Document:

EX-10.1 SUMMARY OF 2008 ANNUAL INCENTIVE PLAN

 

Exhibit 10.1

Colonial Properties Trust

Summary of 2008 Incentive Plan

          On January 31, 2008, the Executive Compensation Committee of the Board of Trustees (the
“Committee”) adopted its annual incentive plan for 2008 and set specific performance goals and
business criteria for the award of 2008 bonus payments to the executive officers identified as
named executive officers in the Company’s 2007 proxy statement. Such bonuses are expected be paid
in the first quarter of 2009. The performance goals and business criteria for 2008 are based on the
following:

	 	 	Criteria for the Chief Executive Officer (Reynolds Thompson) and the President/Chief Financial Officer (Weston Andress):

	 	•	 	Achievement of weighted three year total shareholder return as compared to an index of comparable
REITs; and
	 
	 	•	 	Achievement of weighted one year funds from operations growth per share as compared to an index of
comparable REITs.

	 	 	Criteria for the Chief Operating Officer (Paul Earle):

	 	•	 	Achievement of weighted three year total shareholder return as compared to an index of comparable REITs;
	 
	 	•	 	Achievement of weighted funds from operations as compared to an index of comparable REITS; and
	 
	 	•	 	Achievement of multifamily same store net operating income growth per share as compared to an index of
comparable REITs.

	 	 	Criteria for the Executive Vice President, Office Division (Robert Jackson):

	 	•	 	Achievement of weighted three year total shareholder return as compared to an index of comparable REITs;
	 
	 	•	 	Achievement of weighted funds from operations growth per share as compared to an index of comparable
REITs;
	 
	 	•	 	Achievement of office joint venture performance and growth as compared to a targeted goal; and
	 
	 	•	 	Achievement of office division net operating income growth per share as compared to a targeted goal for
the division.

          The amounts actually payable to the named executive officers are determined based on whether
the executive’s performance meets the “threshold,” “median,” “target” or “maximum” level for each
performance indicator. For each performance indicator, the “threshold” level is the 25th
percentile, the “median” level is the 50th percentile, the “target” level is the
75th percentile and the “maximum” level is the 90th percentile.

          The “threshold” level is the minimum level of performance that will give rise to an annual
incentive, which pays at a maximum of 1% of the base salary. The “median” level pays at the maximum
of 125% of the base salary, “target” performance, which is the upper quartile expected level, pays
at a maximum of 200% of the base salary, and “maximum” level, which refers to superior performance,
pays at a maximum of 250% of the base salary. The performance payout thresholds were set as follows
(as a percentage of 2008 base salary):

	 	•	 	for the Chief Executive Officer and the President/Chief Financial
Officer, the “threshold” level pays at a maximum of 1% of base salary,
the “median” level pays at a maximum of 125% of base salary, the
“target” level pays at a maximum of 200% of base salary, and the
“maximum” level pays at a maximum of 250% of base salary;
	 
	 	•	 	for the Chief Operating Officer, the “threshold” level pays at a
maximum of 1% of base salary, the “median” level pays at a maximum of
65% of base salary, the “target” level pays at a maximum of 150% of
base salary, and the “maximum” level pays at a maximum of 200% of base
salary; and
	 
	 	•	 	for the Executive Vice President, Office Division, the “threshold”
level pays at a maximum of 1% of base salary, the “median” level pays
at a maximum of 50% of base salary, the “target” level pays at a
maximum of 100% of base salary, and the “maximum” level pays at a
maximum of 125% of base salary.

42Exhibit 10.27

 

Exhibit 10.27

NEWBRIDGE BANCORP

 

Amended and Restated

Long-Term Stock Incentive Plan

Approved by Shareholders of FNB Financial Services Corporation May 18, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	I.	 	Long-Term Stock Incentive Plan
	 
	 	 	 	 
	 
	 	1.	 	Purpose
	 
	 	2.	 	Definitions
	 
	 	3.	 	Administration
	 
	 	4.	 	Term of Plan/Common Stock Subject to Plan
	 
	 	5.	 	Eligibility
	 
	 	6.	 	Stock Options
	 
	 	7.	 	Restricted Awards
	 
	 	8.	 	Performance Units
	 
	 	9.	 	Deferral Elections
	 
	 	10.	 	Termination of Employment
	 
	 	11.	 	Non-transferability of Awards
	 
	 	12.	 	Changes in Capitalization and Other Matters
	 
	 	13.	 	Change in Control
	 
	 	14.	 	Amendment, Suspension and Termination
	 
	 	15.	 	Miscellaneous
	 
	 	 	 	 
	II.	 	Incentive Stock Option Agreement
	 
	 	 	 	 
	III.	 	Non-Qualified Stock Option Agreement for Key Employees
	 
	 	 	 	 
	IV.	 	Non-Qualified Stock Option Agreement for Non-Employee Directors
	 
	 	 	 	 
	V.	 	Restricted Stock Agreement
	 
	 	 	 	 
	VI.	 	Performance Unit Agreement

 

 

NEWBRIDGE BANCORP

LONG-TERM STOCK INCENTIVE PLAN

     1. Purpose. The purpose of this Plan is to further and promote the interests of
NewBridge Bancorp (successor to FNB Financial Services Corporation) (the “Company”) and its
shareholders by enabling the Company and its Subsidiaries to attract, retain and motivate key
employees and directors, and to align the interests of such key employees and directors with those
of the Company’s shareholders. Additionally, this Plan’s objectives are to provide a competitive
reward for achieving longer-term goals, provide balance to short-term incentive awards, and
reinforce a one company perspective. To do so, this Plan offers performance-based stock incentives
and other equity-based incentive awards and opportunities to provide such key employees and
directors with a proprietary interest in maximizing the growth, profitability and overall success
of the Company.

     2. Definitions. For purposes of this Plan, the following terms shall have the
meanings set forth below:

          2.1 “Award” means an award, grant or issuance of an Option, Restricted Stock and/or
Performance Unit made to a Participant under Sections 6, 7, and/or 8.

          2.2 “Award Agreement” means the agreement executed by a Participant pursuant to Sections 3.2
and 15.7 in connection with the granting of an Award.

          2.3 “Board” means the Board of Directors of the Company, as constituted from time to time.

          2.4 “Change in Control” means a “change in control” as defined by Section 409A. As of the
date of the adoption of this Amended and Restated Plan, Section 409A provides that a “change in
control” means (i) a Change of Ownership; (ii) a Change in Effective Control; or (iii) a Change of
Asset Ownership; in each case, as defined herein.

          2.4.1 “Change of Ownership” shall be deemed to have occurred on the date one person (or
group) acquires ownership of stock of the Company that, together with stock previously held,
constitutes more than 50% of the total fair market value or total voting power of the stock
of the Company, provided that such person (or group) did not previously own 50% or more of
the value or voting power of the stock of the Company.

          2.4.2 “Change in Effective Control” shall be deemed to have occurred on the date either
(A) one person (or group) acquires (or has acquired during the preceding 12 months)
ownership of stock of the Company possessing 30% or more of the total voting power of the
Company’s stock or (B) a majority of the Company’s Board of Directors is replaced during any
12 month period by directors whose election is not endorsed by a majority of the members of
the Company’s Board of Directors prior to such election.

 

 

          2.4.3 “Change of Asset Ownership” shall be deemed to have occurred on the date one
person (or group) acquires (or has acquired during the preceding 12 months) assets from the
Company that have a total gross fair market value that is equal to or exceeds 40% of the
total gross fair market value of all the Company’s assets immediately prior to such
acquisition.

          2.5 “Code” means the Internal Revenue Code of 1986, as in effect and as amended from time to
time, or any successor statute thereto, together with any rules, regulations and interpretations
promulgated thereunder or with respect thereto.

          2.6 “Committee” means the Compensation Committee of the Board, as constituted in accordance
with Section 3.

          2.7 “Common Stock” means the common stock of the Company.

          2.8 “Company” means NewBridge Bancorp (successor to FNB Financial Services Corporation), a
North Carolina corporation, and any successor thereto.

          2.9 “Corporate Transaction” means any one or more of the following transactions:

	 	(i)	 	a merger or consolidation in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the state in which
the Company is incorporated;

	 
	 	(ii)	 	the sale, transfer, or other disposition of all or substantially all of the
assets of the Company (including without limitation the capital stock of the Company’s
Subsidiaries);

	 
	 	(iii)	 	approval by the Company’s shareholders of any plan or proposal for the
complete liquidation or dissolution of the Company;

	 
	 	(iv)	 	any reverse merger in which the Company is the surviving entity but in which
securities possessing more than fifty (50%) percent of the total combined voting power
of the Company’s outstanding securities are transferred to a person or entity or
persons or entities different from those that held such securities immediately prior to
such merger; or

	 
	 	(v)	 	acquisition by any person or entity or related group of persons or entities
(other than the Company or a Company-sponsored employee benefit plan) of beneficiary
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities
possessing more than fifty (50%) percent of the total combined voting power of the
Company’s outstanding securities (whether or not in a transaction also constituting a
Change in Control).

 

 

          2.10 “Death” means the date and time of death of a Participant who has received an Award, as
established by the relevant death certificate.

          2.11 “Disability” means the date on which (A) a Participant who has received an Award becomes
totally and permanently disabled as defined herein. A Participant shall be considered totally and
permanently disabled if he (i) is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by
reason of any medically determinable physical or mental impairment which can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months, receiving
income replacement benefits for at least 3 months under an accident and health plan covering
employees of the Participant’s employer. If a Participant is determined to be totally disabled by
the Social Security Administration, he shall also be considered totally and permanently disabled
for purposes of the Plan.

          2.12 “Exchange Act” means the Securities Exchange Act of 1934, as in effect and as amended
from time to time, or any successor statute thereto, together with any rules, regulations and
interpretations promulgated thereunder or with respect thereto.

          2.13 “Fair Market Value” means the market price per share of the Company’s Common Stock
determined by the Committee, consistent with the requirements of Sections 409 and 422 of the Code
and to the extent consistent therewith, determined as follows, as of the date specified in the
context within which such term is used:

	 	(i)	 	When there is a public market for the Common Stock, the Fair Market Value shall
be determined by (A) the closing price for a share on the market trading day on the
date of the determination (and if a closing price was not reported on that date, then
the arithmetic mean of the closing bid and asked prices at the close of the market on
that date, and if these prices were not reported on that date, then the closing price
on the last trading date on which a closing price was reported) on the stock exchange
or national market system that is the primary market for the Shares; and (B) if the
shares are not traded on such stock exchange or national market system, the arithmetic
mean of the closing bid and asked prices for a share on the Nasdaq Small Cap Market for
the day prior to the date of the determination (and if these prices were not reported
on that date, then on the last date on which these prices were reported), in each case
as reported in The Wall Street Journal or such other source that the Committee
considers reliable in its exclusive discretion.

	 
	 	(ii)	 	If the Committee, in its exclusive discretion, determines that the foregoing
methods do not apply or produce a reasonable valuation, then Fair Market Value shall be
determined by an independent appraisal that satisfies the requirements of Code Section
401(a)(28)(C) as of a date within twelve (12) months before the date of the transaction
for which the appraisal is used, e.g., the date of grant of an Award (the “Appraisal”).
If the Committee, in its exclusive discretion, determines that the Appraisal does not
reflect information available after the date of the Appraisal that

 

 

	 	 	 	may materially affect the value of the shares, then Fair Market Value shall be
determined by a new Appraisal.

	 
	 	(iii)	 	The Committee shall maintain a written record of its method of determining
Fair Market Value.

          2.14 “Incentive Stock Option” means any stock option granted pursuant to the provisions of
Section 6 that is intended to be (and is specifically designated as) an “incentive stock option”
within the meaning of Section 422 of the Code.

          2.15 “Non-Employee Director” means a member of the Board or of the Board of Directors of a
Subsidiary who is not an employee of the Company or any Subsidiary.

          2.16 “Non-Qualified Stock Option” means any stock option awarded pursuant to the provisions of
Section 6 of the Plan that is not an Incentive Stock Option.

          2.17 “Parent” means a corporation, other than the Company, in an unbroken chain of
corporations ending with the Company, if on the date of grant of an Award each corporation, other
than the Company, owns stock possessing at least fifty (50%) percent of the total combined voting
power of all classes of stock in one of the other corporations in the chain.

          2.18 “Participant” means a key employee or Non-Employee Director who is selected by the
Committee under Section 5 to receive an Award.

          2.19 “Performance Units” means the units of monetary value granted under Section 8.

          2.20 “Plan” means this NewBridge Bancorp Long-Term Stock Incentive Plan, as in effect and as
amended from time to time (together with any rules and regulations promulgated by the Committee
with respect thereto).

          2.21 “Registration” means the registration by the Company under the Securities Act and
applicable state securities and “blue sky” laws of this Plan, the Offering of Awards under
this Plan, and/or Common Stock acquirable under this Plan.

          2.22 “Related Entity” means a corporation or other entity, other than the Company, to which
the Participant primarily provides services on the date of grant of an Award, and any corporation
or other entity, other than the Company, in an unbroken chain of corporations or other entities
beginning with the Company in which each corporation or other entity has a controlling interest in
another corporation or other entity in the chain, ending with the corporation or other entity that
has a controlling interest in the corporation or other entity to which the Participant primarily
provides services on the date of grant of an Award. For a corporation, a controlling interest
means ownership of stock possessing at least fifty (50%) percent of total combined voting power of
all classes of stock, or at least fifty (50%) percent of the total value of all classes of stock.
For a partnership or limited liability company, a controlling interest means ownership of at least
fifty

 

 

(50%) percent of the profits interest or capital interest of the entity. In determining
ownership, the rules of Treasury Regulation §§1.414(c)-3 and 1.414(c)-4 apply.

          2.23 “Related Entity Disposition” means the sale, distribution, or other disposition by the
Company, Parent, or a Subsidiary of all or substantially all of the interests of the Company,
Parent, or a Subsidiary in any Related Entity effected by a sale, merger, consolidation, or other
transaction involving that Related Entity, or the sale of all or substantially all of the assets of
that Related Entity, other than any Related Entity Disposition to the Company, Parent, or a
Subsidiary.

          2.24 “Restricted Award” means an Award of Restricted Stock pursuant to the provisions of
Section 7.

          2.25 “Restricted Stock” means the restricted shares of Common Stock granted pursuant to the
provisions of Section 7 with the restriction that the holder may not sell, transfer, pledge, or
assign such Restricted Stock and such other restrictions (which other restrictions may expire
separately or in combination, at one time, from time to time or in installments), as determined by
the Committee in accordance with and as set forth in this Plan and/or the relevant Award Agreement.

          2.26 “Retirement” means (i) as to officers and employees, retirement from active employment
with the Company and its Subsidiaries and receiving benefits under the Company’s retirement plan,
and (ii) as to Non-Employee Directors, the same as “Retirement” under the “Retirement
Policy” in effect for the Board of Directors on which the Participant was serving upon
receipt of an Award; provided, however, that in the case of any Award granted under the Plan to
which Section 409A applies, the Participant must have a Separation from Service in order to obtain
payment of the Award due to Retirement.

          2.27 “Section 409A” means Section 409A of the Code, as amended, including regulations and
guidance issued thereunder from time to time.

          2.28 “Section 424 Corporate Transaction” means the occurrence, in a single transaction or a
series of related transactions, of any one or more of the following: (i) a sale or disposition of
all or substantially all of the assets of the Company and its Subsidiaries; (ii) a sale or other
disposition of more than fifty (50%) percent of the outstanding stock of the Company; (iii) the
consummation of a merger, consolidation, or similar transaction after which the Company is not the
surviving corporation; (iv) the consummation of a merger, consolidation, or similar transaction
after which the Company is the surviving corporation but the shares outstanding immediately
preceding the merger, consolidation, or similar transaction are converted or exchanged by reason of
the transaction into other stock, property, or cash; or (v) a distribution by the Company
(excluding an ordinary dividend or a stock split or stock dividend described in Treasury Regulation
§1.424-1(e)(4)(v)).

          2.29 “Securities Act” means the Securities Act of 1933, as in effect and amended from time to
time, or any successor statute thereto, together with any rules, regulations and interpretations
promulgated thereunder or with respect thereto.

 

 

          2.30 “SEC” means the Securities and Exchange Commission and any successor thereto.

          2.31 “Separation from Service” means an employee, director, and contractor to the Company,
Bank, and all Parents and Related Entities has a “separation from service” within the meaning of
Section 409A, including when the Participant dies, retires or has a termination of service as
explained in the following provisions:

     (i) The employment relationship is treated as continuing intact while the Participant
is on military leave, sick leave, or other bona fide leave of absence, if the period of
leave does not exceed six (6) months or, if longer, as long as the employee’s right to
reemployment with the Company, Bank, a Parent or a Related Entity is provided by statute or
contract. A leave of absence is bona fide only if there is a reasonable expectation that
the employee will return to perform services for the Company, Bank, Parent, or Related
Entity. If the period of leave exceeds six (6) months and the Participant’s right to
reemployment is not provided by statute or contract, the employment relationship is deemed
to terminate on the first day immediately following the six (6) month period;

     (ii) A director or contractor has a separation from service upon the expiration of the
contract, and if there is more than one contract, all contracts, under which the director or
contractor performs services as long as the expiration is a good faith and complete
termination of the contractual relationship; and

     (iii) If a Participant performs services in more than one capacity, the Participant
must separate from service in all capacities as an employee, director, and contractor.
Notwithstanding the foregoing, if a Participant provides services both as an employee and a
director, the services provided as a director are not taken into account in determining
whether the Participant has a separation from service as an employee under a nonqualified
deferred compensation plan in which the Participant participates as an employee and that is
not aggregated under Section 409A with any plan in which the Participant participates as a
director. In addition, if a Participant provides services both as an employee and a
director, the services provided as an employee are not taken into account in determining
whether the Participant has a separation from service as a director under a nonqualified
deferred compensation plan in which the Participant participates as a director and that is
not aggregated under Section 409A with any plan in which the Participant participates as an
employee.

          2.32 “Specified Employee” means “specified employee” as defined by Section 409A. As of the
date of the adoption of this Amended and Restated Plan, Section 409A provides that if the Company’s
Common Stock is publicly traded on an established securities market or otherwise, then “specified
employee” means senior officers who make $130,000 (indexed) or more annually (limited to the top 3
such officers or, if greater (up to a maximum of 50), the top 10%); 1% owners whose compensation is
$150,000 or more annually; and 5% owners regardless of their compensation).

 

 

          2.33
 “Stock Options” means Incentive Stock Options and Non-Qualified Stock
Options.

          2.34 “Subsidiary(ies)” means a subsidiary corporation, whether now or hereafter existing,
under Code Section 424(f).

     3. Administration.

          3.1 The Committee. This Plan shall be administered by the Committee. The Committee
shall be appointed from time to time by the Board and shall be comprised of not less than three (3)
of the then members of the Board who are “non-employee directors” within the meaning of
SEC Regulation §240.16b-3 or any successor thereto. Members of the Committee shall serve at the
pleasure of the Board, and the Board may at any time and from time to time remove members from the
Committee, or, subject to the immediately preceding sentence, add members to the Committee. A
majority of the members of the Committee shall constitute a quorum for the transaction of business.
Any act or acts approved in writing by all of the members of the Committee then serving shall be
the act or acts of the Committee (as if taken by unanimous vote at a meeting of the Committee duly
called and held).

          3.2 Plan Administration and Plan Rules. The Committee is authorized to construe and
interpret this Plan and to promulgate, amend and rescind rules, policies and regulations relating
to the implementation, administration and maintenance of this Plan; provided, however, that the
Plan shall be administered and interpreted in a manner so as to comply with Section 409A to the
extent that Section 409A applies to any portion(s) of the Plan. Subject to the terms and
conditions of this Plan, the Committee shall make all determinations necessary or advisable for the
implementation, administration and maintenance of this Plan including, without limitation, (a)
selecting Participants, (b) making Awards in such amounts and form as the Committee shall
determine, (c) imposing such restrictions, terms and conditions upon such Awards as the Committee
shall deem appropriate, and (d) correcting any defect or omission, or reconciling any
inconsistency, in this Plan and/or any Award Agreement, in each case subject to requirements and
limitations of applicable provisions of the Code. The Committee may designate persons other than
members of the Committee to carry out the day-to-day administration of this Plan under such
conditions and limitations as it may prescribe, except that the Committee shall not delegate its
authority with regard to selection for participation in this Plan and/or the granting of any Awards
to Participants. The Committee’s determinations under this Plan need not be uniform and may be
made selectively among Participants, whether or not such Participants are similarly situated. Any
determination, decision or action of the Committee in connection with the construction,
interpretation, administration, implementation or maintenance of this Plan shall be final,
conclusive and binding upon all Participants and any person(s) claiming under or through any
Participant(s). The Company shall effect the granting of Awards under this Plan, in accordance
with the determinations made by the Committee, by execution of written agreements and/or other
instruments in such form as is approved by the Committee.

          3.3 Section 409A Matters. This Plan has been amended and restated following the
addition of Section 409A to the Code by the American Jobs Creation Act of 2004. It is intended
that the Plan and the Awards issued hereunder fall within available exemptions from the application

 

 

of Section 409A (the incentive stock option exemption, the exemption for certain nonqualified
stock options and stock appreciation rights issued at Fair Market Value, the restricted property
exemption, and/or the short-term deferral exemption). Thus, it is intended that the Awards fall
outside the scope of Section 409A and are not required to comply with the Section 409A
requirements. The Plan and the Awards will be administered and interpreted in a manner consistent
with the intent set forth herein. Notwithstanding anything to the contrary in this Plan or in any
Award Agreement, (i) this Plan and each Award Agreement may be amended from time to time as the
Committee may determine to be necessary or appropriate in order to avoid any grant of any Rights,
this Plan, or any Award Agreement from resulting in the inclusion of any compensation in the gross
income of any Participant under Section 409A as amended from time to time, and (ii) if any
provision of this Plan or of any Award Agreement would otherwise result in the inclusion of any
compensation in the gross income of any Participant under Section 409A as amended from time to
time, then such provision shall not apply as to such Participant and the Committee, in its
discretion, may apply in lieu thereof another provision that (in the judgment of the Committee)
accomplishes the intent of this Plan or such Award Agreement without resulting in such inclusion so
long as such action by the Committee does not violate Section 409A. The Company makes no
representation or warranty regarding the treatment of this Plan or the benefits payable under this
Plan or any Award Agreement under federal, state or local income tax laws, including Section 409A.

          3.4 Liability Limitation. Neither the Board nor the Committee, nor any member of
either, shall be liable for any act, omission, interpretation, construction or determination made
in good faith in connection with this Plan (or any Award Agreement), and the members of the Board
and the Committee shall be entitled to indemnification and reimbursement by the Company in respect
of any claim, loss, damage or expense (including, without limitation, attorneys’ fees) arising or
resulting therefrom to the fullest extent permitted by the Amended and Restated Articles of
Incorporation and/or Bylaws of the Company as then in effect and to the fullest extent under any
directors’ and officers’ liability insurance coverage which may be in effect from time
to time.

     4. Term of Plan/Common Stock Subject to Plan.

          4.1 Term. This Plan shall terminate on May 18, 2016, except with respect to Awards
then outstanding. After such date no further Awards shall be granted under the Plan.

          4.2 Common Stock Subject to Plan.

          4.2.1 Common Stock. The Board shall reserve for Awards under this Plan 500,000
shares of the authorized and unissued shares of Common Stock. In the event of a change in
the Common Stock of the Company that is limited to a change in the designation thereof to
“Capital Stock” or other similar designation, or to a change in the par value thereof, or
from par value to no par value, without increase or decrease in the number of issued shares,
the shares resulting from any such change shall be deemed to be the Common Stock for
purposes of this Plan. Common Stock which may be issued under this Plan shall be authorized
and unissued shares. No fractional shares of Common Stock shall be issued under this Plan.

 

 

          4.2.2 Maximum Number of Shares. The maximum number of shares of Common Stock
for which Awards may be granted to any Participant in any year is 50,000 shares.

          4.2.3 Available Shares. Subject to Section 4.3, the maximum number of shares
of Common Stock authorized for issuance under this Plan shall be 500,000.

          4.3 Computation of Available Shares. For the purpose of computing the total number of
shares of Common Stock available for Awards, there shall be counted against the limitations set
forth in Section 4.2 the maximum number of shares of Common Stock potentially subject to issuance
upon exercise or settlement of Awards granted under Section 6, the number of shares of Common Stock
issued or subject to potential issuance under Awards of Restricted Stock pursuant to Section 7, and
the maximum number of shares of Common Stock potentially issuable under Awards of Performance Units
pursuant to Section 8, in each case determined as of the date on which such Awards are granted. If
any Awards expire unexercised or are forfeited, surrendered, canceled, terminated or settled in
cash in lieu of Common Stock, the shares of Common Stock which were theretofore subject (or
potentially subject) to such Awards shall again be available for Awards under this Plan to the
extent of such expiration, forfeiture, surrender, cancellation, termination or settlement of such
Awards; provided, however, that forfeited Awards shall not again be available for Awards under this
Plan if the Participant received, directly or indirectly, any of the benefits of ownership of the
securities of the Company underlying such Award, including, without limitation, the benefit
described in Section 7.6.

     5. Eligibility. Employees eligible for Awards under the Plan shall consist of key
employees who are officers or managers of the Company and/or its Subsidiaries who are responsible
for the management, growth and protection of the business of the Company and/or its Subsidiaries
and whose performance or contribution, in the sole discretion of the Committee, benefits or will
benefit the Company in a significant manner. Non-employees (e.g., those with third party
relationships such as Non-Employee Directors of the Company and/or a Subsidiary) shall be eligible
Participants for Awards of Non-Qualified Stock Options and/or Restricted Stock at the sole
discretion of the Committee.

     6. Stock Options.

          6.1 Terms and Conditions. Stock Options awarded under this Plan may be in the form of
Incentive Stock Options or Non-Qualified Stock Options. Such Stock Options shall be subject to the
terms and conditions set forth in this Section 6 and any additional terms and conditions, not
inconsistent with the express terms and provisions of this Plan, as the Committee shall set forth
in the relevant Award Agreement.

          6.2 Grant. Stock Options may be granted under this Plan in such form as the Committee
may from time to time approve. Stock Options may be granted alone or in addition to other Awards.
Notwithstanding the above, no Incentive Stock Options shall be granted to any employee who owns
more than ten percent (10%) of the combined total voting power of the Company or any Subsidiary,
unless the requirements of Section 422(c)(6) of the Code are satisfied.

 

 

          6.3 Exercise Price. The exercise price per share of Common Stock subject to a Stock
Option shall be determined by the Committee at the time of Award; provided, however, that the
exercise price of any Stock Option shall not be less than one hundred percent (100%) of the Fair
Market Value of the Common Stock (as defined in Section 2.12 above) on the date of the Award of
such Stock Option. For any Participant who owns ten percent (10%) or more of the combined total
voting power of the Company or any Subsidiary, the exercise price of an Incentive Stock Option
shall not be less than one hundred ten percent (110%) of such Fair Market Value.

          6.4 Requirements for Non-Qualified Stock Options. All Non-Qualified Stock Options
shall be issued at no less than 100% of Fair Market Value as provided for in Section 6.3. The
number of shares subject to each Non-Qualified Stock Option will be fixed in the applicable Award
Agreement. When the Non-Qualified Stock Options are transferred or exercised, the transfer or
exercise shall be subject to taxation under Code Section 83 and Treasury Regulation §1.83-7. No
Non-Qualified Stock Option awarded hereunder shall contain any feature for the deferral of
compensation other than the deferral of recognition of income until the later of exercise or
disposition of the option under Treasury Regulation §1.83-7 or the time the stock acquired pursuant
to the exercise of the option first becomes substantially vested as defined in Treasury Regulation
§1.83-3(b). Further, each Non-Qualified Stock Option will comply with any other Section 409A
requirement in order to maintain the status of the Non-Qualified Stock Option as exempt from the
requirements of Section 409A.

          6.5 Term. The term of each Stock Option shall be such period of time as is fixed by
the Committee at the time of grant; provided, however, that the term of any Incentive Stock Option
shall not exceed ten (10) years after the date the Incentive Stock Option is awarded. For any
Participant who owns ten percent (10%) or more of the combined total voting power of the Company or
any Subsidiary, the term of each Incentive Stock Option shall not exceed five (5) years.

          6.6 Method of Exercise. A Stock Option may be exercised, in whole or in part, by
giving written notice of exercise to the Corporate Secretary of the Company, or such other officer
of the Company as the Committee shall designate, specifying the number of shares to be purchased.
Such notice shall be accompanied by payment in full of the exercise price in cash, by certified
check, bank draft or money order payable to the order of the Company or, if permitted by the terms
of the relevant Award Agreement and applicable law, by delivery of, alone or in conjunction with a
partial cash or instrument payment, (a) a fully-secured, recourse promissory note, or (b) shares of
Common Stock already owned by the Participant or to be received upon exercise of the Stock Option
in a “cashless exercise.” The Committee may, in the relevant Award Agreement, also permit a
Participant (either on a selective or group basis) to simultaneously exercise Stock Options and
sell the shares of Common Stock thereby acquired, and use the proceeds from such sale as payment of
the exercise price of such Stock Options. Payment instruments shall be received by the Company
subject to collection. The proceeds received by the Company upon exercise of any Stock Option may
be used by the Company for general corporate purposes.

          6.7 Date of Exercise. Vesting dates of Stock Options awarded to a Participant will be
specified in the applicable Award Agreement at the discretion of the Committee. Stock Options that
meet the vesting requirements may be exercised in whole or in part at any time and from time to
time during their specified terms.

 

 

          6.8 Shareholder Rights. Until Stock Options are exercised, a Participant shall not
have any right to vote, or receive dividends, or any other rights as a shareholder. In addition,
on exercise of a Stock Option, the Participant shall not be entitled to any dividends declared and
paid on the shares between the date of grant and the date of exercise.

     7. Restricted Awards.

          7.1 Terms and Conditions. Restricted Awards shall be in the form of grants of
Restricted Stock. Restricted Awards shall be subject to the terms and conditions set forth in this
Section 7 and any additional terms and conditions, not inconsistent with the express terms and
provisions of this Plan, as the Committee shall set forth in the relevant Award Agreement.

          7.2 Restricted Stock Grants. An Award of Restricted Stock is an Award of shares of
Common Stock, in uncertificated form, issued to and registered with the Company’s designated Stock
Transfer Agent, in the name of the applicable Participant, subject to such restrictions, terms and
conditions as the Committee deems appropriate, including, without limitation, restrictions on the
sale, assignment, transfer, pledge, hypothecation or other disposition of such shares and the
requirements that the Participant deposit such shares with the Company while such shares are
subject to such restrictions and that such shares be forfeitable for the reasons set forth in the
applicable Award Agreement.

          7.3 Grants of Awards.

          7.3.1 Restricted Awards may be granted alone or in addition to any other Awards.
Subject to the terms of this Plan, the Committee shall determine the number of Restricted
Awards to be granted to a Participant and the Committee may impose different terms and
conditions on any particular Restricted Award made to any Participant.

          7.3.2 Each Restricted Award of Restricted Stock shall be issued in an uncertificated
form and registered in the name of the Participant. The stock transfer books of the
Company’s designated Stock Transfer Agent shall be noted with the following legend with
reference to the shares made subject to such Restricted Award.

“These shares are subject to the terms and restrictions of the NewBridge Bancorp
Long-Term Stock Incentive Plan; such shares are subject to forfeiture or
cancellation under the terms of said Plan; and such shares shall not be sold,
transferred, assigned, pledged, encumbered, or otherwise alienated or hypothecated
except pursuant to the provisions of said Plan, a copy of which Plan is available
from NewBridge Bancorp upon request.”

Such Award shall be held in uncertificated form until the restrictions thereon shall have
lapsed and all of the terms and conditions applicable thereto have been satisfied.

          7.4 Restriction Period. In accordance with Sections 7.1 and 7.2, Restricted Awards
shall only become unrestricted and vest in the Participant in accordance with such vesting

 

 

schedule relating to the service performance restriction applicable to such Restricted Award
as set forth in the relevant Award Agreement (the “Restriction Period”). The Restriction Period
shall be two (2) years and one day of continued service with the Company (i) as an employee or (ii)
as a member of the Board, as applicable, after the date on which such Restricted Award is granted
unless the Award Agreement specifically provides otherwise. The Committee may, in its discretion,
establish a shorter Restriction Period by specifically providing for such shorter period in the
Award Agreement; however, in no event shall the Restriction Period be less than one (1) year and
one day of continued service with the Company (i) as an employee or (ii) as a member of the Board,
as applicable, after the date on which such Restricted Award is granted. During the Restriction
Period applicable to a Restricted Award, such Award shall be unvested and a Participant may not
sell, assign, transfer, pledge, encumber or otherwise dispose of or hypothecate such Award. Upon
satisfaction of the vesting schedule and any other applicable restrictions, terms and conditions,
the Participant shall be entitled to receive payment of the Restricted Award or a portion thereof,
as the case may be, as provided in Section 7.5.

          7.5 Payment of Awards.

               7.5.1 Restricted Stock Grants. After the satisfaction and/or lapse of the
restrictions, terms and conditions set by the Committee in respect of a Restricted Award of
Restricted Stock, a certificate for the number of shares of Common Stock issued which are no longer
subject to such restrictions, terms and conditions shall be delivered to the Participant on the
30th day following the satisfaction and/or lapse of the restrictions, terms and conditions. The
remaining shares, if any, issued in respect of such Restricted Award shall either be forfeited and
canceled, or shall continue to be subject to the restrictions, terms and conditions set by the
Committee, as the case may be.

          7.6 Shareholder Rights. A Participant shall have, with respect to the shares of
Common Stock received under a Restricted Award of Restricted Stock, all of the rights of a
shareholder of the Company, including, without limitation, the right to vote the shares and to
receive any cash dividends. Cash dividends shall be paid on the Restricted Stock at the time cash
dividends are paid to stockholders generally. Stock dividends issued with respect to such
Restricted Stock shall be treated as additional Awards of Restricted Stock grants and shall be
subject to the same restrictions and other terms and conditions that apply to the shares of
Restricted Stock with respect to which such stock dividends are issued.

     8. Performance Units.

          8.1 Terms and Conditions. Awards of Performance Units shall be subject to the terms
and conditions set forth in this Section 8 and any additional terms and conditions, not
inconsistent with the express provisions of this Plan, as the Committee shall set forth in the
relevant Award Agreement.

          8.2 Performance Unit Grants. A Performance Unit is an Award of units (with each unit
representing such monetary amount as is designated by the Committee in the Award Agreement) granted
to a Participant, subject to such terms and conditions as the Committee deems appropriate,
including, without limitation, the requirement that the Participant forfeit such units (or a

 

 

portion thereof) in the event certain performance criteria are not met within a designated
period of time.

          8.3 Grants. Performance Units may be awarded alone or in addition to any other
Awards. Subject to the terms of this Plan, the Committee shall determine the number of Performance
Units to be awarded to a Participant and the Committee may impose different terms and conditions on
any particular Performance Units awarded to any Participant.

          8.4 Performance Goals and Performance Periods. Participants receiving Awards of
Performance Units shall only earn into and be entitled to payment in respect of such Awards if the
Company, a Subsidiary and/or a division of the Company specified by the Committee (a
“Division”) and/or the Participant satisfy certain performance goals (the “Performance
Goals”) during and in respect of one of more designated performance period(s) of at least twelve
consecutive months as determined by the Committee (the “Performance Period”). Performance Goals
and the Performance Period(s) shall be established by the Committee in its sole discretion and
shall be set forth in writing in the Award Agreement. Performance Periods may overlap each other
from time to time, and the Committee may set different Performance Periods for different
Performance Goals. The Committee shall establish Performance Goals for each Performance Period
prior to the commencement of such Performance Period. The Committee shall also establish in the
Award Agreement a written schedule or schedules for such Performance Units setting forth the
portion of the Award which will be earned or forfeited based on the degree of achievement, or lack
thereof, of the Performance Goals at the end of the relevant Performance Period(s). In setting
Performance Goals, the Committee may use, but shall not be limited to, such measures as total
shareholder return, return on average equity, return on average assets, return on average earning
assets, net earnings per share growth, comparisons to peer companies, divisional goals, individual
or aggregate Participant performance or such other measure or measures of performance as the
Committee, in its sole discretion, may deem appropriate. Such performance measures shall be
defined as to their respective components and meanings by the Committee in its sole discretion as
set forth in writing in the Award Agreement. If the Participant and/or the Division and/or the
Company do not meet the Performance Goals within the Performance Period(s) established in the Award
Agreement, the Performance Units awarded thereunder shall be forfeited.

          For example, an Award Agreement may require a Participant to meet a certain sales goal at the
end of a 12 month period and also require the Company to meet a total shareholder return within a
three year period, with the total shareholder return measured at the end of each calendar year
occurring within the three year period. In this case, if a Participant meets the sales goal at the
end of the 12 month period but the Company does not meet the total shareholder return at that time,
the Participant shall not be entitled to any payment at that time. However, he could become
entitled to payment if the Company later meets the required total shareholder return at the end of
the second year or third year as provided in the Award Agreement. At the end of the third year, if
the Company has not met the required total shareholder return, the Performance Units will be
forfeited.

          8.5 Payment of Units. With respect to each Performance Unit, the Participant shall,
if the applicable Performance Goals have been satisfied by the Company, a Subsidiary, a Division
and/or the Participant, as applicable, during the relevant Performance Period(s), be entitled to
receive payment in an amount equal to the designated value of each Performance Unit awarded

 

 

times the number of such Performance Units so earned. Payment in settlement of earned
Performance Units shall be made on or before the 60th day following the conclusion of
the applicable Performance Period(s) in cash, in shares of unrestricted Common Stock or in
Restricted Stock, as the Committee, in its sole discretion, shall determine and provide in the
relevant Award Agreement.

     9. Deferral Elections. The Committee may permit a Participant to elect to defer
receipt of any payment of cash or any delivery of shares of Common Stock that would otherwise be
due to such Participant by virtue of the exercise, earn out or settlement of any Award made under
the Plan other than an Award of Stock Options (see Section 9.1 below).

     9.1 Stock Options awarded under Section 6 shall not be deferred under this Section 9.

     9.2 If so provided in the Award Agreement, payment of Restricted Units may be deferred
by the Participant if the following conditions are met: (i) the Participant makes his
deferral election on or before the 30th day following the grant of the Award,
(ii) at the time of the deferral election, the Participant must continue to work for at
least 12 months in order to obtain the right to payment of the Restricted Units, and (iii)
the Performance Period will not end for at least 12 months following the date of the
deferral election.

     9.3 If so provided in the Award Agreement, payment of Performance Units may be deferred
by the Participant if the following conditions are met: (i) the Participant is employed
continuously from the date the Performance Goals are established through the date of the
deferral election, and (ii) the Participant makes his deferral election at least 6 months
prior to the end of the last Performance Period giving rise to the Participant’s right to
payment of Performance Units. Provided, however, that in no event will an election to defer
be made after the payment of the Performance Units has become both substantially certain and
readily ascertainable.

     If a deferral election is permitted under this Section 9, the Committee shall establish rules
and procedures for such deferrals, including, without limitation, the payment or crediting of
reasonable interest on such deferred amounts credited in cash or the crediting of dividend
equivalents in respect of deferred Awards credited in shares of Common Stock.

     10. Termination of Employment or Service.

          10.1 General. Subject to the terms and conditions of Section 13, if, and to the
extent, the terms and conditions under which an Award may be exercised, earned out or settled after
a Participant’s termination of employment or a Non-Employee Director ceases to be a director, for
any particular reason shall not have been set forth in the relevant Award Agreement, by and as
determined by the Committee in its sole discretion and in accordance with Section 409A to the
extent Section 409A applies to the Award, the following terms and conditions shall apply as
appropriate and as not inconsistent with the terms and conditions, if any, of such Award Agreement:

          10.1.1 Except as otherwise provided in this Section 10.1.1:

 

 

          (a) If the employment by the Company or any of its Subsidiaries of a Participant who as
an employee or the term of a Participant who is a Non-Employee Director is terminated for
any reason (other than Disability, Retirement or Death) while Stock Options granted to such
Participant are non-vested, such Participant’s rights, if any, to exercise any non-vested
Stock Options, if any, shall immediately terminate and the Participant (and such
Participant’s estate, designated beneficiary or other legal representative) shall forfeit
any rights or interest in or with respect to any such Stock Options. In the event of
Disability, Retirement or Death while a Participant’s Stock Options are non-vested,
such non-vested Stock Options shall become vested to the extent determined by the Committee.

          (b) The Committee, in its sole discretion, may determine that vested Incentive Stock
Options, if any, of a Participant whose employment or whose term as a director, as
applicable, terminates other than by reason of Disability, Retirement or Death, to the
extent exercisable immediately prior to such termination of employment or service as a
director, may remain exercisable for a specified time period not to exceed thirty (30) days
after such termination (subject to the applicable terms and provisions of this Plan [and any
rules or procedures hereunder]).

          (c) If a Participant’s termination of employment is due to Disability, a
Participant shall have the right, subject to the applicable terms and provisions of this
Plan (and any rules or procedures hereunder) and the relevant Award Agreement, to exercise
Incentive Stock Options, if any, at any time within the period ending on the earlier of the
end of the term of such Incentive Stock Options and the first anniversary of the date of
termination due to Disability (to the extent such Participant was entitled to exercise any
such Incentive Stock Options immediately prior to such termination).

          (d) If a Participant’s termination of employment is due to Retirement, a
Participant shall have the right, subject to the applicable terms and provisions of this
Plan (and any rules or procedures hereunder) and the relevant Award Agreement, to exercise
Incentive Stock Options, if any, at any time within three (3) months following such
termination due to Retirement (to the extent such Participant was entitled to exercise any
such Incentive Stock Options immediately prior to such termination).

          (e) If any Participant dies while entitled to exercise a Stock Option, if any, such
Participant’s estate, designated beneficiary or other legal representative, as the case may
be, shall have the right, subject to the applicable provisions of the Plan (and any rules or
procedures hereunder) and the relevant Award Agreement, to exercise such Stock Options, if
any, at any time within one (1) year from the date of such Participant’s Death (but in no
event more than one (1) year from the date of such Participant’s termination of employment
due to Disability or three (3) months from the date of such Participant’s termination
of employment due to Retirement, as applicable).

          (f) If vested Stock Options held by a Participant whose employment is terminated by
reason of Disability or Retirement are Non-Qualified Stock Options the Participant shall
have the right, subject to the applicable terms and provisions of this Plan

 

 

(and any rules
and procedures hereunder) and the relevant Award Agreement, to exercise
such Non-Qualified Stock Options at any time following the Participant’s
termination of employment (to the extent the Participant was entitled to exercise such
Non-Qualified Stock Options immediately prior to such termination) and prior to the
expiration date of such Non-Qualified Stock Options as fixed by the Committee and set forth
in the Award Agreement related thereto.

          (g) If a Non-Employee Director ceases to be a director for any reason (other than
Disability, Retirement or Death) while Non-Qualified Stock Options granted to such
Non-Employee Director are non-vested, such Non-Employee Director’s rights, if any, to
exercise any non-vested Non-Qualified Stock Options, if any, shall immediately terminate and
the Non-Employee Director (and such Non-Employee Director’s estate, designated beneficiary
or other legal representative) shall forfeit any rights or interest in or with respect to
any such Non-Qualified Stock Options. In the event of the Disability, Retirement or Death
of a Non-Employee Director while the Non-Employee Director’s Non-Qualified Stock
Options are non-vested, such non-vested, Non-Qualified Stock Options shall become vested to
the extent determined by the Committee. The Committee, in its sole discretion, may
determine that vested Non-Qualified Stock Options, if any, of a Non-Employee Director who
ceases to be a director other than by reason of Disability, Retirement or Death, to the
extent exercisable immediately prior to such cessation, may remain exercisable for a
specified time period not to exceed thirty (30) days after such cessation (subject to the
applicable terms and provisions of this Plan [and any rules or procedures hereunder] and the
relevant Award Agreement). If the cessation of a Non-Employee Director’s status as a
director is due to Retirement or Disability, the Non-Employee Director shall have the right,
subject to the applicable terms and provisions of this Plan (and any rules or procedures
hereunder) and the relevant Award Agreement, to exercise such vested Non-Qualified Stock
Options, if any, at any time within the period following such cessation due to Retirement or
Disability (to the extent such Non-Employee Director was entitled to exercise any such
Non-Qualified Stock Options immediately prior to such cessation) and prior to the expiration
date of such Non-Qualified Stock Options as fixed by the Committee and as set forth in the
Award Agreement related thereto. If any Non-Employee Director dies while entitled to
exercise Non-Qualified Stock Options, such Non-Employee Director’s estate, designated
beneficiary or other legal representative, as the case may be, shall have the right, subject
to the applicable provisions of this Plan (and any rules or procedures hereunder) and the
relevant Award Agreement, to exercise such Non-Qualified Stock Options, if any, at any time
within one (1) year from the date of such Non-Employee Director’s Death.

          10.1.2 Unless otherwise provided in the Award Agreement, if a Participant’s employment
with the Company or any of its Subsidiaries is terminated for any reason (other than
Disability, Retirement or Death) prior to the satisfaction and/or lapse of the restrictions,
terms and conditions applicable to Restricted Award(s), such Restricted Award or Awards
shall be forfeited. If the Committee so determines in its discretion, the Award Agreement
may provide that some or all of the shares of Restricted Award(s) shall become free of
restrictions in the event of a Participant’s Disability, Retirement or Death during
the Restricted Period.

 

 

          10.1.3 Unless otherwise provided in the Award Agreement, if a Participant’s employment
with the Company or any of its Subsidiaries is terminated for any reason (other than
Disability, Retirement or Death) prior to the completion of any Performance Period, all of
such Participant’s Performance Units earnable in relation to such Performance Period
shall be forfeited. If the Committee so determines in its discretion, the Award Agreement
may provide that some or all of such Participant’s Performance Units will be paid if the
Participant’s termination of employment is due to Disability, Retirement or Death
during the Performance Period.

     10.2 Payments Upon Termination of Employment and Delay of Certain Payments.
For purposes of this Agreement, to the extent an Award is subject to Section 409A, and
payment or exercise of such Award on account of a termination of employment or a
Non-Employee Director ceasing to be a director shall only be made if the Participant incurs
a Separation from Service. Payment will occur on or before the 60th day after
the Separation from Service. Provided, however, that if the Participant is a Specified
Employee, payment of the Award shall be made on the first day of the seventh month following
the Separation from Service.

     11. Non-transferability of Awards.

          (a) Except as otherwise provided in Section 11(b), no Award under this Plan or any Award
Agreement, and no rights or interests therein, shall or may be assigned, transferred, sold,
exchanged, pledged, disposed of or otherwise hypothecated or encumbered by a Participant or any
beneficiary thereof, except by testamentary disposition or the laws of descent and distribution.
No such right or interest shall be subject to seizure for the payment of the Participant’s (or any
beneficiary’s) debts, judgments, alimony, or separation maintenance or be transferable by operation
of law in the event of the Participant’s (or any beneficiary’s) bankruptcy or insolvency. Except
as otherwise provided in Section 11(b), during the lifetime of a Participant, Stock Options are
exercisable only by the Participant.

          (b) A Participant who holds Non-Qualified Stock Options (whether such Stock Options were
Non-Qualified Stock Options when awarded or subsequent to the Award thereof became Non-Qualified
Stock Options pursuant to applicable law or any provision of this Plan) may assign those
Non-Qualified Stock Options to a Permitted Assignee (as defined below) at any time after the Award,
but prior to the expiration date, of such Non-Qualified Stock Options if as of the time of such
transfer (i) a registration statement on Form S-8 (or any successor form) filed by the Company
under the Securities Act, with respect to this Plan (and the Awards granted and shares of Common
Stock issuable hereunder) and (ii) a registration statement on Form S-3 (or any successor form)
filed by the Company under the Securities Act with respect to shares of Common Stock issuable to
Permitted Assignees have been declared effective by the SEC and all applicable state securities and
“blue sky” authorities, and remain in effect. Each such transferred Non-Qualified
Stock Option shall continue to be governed by the applicable terms and provisions of this Plan (and
any rules or procedures hereunder) and the applicable Award Agreement with the transferor
Participant, and the Permitted Assignee shall be entitled to the same rights and subject to the
same obligations, restrictions, limitations and prohibitions under this Plan and such Award
Agreement as the transferor Participant, as if such assignment had not taken place; provided,
however, that no

 

 

Non-Qualified Stock Option assigned to a Permitted Assignee may be assigned by that Permitted
Assignee. The term “Permitted Assignee” shall mean such persons and entities as are
permitted assignees of Non-Qualified Stock Options under the SEC’s regulations, rules and
interpretations existing at the time of the proposed transfer.

     12. Changes in Capitalization and Other Matters.

          12.1 No Corporate Action Restriction. The existence of this Plan, Award Agreements
and/or the Awards granted hereunder shall not limit, affect or restrict in any way the right or
power of the Board or the shareholders of the Company to make or authorize (a) any adjustment,
recapitalization, reorganization or other change in the Company’s or any Subsidiary’s capital
structure or its business, (b) any merger, share exchange or change in the ownership of the Company
or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference
stocks ahead of or affecting the Company’s or any Subsidiary’s capital stock or the rights thereof,
(d) any dissolution or liquidation of the Company or any Subsidiary, (e) any sale or transfer of
all or any part of the Company’s or any Subsidiary’s assets or business, or (f) any other corporate
act or proceeding by the Company or any Subsidiary. No Participant, Permitted Assignee,
beneficiary or any other person shall have any claim against any member of the Board, the
Committee, the Company or any Subsidiary as a result of any such action.

          12.2 Recapitalization Adjustments. Subject to any required action by the Company’s
shareholders, the number of shares of Commons Stock covered by each outstanding Award, and the
number of shares of Common Stock that have been authorized for issuance under the Plan but as to
which no Awards have yet been granted or that have been returned to the Plan, the exercise or
purchase price of each such outstanding Award, as well as any other terms that the Committee
determines in its exclusive discretion require adjustment, may be proportionately adjusted for (a)
any increase or decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination, or reclassification of the shares of
Common Stock, or similar event affecting the shares of Common Stock; (b) any other increase or
decrease in the number of issued shares of Common Stock effected without receipt of consideration
by the Company; or (c) as the Committee determines in its exclusive discretion, any other
transaction with respect to Common Stock to which Code Section 424(a) applies or any similar
transaction; provided, however, that conversion of any convertibles securities of the Company shall
not be deemed to have been effected without receipt of consideration. Such adjustment, if any,
shall be made by the Committee in its exclusive discretion, and its determination shall be final,
binding and conclusive. Except as the Committee determines in its exclusive discretion, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Award.

     13. Corporate Transactions/Changes in Control/Related Entity Dispositions.

	 	13.1	 	Acceleration of Awards Vesting. Except as otherwise
provided in Section 13.2, the following provisions apply as applicable:

13.1.1 Corporate Transaction or Change in Control. On the specified
effective date of a Corporate Transaction or Change in Control, each Award

 

 

that is at the time outstanding automatically shall become fully vested and
exercisable and be released from any restrictions on transfer (other than
transfer restrictions applicable to Incentive Stock Options) and repurchase
or forfeiture rights, immediately prior to the specified effective date of
such Corporate Transaction or Change in Control, for all the Shares at the
time represented by such Award (except to the extent that such acceleration
of exercisability would result in an “excess parachute payment” within the
meaning of Section 280G of the Code). Notwithstanding the foregoing
provisions, the Committee may, in its exclusive discretion, provide as part
of a Section 424 Corporate Transaction that any one or more of the foregoing
provisions shall not apply.

13.1.2 Related Entity Disposition. On the specified effective
date of a Related Entity Disposition, for each Participant who on such
specified effective date is engaged primarily in service to the Related
Entity that is the subject of the Related Entity Disposition, each Award
that is at the time outstanding automatically shall become fully vested and
exercisable and be released from any restrictions on transfer (other than
transfer restrictions applicable to Incentive Stock Options) and repurchase
and forfeiture rights, immediately prior to the specified effective date of
such Related Entity Disposition, for all the shares at the time represented
by such Award. Notwithstanding the foregoing provisions, the Committee may,
in its exclusive discretion, provide as part of a Section 424 Corporate
Transaction that any one or more of the foregoing provisions shall not
apply.

13.1.3 Code Section 424 Matters. The Committee may provide in any
Award, Award Agreement, or as part of a Section 424 Corporate Transaction,
that if the requirements of Treas. Reg. §1.424-1 (without regard to the
requirement described in Treas. Reg. §1.424-1(a)(2) that an eligible
corporation be the employer of the optionee) would be met if the stock right
were an Incentive Stock Option, the substitution of a new stock right
pursuant to a Section 424 Corporate Transaction for an outstanding stock
right or the assumption of an outstanding stock right pursuant to a Section
424 Corporate Transaction shall not be treated as the grant of a new stock
right or a change in the form of payment. The requirement of Treas. Reg.
§1.424-1(a)(5)(iii) is deemed satisfied if the ratio of the exercise price
to the Fair Market Value of the shares of Common Stock immediately after the
substitution or assumption is not greater than the ratio of the exercise
price to the Fair Market Value of the shares of Common Stock immediately
before the substitution or assumption. In the case of a transaction
described in Code Section 355 in which the stock of the distributing
corporation and the stock distributed in the transaction are both readily
tradable on an established securities market immediately after the
transaction, the requirements of Treas. Reg. §1.424-1(a)(5) may be satisfied
by:

	 	(1)	 	using the last sale before or the first sale
after the specified date as of which such valuation is being made, the
closing price on the last trading day before or the trading

 

 

	 	 	 	day of a
specified date, the arithmetic mean of the high and low prices on the
last trading day before or the trading day of such specified date, or
any other reasonable method using actual transactions in such stock as
reported by such market on a specified date, for the stock of the
distributing corporation and the stock distributed in the transaction,
provided the specified date is designated before such specified date,
and such specified date is not more than sixty (60) days after the
transaction;

	 
	 	(2)	 	using the arithmetic mean of such market price
on trading days during a specified period designated before the
beginning of such specified period, when such specified period is not
longer than thirty (30) days and ends no later than sixty (60) days
after the transaction; or

	 
	 	(3)	 	using an average of such prices during such
prespecified period weighted based on the volume of trading of such
stock on each trading day during such prespecified period.

          13.2 Six-Month Rule. The provisions of Section 13.1 shall not apply to any Award that
has been granted and outstanding for less than six (6) months as of the date of the Corporate
Transaction, Change in Control or Related Entity Disposition.

          13.3 Payment. On or before the 60th day after a Corporate Transaction,
Change in Control or Related Entity Disposition occurs, (a) the holder of an Award of Restricted
Stock shall receive a new certificate for such shares without the legend set forth in Section
7.3.2, and (b) the holder of an Award of Performance Units shall receive payment of the value of
such Award in cash.

          13.4 Termination as a Result of a Potential Change in Control. In determining the
applicability of Section 13.1.1 as it relates to a Change in Control, if (a) a Participant’s
employment is terminated by the Company or any Subsidiary (and the termination constitutes a
Separation from Service) prior to a Change in Control without Cause at the request of a Person who
has entered into an agreement with the Company the consummation of which will constitute a Change
of Control, or (b) the Participant terminates his or her employment with the Company or any
Subsidiary for Good Reason prior to a Change in Control (and incurs a Separation from Service) and
the circumstance or event which constitutes Good Reason occurs at the request of the Person
described in Section 13.5.4, then for purposes of this Section 13, a Change in Control shall be
deemed to have occurred immediately prior to such Participant’s termination of employment.

          13.5 Definitions. For purposes of this Section 13, the following words and phrases
shall have the meaning specified:

          13.5.1 “Beneficial Owner” shall have the meaning set forth in SEC Regulation
§240.13d-3 or any successor regulation.

          13.5.2 “Cause” shall mean, unless otherwise defined in an employee Participant’s
individual employment agreement with the Company or any Subsidiary (in which case such
employment agreement definition shall govern), (a) the indictment of the

 

 

Participant for any
serious crime, (b) the willful and continued failure by the Participant to substantially
perform the Participant’s duties, as they may be defined from time to time, with the
Participant’s primary employer or to abide by the written policies of the Company or the
Participant’s primary employer (other than any such failure resulting from the Participant’s
incapacity due to physical or mental illness), or (c) the willful engaging by the
Participant in conduct which is demonstrably and materially injurious to the Company or any
Subsidiary, monetarily or otherwise. For purposes of the preceding sentence, no act shall
be considered “willful” unless done, or omitted to be done, by the Participant not in good
faith and without reasonable belief that such act, or failure to act, was in the best
interests of the Company and its Subsidiaries.

          13.5.3 “Good Reason” for termination by a Participant of the Participant’s employment shall
mean, for purposes of this Section 13, a Participant’s voluntary Separation from Service when the
following conditions are satisfied:

     (a) The Separation from Service occurs no later than two (2) years after the
initial existence of one or more of the following conditions that arise without the
Participant’s consent:

	 	i.	 	a material diminution in the
Participant’s base compensation;

	 
	 	ii.	 	a material diminution in the
Participant’s authority, duties, or responsibilities;

	 
	 	iii.	 	a material diminution in the
authority, duties, or responsibilities of the supervisor to
whom the Participant reports, including a requirement that the
Participant report to an officer or employee instead of
reporting directly to the Board or other governing body;

	 
	 	iv.	 	a material diminution in the
budget over which the Participant has authority;

	 
	 	v.	 	a material change in the
geographical location at which the Participant performs
services; or

	 
	 	vi.	 	any other act or failure to
act that constitutes a material breach by the Company, a
Parent, or a Related Entity of the employment agreement or
other agreement under which the Participant provides services;
and

     (b) The Participant gives written notice to the Board or other governing body
of the entity to which the Participant primarily provides services of the condition
described in subparagraph (1) above within ninety (90) days of its initial
existence, and upon receipt of the written notice, the Company, Parent, or
Related Entity has thirty (30) days to cure it.

 

 

          13.5.4 “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 14(d) and 15(d) thereof; provided, however, a
Person shall not include (a) the Company or any Subsidiary, (b) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or a Subsidiary qualified
under Section 401(a) of the Code, (c) an underwriter temporarily holding securities pursuant
to an offering of such securities, or (d) a corporation owned, directly or indirectly, by
the shareholders of the Company in substantially the same proportions as their ownership of
securities of the Company.

          13.5.5 “Potential Change in Control” shall be deemed to have occurred if any one of the
following conditions shall have been satisfied:

     (a) the Company enters into an agreement, the consummation of which would
result in the occurrence of a Change in Control; or

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

     (c) any Person becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing ten percent (10%) or more of the combined
voting power of the Company’s then outstanding securities, or any Person increases
such Person’s beneficial ownership of such securities by five (5) percentage points
or more over the percentage so owned by such Person; or

     (d) the Board adopts a resolution to the effect that, for purposes of the Plan,
a Potential Change in Control has occurred.

          13.5.6 “Surviving Entity” shall mean only an entity in which all or substantially all
of the Company’s shareholders immediately before any merger, Combination share exchange or
liquidation become shareholders by the terms of such merger, share exchange or liquidation.

          13.6 Adverse Tax Consequences. If the making of any payment or payments pursuant to
this Section 14 or otherwise would (a) subject the Participant to an excise tax under Section 4999
of the Code, or any like or successor section thereto, or (b) result in the Company’s loss of a
federal income tax deduction for such payments under Section 280G of the Code, or any like or
successor section thereto (either or both, an “Adverse Tax Consequence”), then, unless otherwise
expressly provided in a relevant Award Agreement, the payments attributable to this Plan that are
“parachute payments” within the meaning of such Section 280G of the Code shall be reduced, as
determined by the Committee in its sole discretion, but after consultation with the Participant
affected, to the extent necessary to avoid any Adverse Tax Consequence. Any disputes regarding
whether any payments to a Participant would result in an Adverse Tax Consequence shall be
resolved by an opinion of a nationally recognized accounting firm acceptable to the Company
and the Participant (with the Company’s independent auditors being deemed acceptable).

 

 

     14. Amendment, Suspension and Termination.

          14.1 In General. The Board may suspend or terminate this Plan (or any portion
thereof) at any time and may amend this Plan at any time and from time to time in such respects as
the Board may deem advisable to insure that any and all Awards conform to or otherwise reflect any
change in applicable laws or regulations, or to permit the Company or the Participants to benefit
from any change in applicable laws or regulations, or in any other respect the Board may deem to be
in the best interests of the Company or any Subsidiary; provided, however, that no
such amendment shall, without majority (or such greater percentage if required by law, charter,
by-law or other regulation or rule) shareholder approval to the extent required by law or the rules
of any exchange upon which the Common Stock is listed or any market on which the Common Stock is
qualified for quotation, (a) except as provided in Section 12, materially increase the number of
shares of Common Stock which may be issued under this Plan, (b) materially modify the requirements
as to eligibility for participation in this Plan, (c) materially increase the benefits accruing to
Participants under this Plan, or (d) extend the termination date of this Plan. No such amendment,
suspension or termination shall (i) materially adversely affect the rights of any Participant under
any outstanding Award, without the consent of such Participant, or (ii) make any change that would
disqualify this Plan, or any other plan of the Company or any Subsidiary intended to be so
qualified, from (A) the exemption provided by SEC Regulation §240.16b-3, or any successor thereto,
or (B) the benefits provided under Section 422 of the Code or any successor thereto. Further
provided, that no amendment, suspension, or termination shall be effected if it will violate
Section 409A, to the extent that Section 409A applies to the portion(s) of this Plan being amended,
suspended and/or terminated.

          14.2 Award Agreements. The Committee may amend or modify at any time and from time to
time any outstanding Award and Award Agreement, in any manner to the extent that the Committee
would have had the authority under this Plan to initially determine the restrictions, terms and
provisions of such Award, including, without limitation, to change the date or dates as of which
Stock Options may be exercised. No such amendment or modification shall, however, materially
adversely affect the rights of any Participant under any such Award and Award Agreement without the
consent of such Participant. Further provided, that no amendment or modification shall be effected
if it will violate Section 409A, to the extent that Section 409A applies to the portion(s) of the
Award and Award Agreement being amended or modified.

     15. Miscellaneous.

          15.1 Tax Withholding. The Company shall have the right to deduct from any payment or
settlement under this Plan, including, without limitation, the exercise of any Stock Option or
Stock Purchase Right, or the delivery or vesting of any shares of Common Stock, Restricted Stock,
any federal, state, local or other taxes of any kind which the Committee, in its sole discretion,
deems necessary to be withheld to comply with the Code and/or any other applicable law, rule or
regulation. If the Committee, in its sole discretion, permits shares of Common Stock to be used to
satisfy any such tax withholding, such Common Stock shall be valued based on the Fair Market Value
of such stock as of the date the tax withholding is required to be made, such date to be
determined by the Committee. The Committee may establish rules limiting the use of Common
Stock to meet withholding requirements by Participants who are subject to Section 16 of the
Exchange Act.

 

 

          15.2 No Right to Employment. Neither the adoption of this Plan, the granting of any
Award, nor the execution of any Award Agreement shall confer upon any employee of the Company or
any Subsidiary any right to continued employment with the Company or any Subsidiary, as the case
may be, nor shall it interfere in any way with the right, if any, of the Company or any Subsidiary
to terminate the employment of any employee at any time for any reason.

          15.3 Unfunded Plan. This Plan shall be unfunded and the Company shall not be required
to segregate any assets in connection with any Awards. Any liability of the Company to any person
with respect to any Award or any Award Agreement shall be based solely upon the contractual
obligations that may be created as a result of this Plan or any such Award or Award Agreement. No
such obligation of the Company shall be deemed to be secured by any pledge of, encumbrance on, or
other interest in, any property or asset of the Company or any Subsidiary. Nothing contained in
this Plan or any Award Agreement shall be construed as creating in respect of any Participant (or
beneficiary thereof, any Permitted Assignee or any other person) any equity or other interest of
any kind in any assets of the Company or any Subsidiary or creating a trust of any kind or a
fiduciary relationship of any kind between the Company, any Subsidiary and/or any such Participant,
any beneficiary, any Permitted Assignee or any other person.

          15.4 Payments to a Trust. The Committee is authorized to cause to be established a
trust agreement or several trust agreements or similar arrangements from which the Committee may
make payments of amounts due or to become due to any Participants under this Plan so long as the
establishment of the trust agreement(s) is consistent with Section 409A.

          15.5 Other Company Benefit and Compensation Programs. Payments and other benefits
received by a Participant under an Award shall not be deemed a part of a Participant’s compensation
for purposes of the determination of benefits under any other employee welfare or benefit plans or
arrangements, if any, provided by the Company or any Subsidiary unless expressly provided in such
other plans or arrangements, or except where the Board expressly determines in writing that
inclusion of an Award or portion of an Award should be included to accurately reflect competitive
compensation practices or to recognize that an Award has been made in lieu of a portion of
competitive annual base salary or other cash compensation. Awards may be made in addition to, in
combination with, or as alternatives to, grants, awards or payments under any other plans or
arrangements of the Company or its Subsidiaries. The existence of this Plan notwithstanding, the
Company or any Subsidiary may adopt such other compensation plans or programs and additional
compensation arrangements as it deems necessary to attract, retain and motivate employees.

          15.6 Listing, Registration and Other Legal Compliance. No Award shall be made and no
shares of the Common Stock shall be issued under this Plan, and no assignment of a Non-Qualified
Stock Option to a Permitted Assignee shall be made, unless legal counsel for the Company shall be
satisfied that such issuance or assignment will be in compliance with all applicable federal and
state securities laws and regulations and any other applicable laws or regulations. The Committee
may require, as a condition of any payment of any Award, share
issuance or assignment of Non-Qualified Stock Options, that certain agreements, undertakings,
representations, certificates, and/or information, as the Committee may deem necessary or
advisable,

 

 

be executed or provided to the Company to assure compliance with all such applicable
laws or regulations. Certificates for shares of the Restricted Stock and/or Common Stock delivered
under this Plan may be subject to such stock transfer orders and such other restrictions as the
Committee may deem advisable under the rules, regulations, or other requirements of the SEC, and
the Securities Market and any applicable federal or state securities law. The Committee may cause
a legend or legends to be put on any such share certificates to make appropriate reference to such
restrictions. In addition, if, at any time specified herein (or in any Award Agreement) for (a)
the making of any determination, (b) the issuance or other distribution of Restricted Stock and/or
Common Stock, or (c) the payment of amounts to or through a Participant with respect to any Award,
any law, rule, regulation or other requirement of any governmental authority or agency shall
require either the Company, any Subsidiary, any Participant (or any designated beneficiary or other
legal representative) or any Permitted Assignee to take any action in connection with any such
determination, any such shares to be issued or distributed, any such payment, or the making of any
such determination, as the case may be, shall be deferred until such required action is taken. If
at any time and from time to time the Committee determines, in its sole discretion, that the
listing, registration or qualification of any Award, or any Common Stock or property covered by or
subject to such Award, upon the Securities Market or under any foreign, federal, state or local
securities or other law, rule or regulation is necessary or desirable as a condition to or in
connection with the granting of such Award or the issuance or delivery of Restricted Stock and/or
Common Stock or other property under such Award or otherwise, no such Award may be exercised or
settled, or paid in Restricted Stock, Common Stock or other property, unless such listing,
registration or qualification shall have been effected free of any conditions that are not
acceptable to the Committee.

          15.7 Award Agreements. Each Participant receiving an Award shall enter into an Award
Agreement with the Company in a form specified by the Committee. Each such Participant shall agree
to the restrictions, terms and conditions of the Award set forth therein.

          15.8 Designation of Beneficiary. Each Participant to whom an Award has been made may
designate a beneficiary or beneficiaries to receive any payment which under the terms of this Plan
and the relevant Award Agreement may become payable on or after the Participant’s death. At any
time, and from time to time, any such designation may be changed or canceled by the Participant
without the consent of any such beneficiary. Any such designation, change or cancellation must be
on a form provided for that purpose by the Committee and shall not be effective until received by
the Committee. If no beneficiary has been named by a deceased Participant, or if the designated
beneficiaries have predeceased the Participant, the beneficiary shall be the Participant’s estate.
If the Participant designates more than one beneficiary, any payments under this Plan to such
beneficiaries shall be made in equal shares unless the Participant has expressly designated
otherwise, in which case the payments shall be made in the shares designated by the Participant.

          15.9 Leaves of Absence/Transfers. The Committee shall have the power to promulgate
rules, policies and regulations and to make determinations, as it deems appropriate, under this
Plan in respect of any leave of absence from the Company or any Subsidiary granted to a
Participant. Without limiting the generality of the foregoing, the Committee may determine whether
any such leave of absence shall be treated as if the Participant has terminated employment
with the

 

 

Company or any such Subsidiary. Provided, however, that to the extent Section 409A
applies to any portion(s) of the Plan, the determination of whether a leave of absence constitutes
a Separation from Service for purposes of those portion(s) shall be made in accordance with Section
409A, and a leave of absence of longer than six months shall be considered a Separation from
Service for those portion(s) of the Plan subject to Section 409A unless the Participant has a
contractual or statutory right to return to work at the end of a longer leave of absence. If a
Participant transfers within the Company, or to or from any Subsidiary, such Participant shall not
be deemed to have terminated employment as a result of such transfers.

          15.10 Notices. Except as otherwise provided herein, any notice that the Company or
a Participant may be required or permitted to give to the other shall be in writing and shall be
deemed duly given when delivered personally or deposited in the United States mail, first class
postage prepaid, and properly addressed: Notice, if to the Company, shall be sent to its Corporate
Secretary at the following address:

NewBridge Bancorp

1501 Highwoods Boulevard

Suite 400

Greensboro, NC 24710

          Any notice sent by mail by the Company to a Participant shall be sent to the most current
address of the Participant as reflected on the records of the Company as of the time said notice is
required. In the case of a deceased Participant, any notice shall be given to the
Participant’s personal representative if such representative has delivered to the Company
evidence satisfactory to the Company of such representative’s status as such and has informed
the Company of the address of such representative by notice pursuant to this Section 15.9.

          15.11 Governing Law. This Plan and all actions taken thereunder shall be governed by
and construed in accordance with the laws of the State of North Carolina, without regard to
principles of conflict of laws. Any titles and headings herein are for reference purposes only,
and shall in no way limit, define or otherwise affect the meaning, construction or interpretation
of any provisions of this Plan.

          15.12 Effective Date. This Plan became effective as of May 18, 2006, as a result of
its approval by the holders of a majority of the Company’s outstanding Common Stock at the
Company’s 2006 Annual Meeting of Shareholders. It was amended by the Board in accordance
with Article 14 on March 19, 2008 to comply with Section 409A.

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