Document:

exv10w5

 

EX-10.5

2006 STOCK OPTION PLAN

I. Purpose; Definitions. The purposes of the Bank of New Jersey 2006 Stock Option Plan
(the “Plan”) are to enable the Bank of New Jersey (the “Company”) and its
affiliated companies to recruit and retain highly qualified personnel, to provide those personnel
with an incentive for productivity, and to provide those personnel with an opportunity to share in
the growth and value of the Company.

          For purposes of the Plan, the following terms will have the meanings defined below, unless the
context clearly requires a different meaning:

     A. “Affiliate” means any Person that directly or indirectly controls, or is controlled
by, or is under common control with the Company (or its successors).

     B. “Award Agreement” means, with respect to any particular Option, the written
document that sets forth the terms of that particular Option.

     C. “Board” means the Board of Directors of the Company, as constituted from time to
time; provided, however, that if the Board appoints a Committee to perform some or all of the
Board’s administrative functions hereunder, references in the Plan to the “Board” will be deemed to
also refer to that Committee in connection with matters to be performed by that Committee.

     D. “Cause” means (i) conviction of, or the entry of a plea of guilty or no contest to,
a felony or any other crime that causes the Company or its Affiliates public disgrace or disrepute,
or adversely affects the Company’s or its Affiliates’ operations or financial performance, (ii)
gross negligence or willful misconduct with respect to the Company or any of its Affiliates,
including, without limitation fraud, embezzlement, theft or proven dishonesty in the course of
employment; (iii) alcohol abuse or use of controlled drugs other than in accordance with a
physician’s prescription; or (iv) a material breach of any agreement with or duty owed to the
Company or any of its Affiliates. Notwithstanding the foregoing, if a Participant and the Company
(or any of its Affiliates) have entered into an employment agreement, consulting agreement or other
similar agreement that specifically defines “cause,” then with respect to such Participant, “Cause”
shall have the meaning defined in that employment agreement, consulting agreement or other
agreement.

     E. “Change in Control” means the occurrence of any of the following, in one
transaction or a series of related transactions: (i) any “person” (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) becoming a “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing more than 50%
of the voting power of the Company’s then outstanding securities; (ii) a consolidation, share
exchange, reorganization or merger of the Company resulting in the stockholders of the Company
immediately prior to such event not owning at least a majority of the voting power of the resulting
entity’s securities outstanding immediately following such event; (iii) the sale or other
disposition of all or substantially all the assets of the Company, (iv) a liquidation or
dissolution of the Company, or (v) any similar event deemed by the Board to constitute a Change in
Control for purposes of this Plan.

     F. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
any successor thereto.

 

 

     G. “Committee” means a committee appointed by the Board in accordance with Section
II of the Plan.

     H. “Director” means a member of the Board.

     I. “Disability” means a condition rendering a Participant Disabled.

     J. “Disabled” will have the same meaning as set forth in Section 22(e)(3) of the Code.

     K. “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     L. “Fair Market Value” means, as of any date: (i) if the Shares are not then publicly
traded, the value of such Shares on that date, as determined by the Board in its sole and absolute
discretion; or (ii) if the Shares are publicly traded, the closing price for a Share on the
principal national securities exchange on which the Shares are listed or admitted to trading or, if
the Shares are not listed or admitted to trading on any national securities exchange, but are
traded in the over-the-counter market, the closing sale price of a Share or, if no sale is publicly
reported, the average of the closing bid and asked prices, as furnished by two members of the
National Association of Securities Dealers, Inc. who make a market in the Shares selected from time
to time by the Company for that purpose.

     M. “Incentive Stock Option” means any Option intended to be and designated as an
“Incentive Stock Option” within the meaning of Section 422 of the Code.

     N. “Non-Employee Director” will have the meaning set forth in Rule 16b-3(b)(3)(i)
promulgated by the Securities and Exchange Commission under the Exchange Act, or any successor
definition adopted by the Securities and Exchange Commission; provided, however, that the Board or
the Committee may, to the extent that it deems necessary to comply with Section 162(m) of the Code
or regulations thereunder, require that each “Non-Employee Director” also be an “outside director”
as that term is defined in regulations under Section 162(m) of the Code.

     O. “Non-Qualified Stock Option” means any Option that is not an Incentive Stock
Option.

     P. “Option” means any option to purchase Shares granted pursuant to Section V
hereof.

     Q. “Parent” means, in respect of the Company, a “parent corporation” as defined in
Section 424(e) of the Code

     R. “Participant” means an employee, consultant, Director, or other service provider of
or to the Company or any of its respective Affiliates to whom an Option is granted.

     S. “Person” means an individual, partnership, corporation, limited liability company,
trust, joint venture, unincorporated association, or other entity or association.

     T. “Shares” means shares of the Company’s common stock, par value $10.00, subject to
substitution or adjustment as provided in Section III.C hereof.

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     U. “Subsidiary” means, in respect of the Company, a subsidiary company, as defined in
Sections 424(f) and (g) of the Code.

II. Administration. The Plan will be administered by the Board; provided, however, that
the Board may at any time appoint a Committee to perform some or all of the Board’s administrative
functions hereunder; and provided further, that the authority of any Committee appointed pursuant
to this Section II will be subject to such terms and conditions as the Board may prescribe
and will be coextensive with, and not in lieu of, the authority of the Board hereunder.

          Subject to the requirements of the Company’s by-laws and certificate of incorporation any
other agreement that governs the appointment of Board committees, any Committee to which some or
all of the Board’s administrative functions are delegated under this Section II will be
composed of not fewer than two members, each of whom will serve for such period of time as the
Board determines; provided, however, that if the Company has a class of securities required to be
registered under Section 12 of the Exchange Act, all members of any such Committee will be
Non-Employee Directors. From time to time the Board may increase the size of the Committee and
appoint additional members thereto, remove members (with or without cause) and appoint new members
in substitution therefor, fill vacancies however caused, or remove all members of the Committee and
thereafter directly administer the Plan.

          The Board will have full authority to grant Options under this Plan and determine the terms of
such Options. Such authority will include the right to:

     A. select the persons to whom Options may from time to time be granted hereunder (consistent
with the eligibility conditions set forth in Section IV);

     B. determine the type of Options to be granted to any person hereunder;

     C. determine the number of Shares, if any, to be covered by each Option;

     D. establish the other terms and conditions of each Option issued under the Plan (and any
Award Agreement);

     E. adopt, alter and repeal such administrative rules, guidelines and practices governing the
Plan as it, from time to time, deems advisable;

     F. interpret the terms and provisions of the Plan and any Option issued under the Plan (and
any Award Agreement);

     G. correct any defect, supply any omission or reconcile any inconsistency in the Plan or in
any Award Agreement in the manner and to the extent it deems necessary to carry out the intent of
the Plan; and

     H. otherwise supervise the administration of the Plan.

          All decisions made by the Board pursuant to the provisions of the Plan will be final and
binding on all persons, including the Company and Participants. No Director will be liable for any
good faith determination, act or omission in connection with the Plan or any Award.

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III. Shares Subject to the Plan.

     A. Shares Subject to the Plan. The Shares to be subject to or related to Options
under the Plan will be authorized and unissued Shares of the Company. The maximum number of Shares
that may be subject to Options under the Plan is 109,083 all of which may be issued in respect of
Incentive Stock Options and not more than 109,083 of which may be issued in respect of
Non-Qualified Stock Options. The Company will reserve for the purposes of the Plan, out of its
authorized and unissued Shares, such number of Shares.

     B. Effect of the Expiration or Termination of Options. If and to the extent that an
Option expires, terminates or is canceled or forfeited for any reason without having been exercised
in full, the Shares associated with that Option will again become available for grant under the
Plan. In addition, if any Share is tendered or the delivery of any Share is withheld in settlement
of a tax withholding obligation associated with an Option or in satisfaction of the exercise price
payable upon exercise of an Option, that Share will again become available for grant under the
Plan.

     C. Other Adjustments. In the event of any recapitalization, reorganization, merger,
consolidation, stock split or combination, stock dividend or other similar event or transaction
affecting the Shares, the Board will make such equitable substitutions or adjustments as it deems
appropriate in its sole and absolute discretion; (i) to the aggregate number, class and/or issuer
of securities reserved for issuance under the Plan; (ii) to the number, class and/or issuer of
securities subject to outstanding Options; and (iii) to the exercise price of outstanding Options,
which shall be conclusive and binding for all purposes of the Plan.

     D. Change in Control. Notwithstanding anything to the contrary set forth in the Plan,
upon or in anticipation of any Change in Control, the Board may, in its sole and absolute
discretion and without the need for the consent of any Participant, take one or more of the
following actions contingent upon the occurrence of that Change in Control:

          1. cause any or all outstanding Options to become vested and/or immediately exercisable, in
whole or in part;

          2. cancel any Option in exchange for a substitute option in a manner consistent with the
requirements of Treas. Reg. §1.424-1(a) (notwithstanding the fact that the original Option may
never have been intended to satisfy the requirements for treatment as an Incentive Stock Option);

          3. cause any outstanding Option to become fully vested and immediately exercisable for a
reasonable period in advance of the Change in Control and, to the extent not exercised prior to
that Change in Control, cancel that Option upon closing of the Change in Control; or

          4. cancel any Option in exchange for cash and/or other substitute consideration with a value
equal to (A) the number of Shares subject to that Option, multiplied by (B) the difference, if any,
between the Fair Market Value per Share on the date of the Change in Control and the exercise price
of that Option; provided, that if the Fair Market Value per Share on the date of the Change in
Control does not exceed the exercise price of any such Option, the Board may cancel that Option
without any payment of consideration therefore.

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     In the discretion of the Board, any cash or substitute consideration payable upon cancellation
or redemption of an Option may be subjected to vesting terms substantially identical to those that
applied to the cancelled or redeemed Option prior to the Change in Control.

IV. Eligibility. Employees, Directors, consultants, and other individuals who provide
services to the Company or its Affiliates are eligible to be granted Options under the Plan;
provided, however, that only employees of the Company, its Parent or a Subsidiary are eligible to
be granted Incentive Stock Options.

V. Options. Options granted under the Plan may be Incentive Stock Options or Non-Qualified
Stock Options. Any Option granted under the Plan will be in such form as the Board may at the time
of such grant approve. The Award Agreement evidencing any Option will incorporate the following
terms and conditions and will contain such additional terms and conditions as the Board deems
appropriate in its sole and absolute discretion:

     A. Option Price. The exercise price per Share purchasable under an Option will be
determined by the Board in its sole and absolute discretion and will not be less than 100% of the
Fair Market Value of a Share on the date of the grant. However, any Incentive Stock Option granted
to any Participant who, at the time the Option is granted, owns more than 10% of the voting power
of all classes of shares of the Company, its Parent or a Subsidiary will have an exercise price per
Share of not less than 110% of Fair Market Value of a Share on the date of the grant.

     B. Option Term. The term of each Option will be fixed by the Board, but no Incentive
Stock Option will be exercisable more than 10 years after the date the Option is granted. However,
any Incentive Stock Option granted to any Participant who, at the time such Option is granted, owns
more than 10% of the voting power of all classes of shares of the Company, its Parent or of a
Subsidiary may not have a term of more than five years. No Option may be exercised by any person
after expiration of the term of the Option.

     C. Exercisability. Options will vest and be exercisable at such time or times and
subject to such terms and conditions as determined by the Board.

     D. Method of Exercise. Subject to the terms of the applicable Award Agreement, the
exercisability provisions of Section V.C and the cessation of employment provisions of
Section VI, Options may be exercised in whole or in part from time to time during their
term by the delivery of written notice of exercise by the Participant to the Company specifying the
number of Shares to be purchased. Such notice will be accompanied by payment in full of the
purchase price, either by certified or bank check or such other means as the Board may accept. As
determined by the Board in its sole discretion on or after the date of grant, payment in full or in
part of the exercise price of an Option may be made in the form of previously acquired Shares based
on the Fair Market Value of the Shares on the date the Option is exercised; provided, however,
that, in the case of an Incentive Stock Option, the right to make a payment in the form of
previously acquired Shares may be authorized only at the time the Option is granted.

     No Shares will be issued upon exercise of an Option until full payment therefor has been made.
A Participant will not have the right to distributions or dividends or any other rights of a
stockholder with respect to Shares subject to the Option until the Participant has given written
notice of exercise, has paid in full for such Shares, if requested, has given the

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representation described in Section VIII.A hereof and fulfills such other conditions
as may be set forth in the applicable Award Agreement.

     E. Incentive Stock Option Limitations. In the case of an Incentive Stock Option, the
aggregate Fair Market Value (determined as of the time of grant) of the Shares with respect to
which Incentive Stock Options are exercisable for the first time by the Participant during any
calendar year under the Plan and/or any other plan of the Company, its Parent or any Subsidiary
will not exceed $100,000. For purposes of applying the foregoing limitation, Incentive Stock
Options will be taken into account in the order granted. To the extent any Option does not meet
such limitation, that Option will be treated for all purposes as a Non-Qualified Stock Option.

     F. Cessation of Service. Unless otherwise specified in the applicable Award
Agreement, Options will be subject to the terms of Section VI with respect to exercise upon
or following cessation of employment or other service.

     G. Transferability of Options. Except as may otherwise be specifically determined by
the Board with respect to a particular Option: (i) no Option will be transferable by the
Participant other than by will or by the laws of descent and distribution, and (ii) during the
Participant’s lifetime, an Option will be exercisable only by the Participant (or, in the event of
the Participant’s Disability, by his or her personal representative).

VI. Cessation of Service. Unless otherwise specified with respect to a particular Option
in the applicable Award Agreement, Options granted hereunder will remain exercisable after
cessation of service only to the extent specified in this Section VI.

     A. Cessation of by Reason of Death. If a Participant’s service with the Company or
any Affiliate ceases by reason of death, any Option held by such Participant may thereafter be
exercised, to the extent then exercisable or on such accelerated basis as the Board may determine
at or after grant, by the legal representative of the estate or by the legatee of the Participant
under the will of the Participant, for a period expiring (i) at such time as may be specified by
the Board at or after the time of grant, or (ii) if not specified by the Board, then 12 months from
the date of death, or (iii) if sooner than the applicable period specified under (i) or (ii) above,
upon the expiration of the stated term of such Option.

     B. Cessation by Reason of Disability. If a Participant’s service with the Company or
any Affiliate terminates by reason of Disability, any Option held by such Participant may
thereafter be exercised by the Participant or his personal representative, to the extent it was
exercisable at the time of termination, or on such accelerated basis as the Board may determine at
or after the time of grant, for a period expiring (i) at such time as may be specified by the Board
at or after grant, or (ii) if not specified by the Board, then 12 months from the date of
termination of service, or (iii) if sooner than the applicable period specified under (i) or (ii)
above, then upon the expiration of the stated term of such Option.

     C. Termination for Cause. If a Participant’s service with the Company or any
Affiliate is terminated for Cause: (i) any Option not already exercised will be immediately and
automatically forfeited as of the date of such termination, and (ii) any Shares for which the
Company has not yet delivered share certificates will be immediately and automatically forfeited
and the Company will refund to the Participant the Option exercise price paid for such Shares, if
any.

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     D. Other Cessations. If a Participant’s service with the Company and its Affiliates
ceases for any reason other than death, Disability or Cause, any Option held by such Participant
may thereafter be exercised by the Participant, to the extent it was exercisable at the time of
such termination, or on such accelerated basis as the Board may determine at or after grant, for a
period expiring (i) at such time as may be specified by the Board at or after the time of grant, or
(ii) if not specified by the Board, then 90 days from the date of cessation of service
(irrespective of the manner or timing of the cessation and without regards to whether there has
been reasonable notice of cessation), or (iii) if sooner than the applicable period specified under
(i) or (ii) above, upon the expiration of the stated term of such Option.

VII. Amendments and Termination. The Board may amend, alter or discontinue the Plan at any
time, provided that no amendment, alteration or discontinuation will be made which, without the
approval of such amendment within twelve (12) months of its adoption by the Board, by the Company’s
stockholders in a manner consistent with Treas. Reg. § 1.422-3 (or any successor provision), would:
(i) increase the total number of Shares reserved for the purposes of the Plan (except as otherwise
provided in Section III), or (ii) change the persons or class of persons eligible to receive
Options.

VIII. General Provisions.

     A. The Board may require each Participant to represent to and agree with the Company in
writing that the Participant is acquiring securities of the Company for investment purposes and
without a view to distribution thereof and as to such other matters as the Board believes are
appropriate. The Award Agreement evidencing any Option and securities issued pursuant thereto may
include any legend which the Board deems appropriate to reflect any restrictions on transfer and
compliance with applicable securities laws.

     B. All certificates for Shares or other securities delivered under the Plan will be subject to
such share-transfer orders and other restrictions as the Board may deem advisable under the rules,
regulations and other requirements of any stock exchange upon which the Shares are then listed, and
any applicable securities laws, and the Board may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

     C. Neither the adoption of the Plan nor the execution of any document in connection with the
Plan will: (i) confer upon any employee of the Company or an Affiliate any right to continued
employment or engagement with the Company or such Affiliate, or (ii) interfere in any way with the
right of the Company or such Affiliate to terminate the employment of any of its employees at any
time.

     D. No later than the date as of which an amount first becomes includible in the gross income
of the Participant for federal income tax purposes with respect to any Option under the Plan, the
Participant will pay to the Company, or make arrangements satisfactory to the Board regarding the
payment of taxes of any kind required by law to be withheld with respect to such amount. The
obligations of the Company under the Plan will be conditioned on such payment or arrangements and
the Company will have the right to deduct any such taxes from any payment of any kind otherwise due
to the Participant. Unless otherwise determined by the Board, the minimum required withholding
obligation with respect to an Option may be settled in Shares, including the Shares that are
subject to that Option.

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IX. Effective Date of Plan. The Plan will become effective on the date that it is adopted
by the Board.

X. Term of Plan. The Plan will continue in effect until terminated in accordance with
Section VII; provided, however, that no Incentive Stock Option will be granted hereunder on
or after the 10th anniversary of the date the Plan becomes effective (or, if the stockholders
approve an amendment that (i) increases the number of shares subject to the Plan or (ii) extends
the period which Incentive Stock Options may be granted hereunder, the 10th anniversary
of the effective date of such increase or extension).

XI. Invalid Provisions. In the event that any provision of this Plan is found to be
invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability
will not be construed as rendering any other provisions contained herein as invalid or
unenforceable, and all such other provisions will be given full force and effect to the same extent
as though the invalid or unenforceable provision was not contained herein.

XII. Governing Law. The Plan and all Options granted hereunder will be governed by and
construed in accordance with the laws of the State of New Jersey, without regard to the application
of the principles of conflicts of laws.

XIII. Board Action. Notwithstanding anything to the contrary set forth in the Plan, any
and all actions of the Board or Committee, as the case may be, taken under or in connection with
the Plan and any agreements, instruments, documents, certificates or other writings entered into,
executed, granted, issued and/or delivered pursuant to the terms hereof, will be subject to and
limited by any and all votes, consents, approvals, waivers or other actions of all or certain
stockholders of the Company or other persons required by:

     A. the Company’s Certificate of Incorporation (as the same may be amended and/or restated from
time to time);

     B. the Company’s Bylaws (as the same may be amended and/or restated from time to time); and

     C. any other agreement, instrument, document or writing now or hereafter existing, between or
among the Company and its stockholders or other persons (as the same may be amended from time to
time).

XIV. Notices. Any notice to be given to the Company pursuant to the provisions of the Plan
shall be given by registered or certified mail, postage prepaid, and addressed, if to the Company
to its principal executive office to the attention of its [Chief Financial Officer] (or such other
person as the Company may designate in writing from time to time), and, if to a Participant, to the
address contained in the Company’s personnel records, or to such other address as that Participant
may hereafter designate in writing to the Company. Any such notice shall be deemed given or
delivered three days after the date of mailing.

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Exhibit 10.6

STOCK OPTION AGREEMENT

UNDER THE

BANK OF NEW JERSEY 2006 STOCK OPTION PLAN

          THIS STOCK OPTION AGREEMENT (this “Agreement”) is made between THE BANK OF NEW JERSEY
(the “Company”) and [                    ] (the “Optionee”).

          WHEREAS, the Company maintains the Bank of New Jersey 2006 Stock Option Plan (the
“Plan”) for the benefit of the key employees, directors and advisors of the Company and its
Affiliates; and

          WHEREAS, the Plan permits the award of an Stock Options to purchase Shares, subject to the
terms of the Plan; and

          WHEREAS, the Company desires to grant the Optionee Stock Options under the Plan to further
align the Optionee’s personal financial interests with those of the Company’s stockholders.

          NOW, THEREFORE, in consideration of these premises and the agreements set forth herein and
intending to be legally bound hereby, the parties agree as follows:

          1. Award of Option. This Agreement evidences the grant to the Optionee of an option (the
“Option”) to purchase [                    ] ([                    ]) Shares (the “Option Shares”). The Option
is subject to the terms set forth herein, and in all respects is subject to the terms and
provisions of the Plan applicable to Stock Options, which terms and provisions are incorporated
herein by this reference. Except as otherwise specified herein or unless the context herein
requires otherwise, the terms defined in the Plan will have the same meanings herein.

          2. Nature of the Option. Subject to the limitation contained in Section 422(d) of the Code,
the Option [is] [is not] intended to be an incentive stock option as described by Section 422 of
the Code.

          3. Date of Grant; Term of Option. The Option was granted on [                    ], 2006 (the
“Effective Date”) and may not be exercised later than the date that is ten (10) years after
that date, subject to earlier termination in accordance with the Plan.

          4. Option Exercise Price. The per share exercise price of the Option is $[                    ] (the
“Exercise Price”), which is the Fair Market Value per Share on the Effective Date.

          5. Exercise of Option. The Option will become exercisable only in accordance with the terms
and provisions of the Plan and this Agreement, as follows:

               (a) Right to Exercise. Option Shares will become exercisable if the Optionee remains in
continuous service to the Company through the applicable vesting date as follows: (1) the Option
shall become exercisable with respect to [                    ]% of the Option Shares on
[                                        ], (2) an additional [                    ]% of the Option Shares will

 

 

become exercisable on [                                        ], and (3) the remaining [                    ]% of the
Option Shares will become exercisable on [                                        ].

               Upon a termination of the Optionee’s service with the Company, the Option will be exercisable
only to the extent specified in Section 6 of the Plan. Solely for purposes of this Option, service
with the Company will be deemed to include service with an Affiliate of the Company for so long as
that entity remains an Affiliate of the Company.

               (b) Method of Exercise. The Optionee may exercise the Option by providing written notice to
the Company stating the election to exercise the Option. Such written notice shall be signed by
the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company
or such other person as may be designated by the Company, and shall be accompanied by payment of
the Exercise Price and an amount equal to any required tax withholding. Payment of the Exercise
Price will be made in cash or such other form as may be accepted by the Board in accordance with
the Plan.

               (c) Share Legends. Any certificate evidencing an Option Share will contain such legends as
may be required or appropriate under any applicable stockholder agreement or stock purchase
agreement, in addition to any other legend that may be required or appropriate under applicable
law, the Plan or otherwise.

               (d) Partial Exercise. The Option may be exercised in whole or in part; provided, however,
that any exercise may apply only with respect to a whole number of Option Shares.

               (e) Restrictions on Exercise. The Option may not be exercised, and any purported exercise
will be void, if the issuance of the Option Shares upon such exercise would constitute a violation
of any applicable federal or state securities laws or other laws or regulations.

          6. Investment Representations. The Optionee represents and warrants to the Company that:

               (a) he or she is acquiring the Option (and upon exercise of the Option, will be acquiring the
Option Shares) for investment for his or her own account, not as a nominee or agent, and not with a
view to, or for resale in connection with, any distribution thereof; and

               (b) he or she has a preexisting personal or business relationship with the Company or one of
its directors, officers or controlling persons and by reason of his or her business or financial
experience, has, and could be reasonably assumed to have, the capacity to protect his or her
interests in connection with the acquisition of this Option and the Option Shares.

     In addition, as a further condition to the exercise of the Option, the Company may require the
Optionee to make any representation or warranty to the Company as may be required by or advisable
under any applicable law or regulation.

          7. Non-Transferability of Option. The Option may not be sold, pledged, assigned,
hypothecated, gifted, transferred or disposed of in any manner either voluntarily or

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involuntarily by operation of law, other than by will or by the laws of descent or
distribution. During the Optionee’s lifetime, the Option is exercisable only by the Optionee.
Subject to the foregoing and the terms of the Plan, the terms of the Option will be binding upon
the executors, administrators and heirs of the Optionee.

          8. Restrictions on Transfer of Option Shares.

               (a) Prior to the first sale of Shares in an underwritten public offering registered under the
Securities Act of 1933, the Optionee may not sell, assign, transfer, give, bequeath, devise, donate
or otherwise dispose of, or pledge, deposit or otherwise encumber, in any way or manner whatsoever,
whether voluntary or involuntary, any legal or beneficial interest in any of the Option Shares,
except as expressly provided in this Agreement.

               (b) If the transferee agrees in writing to be bound by all the terms and conditions of this
Agreement, Section 8(a) will not apply to transfers by the Optionee (or the Optionee’s estate) to
Optionee’s spouse, parents, siblings, children, nieces, nephews or grandchildren.

          9. Tax Consequences. The Optionee has reviewed with the Optionee’s own tax advisors the
federal, state, local and foreign tax consequences of the Option. The Optionee is relying solely
on such advisors and not on any statements or representations of the Company or any of its agents
or affiliates. The Optionee understands that he or she (and not the Company) will be responsible
for his or her own tax liabilities arising in connection with this award or the transactions
contemplated by this Agreement.

          10. No Continuation of Service. Neither the Plan nor this Option will confer upon the
Optionee any right to continue in the service of the Company or any of its Affiliates, or limit in
any respect the right of the Company or its Affiliates to discharge the Optionee at any time, with
or without Cause and with or without notice.

          11. The Plan. The Optionee has received a copy of the Plan (a copy of which is attached
hereto), has read the Plan and is familiar with its terms, and hereby accepts the Option subject to
the terms and provisions of the Plan, as amended from time to time. Pursuant to the Plan, the
Board is authorized to interpret the Plan and to adopt rules and regulations not inconsistent with
the Plan as it deems appropriate. The Optionee hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board with respect to questions arising under the
Plan or this Award Agreement.

          12. Call upon Cessation of Service.

               (a) If the Optionee’s service with the Company ceases for any reason, the Company or its
assignee may repurchase up to all of the Option Shares that the Optionee (and/or his estate, heirs
or permitted transferees) then holds (or thereafter acquires). The price payable by the Company or
its assignee to repurchase Shares pursuant to this Section 12(a) will be the Fair Market Value of
those Shares at the time the right described in this Section 12 is exercised. Notwithstanding the
foregoing, if the cessation of the Optionee’s service is due to a termination by the Company for
Cause, the price payable by the Company or its assignee to repurchase Shares pursuant to this
Section 12(a) will be lesser of (i) the Fair Market Value of

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those Shares at the time the right described in this Section 12 is exercised, or (ii) the
price paid by the Optionee (and/or his estate or heirs) to acquire such Shares.

               (b) With respect to each share subject to repurchase pursuant to this Section 12, the Company
(or its assignee) may exercise its repurchase right by delivery of written notice to the holder of
such share at any time during the [180]-day period beginning on the later of (i) the date the
Optionee’s employment or engagement with the Company ceases, or (ii) six months following the date
the Option was exercised with respect to that Option Share. All the rights of the holder of any
such shares, other than the right to receive payment in the manner described in Section 12(a) or
(b), will terminate as of the date of delivery by the Company of the written notice described in
this paragraph. The only representations, warranties or covenants which the holder of such shares
will be required to make in connection with a sale pursuant to Section 12(a) or (b) are with
respect to his or her ownership of the shares, his or her ability to convey title thereto free and
clear of liens, claims or encumbrances, and the due execution, validity and binding nature of the
sale documentation.

               (c) If a holder of shares becomes obligated to transfer those shares to the Company or its
assignee pursuant to this Agreement, that holder will endorse in blank the certificates evidencing
the shares to be sold and deliver those certificates to the Company or its assignee within 15 days
of receipt of the notice described above in Section 12(c). If a holder of shares fails to deliver
those shares in accordance with the terms of this Agreement, the Company or its assignee may, at
its option, in addition to all other remedies it may have, either (i) send to that holder the
purchase price for such shares, as specified in Section 12(a) or (b), or (ii) deposit such amount
with a trustee or escrow agent for the benefit of that holder for release upon delivery of shares
in accordance with the terms of this Agreement. Thereupon, the Company or its assignee, upon
written notice to the holder, will (x) cancel on its books the certificate or certificates
representing the shares required to be transferred, and (y) issue, in lieu thereof, in the name of
the Company (or its assignee) a new certificate or certificates representing such shares.

               (d) Any repurchase price payable under this Section 12 may be paid (i) in cash; (ii) by offset
of any obligation of the Optionee to the Company or its Affiliates; or (iii) to the extent that
payment in cash would give rise to an “event of default” under the Company’s principal credit
agreement then in effect, by delivery of a promissory note with interest accruing at the “prime
rate” published in The Wall Street Journal on the date of issuance, which interest will be payable
annually in arrears through maturity. Such note will mature and be payable five years from the
date of issuance or, if earlier, when such payment would not give rise to an “event of default”
under the Company’s principal credit agreement then in effect.

          13. Market Stand Off. The Optionee agrees that, in connection with any public offering by the
Company of its equity securities pursuant to a registration statement filed under the Securities
Act of 1933, not to sell, make any short sale of, loan, hypothecate, pledge, grant any option for
the purchase of or otherwise dispose of any Shares without the prior written consent of the Company
or its underwriters, for such period of time before or after the effective date of such
registration as may be requested by the Company or such underwriters.

          14. Entire Agreement. This Agreement, together with the Plan, and other exhibits attached
thereto or hereto, represents the entire agreement between the parties and supersedes any and all
prior or contemporaneous discussions, understandings or any agreements of any nature, written or
otherwise, relating to the subject matter hereof.

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          15. Governing Law. This Agreement will be construed in accordance with the laws of the State
of New Jersey, without regard to the application of the principles of conflicts of laws.

          16. Execution. This Agreement may be executed, including execution by facsimile signature, in
one or more counterparts, each of which will be deemed an original, and all of which together shall
be deemed to be one and the same instrument.

[This space intentionally left blank; signature page follows.]

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          IN WITNESS WHEREOF, this Agreement has been executed by the parties on the                      day of
                    , 2006.

	 	 	 	 	 
	 

	 	THE BANK OF NEW JERSEY	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	By:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	[PARTICIPANT]	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Address	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

THIS OPTION AND THE SECURITIES WHICH MAY BE PURCHASED UPON EXERCISE OF THIS OPTION HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.
THESE SECURITIES HAVE NOT BEEN ACQUIRED WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD,
ASSIGNED, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF, BY
GIFT OR OTHERWISE, OR IN ANY WAY ENCUMBERED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS,
OR A SATISFACTORY OPINION OF COUNSEL SATISFACTORY TO THE BANK OF NEW JERSEY THAT REGISTRATION IS
NOT REQUIRED UNDER SUCH ACT AND UNDER APPLICABLE STATE SECURITIES LAWS.

THE SHARES WHICH MAY BE PURCHASED UPON EXERCISE OF THIS OPTION ARE SUBJECT TO RESTRICTIONS ON
TRANSFER AND MAY NOT BE SOLD, EXCHANGED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
OF EXCEPT IN ACCORDANCE WITH AND SUBJECT TO ALL THE TERMS AND CONDITIONS OF THE PLAN, THIS
AGREEMENT OR ANY OTHER AGREEMENT REQUIRED HEREBY.

[Signature Page to Stock Option Agreement]

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