Document:

ex10-2.htm

 

STOCK OPTION AWARD AGREEMENT

 

FOR NON-INCENTIVE STOCK OPTIONS

PURSUANT TO THE

SUN BANCORP, INC.

2010 STOCK-BASED INCENTIVE PLAN

FOR OFFICERS

STOCK OPTIONS for a total of _______ shares of Common Stock of Sun Bancorp, Inc. (the “Company”), which Options are intended not to qualify as an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), are hereby granted to ___________________ (the “Optionee”) at the price determined as provided in, and in all respects subject to the terms, definitions and provisions of the 2010 Stock-Based Incentive Plan (the “Plan”) adopted by the Company which is incorporated by reference herein, receipt of which is hereby acknowledged.  Capitalized terms used herein but not otherwise defined herein shall have the meaning given to such terms in the Plan.

 

1.           Option Price.  The Option exercise price is $_____ for each Share, being 100% of the fair market value, as determined by the Committee, of the Common Stock on the Date of Grant of this Option (_________________).

 

2.           Exercise of Options. The Options subject to this Award shall be first exercisable in accordance with provisions of the Plan, provided the holder of such Option is an employee of the Company or Sun National Bank (the “Bank”) on such date as follows:

 

	
Date

	  	
Options Which Are First Exercisable/Non-forfeitable

(See Notes Below*)

	  	  	  
	
Upon grant: ___________________

	  	
______

	
As of ___________________

	  	
______

	
As of ___________________

	  	
______

	
As of ___________________

	  	
______

*NOTES:

	
A.  

	
Upon termination of service as an employee of the Company, absent Disability or death of the Option recipient, if such Options which are then exercisable are not exercised within three months from the date of such termination of service as an employee, then such Options shall nevertheless remain exercisable for their remaining term during such continued service as a director of the Company or the Bank; provided that such exercisability will 

 

 

  

  

  

 

 

	
  

	
cease upon the Optionee commencing an employment, directorship, advisory or consulting relationship with a financial services enterprise (including but not limited to a savings and loan association, bank, credit union, or insurance company) whereby the Optionee will have a work location within 25 miles of any office of the Company, the Bank, or any subsidiary of such entities existing as of the date of such termination of employment.

 

	
B.  

	
Upon Disability, all options that are deemed earned and non-forfeitable as of the date of such Disability shall remain exercisable for one year from such date of Disability, and all other options shall be forfeited as of such date of Disability.

	
C.  

	
Upon death, all such Options shall be immediately earned and exercisable by the estate for the remaining term of such Options.

	
D.  

	
Upon a Change in Control of the Company or the Bank, all such Options shall be immediately  earned and exercisable for the remaining term of such Options.

 (b)           Method of Exercise.  This Option shall be exercisable by a written notice to the Company which shall:

 

(i)           State the election to exercise the Option, the number of Shares with respect to which it is being exercised, the person in whose name the stock certificate or certificates for such Shares of Common Stock is to be registered, his address and Social Security Number (or if more than one, the names, addresses and Social Security Numbers of such persons);

 

(ii)           Contain such representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be satisfactory to the Company’s counsel;

 

(iii)           Be signed by the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the Optionee, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons to exercise the Option; and

 

(iv)           Be in writing and delivered in person or by certified mail to the Treasurer of the Company.

 

Payment of the purchase price of any Shares with respect to which the Option is being exercised shall be by shares of Company Common Stock, certified check, bank cashier’s or teller’s check.  Common Stock utilized in full or partial payment of the exercise price must have been owned by the party exercising such Option for not less than six months prior to the date of exercise of such Option, and such Common Stock shall be valued at the Fair Market Value at the date of exercise.  The Company shall accept full or partial payment in Common Stock only to the extent permitted by 

 

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applicable law. The certificate or certificates for shares of Common Stock as to which the Option shall be exercised shall be registered directly in the name of the person or persons exercising the Option or held in a brokerage or trust account for the benefit of such person or persons.

 

(c)           Restrictions on Exercise.  This Option may not be exercised if the issuance of the Shares upon such exercise would constitute a violation of any applicable federal or state securities or other law or valid regulation.  As a condition to the Optionee’s exercise of this Option, the Company may require the person exercising this Option to make any representation and warranty to the Company as may be required by any applicable law or regulation.

 

3.           Non-transferability of Option.  This Option may not be transferred in any manner otherwise than by will or the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee.  The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. Notwithstanding the foregoing, the Committee may, in its sole discretion, permit transferability or assignment of a Non-Incentive Stock Option by the Optionee if such transfer or assignment is, in the Committee’s sole determination, for valid estate planning purposes and such transfer or assignment is permitted under the Code.  For purposes of this Section, a transfer for valid estate planning purposes includes, but is not limited to: (a) a transfer to a revocable inter vivos trust as to which the Optionee is both the settlor and trustee, or (b) a transfer for no consideration to: (i) any member of the Optionee’s Immediate Family, (ii) any trust solely for the benefit of members of the Optionee’s Immediate Family, (iii) any partnership whose only partners are members of the Optionee’s Immediate Family, and (iv) any limited liability corporation or corporate entity whose only members or equity owners are members of the Optionee’s Immediate Family. For purposes of this Section, “Immediate Family” includes, but is not necessarily limited to, a Optionee’s parents, grandparents, spouse, children, grandchildren, siblings (including half bothers and sisters), and individuals who are family members by adoption. Nothing contained in this Section shall be construed to require the Committee to give its approval to any transfer or assignment of any Non-Incentive Stock Option or portion thereof, and approval to transfer or assign any Non-Incentive Stock Option or portion thereof does not mean that such approval will be given with respect to any other Non-Incentive Stock Option or portion thereof. The transferee or assignee of any Non-Incentive Stock Option shall be subject to all of the terms and conditions applicable to such Non-Incentive Stock Option immediately prior to the transfer or assignment and shall be subject to any other conditions proscribed by the Committee with respect to such Non-Incentive Stock Option.

 

4.           Term of Option.  This Option may not be exercised more than ten (10) years from the Date of Grant of this Option, as set forth below, and may be exercised during such term only in accordance with the Plan and the terms of this Option Award Agreement.

 

5.           Adjustments.  Subject to any required action by the stockholders of the Company, the number of Shares of Common Stock covered by this Award and the 

 

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exercise price per Share shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding Shares of Common Stock of the Company resulting from a subdivision or consolidation of Company Common Stock (whether by reason of merger, consolidation, recapitalization, reclassification, split-up, combination of shares, or otherwise) or the payment of a stock dividend on the Company Common Stock or any other increase or decrease in the number of such Shares of Company Common Stock effected without the receipt or payment of consideration by the Company (other than Shares held by dissenting stockholders) occurring after the Date of Grant.

 

6.           Related Matters.  Notwithstanding anything herein to the contrary, additional conditions or restrictions related to such Options may be contained in the Plan or the resolutions of the Plan Committee authorizing such grant of Options.

 

The foregoing Stock Option Award Agreement is executed by the undersigned on behalf of Sun Bancorp, Inc. in accordance with the Compensation and Personnel Committee Action approved on __________________.

 

	  	  	
Sun Bancorp, Inc.

	  	  	  
	  	  	  
	  	  	  
	
Date of Grant:  ___________________

	  	
By:

	  
	  	  	  	
Eli Kramer

	  	  	  	
Committee Chairman

	  	  	  	  
	  	  	  	  
	
Attest:

	  	  	  	  
	  	  	  	  	  
	  	  	  	  
	  	  	  	  
	
Award Acknowledged by undersigned Optionee

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
____________________________

	  	  	
Date

  

  

  

 

STOCK OPTION AWARD AGREEMENT

 

FOR NON-INCENTIVE STOCK OPTIONS

PURSUANT TO THE

SUN BANCORP, INC.

2010 STOCK-BASED INCENTIVE PLAN

FOR NON-EMPLOYEE DIRECTORS

STOCK OPTIONS for a total of __________ shares of Common Stock (“Award”) of Sun Bancorp, Inc. (the "Company"), which Options are intended not to qualify as an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended (“Code”), are hereby granted to _________________ (the "Optionee") at the price determined as provided in, and in all respects subject to the terms, definitions and provisions of the 2010 Stock-Based Incentive Plan (the "Plan") adopted by the Company which is incorporated by reference herein, receipt of which is hereby acknowledged.  Capitalized terms used herein but not otherwise defined herein shall have the meaning given to such terms in the Plan.

1.           Option Price.  The Option exercise price is $_____ for each Share, being 100% of the fair market value, as determined by the Committee, of the Common Stock on the Date of Grant of this Option (_______________).

2.           Exercise of Options. The Options subject to this Award shall be first exercisable in accordance with provisions of the Plan, provided the holder of such Option is a director of the Company or Sun National Bank (the “Bank”) on such date as follows:

(a)           Schedule of Rights to Exercise.

 

	
Date

	  	
Options Which Are First Exercisable/Non-forfeitable

(See Notes Below*)

	  	  	  
	
Upon grant:  _________________

	  	
______

	
As of _________________

	  	
______

	
As of _________________

	  	
______

	
As of _________________

	  	
______

  

  

  

*NOTES:

	
A.  

	
Upon termination of service as a director, absent Disability or death of the option recipient, such Options which are then exercisable shall cease to be exercisable three months from the date of such complete termination of service.

	
B.  

	
Upon Disability, such Options shall be deemed exercisable for a period not to exceed one year from such date of Disability but only if, and to the extent that, the Optionee was entitled to exercise any such Options at the date of such termination of service.

	
C.  

	
Upon death, all such Options shall be immediately exercisable by the estate for the remaining term of such options.

	
D.  

	
Upon a Change in Control of the Company or the Bank, all such Options shall be 100% exercisable for the remaining term of such options.

(b)           Method of Exercise.  This Option shall be exercisable by a written notice to the Company which shall:

(i)          State the election to exercise the Option, the number of Shares with respect to which it is being exercised, the person in whose name the stock certificate or certificates for such Shares of Common Stock is to be registered, his address and Social Security Number (or if more than one, the names, addresses and Social Security Numbers of such persons);

(ii)           Contain such representations and agreements as to the holder's investment intent with respect to such shares of Common Stock as may be satisfactory to the Company's counsel;

 

(iIi)           Be signed by the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the Optionee, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons to exercise the Option; and

 

(iv)           Be in writing and delivered in person or by certified mail to the Treasurer of the Company.

Payment of the purchase price of any Shares with respect to which the Option is being exercised shall be by shares of Company Common Stock, certified check, bank cashier's or teller's check.  Common Stock utilized in full or partial payment of the exercise price must have been owned by the party exercising such Option for not less than six months prior to the date of exercise of such Option, and such Common Stock shall be valued at the Fair Market Value at the date of exercise.  The Company shall accept full or partial payment in Common Stock only to the extent permitted by applicable law. The certificate or certificates for shares of Common Stock as to which the Option shall be exercised shall be registered directly in the name of the person or persons exercising the Option or held in a brokerage or trust account for the benefit of such person or persons.

 

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(c)           Restrictions on Exercise.  This Option may not be exercised if the issuance of the Shares upon such exercise would constitute a violation of any applicable federal or state securities or other law or valid regulation.  As a condition to the Optionee's exercise of this Option, the Company may require the person exercising this Option to make any representation and warranty to the Company as may be required by any applicable law or regulation.

3.           Non-transferability of Option.  This Option may not be transferred in any manner otherwise than by will or the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee.  The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. Notwithstanding the foregoing, the Committee may, in its sole discretion, permit transferability or assignment of a Non-Incentive Stock Option by the Optionee if such transfer or assignment is, in the Committee’s sole determination, for valid estate planning purposes and such transfer or assignment is permitted under the Code.  For purposes of this Section, a transfer for valid estate planning purposes includes, but is not limited to: (a) a transfer to a revocable inter vivos trust as to which the Optionee is both the settlor and trustee, or (b) a transfer for no consideration to: (i) any member of the Optionee’s Immediate Family, (ii) any trust solely for the benefit of members of the Optionee’s Immediate Family, (iii) any partnership whose only partners are members of the Optionee’s Immediate Family, and (iv) any limited liability corporation or corporate entity whose only members or equity owners are members of the Optionee’s Immediate Family. For purposes of this Section, “Immediate Family” includes, but is not necessarily limited to, a Optionee’s parents, grandparents, spouse, children, grandchildren, siblings (including half bothers and sisters), and individuals who are family members by adoption. Nothing contained in this Section shall be construed to require the Committee to give its approval to any transfer or assignment of any Non-Incentive Stock Option or portion thereof, and approval to transfer or assign any Non-Incentive Stock Option or portion thereof does not mean that such approval will be given with respect to any other Non-Incentive Stock Option or portion thereof. The transferee or assignee of any Non-Incentive Stock Option shall be subject to all of the terms and conditions applicable to such Non-Incentive Stock Option immediately prior to the transfer or assignment and shall be subject to any other conditions proscribed by the Committee with respect to such Non-Incentive Stock Option.

4.           Term of Option.  This Option may not be exercised more than ten (10) years from the Date of Grant of this Option, as set forth below, and may be exercised during such term only in accordance with the Plan and the terms of this Option Award Agreement.

5.           Adjustments.  Subject to any required action by the stockholders of the Company, the number of Shares of Common Stock covered by this Award and the exercise price per Share shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding Shares of Common Stock of the Company resulting from a subdivision or consolidation of Company Common Stock (whether by reason of merger, consolidation, recapitalization, reclassification, split-up, combination of shares, or otherwise) or the payment of a stock dividend on the Company Common Stock or any other increase or decrease in the number of such Shares of Company Common Stock effected without the receipt or payment of consideration by the Company (other than Shares held by dissenting stockholders) occurring after the Date of Grant.

 

  

  

  

 

6.           Related Matters.  Notwithstanding anything herein to the contrary, additional conditions or restrictions related to such Options may be contained in the Plan or the resolutions of the Plan Committee authorizing such grant of Options.

The foregoing Stock Option Award Agreement is executed by the undersigned on behalf of Sun Bancorp, Inc. in accordance with the Board of Directors Action approved on ___________________.

 

	  	  	
Sun Bancorp, Inc.

	  	  	  
	  	  	  
	  	  	  
	  	  	
By:

	  
	  	  	  	
Thomas X. Geisel

	  	  	  	
President and Chief Executive Officer

	  	  	  	  
	  	  	  	  
	
Attest:

	  	  	  	  
	  	  	  	  	  
	  	  	  	  
	  	  	  	  
	
Award Acknowledged by undersigned Optionee

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
________________________, Optionee

	  	  	
Date

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STOCK OPTION AWARD AGREEMENT

FOR INCENTIVE STOCK OPTIONS UNDER SECTION 422

OF THE INTERNAL REVENUE CODE

PURSUANT TO THE

SUN BANCORP, INC.

2010 STOCK-BASED INCENTIVE PLAN

OFFICERS AND EMPLOYEES

STOCK OPTIONS for a total of _____ shares of Common Stock of Sun Bancorp, Inc. (the “Company”), which Options are intended to qualify as an Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986, as amended, are hereby granted to ___________________ (the “Optionee”) at the price determined as provided in, and in all respects subject to the terms, definitions and provisions of the 2010 Stock-Based Incentive Plan (the “Plan”) adopted by the Company which is incorporated by reference herein, receipt of which is hereby acknowledged.  Capitalized terms used herein but not otherwise defined herein shall have the meaning given to such terms in the Plan.

 

1.           Option Price.  The Option exercise price is $____ for each Share, being 100% of the fair market value, as determined by the Committee, of the Common Stock on the Date of Grant of this Option (___________).

 

2.           Exercise of Options.  The Options subject to this Award shall be first exercisable in accordance with provisions of the Plan, provided the holder of such Option is an employee of the Company or Sun National Bank (“Bank”) on such date as follows:

 

(a)           Schedule of Rights to Exercise.

 

	  	  	
Options

	  	  	
Which Are First

	  	  	
Exercisable/

	  	  	
Non-forfeitable

	
Date

	  	
(See Notes Below*)

	  	  	  
	
Upon grant:  _____

	  	
0

	  
	
As of _________

	  	
__

	  
	
As of _________

	  	
__

	  
	
As of ________

	  	
__

	  
	
As of _________

	  	
__

	  

*NOTES:

 

 

	
  

	
A.

	
Except as otherwise noted, all such Options granted herein shall be considered Incentive Stock Options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).  In the event 

 

 

  

  

  

 

 

	
  

	
 

	
that the fair market value of the Common Stock subject to such grant that becomes first exercisable in any calendar year to any one individual exceeds $100,000, then the excess of each installment shall be deemed non-incentive stock options.

 

	
  

	
B.

	
All such Options shall be first exercisable at the rate of one-fourth on the two- year anniversary of the Date of Grant and one-fourth annually thereafter; provided that you are still employed by the Bank or the Company at such time.

 

	
  

	
C.

	
In the event of Disability prior to the next vesting event, a pro rata portion of such awards that would have vested at the next vesting event shall vest upon such Disability.  For example, if 25% of the time has passed until the next vesting event, then upon Disability, 25% of such awards that would have vested at the next vesting event shall vest upon Disability. Upon Disability, Options that are then exercisable shall remain exercisable for a period not to exceed one year from such date of Disability.

 

	
  

	
D.

	
In the event of death prior to the next vesting event, a pro rata portion of such awards that would have vested at the next vesting event shall vest upon such death.  For example, if 25% of the time has passed until the next vesting event, then upon death, 25% of such awards that would have vested at the next vesting event shall vest upon death.  Upon death, all Options that are then exercisable shall remain exercisable for the remaining term of such Options.

 

	
  

	
E.

	
Upon a Change in Control of the Company or the Bank, all such Options shall be immediately 100% earned and exercisable for the remaining term of such Options.

 

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F.

	
Upon termination of employment with the Bank or the Company (unrelated to a Change in Control transaction or death or Disability), any Options that are then exercisable shall cease being exercisable not later than three months after the date of termination of employment; provided that such exercisability will cease upon the Optionee commencing an employment, directorship, advisory or consulting relationship with a financial services enterprise (including but not limited to a savings and loan association, bank,  credit union, or insurance company) whereby the Optionee will have a work location within 25 miles of any office of the Company, the Bank, or any subsidiary of such entities existing as of the date of such termination of employment.

 

	
  

	
G.

	
Upon termination of employment for “cause,” all such Options shall cease to be exercisable as of such date of termination of employment.

 

(b)           Method of Exercise.  This Option shall be exercisable by a written notice to the Company which shall:

 

(i)           State the election to exercise the Option, the number of Shares with respect to which it is being exercised, the person in whose name the stock certificate or certificates for such Shares of Common Stock is to be registered, his address and Social Security Number (or if more than one, the names, addresses and Social Security Numbers of such persons);

 

(ii)           Contain such representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be satisfactory to the Company’s counsel;

 

(iii)           Be signed by the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the Optionee, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons to exercise the Option; and

 

(iv)           Be in writing and delivered in person or by certified mail to the Treasurer of the Company.

 

Payment of the purchase price of any Shares with respect to which the Option is being exercised shall be by shares of Company Common Stock, cash or  check.  Common Stock utilized in full or partial payment of the exercise price must have been owned by the party exercising such Option for not less than six months prior to the date of exercise of such Option, 

 

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and such Common Stock shall be valued at the Fair Market Value at the date of exercise.  The Company shall accept full or partial payment in Common Stock only to the extent permitted by applicable law. The certificate or certificates for shares of Common Stock as to which the Option shall be exercised shall be registered directly in the name of the person or persons exercising the Option or held in a brokerage or trust account for the benefit of such person or persons.

 

(c)           Restrictions on Exercise.  This Option may not be exercised if the issuance of the Shares upon such exercise would constitute a violation of any applicable federal or state securities or other law or valid regulation.  As a condition to the Optionee’s exercise of this Option, the Company may require the person exercising this Option to make any representation and warranty to the Company as may be required by any applicable law or regulation.

 

3.           Non-transferability of Option.  This Option may not be transferred in any manner otherwise than by will or the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee.  The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

4.           Term of Option.  This Option may not be exercised more than ten (10) years from the Date of Grant of this Option, as set forth below, and may be exercised during such term only in accordance with the Plan and the terms of this Option Award Agreement. Notwithstanding anything herein in to the contrary, to the extent that the Optionee shall be deemed a 10% stockholder in accordance with Sections 422 and 318 of the Code, then with respect to ISOs, the Option exercise price shall be 110% of the exercise price noted above, and the option term shall be only 5 years from the Date of Grant.

 

5.           Adjustments.  Subject to any required action by the stockholders of the Company, the number of Shares of Common Stock covered by this Award and the exercise price per Share shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding Shares of Common Stock of the Company resulting from a subdivision or consolidation of Company Common Stock (whether by reason of merger, consolidation, recapitalization, reclassification, split-up, combination of shares, or otherwise) or the payment of a stock dividend on the Company Common Stock or any other increase or decrease in the number of such Shares of Company Common Stock effected without the receipt or payment of consideration by the Company (other than Shares held by dissenting stockholders) occurring after the Date of Grant.

 

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6.           Related Matters.  Notwithstanding anything herein to the contrary, additional conditions or restrictions related to such Options may be contained in the Plan or the resolutions of the Plan Committee authorizing such grant of Options.

 

	  	  	  	
Sun Bancorp, Inc.

	  	  	  	  	  	  
	  	  	  	  	  	  
	
Date of Grant:

	  	  	  	  	  
	  	  	  	
By:

	  	  
	  	  	  	  	
Thomas X. Geisel

	  	  	  	  	
President and CEO

	
Attest:

	 	  	  	  	  
	 	  	  	  	  	  
	  	  	  	  	  	  

	
Award Acknowledged by the undersigned Optionee

	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  
	__________________________	  	  	
Date

 

 

5ex10-3.htm

STOCK AWARD AGREEMENT

PURSUANT TO THE

SUN BANCORP, INC.

2010 STOCK-BASED INCENTIVE PLAN

FOR NON-EMPLOYEE DIRECTORS

Stock Award.  This Agreement shall constitute an award of common stock ("Stock Award") to ___________________ (“Participant”) related to continuation of services as a director with Sun Bancorp, Inc. (“Company”) and Sun National Bank (the “Bank”) for the period beginning as of ________________ (“Date of Grant”) in accordance with the terms and conditions set forth herein, as follows:

	
1.  

	
The Participant shall be granted a Stock Award of ________ shares of Company common stock under the Company’s 2010 Stock-Based Incentive Plan (“Plan”). Such Stock Award shall vest 25% as of _____________ and 25% annually thereafter; provided that such Participant shall continue his service with the Company or the Bank.

	
2.  

	
Such Stock Awards granted shall be immediately 100% earned and non-forfeitable upon a Change in Control of the Company.

	
3.  

	
Upon the death or Disability of the Participant, such Stock Award shall be deemed earned and non-forfeitable pro rata from the date of the award to the date of death or Disability of the Participant. For example, if 25% of the time has passed from the date of grant until the vesting event, then upon death or Disability, 25% of such Award that would have vested at the next vesting event shall vest upon such death or Disability.

	
4.  

	
Upon the termination of service of the Participant prior to the date at which such Stock Award is deemed earned and non-forfeitable, such unearned Stock Award shall be forfeited.

	
5.  

	
Stock Certificates with respect to such Stock Award shall be delivered to the Participant upon such awards being deemed earned and non-forfeitable.

	
6.  

	
The shares of Company common stock associated with the Stock Award shall be proportionately adjusted for any stock dividends or stock splits that may be declared with respect to the Company Common Stock prior to the date that such Stock Award (or portion thereof) is earned and non-forfeitable and distributed to the Participant.  If the record date of a cash dividend with respect to the Company Common Stock is after the date of award of the Stock Award (or portion thereof) but prior to the date such Stock Award (or portion thereof) is earned and non-forfeitable and distributed to the Participant, then a corresponding amount of cash compensation shall be paid to the Participant within thirty days of the respective dividend payment date, subject to applicable tax withholding.

Reporting.  The Participant shall be responsible for filing SEC Form 4 reports with respect to any such Stock Award.

 

  

  

  

 

Restrictions on Awards.  The Stock Award may not be delivered to the Participant if the issuance of the common stock pursuant to the Stock Award would constitute a violation of any applicable federal or state securities or other law or valid regulation.  As a condition to the Participant’s receipt of this Stock Award, the Company may require the Participant to make any representation and warranty to the Company as may be required by any applicable law or regulation.

 

Non-transferability of Award.  A Stock Award, or portion thereof, may not be transferred in any manner prior to such Stock Award, or portion thereof, being deemed earned and non-forfeitable.

Voting of Stock Awards. Shares represented by a Stock Award that have not yet been vested, earned and distributed to the Participant shall not be voted by such Participant.

Disability of the Participant.  “Disability” with respect to this Stock Award shall mean a condition of incapacity of a Participant which renders that person unable to engage in the performance of his or her duties by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

Compliance with Section 409A of the Code.  Notwithstanding anything herein to the contrary, any payments or distributions to be made to the Participant in accordance with this Agreement and the related Plan as a result of the Participant’s termination of employment shall be administered in a manner consistent with the definition of “separation of service” as such term is defined at Section 409A of the Code and regulations promulgated thereunder, and such payments or distributions, if applicable, shall not be made to the Participant prior to the date that is 184 calendar days from the date of such separation of service, or such later date as determined in good faith by the Bank or Company (“Payment Date”), if it is determined by the Bank or the Company in good faith that the Participant is a “specified employee” within the meaning of Section 409A of the Code, that such payments or distributions to be made to such Participant are subject to the limitations at Section 409A of the Code and regulations promulgated thereunder, and if payments or distributions made in advance of such Payment Date would result in the requirement for the Participant to pay additional interest and taxes to be imposed in accordance with Section 409A(a)(1)(B) of the Code. Notwithstanding anything herein to the contrary, any payments or distributions to be made to the Participant in accordance with this Agreement and the related Plan as a result of a Change in Control shall be administered in a manner consistent with the definition of “change in control” as such term is defined at Section 409A of the Code and regulations promulgated thereunder, and such payments or distributions, if applicable, shall not be made at such time, if such payments or distributions would result in the requirement for the Participant to pay additional interest and taxes to be imposed in accordance with Section 409A(a)(1)(B) of the Code.

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Other Restrictions on Awards.  This Stock Award shall be subject to such other restrictions and limitations as are contained in the Plan or as determined by the Plan Committee administering such Plan.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.

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This Stock Award Agreement is entered into on ______________ by the undersigned parties.

Sun Bancorp, Inc.

Date of Award: _________________                             By:       _______________________ 

Thomas X. Geisel

President and CEO

Attest:           ____________________________

[SEAL]

PARTICIPANT ACKNOWLEDGEMENT AND AGREEMENT

	
__________________, Director

	
Date __________________

  

  

  

STOCK AWARD AGREEMENT

PURSUANT TO THE

SUN BANCORP, INC.

2010 STOCK-BASED INCENTIVE PLAN

FOR OFFICERS

Stock Award.  This Agreement shall constitute an award of common stock ("Stock Award") to __________________ (“Executive”) related to continuation of his employment services with Sun Bancorp, Inc. (“Company”) and Sun National Bank (the “Bank”) for the period beginning as of __________________ (“Date of Grant”) in accordance with the terms and conditions set forth herein, as follows:

	
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The Executive shall be granted a Stock Award of _______ shares of Company common stock under the Company’s 2010 Stock-Based Incentive Plan (“Plan”). Stock Award shall vest 25% as of _______________, and 25% annually thereafter; provided that such Participant shall continue his service with the Company or the Bank.

	
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All such Stock Awards granted shall be immediately 100% earned and non-forfeitable upon a Change in Control of the Company.

	
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Upon the involuntary termination of the employment of the Executive by the Company or the Bank, (absent termination for Cause), or upon the death or Disability of the Executive, such Stock Award shall be deemed earned and non-forfeitable pro rata from the date of the award to the date of such involuntary termination by the Company or upon the death or Disability of the Executive. For example, if 25% of the time has passed from the date of grant until the vesting event, then upon involuntary termination of employment by the Company or death or Disability, 25% of such Award that would have vested at the next vesting event shall vest upon such termination of employment, death or Disability.

	
4.  

	
Upon the voluntary resignation of the Executive prior to the date at which such Stock Award is deemed earned and non-forfeitable, such unearned Stock Award shall be forfeited.

	
5.  

	
Stock Certificates with respect to such Stock Award shall be delivered to the Executive upon such awards being deemed earned and non-forfeitable.

	
6.  

	
The shares of Company common stock associated with the Stock Award shall be proportionately adjusted for any stock dividends or stock splits that may be declared with respect to the Company Common Stock prior to the date that such Stock Award (or portion thereof) is earned and non-forfeitable and distributed to the Executive.  If the record date of a cash dividend with respect to the Company Common Stock is after the date of award of the Stock Award (or portion thereof) but prior to the date such Stock Award (or portion thereof) is earned and non-forfeitable and distributed to the Executive, then a corresponding amount of cash compensation shall be paid to the Executive within thirty days of the respective dividend payment date, subject to applicable tax withholding.

 

  

  

  

 

Tax Withholdings and Reporting.  The Company shall make such withholdings for taxes as it may be required prior to the distribution of such Stock Award upon it being earned and non-forfeitable.  The Executive shall be responsible for filing SEC Form 4 reports with respect to any such Stock Award.

Restrictions on Awards.  The Stock Award may not be delivered to the Executive if the issuance of the common stock pursuant to the Stock Award would constitute a violation of any applicable federal or state securities or other law or valid regulation.  As a condition to the Executive’s receipt of this Stock Award, the Company may require the Executive to make any representation and warranty to the Company as may be required by any applicable law or regulation.

Non-transferability of Award.  A Stock Award, or portion thereof, may not be transferred in any manner prior to such Stock Award, or portion thereof, being deemed earned and non-forfeitable.

Voting of Stock Awards. Shares represented by a Stock Award that have not yet been vested, earned and distributed to the Executive shall not be voted by such Executive.

Disability of the Executive.  “Disability” with respect to this Stock Award shall mean a condition of incapacity of a Participant which renders that person unable to engage in the performance of his or her duties by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

Compliance with Section 409A of the Code.  Notwithstanding anything herein to the contrary, any payments or distributions to be made to the Executive in accordance with this Agreement and the related Plan as a result of the Executive’s termination of employment shall be administered in a manner consistent with the definition of “separation of service” as such term is defined at Section 409A of the Code and regulations promulgated thereunder, and such payments or distributions, if applicable, shall not be made to the Executive prior to the date that is 184 calendar days from the date of such separation of service, or such later date as determined in good faith by the Bank or Company (“Payment Date”), if it is determined by the Bank or the Company in good faith that the Executive is a “specified employee” within the meaning of Section 409A of the Code, that such payments or distributions to be made to such Executive are subject to the limitations at Section 409A of the Code and regulations promulgated thereunder, and if payments or distributions made in advance of such Payment Date would result in the requirement for the Executive to pay additional interest and taxes to be imposed in accordance with Section 409A(a)(1)(B) of the Code. Notwithstanding anything herein to the contrary, any payments or distributions to be made to the Executive in accordance with this Agreement and the related Plan as a result of a Change in Control shall be administered in a manner consistent with the definition of “change in 

 

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control” as such term is defined at Section 409A of the Code and regulations promulgated thereunder, and such payments or distributions, if applicable, shall not be made at such time, if such payments or distributions would result in the requirement for the Executive to pay additional interest and taxes to be imposed in accordance with Section 409A(a)(1)(B) of the Code.

Other Restrictions on Awards.  This Stock Award shall be subject to such other restrictions and limitations as are contained in the Plan or as determined by the Plan Committee administering such Plan.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.

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This Stock Award Agreement is entered into on _____________ by the undersigned parties.

Sun Bancorp, Inc.

Date of Award: _________________                             By:       _______________________ 

Eli Kramer

Chairman, Compensation and

Personnel Committee

Attest:           ______________________________

[SEAL]

EXECUTIVE ACKNOWLEDGEMENT AND AGREEMENT

	
__________________, Executive

	
Date __________________

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