Investment Period” shall consist of the calendar month following each receipt of funds by the Plan Administrator, during which such funds are
invested by the Plan Administrator in Common Stock of the Company. To the extent administratively feasible, such funds shall be invested on the first business day of each Investment Period, or as soon as practical thereafter. No interest will be
paid by the Company or the Plan Administrator on amounts held on behalf of a Participant awaiting investment. 
 The Plan shall remain in
effect for an indefinite period of time until the total shares purchased under the Plan equals the total shares of Common Stock authorized under the Plan or the Plan is terminated by the Company, whichever is earlier. Participant contributions may
be made in even multiples of $5.00 from a minimum of $10.00 to a maximum of $2,000 per month. No interest will be paid on Participant contributions awaiting investment. The amount of a Participant’s contributions can be revised, changed or
terminated by the Participant each month. 
  

	6.	Stock Purchase Price. 

 A Participant shall be granted an option to purchase Common Stock
(an “Option”) as of the last business day of each calendar month (“Option Grant Date”) at an option exercise price equal to 95% of the average purchase price of the Common Stock purchased during the Investment Period immediately
following the Option Grant Date. Any fraction of a cent will be rounded to the nearest cent. Options granted hereunder shall be nontransferable. 
  

	7.	Number of Shares Purchased. 

 During each Investment Period, accumulated Participant
contributions from all Participants and cash dividends, if any, held under the Plan for all Participants will be pooled and used to purchase shares of Common Stock in the open market, or otherwise, for the accounts of the Participants. The Company
shall transmit sufficient funds to the Plan Administrator in addition to accumulated Participant contributions and cash dividends necessary to permit the Plan Administrator to purchase Common Stock during each Investment Period without regard to any
purchase price discounts in accordance with the Plan. The maximum number of whole shares will be purchased. Any Participant contributions and cash dividends remaining after purchase of such maximum number of whole shares will be retained and applied
to the purchase of shares during the next Investment Period. Each Participant’s account will be credited with his/her pro rata share (computed to four decimal places) of the shares purchased and any additional Participant
contributions and cash dividends which have been accumulated. The number of shares credited to each Participant’s account will depend upon the amount of the Participant’s contributions and cash dividends and the option exercise price
determined as provided under the heading “Stock Purchase Price.” 
  

	8.	Fees and Expenses. 

 Participants will incur no brokerage commissions or service charges
for purchases of Common Stock made under the Plan. Certain charges as described under the heading “Withdrawal” may be incurred upon a Participant’s withdrawal from the Plan or upon termination of the Plan. The Plan Administrator may
deduct expenses from the Plan to the extent that such expenses have not been paid directly by the Company; provided that not less than 15 days written notice of such intent to make such deductions is furnished to the Company. 

  
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	9.	Withdrawal and Distribution of Stock Certificates. 

 A Participant may withdraw from the
Plan at any time to be effective as of the first day of any calendar quarter (i.e., January 1, April 1, July 1 and October 1) following receipt of such notice. Upon termination of service with the Company or its subsidiaries as a
director or emeritus director, participation under the Plan shall immediately cease and no unexercised options to purchase Common Stock under the Plan shall be deemed exercisable. Termination of service shall include termination as a result of death
or disability of the Participant. Within 10 business days following a Participant’s termination of service with the Company or its subsidiaries, the Participant shall submit to the Plan Administrator a distribution form requesting
withdrawal from the Plan and distribution of all of the Participant’s assets under the Plan either in the form of cash or whole shares of Common Stock. If such withdrawal request is not received by the Plan Administrator within 10 business
days of the Participant’s termination of service with the Company or its subsidiaries, the Plan Administrator will nevertheless process such Participant’s withdrawal, and the Participant will receive such distribution in the form of shares
of Common Stock issued in book entry. 
 To withdraw from the Plan, a Participant must notify the Plan Administrator in writing of his/her
withdrawal at the address noted at Section 2 herein. In the event a Participant withdraws, or in the event of the termination of the Plan, certificates for whole shares credited to the account of the withdrawing Participant, or all Participants
in the case of a termination of the Plan, will be delivered by the Plan Administrator and a cash payment will be made for the sale price (less brokerage commission and transfer taxes, if any) of any fractional share interests and any additional
Participant contributions credited to the account of the withdrawing Participant, or all Participants in the case of a termination of the Plan. The Plan Administrator may establish such equitable arrangements for the sale of fractional share
interests as it shall deem appropriate. As an alternative to receiving certificates for whole shares, a Participant may request the Plan Administrator to sell such shares to be distributed under the Plan. The proceeds from the sale of such shares,
less any brokerage commissions and any transfer taxes, will be remitted to the Participant. The Plan Administrator may accumulate requests to sell Common Stock under the Plan, and sales transactions, if necessary, will occur in the subsequent
Investment Period from which they are received, as determined by the Plan Administrator. Alternatively, Common Stock directed for sale during an Investment Period in which there is also a request to purchase Common Stock during such Investment
Period may be matched by the Plan Administrator for the benefit of Plan Participants (both sellers and purchasers) without the need to execute such transaction on the national securities exchange in which such Common Stock trades. The trade price on
such matched transactions will be deemed to equal the average purchase price paid by the Plan Administrator for all other Common Stock purchased by the Plan Administrator under the Plan during that Investment Period. 

If a request by a Participant to withdraw from the Plan is received by the Plan Administrator prior to the first day of any calendar quarter,
the amount of the Participant contributions scheduled to be invested during the next Investment Period will not be so invested. In such event, no subsequent Participant contributions will be accepted from such Participant, unless he/she completes a
new Authorization Form. 
 Notwithstanding the foregoing, upon written request to the Plan Administrator, a Participant may request the
distribution of shares held under the Plan in stock certificates of not less than 100 share increments at any time. Alternatively, a Participant may request that such distribution be made in the form of cash, in which case such distribution of cash
will be made in accordance with the procedures regarding the sale of shares as noted above in this Section 9 of the Plan. Such distribution of Plan shares or cash in accordance with this paragraph shall not be deemed a “Withdrawal”
under the Plan. Such distributions, whether in the form of stock certificates or cash, may be requested at any time to be effective as of the first day of any calendar quarter (i.e., January 1, April 1, July 1 and October 1)
following receipt of such notice. 
  

	10.	Voting of Shares. 

 Each Participant will have the authority to direct the Plan
Administrator in the manner of voting the number of whole shares and fractional shares of Common Stock held in his/her account. The Company will pay for or reimburse the Plan Administrator for the expenses associated with solicitation of voting
proxies and distribution of related materials performed by the Plan Administrator. The aggregate number of remaining shares representing shares for which no Participant voting instructions are received in a timely manner shall not be voted by the
Plan Administrator. 

  
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	11.	Cash Dividends. 

 Cash dividends paid on shares credited to a Participant’s account
will be retained in the Participant’s account and invested in Common Stock as soon as practicable following the dividend payment date. Such cash dividends (less applicable tax withholding that may be required) will be aggregated with each
Participant’s contributions and invested in accordance with Sections 6 and 7 herein. Dividend amounts payable to Participants will be rounded to the nearest whole cent in the case of fractional share interests. 

 

	12.	Stock Dividends, Stock Splits, or Rights Offering. 

 Any shares distributed by the
Company as a stock dividend on shares credited to a Participant’s account under the Plan, or upon any split of such shares, will be credited to his/her account. In a rights offering, the Plan Administrator will sell the rights to which a
Participant is entitled by virtue of the shares of Common Stock allocated to his/her account under the Plan and the proceeds will be credited to his/her account and applied to the purchase of shares during the next Investment Period. 

 

	13.	Purchases under the Plan. 

 The Plan Administrator shall use all funds received under the
Plan for the purchase of the Company’s Common Stock in the open market; or upon not less than 10 days written notice from the Company, such funds shall be utilized for the purchase of shares directly from the Company. The price, timing and
other matters related to the execution and processing of such purchases shall be determined or directed by the Plan Administrator; provided that, to the extent administratively feasible, such purchases of Common Stock shall be made on the first
business day of each Investment Period, as provided at Section 5 herein. 
  

	14.	Amendment and Termination. 

 Although the Company intends to continue the Plan until the
total number of shares authorized under the Plan shall have been purchased by Participants, the Company reserves the right to suspend, modify or terminate the Plan at any time. Any such suspension, modification or termination shall not affect a
Participant’s right to receive shares of Common Stock already purchased for him/her (except that the Company may take any action necessary to comply with applicable law). Upon the termination of the Plan, the Company shall return to
Participants any uninvested accumulated Participant contributions as soon as practicable. 
  

	15.	Reports. 

 Each Participant will receive a statement of his/her account not less than
four times per year. Upon written request, a Participant may receive an account statement for each calendar month in which he/she purchases Common Stock under the Plan. Participants will also receive communications sent by the Company to other
stockholders, including the Annual Report of the Company, and its Notice of Annual Meeting and Proxy Statement. Participants will receive information necessary for reporting income realized by them under the Plan to the Internal Revenue Service.

  

	16.	Tax Withholding. 

 Taxes which may be required to be withheld with respect to cash
dividends received under the Plan will reduce the sums attributable to such dividends available for investment under the Plan. 
  

	17.	Related Matters. 

 The Company and the Plan Administrator in administering the Plan will
not be liable for any act done in good faith or for the good faith omission to act, including, without limitation, any claim of liability arising out of failure to terminate a Participant’s account upon such Participant’s death or
judicially declared incompetency prior to receipt by the Plan Administrator of timely notice in writing of such death or incompetency or with respect to the prices at which shares are purchased for the Participant’s account, and the times when
such purchases are made, or with respect to any loss or fluctuation in the market value after purchase of shares of Common Stock. 

  
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 A Participant’s investment in shares acquired under the Plan is not different from direct
investment in shares of Common Stock of the Company, except to the extent that the purchase price of such Common Stock paid by the Participant shall be equal to 95% of the actual purchase price of such Common Stock by the Plan Administrator. The
Participant bears the risk of loss and realizes the benefits of any gain from market price changes with respect to all such shares held by him/her in the Plan, or otherwise. 
  

	18.	Limitations on Participation. 

 Participants under the Plan who are deemed to be subject
to the reporting and liability provisions of Section 16 of the Securities and Exchange Act of 1934 (“1934 Act”) and the rules and regulations promulgated thereunder (“Executive Officers”) shall be subject to the following
additional provisions: 
 a. Common Stock purchased under the Plan shall be held for a minimum of six months following the date of such
purchase under the Plan. 
 b. Such Executive Officers who suspend monthly Participant contributions under the Plan may not commence future
participation under the Plan for at least six months from the date of such cessation of participation. 
 Such additional limitations
related to participation by Executive Officers shall not be effective with respect to distributions made in connection with death, retirement, disability or termination of employment. Transactions of Common Stock under the Plan shall be reportable
by Executive Officers of the Company to the Securities and Exchange Commission on Form 3, 4 or 5. 
  

	19.	Duties of the Company. 

 a. The Company shall indemnify the Plan Administrator, including
reimbursement for reasonable attorneys fees and related expenses, against any liability to any Participant or Plan beneficiary for any actions taken by the Plan Administrator pursuant to the Plan and/or the Custodial Agreement, absent a finding of
gross negligence by a court of competent jurisdiction. 
 b. The Company shall deliver Participant contributions received by it to the Plan
Administrator in a timely manner. 
 c. The Plan Administrator shall be solely responsible for distribution of all necessary regulatory
reports and filings related to administration of the Plan, including the timely distribution of IRS Form 1099-Div, as may be required. 
 d.
The Company shall be solely responsible for ensuring compliance by the Plan related to matters involving Federal or state securities laws and regulations. The Plan Administrator may rely on the advice or instructions received from the Company
related to such matters. 
  

	20.	Shareholder Ratification of Plan. 

 The Company may submit the Plan for approval by the
shareholders of the Company if it is deemed necessary or appropriate. 
  

	21.	Transferability. 

 No Option may be transferred, assigned, pledged, or hypothecated
(whether by operation of law or otherwise), and no Option shall be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of an Option, or levy of attachment or similar
process upon the Option not specifically permitted herein shall be null and void and without effect. 

  
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	22.	Adjustment Provisions. 

 The aggregate number of shares of Common Stock with respect to
which Options may be granted, the aggregate number of shares of Common Stock subject to each outstanding Option, and the option price per share of each Option shall all be proportionately adjusted as the Company deems appropriate with respect to any
increase or decrease in the number of shares of issued Common Stock resulting from a subdivision or consolidation of shares, whether through reorganization, recapitalization, stock split-up, stock distribution or combination of shares, or the
payment of a share dividend or other increase or decrease in the number of such shares outstanding effected without receipt of consideration by the Company. 
  

	23.	Dissolution, Merger and Consolidation. 

 Upon the dissolution or liquidation of the
Company, or upon a merger or consolidation of the Company in which the Company is not the surviving corporation, each Option granted hereunder shall expire as of the effective date of such transaction. 

 

	24.	Limitation on Options. 

 Notwithstanding any other provisions of the Plan, no Participant
shall be granted an Option under the Plan which permits his/her rights to purchase stock under the Plan at a rate which exceeds $25,000 of fair market value of such stock (determined at the time of the grant of such Option) for each calendar year in
which such Option is outstanding at any time. Any Option granted under the Plan shall be deemed to be modified to the extent necessary to satisfy this Section. 

  
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	25.	Miscellaneous. 

 a. Legal and Other Requirements. The obligations of the Company to sell
and deliver Common Stock under the Plan shall be subject to all applicable laws, regulations, rules and approvals, including but not by way of limitation, the effectiveness of a registration statement under the Securities Act of 1933 if deemed
necessary or appropriate by the Company. 
 b. No Obligation to Exercise Options. The granting of an Option shall impose no obligation upon a
Participant to exercise such Option; except, however, the decision by a Participant to withdraw from the Plan and not exercise any Options granted must comply with Section 9 herein. 

c. Right to Terminate Service. Nothing in the Plan or any agreement entered into pursuant to the Plan shall confer upon any Participant the
right to continue in the employment or service of the Company or any subsidiary or affect any right which the Company or any subsidiary may have to terminate the employment of such Participant. 

d. Rights as a Shareholder. No Participant shall have any right as a shareholder unless and until certificates for shares of Common Stock are
issued to him/her or credited to his/her account maintained by the Plan Administrator. 
 e. Applicable Law. All questions pertaining to the
validity and administration of the Plan and Options granted hereunder shall be determined in conformity with the laws of the State of New Jersey, except to the extent that federal law shall be applicable. 

 

	26.	Maximum Plan Purchase Limitations. 

 Effective as of January 1, 2013, the aggregate
number of shares of Common Stock available for future grant as Options pursuant to Section 6 shall not exceed 200,000 shares, subject to adjustment pursuant to Section 22 hereof. Shares of Common Stock acquired pursuant to the Plan may be
authorized but unissued shares, shares now or hereafter held in the treasury of the Company or shares purchased on the open market. In the event that any Options granted under Section 6 expire unexercised, or are terminated, surrendered or
canceled without being exercised, in whole or in part, for any reason, the number of shares of Common Stock theretofore subject to such Option shall again be available for grant as an Option and shall not reduce the aggregate number of shares of
Common Stock available for grant as such Options under the Plan. 

  
 7EX-10.24

 Exhibit 10.24 

SUN NATIONAL BANK 

MANAGEMENT CHANGE IN CONTROL SEVERANCE AGREEMENT 

AS AMENDED AND RESTATED 
 THIS
MANAGEMENT CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) entered into this 1st day of June 2010 (“Effective Date”), by and between Sun National Bank (the “Bank”) and Ms. Michele Estep (the
“Executive”). 
 WHEREAS, the Executive is currently employed by the Bank as Executive Vice President and Chief Administrative
Officer, and is experienced in all phases of the business of the Bank; and 
 WHEREAS, the parties desire by this writing to set forth the
continuing rights and responsibilities of the Bank and Executive if the Bank should undergo a change in control (as defined hereinafter in the Agreement) after the Effective Date or the Executive’s employment with the Bank is otherwise
terminated. 
 NOW, THEREFORE, each party, intending to be legally bound, does hereby agree, as follows: 

1. Employment. The Executive is employed in the capacity as Executive Vice President and Chief Administrative Officer of the Bank. The
Executive’s employment shall be for no definite period of time and the Executive or the Bank may terminate such employment relationship at any time for any reason or no reason. The employment at-will relationship remains in full force and
effect regardless of any statements to the contrary made by company personnel or set forth in any documents other than those explicitly made to the contrary and signed by the President of the Bank. The Executive shall render such administrative and
management services to the Bank and the Sun Bancorp, Inc., the parent bank holding company (“Company”) as are currently rendered and as are customarily performed by persons situated in a similar executive capacity. The Executive’s
other duties shall be such as the Board of Directors for the Bank (the “Board of Directors” or “Board”) may from time to time reasonably direct, including normal duties as an officer of the Bank and the Company. 

2. Term of Agreement. The term of this Agreement shall be for the period commencing on the Effective Date and ending December 31,
2011 thereafter (“Term”). Additionally, as of each December 31 following the Effective Date, the Term of this Agreement shall be extended for an additional period such that the Term of the Agreement as of such date of extension shall
be for a new period of twenty-four (24) months thereafter; provided, however, such Term shall not be automatically extended as of December 31 of any given year if the Board shall give the Executive written notice not later than the
October 1 immediately prior to such December 31 date that the Board has made a determination by an affirmative vote of not less than a majority of the members of the full Board then in office that such Agreement shall not be extended
thereafter, absent a future affirmative determination and resolution of the Board of Directors that the Term of such Agreement shall be extended beyond the then in effect expiration date of such Agreement. The Term shall refer to the initial Term or
any subsequent extension of such Term thereafter. 
 3. Termination of Employment in Connection with or Subsequent to a Change in
Control. 
 (a) Notwithstanding any provision herein to the contrary, in the event of the involuntary termination of Executive’s
employment with the Bank during the Term of this Agreement within 18 months following any Change in Control of the Company or Bank, absent termination for Just Cause, Executive shall be paid an amount equal to the product of (1.50) times the
Executive’s aggregate taxable compensation paid by the Company and the Bank as reported, or to be reported, on the IRS Form W-2, box 1, or IRS Form 1099 for the most recently completed calendar year ending on, or before, the date of such Change
in Control (which compensation amount for such year shall be annualized if during such year such term of employment is less than for the full calendar year). Said sum shall be paid by the Bank to the Executive in one (1) lump sum not later than
the date of Executive’s termination of service; provided that the Executive shall comply with the limitations and restrictions set forth at Sections 4(b) and 4(c), herein. 

In addition, the Executive and his dependents shall be eligible to continue coverage under the Bank’s (or its successor’s) medical
and dental insurance reimbursement plans similar to that in effect on the date of Termination of Employment for a period of not less than 18 months following the date of such Termination of Employment at the participants’ election and expense.

 Notwithstanding the forgoing, all sums payable hereunder shall be reduced in such manner and to
such extent so that no such payments made hereunder when aggregated with all other payments to be made to the Executive by the Bank or the Company shall be deemed an “excess parachute payment” in accordance with Section 280G of the
Internal Revenue Code of 1986, as amended (“Code”), and thereby subject the Executive to the excise tax provided at Section 4999(a) of the Code. The term “Change in Control” shall refer to (i) the sale of all, or a
material portion, of the assets of the Company or the Bank; (ii) the merger or recapitalization of the Company or the Bank whereby the Company or the Bank is not the surviving entity; (iii) a change in control of the Company or the Bank,
as otherwise defined or determined by the Office of the Comptroller of the Currency or regulations promulgated by it; or (iv) the acquisition, directly or indirectly, of the beneficial ownership (within the meaning of that term as it is used in
Section 13(d) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder) of twenty-five percent (25%) or more of the outstanding voting securities of the Company or
the Bank by any person, trust, entity or group. The term “person” means an individual other than the Executive, or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated
organization or any other form of entity not specifically listed herein. The provisions of this Section 3(a) shall survive the expiration of this Agreement occurring after a Change in Control. 

(b) Notwithstanding any other provision of this Agreement to the contrary, Executive may voluntarily terminate his employment during the Term
of this Agreement within 18 months following a Change in Control of the Company or Bank, and Executive shall thereupon be entitled to receive the payment described in Section 3(a) of this Agreement, upon the initial occurrence, or within 90
days thereafter, of any of the following events, which have not been consented to in advance by the Executive in writing: 
 (i) a material
diminution in the Executive’s base compensation; 
 (ii) a material diminution in the Executive’s authority, duties, or
responsibilities; 
 (iii) a material diminution in the budget over which the Executive retains authority; 

(iv) the Executive would be required to move his personal residence or perform his principal executive functions more than thirty-five
(35) miles from the Executive’s primary office as of the date of the signing of this Agreement; or 
 (v) any other action or
inaction that constitutes a material breach by the Bank of this Agreement. 
 The provisions of this Section 3(b) shall survive the
expiration of this Agreement occurring after a Change in Control. 
 Notwithstanding the foregoing, in the event that the Executive gives
notice to the Bank with respect to his Termination of Employment in accordance with Section 3(b), the Bank will have a period of 30 calendar days following notice from the Executive during which period the Bank may remedy the condition giving
rise to such right to terminate employment. In the event that the Bank shall, in good faith remedy such circumstances giving rise to such right to terminate employment within such 30 day period, such notice of Termination of Employment shall be
deemed withdrawn and not be deemed effective and the Bank shall not be required to pay the amount due to the Executive under Section 3(a) with respect to such event. 

4. Other Changes in Employment Status. 

(a) Except as provided for at Section 3, herein, the Board of Directors may terminate the Executive’s employment at any time with or
without Just Cause within its sole discretion. This Agreement shall not be deemed to give the Executive any right to be retained in the employment or service of the Bank, or to interfere with the right of the Bank to terminate the employment of the
Executive at any time for any reason. In the event that the Executive’s employment with the Bank is terminated by the Bank for reasons other than in conjunction with or within eighteen months following a Change in Control (in accordance with
Section 3 herein) or for Just Cause during the Term of the Agreement, the Executive shall receive a lump-sum severance payment (“Severance Payment”) equal to fifty percent (50%) times the Executive’s highest annualized base
salary in effect during the twelve (12) month period prior to such date of termination of employment, plus an additional amount equal to 7.69% of such highest annualized base salary for each completed year of employment with the Bank in excess
of two years of completed employment; provided, however, such Severance Payment shall not exceed seventy-five percent (75%) of such highest annualized base salary; and, further, provided that the Executive shall comply with the limitations and
restrictions set forth at Sections 4(b) and 4(c), herein. In addition, the Executive and his dependents shall be eligible to continue coverage under the Company’s or the Bank’s medical and dental insurance reimbursement plans similar to
that in effect on the date of termination of employment for a period of eighteen months following the date of termination of employment at the Company’s expense. Such Severance Payment shall be made within 45 days of the Executive’s
Termination of Employment and in accordance with the limitations set forth at Section 5(b) herein. The Executive shall have no right to receive compensation or other benefits (including Severance Payments) for any period after termination for
Just Cause. Termination for “Just Cause” shall include, but is not limited to, termination because of the Executive’s personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to
perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order issued by a federal banking regulatory having regulatory authority over the Bank or Parent,
or a material breach of any provision of the Agreement. 

  
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 (b) Following termination of employment, the Executive will not, without the express written
consent of Bank, directly or indirectly communicate or divulge to, or use for his own benefit or for the benefit of any other person, firm, association, or corporation, any of the trade secrets, proprietary data or other confidential information
communicated to or otherwise learned or acquired by the Executive from the Parent, the Bank, or any subsidiary of such entities, except that Executive may disclose such matters to the extent that disclosure is required by a court or other
governmental agency of competent jurisdiction. 
 (c) During the six month period following: (1) termination of employment in accordance
with Section 4(a), absent termination for Just Cause, or (2) termination of employment in conjunction with or within eighteen months following a Change in Control (in accordance with Section 3 herein): 

(i) Executive will not contact (with a view toward selling any product or service competitive with any product or service sold or proposed to
be sold by the Parent, the Bank, or any subsidiary of such entities) any person, firm, association or corporation (A) to which the Parent, the Bank, or any subsidiary of such entities sold any product or service, (B) which Executive
solicited, contacted or otherwise dealt with on behalf of the Parent, the Bank, or any subsidiary of such entities, or (C) which Executive was otherwise aware was a client of the Parent, the Bank, or any subsidiary of such entities. Executive
will not directly or indirectly make any such contact, either for his own benefit or for the benefit of any other person, firm, association, or corporation. 

(ii) Executive hereby agrees that he shall not engage in providing professional services or enter into employment as an employee, director,
consultant, representative, or similar relationship to any 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
the State of New Jersey, and is within 50 miles of the home office of the Bank located in Vineland, New Jersey or is within 15 miles of any office of the Parent, the Bank, or any subsidiary of such entities existing as of the date of such
termination of employment. 
 (iii) Executive hereby agrees that he shall not, on his own behalf or on behalf of others, employ, solicit, or
induce, or attempt to employ, solicit or induce, any employee of the Parent, the Bank, or any subsidiary of such entities, for employment with any financial services enterprise (including but not limited to a savings and loan association, bank,
credit union, or insurance company), nor will the Executive directly or indirectly, on his behalf or for others, seek to influence any employee of the Parent, the Bank, or any subsidiary of such entities to leave the employ of the Parent, the Bank,
or any subsidiary of such entities. 
 (iv) Executive will not make any public statements regarding the Parent, the Bank, or any subsidiary
of such entities without the prior consent of the Parent or the Bank, and the Executive shall not make any statements that disparage the Parent, the Bank, or any subsidiary of such entities or the business practices of the Parent, the Bank, or any
subsidiary of such entities. 
 (v) Executive acknowledges and agrees that irreparable injury will result to the Bank in the event of a
breach of any of the provisions of Sections 4(b) and 4(c) (the “Designated Provisions”) and that the Bank will have no adequate remedy at law with respect thereto. Accordingly, in the event of a material breach of any Designated Provision,
and in addition to any other legal or equitable remedy the Bank may have, the Bank shall be entitled to the entry of a preliminary and a permanent injunction (including, without limitation, specific performance by a court of competent jurisdiction
located in Cumberland County, New Jersey, or elsewhere), to restrain the violation or breach thereof by Executive, and Executive shall submit to the jurisdiction of such court in any such action. 

(vi) The provisions of Sections 4(b) and 4(c) shall survive the expiration of this Agreement. 

5. Regulatory Exclusions. 

(a) Notwithstanding anything herein to the contrary, any payments made to the Executive pursuant to the Agreement, or otherwise, shall be
subject to and conditioned upon compliance with 12 USC ‘1828(k) and any regulations promulgated thereunder. 

  
 3 

 (b) This Agreement shall be amended to the extent necessary to comply with Section 409A of
the Code and regulations promulgated thereunder. Prior to such amendment, and notwithstanding anything contained herein to the contrary, this Agreement shall be construed in a manner consistent with Section 409A of the Code and the parties
shall take such actions as are required to comply in good faith with the provisions of Section 409A of the Code such that payments shall not be made to the Executive at such time if such payments shall subject the Executive to the penalty tax
under Section 409A, but rather such payments shall be made by the Bank to the Executive at the earliest time permissible thereafter without the Executive having liability for such penalty tax under Section 409A. 

(c) Notwithstanding anything herein to the contrary, if and to the extent termination payments under Section 3 shall constitute deferred
compensation within the meaning of the Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and regulations promulgated thereunder, and if the payment under Section 3 does not qualify as a short-term
deferral under Code Section 409A and Treas. Reg. §1.409A-1(b)(4) (or any similar or successor provisions), and the Executive is a Specified Employee within the meaning of Section 409A of the Code and regulations promulgated
thereunder, then the payment of such termination payments that constitute deferred compensation under Section 409A shall comply with Code Section 409A(a)(2)(B)(i) and the regulations thereunder, which generally provide that distributions
of deferred compensation (within the meaning of Code Section 409A) to a Specified Employee that are payable on account of Termination of Employment may not commence prior to the six (6) month anniversary of the Executive’s Termination
of Employment (or, if earlier, the date of the Executive’s death). Amounts that would otherwise be distributed to the Executive during such six (6) month period but for the preceding sentence shall be accumulated and paid to the Executive
on the 185th day following the date of the Executive’s Termination of Employment. 

“Specified Employee” means, for an applicable twelve (12) month period beginning on April 1, a key employee (as described
in Code Section 416(i), determined without regard to paragraph (5) thereof) during the calendar year ending on the December 31 immediately preceding such April 1. 

“Termination of Employment” shall have the same meaning as “separation from service”, as that phrase is defined in Code
Section 409A (taking into account all rules and presumptions provided for in the Code Section 409A regulations). 
 (d)
Notwithstanding the six-month delay rule set forth in Section 5(c) above: 
 (i) To the maximum extent permitted under Code
Section 409A and Treas. Reg. §1.409A-1(b)(9)(iii) (or any similar or successor provisions), the Bank will pay the Executive an amount equal to the lesser of two times (1) the maximum amount that may be taken into account under a
qualified plan pursuant to Code Section 401(a)(17) for the year in which the Executive’s Termination of Employment occurs, and (2) the sum of the Executive’s annualized compensation based upon the annual rate of pay for services
provided to the Bank for the taxable year of the Executive preceding the taxable year of the Executive in which his Termination of Employment occurs (adjusted for any increase during that year that was expected to continue indefinitely if the
Executive had not had a Termination of Employment); provided that amounts paid under this Section 5(d) must be paid no later than the last day of the second taxable year of the Executive following the taxable year of the Executive in which
occurs the Termination of Employment and such amounts paid will count toward, and will not be in addition to, the total payment amount required to be made to the Executive by the Bank under Section 3; and 

(ii) To the maximum extent permitted under Code Section 409A and Treas. Reg. §1.409A-1(b)(9)(v)(D) (or any similar or successor
provisions), within ten (10) days of the Termination of Employment, the Bank will pay the Executive an amount equal to the applicable dollar amount under Code Section 402(g)(1)(B) for the year of the Executive’s Termination of
Employment; provided that the amount paid under this Section 5(d) will count toward, and will not be in addition to, the total payment amount required to be made to the Executive by the Bank under Section 3. 

(e) To the extent that any reimbursements or in-kind payments are subject to Code Section 409A, then such expenses (other than medical
expenses) must be incurred before the last day of the second taxable year following the taxable year in which the termination occurred, provided that any reimbursement for such expenses be paid before the Executive’s third taxable year
following the taxable year in which the termination occurred. For medical expenses, to the extent the Agreement entitles the Executive to reimbursement by the Bank of payments of medical expenses incurred and paid by the Executive but not reimbursed
by a person other than the Bank and allowable as a deduction under Code Section 213 (disregarding the requirement of Code Section 213(a) that the deduction is available only to the extent that such expenses exceed 7.5 percent of adjusted
gross income), then the reimbursement applies during the period of time during which the Executive would be entitled (or would, but for the Agreement, be entitled) to continuation coverage under a group health plan of the Bank under Code
Section 4980B (COBRA) if the Executive elected such coverage and paid the applicable premiums. 

  
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 6. No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any
payment of severance benefits if he or she accepts other compensation for employment with another entity. 
 7. Successors and
Assigns. 
 (a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Bank which shall
acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Bank. 

(b) The Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of
the Bank. 
 8. Amendments. No amendments or additions to this Agreement shall be binding upon the parties hereto unless made in
writing and signed by both parties, except as herein otherwise specifically provided. 
 9. Applicable Law. This agreement shall be
governed by all respects whether as to validity, construction, capacity, performance or otherwise, by the laws of the State of New Jersey, except to the extent that Federal law shall be deemed to apply. 

10. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision
shall not affect the validity or enforceability of the other provisions hereof. 

  
 5 

 11. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or
the breach thereof, shall be settled by arbitration in accordance with the rules then in effect of the district office of the American Arbitration Association (“AAA”) nearest to the home office of the Bank, and judgment upon the award
rendered may be entered in any court having jurisdiction thereof, except to the extend that the parties may otherwise reach a mutual settlement of such issue. The Bank shall reimburse Executive for all reasonable costs and expenses, including
reasonable attorneys’ fees, arising from such dispute, proceedings or actions, following the delivery of the decision of the arbitrator that the Executive’s claim has merit, whether or not the arbitrator finds in favor of the Executive.
The provisions of this Section 11 shall survive the expiration of this Agreement. 
 12.
Non-Disclosure. Executive will not, during or after the Term of this Agreement, directly or indirectly, disseminate or disclose to any person, firm or entity, except to his or her legal advisor, the
terms of this Agreement without the written consent of the Bank. 
 13. Release in Favor of the Company and the Bank . If the
Executive is due to receive a payment by the Bank in accordance with Sections 3 or 4 of this Agreement upon a Termination of Employment, the Executive shall within 35 calendar days of such Termination of Employment, execute and deliver to the Bank a
full release in favor of the Company, the Bank, their respective affiliates and subsidiaries, and their respective officers and directors, which release shall (i) be in form and content which is fully compliant with all of those provisions of
law to which the release pertains, and reasonably satisfactory to counsel to the Bank; (ii) cover all actual or potential claims arising from the Executive’s employment with the Company, the Bank, their respective affiliates and
subsidiaries, and the termination of such employment with all such entities; and (iii) be prepared, reviewed and executed in a manner which is consistent with all requirements of law, including, without limitation, the Age Discrimination in
Employment Act and the Older Workers Benefit Protection Act. Notwithstanding the foregoing, such release shall not apply to (i) earned but unpaid salary, (ii) rights to vested benefits under employee benefit plans, (iii) rights to
benefits as a former employee (including but not limited to insurance continuation and/or conversion rights under group medical, life and disability insurance plans), (iv) rights to continuing coverage under directors’ and officers and
other errors and omissions insurance as well as rights to indemnification under applicable charter and by-law provisions or corporate policy; (v) rights in respect of outstanding stock options that are exercisable following termination of
employment in accordance with the terms of such options, (vi) rights as a shareholder or customer of the Company, the Bank or any affiliate and (vii) rights under this Agreement. 

14. Entire Agreement. This Agreement together with any understanding or modifications thereof as agreed to in writing by the parties,
shall constitute the entire agreement between the parties hereto and shall supersede any prior agreements with respect to the matters set forth herein, including the Employment Agreement between the Bank and the Executive dated March 31, 2008
and the letter of employment between the Bank and the Executive dated February 28, 2008. 
 IN WITNESS WHEREOF, the parties have
executed this Agreement on the date first hereinabove written. 
  

			
	SUN NATIONAL BANK
		
	By:	 	 /s/ Thomas X. Geisel

		 	Thomas X. Geisel
		 	President and Chief Executive Officer
	
	EXECUTIVE
		
	By:	 	 /s/ Michele Estep

		 	Michele Estep

  
 6 

 ADDENDUM TO MANAGEMENT CHANGE IN CONTROL 

SEVERANCE AGREEMENT 
 THIS
ADDENDUM (the “Addendum”) to the Management Change in Control Severance Agreement, as amended and restated, dated June 1, 2010 (the “Agreement”) by and between Sun National Bank (the “Bank”) and Michele Estep
(“Executive”) is effective as of September 28, 2012 (the “Addendum Effective Date”), as follows: 
  

	1.	Section 2 of the Agreement shall be amended by the addition at the end of Section 2 of the following: 

“Notwithstanding anything herein to the contrary, as of September 28, 2012 (the “Addendum Effective Date”), the Term of
the Agreement shall end on December 31, 2013. Further, as of December 31, 2013, and each December 31 thereafter, the Term of this Agreement shall be extended for an additional period such that the Term of the Agreement as of such date
of extension shall be for a new period of one year thereafter; provided, however, such Term shall not be automatically extended as of December 31 of any given year if the Board shall give the Executive written notice not later than
October 1 immediately prior to such December 31 date that the Board or the Executive Committee of the Board has made a determination that such Agreement shall not be extended thereafter.” 

 

	2.	Section 13 of the Agreement shall be amended by the addition at the end of Section 13 of the following: 

“Notwithstanding anything herein to the contrary, such payments due in accordance with Sections 3 and 4 herein shall be made to the
Executive by the Bank on the date which is sixty (60) days following the date of Termination of Employment (the “Payment Date”); provided that the Executive shall have executed and delivered to the Bank the release required in
accordance with Section 13 herein and all permissible revocation periods have lapsed without being exercised by the Executive as of such Payment Date. If the release requirements at Section 13 have not been satisfied by the Executive as of
such Payment Date, then the obligations of the Bank to make such payment to the Executive shall be nullified at such time.” 
 Except as otherwise set
forth in this Addendum, all of the other provisions of the Agreement (as incorporated herein to the Addendum by reference) shall remain in full force and effect. 

IN WITNESS WHEREOF, the Bank has caused this Addendum to be executed by its duly authorized officers and the Executive has signed this
Addendum, each as of the 28th day of September, 2012, each such party intending to be legally bound thereby. 
  

			
	SUN NATIONAL BANK
		
	By:	 	 /s/ Thomas X. Geisel

		 	Thomas X. Geisel
		 	President and Chief Executive Officer
	
	EXECUTIVE
		
	By:	 	 /s/ Michele Estep

		 	Michele Estep

  
 7

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