Document:

Exhibit
10.57

 

Incentive
Stock Option Agreement

under
the DOV Pharmaceutical, Inc.

2000
Stock Option and Grant Plan

Name
of Optionee:   

 

No.
of Option Shares:  

 

Grant
Date:    

 

Vesting
Date   

 

Further
Vesting Schedule  

Expiration
Date:            10 years
after Grant Date

Option
Exercise Price/Share:             $

Pursuant
to the DOV Pharmaceutical, Inc. 2000 Stock Option and Grant Plan, as amended and
restated as of March 28, 2002 (the Plan), DOV
Pharmaceutical, Inc., a Delaware corporation (together with all successors
thereto, the Company), hereby
grants to the Optionee, who is
an officer, employee, director, consultant or other key person of the Company or
any of its Subsidiaries, an option (the Stock
Option) to
purchase on or prior to the Expiration
Date, or such
earlier date as is specified herein, all or any part of the number of shares of
Common Stock, par value $0.0001 per share (Common Stock), of the
Company indicated above (the Option
Shares, and
such shares once issued shall be referred to as the Issued
Shares), at the
Option
Exercise Price, subject
to the terms and conditions set forth in this Qualified Stock Option Agreement
(this Agreement) and in
the Plan. This Stock Option is intended to qualify as an incentive stock option
as defined in Section 422(b) of the Internal Revenue Code of 1986, as amended
from time to time (the Code). To the
extent that any portion of the Stock Option does not so qualify, it shall be
deemed a non-qualified stock option.

1. Definitions. For the
purposes of this Agreement, the following terms shall have the following
respective meanings. All capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Plan.

 

 

Affiliate of any
Person means a Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with the
other Person. A Person shall be deemed to control another Person if such Person
possesses directly or indirectly the power to direct, or cause the direction of,
the management and policies of the other Person, whether through the ownership
of voting securities, by contract or otherwise.

Bankruptcy shall
mean (i) the filing of a voluntary petition under any bankruptcy or insolvency
law, or a petition for the appointment of a receiver or the making of an
assignment for the benefit of creditors, with respect to the Optionee or any
Permitted
Transferee, or (ii)
the Optionee or any Permitted Transferee being subjected involuntarily to such a
petition or assignment or to an attachment or other legal or equitable interest
with respect to the Optionee¢s or such
Permitted Transferee¢s assets,
which involuntary petition or assignment or attachment is not discharged within
60 days after its date, and (iii) the Optionee or any Permitted Transferee being
subject to a transfer of the Stock Option or the Issued Shares by operation of
law, except by reason of death.

Change
of Control shall
mean (i) a merger or
consolidation of the Company with or into another corporation other than a
transaction (A) in which the Company is the surviving corporation (except where
the Company is controlled by or under common control with another Person) or (B)
merging or consolidating the Company with any corporation controlling,
controlled by or under common control with the Company (in which case the
surviving corporation (except where the Company is controlled by or under common
control with another Person) shall be deemed the Company for purposes of this
Agreement), (i) the
sale of all or substantially all the assets of the Company to any corporation or
entity, other than a sale to any corporation or entity controlling, controlled
by or under common control with the Company prior to such transaction (in which
case the surviving corporation shall be deemed the Company for purposes of this
Agreement).

Permitted
Transferees shall
mean any of the following to whom the Optionee may transfer Issued Shares
hereunder: the Optionee¢s spouse,
children (natural or adopted), stepchildren or a trust for their sole benefit of
which the Optionee is the settlor provided that such trust does not require or
permit distribution of any Issued Shares during the term of this Agreement
unless subject to its terms. Upon the death of the Optionee (or a Permitted
Transferee to whom shares have been transferred hereunder), the term Permitted
Transferees shall also include such deceased Optionee¢s (or
such deceased Permitted Transferees) estate, executions, administrations,
personal representations, heirs, legatees and distributees, as the case may
be.

Person shall
mean any individual, corporation, partnership (limited or general), limited
liability company, limited liability partnership, association, trust, joint
venture, unincorporated organization or any similar entity.

Service
Relationship shall
mean any relationship as an employee, part-time employee, director or consultant
of the Company or any Subsidiary of the Company such that a Service Relationship
shall be deemed to continue without interruption in the event the
Optionee¢s status
changes from one such status to another.

 

 

2

 

Subsidiary shall
mean any corporation (other than the Company) in any unbroken chain of
corporations or other entities beginning with the Company if each of the
corporations (other than the last corporation in the unbroken chain) owns stock
or other interests possessing 50 percent or more of the total combined voting
power of all classes of stock or in one of the other corporations in the
chain.

2. Vesting,
Exercisability, and Termination.

(a) No
portion of this Stock Option may be exercised until such portion is
vested.

(b) Subject
to the determination of the Committee to
accelerate the above vesting schedule, this Stock Option shall be vested and
exercisable with respect to the Option Shares as set forth above.

(c) Termination. Except
as may otherwise be provided by the Committee, if the Optionee¢s Service
Relationship with the Company or a Subsidiary is terminated, the period within
which to exercise this Stock Option may be subject to earlier termination as set
forth below:

(i) Termination
Due to Death, Disability or Retirement. If the
Optionee¢s Service
Relationship terminates by reason of such Optionee¢s death,
disability (as defined in Section 422(c) of the Code) or retirement (after
attainment of age 60) this Stock Option may be exercised, to the extent
exercisable on the date of such termination, by the Optionee, the
Optionee¢s legal
representative or legatee for a period of 12 months from the date of death,
disability or retirement or until the Expiration Date, if earlier. 

(ii) Other
Termination. If the
Optionee¢s
employment terminates for any reason other than death, disability or retirement
(after attainment of age 60), and unless otherwise determined by the Committee,
this Stock Option may be exercised, to the extent exercisable on the date of
termination, for a period of 90 days from the date of termination or until the
Expiration Date, if earlier, provided that if the Optionee¢s Service
Relationship is terminated for cause, this Stock Option shall terminate
immediately upon the date of such termination.

For
purposes hereof, the Committee¢s
determination of the reason for termination of the Optionee¢s Service
Relationship shall be conclusive and binding on the Optionee and his or her
representatives or legatees. Any portion of the Stock Option that is not
exercisable on the date of termination of the Service Relationship shall
terminate immediately and be null and void.

 

 

3

 

(d) This
Stock Option is intended to qualify as an incentive stock option as defined in
Section 422 of the Code to the extent permitted under applicable law.
Accordingly, the Optionee understands that in order to obtain certain benefits
of an incentive stock option under Section 422 of the Code, no sale or
other disposition may be made of Issued Shares for which incentive stock option
treatment is desired within the one-year period beginning on the day after the
day of the transfer of such Issued Shares to him or her, nor within the two-year
period beginning on the day after the grant of this Stock Option and that this
Stock Option must be exercised within three months after termination of
employment as an employee (or 12 months in the case of death or disability) to
qualify as an incentive stock option. If the Optionee disposes (whether by sale,
gift, transfer or otherwise) of any such Issued Shares within either of these
periods, he or she will notify the Company within 30 days after such
disposition. The Optionee also agrees to provide the Company with any
information concerning any such dispositions required by the Company for tax
purposes. Further, to the extent Option Shares and any other incentive stock
options of the Optionee having an aggregate fair market value in excess of
$100,000 (determined under the Code as of the Grant Date) vest in any year, such
options will not qualify as incentive stock options.

3. Exercise
of Stock Option.

(a) The
Optionee may exercise this Stock Option only in the following manner: Prior to
the Expiration Date, the Optionee may deliver a Stock Option exercise notice (an
Exercise
Notice) in the
form of Appendix A hereto
indicating his or her election to purchase some of or all the Option Shares with
respect to which this Stock Option is exercisable at the time of such notice.
Such notice shall specify the number of Option Shares to be purchased. Payment
of the purchase price may be made by one or more of the methods described below.
Payment instruments will be received subject to collection.

(i) in cash,
by certified or bank check, or other instrument acceptable to the Committee in
U.S. funds payable to the order of the Company in an amount equal to the
purchase price of such Option Shares;

(ii) by the
Optionee delivering to the Company a promissory note if the Board has expressly
authorized the loan of funds to the Optionee for the purpose of enabling or
assisting the Optionee to effect the exercise of his or her Stock Option
provided that at least so much of the exercise price as represents the par value
of the Stock shall be paid other than with a promissory note if otherwise
required by state law; or

(iii)  (A)
through the delivery (or attestation to ownership) of shares of Common Stock
that have been purchased by the Optionee on the open market or that have been
held by the Optionee for at least six months and are not subject to restrictions
under any plan of the Company, (B) by the Optionee delivering to the Company a
properly executed Exercise Notice together with irrevocable instructions to a
broker to promptly deliver to the Company cash or a check payable and acceptable
to the Company to pay the option purchase price, provided that in the event the
Optionee chooses to pay the option purchase price as so provided, the Optionee
and the broker shall comply with such procedures and enter into such agreements
of indemnity and other agreements as the Committee shall prescribe as a
condition of such payment procedure, or (C) a combination of (i), (ii), (iii)(A)
and (iii)(B) above.

 

 

4

 

(b) Certificates
for the Option Shares so purchased will be issued and delivered to the Optionee
upon compliance to the satisfaction of the Committee with all requirements under
applicable laws or regulations in connection with such issuance. Until the
Optionee shall have complied with the requirements hereof and of the Plan, the
Company shall be under no obligation to issue the Option Shares subject to this
Stock Option, and the determination of the Committee as to such compliance shall
be final and binding on the Optionee. The Optionee shall not be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Common Stock subject to this Stock Option unless and until this Stock Option
shall have been exercised pursuant to the terms hereof, the Company shall have
issued and delivered the Issued Shares to the Optionee, and the
Optionee¢s name
shall have been entered as a stockholder of record on the books of the Company.
Thereupon, the Optionee shall have full dividend and other ownership rights with
respect to such Issued Shares, subject to the terms of this
Agreement.

(c) Notwithstanding
any other provision hereof or of the Plan, no portion of this Stock Option shall
be exercisable after the Expiration Date.

4. Incorporation
of Plan.
Notwithstanding anything herein to the contrary, this Stock Option shall be
subject to and governed by the Plan.

5. Transferability
of Stock Option. This
Agreement is personal to the Optionee and is not transferable by the Optionee in
any manner other than by will or by the laws of descent and distribution. The
Stock Option may be exercised during the Optionee¢s
lifetime only by the Optionee (or by the Optionee¢s
guardian or personal representative in the event of the Optionee¢s
incapacity). The Optionee may elect to designate a beneficiary by providing
written notice of the name of such beneficiary to the Company, and may revoke or
change such designation at any time by filing written notice of revocation or
change with the Company, and such beneficiary may exercise the
Optionee¢s Stock
Option in the event of the Optionee¢s death
to the extent provided herein. If the Optionee does not designate a beneficiary,
or if the designated beneficiary predeceases the Optionee, the legal
representative of the Optionee may exercise this Stock Option to the extent
provided herein in the event of the Optionee¢s
death.

6. Change
of Control.
The Stock
Option to the extent not vested shall vest upon a termination including by the
Optionee of membership on the Company’s board of directors within six months of
a Change of Control.

 

5

 

7. Withholding
Taxes. The
Optionee shall, not later than the date as of which the exercise of this Stock
Option becomes a taxable event for federal income tax purposes, pay to the
Company or make arrangements satisfactory to the Committee for payment of any
federal, state and local taxes required by law to be withheld on account of such
taxable event. Subject to approval by the Committee, the Optionee may elect to
have the minimum tax withholding obligation satisfied, in whole or in part, by
authorizing the Company to withhold from shares of Common Stock to be issued or
transferring to the Company, a number of shares of Common Stock with an
aggregate that would satisfy the minimum withholding amount due. The Company or
any Subsidiary of the Company has the right to deduct from payments of any kind
otherwise due to the Optionee, or from the Option Shares to be issued in respect
of an exercise of this Stock Option, any federal, state or local taxes of any
kind required by law to be withheld with respect to the issuance of Option
Shares to the Optionee.

8. Miscellaneous
Provisions.

(a) Equitable
Relief. The
parties stipulate that legal remedies may be inadequate to enforce the
provisions of this Agreement and that equitable relief including specific
performance and injunctive relief may be used to enforce the provisions of this
Agreement.

(b) Change
and Modifications. This
Agreement may not be orally changed, modified or terminated, nor shall any oral
waiver of any of its terms be effective. This Agreement may be changed, modified
or terminated only by an agreement in writing signed by the Company and the
Optionee.

(c) Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of
Delaware without regard to conflict of law principles.

(d) Headings. The
headings are intended only for convenience in finding the subject matter and do
not constitute part of the text of this Agreement and shall not be considered in
the interpretation of this Agreement.

(e) Saving
Clause. If any
provision of this Agreement is determined to be illegal or unenforceable, such
determination shall in no manner affect the legality or enforceability of any
other provision hereof.

(f) Notices. All
notices, requests, consents and other communications shall be in writing and be
deemed given when delivered personally, by facsimile transmission or when
received if mailed by first class registered or certified mail, postage prepaid.
Notices to the Company or the Optionee shall be addressed as set forth
underneath their signatures below, or to such other address or addresses as may
have been furnished by such party in writing to the other. 

(g) Benefit
and Binding Effect. This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto, their respective successors, permitted assigns, and legal
representatives. The Company has the right to assign this Agreement, and such
assignee shall become entitled to all the rights of the Company hereunder to the
extent of such assignment.

 

 

6

 

(h) Dispute
Resolution. (i)
Except as provided below, any dispute arising out of or relating to this
Agreement or the breach, termination or validity hereof shall be finally settled
by binding arbitration conducted expeditiously in accordance with the
J.A.M.S./Endispute Comprehensive Arbitration Rules and Procedures (the J.A.M.S.
Rules). The arbitration shall be governed by the United States Arbitration Act,
9 U.S.C. sections 1-16, and judgment upon the award rendered by the arbitrators
may be entered by any court having jurisdiction thereof. The place of
arbitration shall be located within the State of New Jersey.

(ii) Arbitration
shall commence within 60 days of the date on which a written demand for
arbitration is filed by any party hereto. The arbitrator shall have the power to
order the production of documents by each party and any third-party witnesses.
In addition, each party may take up to three depositions as of right, and the
arbitrator may in his or her discretion allow additional depositions upon good
cause shown by the moving party. However, the arbitrator shall not have the
power to order the answering of interrogatories or the response to requests for
admission. In connection with any arbitration, each party shall provide to the
other, no later than seven business days before the date of the arbitration, the
identity of all persons that may testify at the arbitration and a copy of all
documents that may be introduced at the arbitration or considered or used by a
party¢s witness
or expert. The arbitrator¢s
decision and award shall be made and delivered within six months of the
selection of the arbitrator. The arbitrator¢s
decision shall set forth a reasoned basis for any award of damages or finding of
liability. The arbitrator shall not have power to award damages in excess of
actual compensatory damages and shall not multiply actual damages or award
punitive damages or any other damages that are specifically excluded under this
Agreement, and each party hereby irrevocably waives any claim to such
damages.

(iii) Each of
the parties hereby irrevocably submits to the jurisdiction of any United States
District Court of competent jurisdiction for the purpose of enforcing the award
or decision in any such proceeding, (ii) and hereby waives, and agrees not to
assert, by way of motion, as a defense, or otherwise, in any such suit, action
or proceeding, any claim that it is not subject personally to the jurisdiction
of the above-named courts, that its property is exempt or immune from attachment
or execution (except as protected by applicable law), that the suit, action or
proceeding is brought in an inconvenient forum, that the venue of the suit,
action or proceeding is improper or that this Agreement or the subject matter
hereof may not be enforced in or by such court, and hereby waives and agrees not
to seek any review by any court of any other jurisdiction which may be called
upon to grant an enforcement of the judgment of any such court. Each of the
parties hereby consents to service of process by registered mail at the address
to which notices are to be given. Each party stipulates that its, his or her
submission to jurisdiction and its, his or her consent to service of process by
mail is made for the express benefit of the other party. Final judgment against
a party in any such action, suit or proceeding may be enforced in other
jurisdictions by suit, action or proceeding on the judgment, or in any other
manner provided the laws of such other jurisdiction. Section 8(h)(iii) applies
equally to requests for temporary, preliminary or permanent injunctive relief,
except that in the case of temporary or preliminary injunctive relief any party
may proceed in court without prior arbitration for the limited purpose of
avoiding immediate and irreparable harm.

 

7

 

(iv) The
parties shall participate in the arbitration in good faith. 

(i) Counterparts. For the
convenience of the parties and to facilitate execution, this Agreement may be
executed in two or more counterparts, each of which shall be deemed an original,
but all of which shall constitute one and the same document.

[SIGNATURE
PAGE FOLLOWS]

 

8

 

This
Agreement is signed by the party below, intending to be legally
bound.

 

	 	 	
	 	
	 
 	 
 	 
 
		 DOV PHARMACEUTICAL, INC
	 	 
	 	By: _______________________________
	 	Name:
      Arnold S. Lippa
	 	Title: Chief
      Executive Officer
	 	 
	 	Address:
	 	433 Hackensack Avenue
	 	Hackensack, NJ 07601

 

This
Agreement is signed by the party below, intending to be legally
bound.

 

	 	 	
	 	
	 
 	 
 	 
 
		OPTIONEE:
	 	 
	 	_______________________________
	 	Name:
	 	
	 	Grant Date
	 	
	 	
      Address:

	 	_______________________________
	 	_______________________________
	 	_______________________________
	 	 

 

9

 

[SPOUSE¢S
CONSENT

I
acknowledge that I have read the

foregoing
Incentive Stock Option Agreement

and
understand its contents]

____________________________________][A
spouse’s consent is required only if the Optionee’s state of residence is one of
the following community property states: Arizona, California, Idaho, Louisiana,
New Mexico, Nevada, Texas, Washington and Wisconsin (check WI
statute).]

 

	 	 	 
	 	DESIGNATED
      BENEFICIARY:
	 
 	 
 	 
 
			
	 	
      

    
	 	
	 	Beneficiary¢s
      Address
	 	 
	 	_______________________________
	 	_______________________________
	 	_______________________________

 

10

 

Appendix
A

 

STOCK
OPTION EXERCISE NOTICE

DOV
Pharmaceutical, Inc.

Attention:
Chief Financial Officer

____________________________

____________________________

Pursuant
to my stock option agreement dated __________ (the Agreement) under the DOV
Pharmaceutical, Inc. 2000 Stock
Option and Grant Plan, I _______________, hereby partially/fully [Circle One]
exercise such option by including herein payment in the amount of $______
representing the purchase price for [Fill in number of Option Shares] _______
option shares. I have chosen the following form(s) of payment:

 

 

 

	
       o
	
       1.
	Cash
	 	 	 
	
       o
	
       2.
	Certified or bank check payable to DOV
      Pharmaceutical, Inc.
	 	 	 
	
       o
	
       3.
	
      Other (as described in the Agreement (please
      describe))
_______________________________________

 

 

 

	 	 	 
	 	
	 
 	 
 	Sincerely
      yours,
			
       

	 	
      

    
	 	
	 	Name:
	 	 
	 	Address:
	 	_______________________________
	 	_______________________________
	 	_______________________________

 

A-1AGREEMENT

THIS
AGREEMENT
("Agreement"), dated as of January 1, 1999, by and among THE UNION CENTER
NATIONAL BANK, a bank chartered under the laws of Congress (the "Bank"), CENTER
BANCORP INC., a New Jersey corporation that owns all of the capital stock of the
Bank (the "Company"), and JOHN F. MCGOWAN ("Employee"),

W
I T N E S S E T H
:

WHEREAS, the
Company, the Bank and the Employee desire to enter into an employment agreement
providing for the Employee's employment by the Company and the
Bank;

WHEREAS, the
Bank and/or the Company have adopted certain benefit plans, including the
following plans: (i) an Achievement Incentive Plan (as it may be amended from
time to time, the "AIP"), (ii) a split dollar insurance plan (as it may be
amended from time to time, the "SDIP") and (iii) a 401(k) Savings Plan (as it
may be amended from time to time, the "401(k)Plan" and, together with the AIP
and the SDIP, the "Plans");

WHEREAS,
it is
understood that the Company shall remain fully liable hereunder, regardless of
the extent to which the Bank is liable hereunder; and

WHEREAS, the
Bank and the Company desire to employ Employee to devote full time to the
business of the Bank and the Company, and Employee desires to be so
employed,

NOW,
THEREFORE, in
consideration of the mutual covenants set forth herein, the parties hereto
hereby agree as follows:

1. Employment. Bank
and the Company agree to employ Employee, and Employee agrees to be so employed,
in the capacity of Senior Vice President of the Bank and Vice President of the
Company. Except as otherwise provided in the next sentence of this Section 1,
employment shall be for a term of three (3) years, effective as of January 1,
1999 and terminating December 31, 2001 (the "Initial Term"). Notwithstanding the
foregoing, this Agreement shall automatically be extended (i) at the end of the
Initial Term, for successive one year renewal terms unless, at least two years
prior to the commencement of any such renewal term, notice of termination of
this Agreement is given by any party hereto to the other parties hereto and (ii)
if a "Change in Control Event" (as defined in Section 8(a) hereof) occurs at any
time during the Initial Term or during any such renewal term, for a period of
three years from the date of such Change in Control Event. It is understood that
the effect of the immediately preceding sentence is to assure Employee that in
the event that he receives notice of termination of employment pursuant to
Section 8(a) hereunder, he will be entitled to severance benefits covering at
least two full years of employment in the absence of a Change in Control Event
or covering at least three full years of employment in the case of a Change in
Control Event.

2

2. Time
and Efforts.
Employee shall diligently and conscientiously devote his full and exclusive time
and attention and best efforts in discharging his duties as a Senior Vice
President of the Bank and as a Vice President of the Company.

3. Board
of Directors. Employee
shall at all times discharge his duties in consultation with and under the
supervision of the President and the Boards of Directors of the Bank and the
Company. In the performance of his duties, Employee shall make his principal
office in such place as the President of the Bank and the Company and Employee
may from time to time mutually agree.

4.
Compensation.

(a) Salary-Initial
Period. During
the period
from January 1, 1999 through December 31, 1999 (the "Initial Period"), Employee
shall receive, pursuant to the determination of the Executive Compensation
Committee of the Bank's Board of Directors (the "Executive Compensation
Committee"), as compensation for his services hereunder, a salary at the rate of
seventy thousand dollars ($70,000) per annum. This amount shall be paid in
twenty four (24) equal semi-monthly installments on the 15th and 30th day of
each month, or as near thereto as practicable.

(b) Salary-Subsequent
Years. During
each twelve month period following the Initial Period, Employee shall receive,
as compensation for his services, his salary set forth for the immediately
preceding twelve month period plus such salary increment as shall be determined
by the Executive Compensation Committee, with reference to the Bank's salary
guide. During each such twelve month period, Employee's salary shall be paid in
twenty-four (24) equal semi-monthly installments on the 15th and 30th day of
each month, or as near thereto as practicable.

(c) Bonuses. Employee
shall be entitled to participate in the AIP and shall receive incentive
compensation in accordance with the terms of the AIP. In the event that the AIP
is terminated, Employee shall receive such incentive compensation as shall be
awarded to him by the Executive Compensation Committee.

5.
Expenses;
Benefits.

(a) Reimbursement. The Bank
and the Company shall reimburse Employee for all reasonable and necessary
expenses incurred in carrying out his duties under this Agreement. Employee
shall either (i) present to the Bank from time to time an itemized account of
such expenses in any form reasonably required by the Bank and the Company for
reimbursement; or (ii) post such expenses to a credit card or other payment
means issued to Employee by the Bank and the Company.

(b) Automobile. The
Bank and the Company recognize the Employee's need for an automobile for
business purposes. The Bank and the Company, therefore, shall provide (without
expense to Employee) the Employee with an automobile, including all related
maintenance, repairs, insurance, and other costs, for business and personal use
and shall reimburse the Employee for all taxes payable by him as a result of the
provision of this benefit to the Employee. The automobile shall be the
automobile last provided to the Employee and the related costs shall be
comparable to those which the Bank provided to the Employee during the last six
months of 1998.

3

(c) Miscellaneous
Benefits. The
Bank and the Company shall provide Employee with all benefits that are generally
provided to officers of the Bank and/or the Company, other than the
President.

6. Health
Insurance; Life Insurance; Disability Insurance; Pension; and Other
Plans. The
Bank and the Company shall provide Employee with life insurance, disability
insurance, health insurance, pension benefits and benefits under the SDIP and
the 401(k) Plan to the extent that such benefits are provided to Employee on the
date hereof, together with any benefit enhancements that may be added to such
plans in the future. The monetary amount of such benefits received by Employee
shall be in accordance with the terms and conditions of such plans.

7. Vacation. Employee
shall receive annual vacations in conformity with Bank and Company policies on
vacations.

8. Termination
by the Bank Without Cause or by the Employee With and Without Good Reason;
Death.

(a) The Bank
and the Company may, without "Cause" (as defined herein), terminate this
Agreement at any time by giving 30 days' written notice to the Employee. In such
event, (i) the Employee, if requested by either the Bank or the Company, shall
continue to render services, and regardless of whether such request is made
shall be paid his regular compensation and shall continue to participate in all
benefit plans of the Company and the Bank, up to the date of termination, (ii)
the Employee shall be paid in a single sum, on the date of termination, a
severance allowance equal to Employee's regular compensation for the duration of
the term of this Agreement, as theretofore renewed pursuant to Section 1 hereof,
less all amounts required to be withheld and deducted, (iii) the Employee shall
be paid in a single sum, on the date of termination, an amount equal to the
largest annual benefit received by Employee under the AIP since the commencement
of the AIP (the "Largest Bonus") multiplied by the number of years (rounded to
the nearest tenth of a year) remaining in the term of this Agreement, as
theretofore renewed pursuant to Section 1 hereof; (iv) the Employee shall be
entitled to receive, during the period commencing on the date of termination and
ending on the last day of the term (as theretofore renewed pursuant to Section 1
hereof) (the "Extension Period"), the same benefits (or the economic equivalent
thereof) that he would have received under the SDIP, the 401(k) Plan and the
other benefit plans described in Section 6 hereof had he remained employed by
the Bank during the Extension Period (assuming a salary equal to the salary in
effect on the date of termination and an annual incentive under the AIP equal to
the Largest Bonus), (v) the Bank and the Company shall fund the obligations set
forth in the immediately preceding clause (iv) and (vi) all stock options
granted to Employee by the Company shall be exercisable in full, effective as of
the date of termination.

4

(b) The
Employee shall have the right to resign (and thereby terminate this Agreement)
with "Good Reason" (as defined herein) by delivering notice of such resignation
to the Bank and the Company at least 30 days prior to the effective date of such
resignation. If, prior to the expiration of the term hereof (as theretofore
renewed pursuant to Section 1 hereof), the Employee shall resign for Good
Reason, the Employee shall be entitled to the same benefits that he would have
received pursuant to Section 8(a) hereof had his employment been terminated (on
the effective date of such resignation) by the Bank or the Company without
Cause.

(c) The
Employee shall have no obligation to seek substitute employment or otherwise
mitigate the Company's obligation to make the payments and provide the benefits
described in Sections 8(a) and 8(b) hereof; provided, however, that in the event
that (i) Employee's employment terminates prior to a Change in Control Event and
(ii) Employee obtains other employment, then the salary and benefits which he
actually receives pursuant to such other employment shall be offset against the
Employer's obligations hereunder.

(d) For
purposes of this Agreement, the term "Good Reason" shall mean a resignation by
the Employee within 180 days after (i) a materially adverse change in the
Employee's duties or title, (ii) a material breach of this Agreement by the Bank
or the Company, (iii) the consummation of an acquisition by a third party of a
majority of the voting capital stock of the Company or the Bank or substantially
all of the assets of the Company or the Bank or (iv) a change in the composition
of the Board of Directors of the Company such that the "Continuing Directors"
(as defined herein) no longer constitute a majority of the Board (the events
referred to in clauses "iii" and "iv" being referred to herein as "Change in
Control Events"). For purposes of this Agreement, the term "Continuing Director"
shall mean (i) each current member of the Company's Board of Directors and (ii)
each person who is hereinafter first nominated to such Board by unanimous vote
of the persons who then constitute Continuing Directors.

(e) The
Employee may, without Good Reason, terminate this Agreement by giving 60 days'
written notice to the Bank and the Company. In such event the Employee shall
continue to render his services, shall be paid his regular compensation and
shall continue to participate in all benefit plans of the Company and the Bank
up to the date of termination, but he shall not receive any severance allowance
pursuant to this Agreement.

(f) In the
event that the Employee dies during the term of this Agreement as theretofore
renewed pursuant to Section 1 hereof, this Agreement shall terminate as of the
date of his death, subject to the obligations of the Company and the Bank that
have accrued through the date of death and subject to the terms of all
applicable benefit plans (including insurance plans) implemented by the Bank and
the Company.

9. Termination
with Cause.

(a) The Bank
and Company may terminate this Agreement for "Cause" by giving Employee 30 days'
written notice. In such event, the Bank and the Company shall pay Employee his
compensation, and Employee shall continue to participate in all benefit plans of
the Company and the Bank, up to the date of termination, but the Bank and the
Company shall not be required to provide the Employee with any severance
allowance pursuant to this Agreement. For purposes of this Agreement, "Cause"
shall consist of the following:

4

(i) disloyal,
dishonest or felonious conduct of Employee that materially adversely affects the
Bank or the Company; or

(ii) termination
of the Bank's business due to unprofitability, insolvency, bankruptcy or
directive by governmental regulators.

Termination
for "Cause" shall not be construed to include the takeover of the Bank or the
Company, in either a hostile or voluntary manner, by another person, firm or
corporation.

(b) Notwithstanding
the foregoing, in the event that termination is intended as a result of alleged
disloyal or dishonest conduct, the Boards of Directors of the Bank and the
Company shall give the Employee written notice of the occurrence of (and the
facts and circumstances surrounding) the acts allegedly constituting "Cause" and
a fair opportunity to present his position to such Boards. Such event shall not
constitute "Cause" if, no later than ten (10) business days following Employee's
receipt of such notice, the Employee establishes that either the alleged acts
did not occur, that such acts did not constitute dishonest or disloyal conduct,
that such acts did not materially adversely affect the Company and the Bank or
that such acts have been fully corrected and shall not be repeated.

10. Notices. All
notices required or permitted to be given under this Agreement shall be given by
certified mail, return receipt requested, to the parties at the following
addresses, or to such other addresses as either may designate in writing to the
other party:

5

If to the
Bank or the Company:

Union
Center National Bank

2455
Morris Avenue

Union,
New Jersey 07083

Attention:
President

If to
Employee:

John F.
McGowan

150 W.
Springtown Road

Long
Valley, New Jersey 07853

11. Indemnification;
Liability.
Employee shall be indemnified by the Bank and the Company to the maximum extent
permitted by law (and shall be entitled to receive advances to the maximum
extent permitted by law) with respect to all actions and all decisions not to
act taken by Employee during the term of this Agreement. The Bank and Company
shall be jointly and severally liable under this Agreement with respect to all
obligations of either such party hereunder. Any defense available to the Bank
that this Agreement is not enforceable against it shall not constitute a defense
for the Company. The obligations of this Section 11 shall survive termination of
this Agreement with respect to acts or omissions occurring prior to such
termination.

12. Governing
Law. This
Agreement shall be construed and enforced in accordance with the laws of the
State of New Jersey.

13. Entire
Contract. This
Agreement constitutes the entire understanding and agreement among the Bank, the
Company and Employee with regard to all matters set forth herein. There are no
other agreements, conditions or representations, oral or written, express or
implied, with regard thereto. This Agreement may be amended only in writing,
signed by all parties.

14. Non-Waiver. A delay
or failure by any party to exercise a right under this Agreement, or a partial
or single exercise of that right, shall not constitute a waiver of that or any
other right.

15. Headings.
Headings
in this Agreement are for convenience only and shall not be used to interpret or
construe its provisions.

16. Taxes. In the
event that either the Company's independent public accountants or the Internal
Revenue Service determines that any payment, coverage or benefit provided to
Employee is subject to the excise tax imposed by Section 4999 (or any successor
provision) of the Internal Revenue Code of 1986, as amended ("Section 4999"),
the Company and the Bank, within 30 days thereafter, shall pay to Employee, in
addition to any other payment, coverage or benefit due and owing hereunder, an
amount determined by multiplying the rate of excise tax then imposed by Section
4999 by the amount of the "excess parachute payment" received by Employee
(determined without regard to any payments made to Employee pursuant to this
Section 16) and dividing the product so obtained by the amount obtained by
subtracting the aggregate local, state and Federal income tax rate applicable to
the receipt by Employee of the "excess parachute payment" (taking into account
the deductibility for Federal income tax purposes of the payment of state and
local income taxes thereon) from the amount obtained by subtracting from 1.00
the rate of excise tax then imposed by Section 4999 of the Code, it being the
intention of the parties hereto that Employee's net after tax position be
identical to that which would have obtained had Sections 28OG and 4999 not been
part of the Internal Revenue Code of 1986, as amended.

6

17. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
Agreement.

18. Binding
Effect. The
provisions of this Agreement shall be binding upon and inure to the benefit of
both parties and their respective successors and assigns.

IN
WITNESS WHEREOF, the
Bank and the Company each have, by its appropriate officers, signed and affixed
its seal and Employee has signed and sealed this Agreement.

THE UNION
CENTER NATIONAL BANK

By:/s/
John J.
Davis                                                      

John J.
Davis, President

CENTER
BANCORP INC.

By:
/s/ John J.
Davis                                                      

John J.
Davis, President

/s/
John F.
McGowan               
                              
        

John F.
McGowan

7

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