Document:

EX-10.9

 Exhibit 10.9 

SUN NATIONAL BANK 

MANAGEMENT SEVERANCE AGREEMENT 

THIS MANAGEMENT SEVERANCE AGREEMENT (“Agreement”) entered into this 4th day of
February, 2014 (“Effective Date”), by and between Sun National Bank (the “Bank”) and Thomas R. Brugger (the “Executive”). 

WHEREAS, the Bank wishes to employ the Executive as an Executive Vice President and Chief Financial Officer for the Bank; and 

WHEREAS, the parties desire by this writing to set forth the rights and responsibilities of the Bank and Executive if the Bank should undergo
a change in control (as defined hereinafter in the Agreement) after the Effective Date. 
 NOW, THEREFORE, each party, intending to be
legally bound, does hereby agree, as follows: 
 1. Employment. The Executive is employed in the capacity as Executive Vice President
and Chief Financial Officer of the Bank. The Executive’s employment shall be for no definite period of time and the Executive or the Bank may terminate such employment relationship at any time for any reason or no reason. The employment at-will
relationship remains in full force and effect regardless of any statements to the contrary made by company personnel or set forth in any documents other than those explicitly made to the contrary and signed by the President of the Bank. The
Executive shall render such administrative and management services to the Bank and to Sun Bancorp, Inc., the parent bank holding company (“Company”), as are currently rendered and as are customarily performed by persons situated in a
similar executive capacity. The Executive’s other duties shall be such as the Board of Directors for the Bank (the “Board of Directors” or “Board”) may from time to time reasonably direct, including normal duties as an
officer of the Bank and the Company. 
 2. Term of Agreement. The term of this Agreement shall be for the period commencing on the
Effective Date and ending one year thereafter (“Term”). Additionally, as of each December 31, thereafter, the Term of this Agreement shall be extended for an additional period such that the Term of the Agreement as of such date of
extension shall be for a new one-year period thereafter; provided, however, such Term shall not be automatically extended as of December 31 of any given year if the Board shall give the Executive written notice not later than October 1
immediately prior to such December 31 date that the Board has made a determination that such Agreement shall not be extended thereafter absent a future affirmative determination and resolution of the Board of Directors that the Term of such
Agreement shall be extended beyond the then in effect expiration date of such Agreement. The Term shall refer to the initial Term or any subsequent extension of such Term thereafter. 

 3. Termination of Employment in Connection with or Subsequent to a Change in Control. 

(a) Notwithstanding any provision herein to the contrary, in the event of the involuntary termination of Executive’s employment with the
Bank during the Term of this Agreement upon or within 18 months following any Change in Control of the Company or Bank, absent termination for Just Cause, Executive shall be paid an amount equal to 1.0 times the Executive’s annual base salary
in effect at the time of such termination of employment. Said sum shall be paid by the Bank to the Executive in one (1) lump sum not later than the date of Executive’s termination of service. 

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

 Notwithstanding the forgoing, all sums payable hereunder shall be reduced in such manner and to such extent so that no such payments made
hereunder when aggregated with all other payments to be made to the Executive by the Bank or the Company shall be deemed an “excess parachute payment” in accordance with Section 280G of the Internal Revenue Code of 1986, as amended
(“Code”), and thereby subject the Executive to the excise tax provided at Section 4999(a) of the Code. The term “Change in Control” shall refer to (i) the sale of all, or a material portion, of the assets of the Company
or the Bank; (ii) the merger or recapitalization of the Company or the Bank whereby the Company or the Bank is not the surviving entity; (iii) a change in control of the Company or the Bank, as otherwise defined or determined by the Office
of the Comptroller of the Currency (“OCC”) or the Board of Governors of the Federal Reserve System (“FRB”) or regulations promulgated by such agencies; or (iv) the acquisition, directly or indirectly, of the beneficial
ownership (within the meaning of that term as it is used in Section 13(d) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder) of twenty-five percent (25%) or
more of the outstanding voting securities of the Company or the Bank by any person, trust, entity or group. The term “person” means an individual other than the Executive, or a corporation, partnership, trust, association, joint venture,
pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. The provisions of this Section 3(a) shall survive the expiration of this Agreement occurring after a Change in
Control. 
 (b) Notwithstanding any other provision of this Agreement to the contrary, Executive may voluntarily terminate his employment
during the Term of this Agreement upon or within 18 months following a Change in Control of the Company or Bank, and Executive shall thereupon be entitled to receive the payment described in Section 3(a) of this Agreement, upon the initial
occurrence, or within 90 days thereafter, of any of the following events, which have not been consented to in advance by the Executive in writing: 

(i) a material diminution in the Executive’s base compensation; 

(ii) a material diminution in the Executive’s authority, duties, or responsibilities; 

(iii) a material diminution in the budget over which the Executive retains authority; 

  
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 (iv) the Executive would be required to move his personal residence or perform his principal
executive functions more than thirty-five (35) miles from the Executive’s primary office as of the date of the signing of this Agreement; or 

(v) any other action or inaction that constitutes a material breach by the Bank of this Agreement. 

The provisions of this Section 3(b) shall survive the expiration of this Agreement occurring after a Change in Control. 

Notwithstanding the foregoing, in the event that the Executive gives notice to the Bank with respect to his Termination of Employment in
accordance with Section 3(b), the Bank will have a period of 30 calendar days following notice from the Executive during which period the Bank may remedy the condition giving rise to such right to terminate employment. In the event that the
Bank shall, in good faith remedy such circumstances giving rise to such right to terminate employment within such 30-day period, such notice of Termination of Employment shall be deemed withdrawn and not be deemed effective and the Bank shall not be
required to pay the amount due to the Executive under Section 3(a) with respect to such event. 
 4. Other Changes in Employment
Status; Non-Solicitation Restrictions. 
 (a) Except as provided for at Section 3 herein, the Board of Directors may terminate the
Executive’s employment at any time with or without Just Cause within its sole discretion. This Agreement shall not be deemed to give the Executive any right to be retained in the employment or service of the Bank, or to interfere with the right
of the Bank to terminate the employment of the Executive at any time. Except as provided at Sections 3 and 4 herein, this Agreement shall not give the Executive any right to receive compensation or other benefits for any period after Termination of
Employment with or without Just Cause. Termination for “Just Cause” shall include termination because of the Executive’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order issued by a federal banking regulatory having regulatory authority
over the Bank or Company, or a material breach of any provision of the Agreement. During the Term of the Agreement, if the Executive’s employment with the Bank is terminated by the Bank for reasons other than in conjunction with or within
eighteen months following a Change in Control (in accordance with Section 3 herein) or for Just Cause, death or disability, the Executive shall receive a severance payment (“Severance Payment”) as follows: eighteen (18) weeks of
base salary during the first two years of employment; thirty-two (32) weeks of base salary after completion of two years of employment; and one year of base salary after completion of five years of employment. Such Severance Payment will be
paid in the form of bi-weekly payments in accordance with the Bank’s scheduled payroll calendar. 
 (b) Following the Executive’s
termination of employment, the Executive will not, without the express written consent of Bank or the Company, directly or indirectly communicate or divulge to, or use for his own benefit or for the benefit of any other person, firm, association, or
corporation, any of the trade secrets, proprietary data or other confidential information communicated to or otherwise learned or acquired by the Executive from the Company, the Bank, or any subsidiary of such entities, except that Executive may
disclose such matters to the extent that disclosure is required by a court or other governmental agency of competent jurisdiction. 
  

  
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 (c) During the four (4) month period following the Executive’s termination of
employment in accordance with Section 4(a) herein or in conjunction with or within six (6) months following the Executive’s termination of employment in accordance with Section 3 herein: 

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

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

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

 5. Regulatory Exclusions. 

(a) Notwithstanding anything herein to the contrary, any payments made to the Executive pursuant to the Agreement, or otherwise, shall be
subject to and conditioned upon compliance with 12 USC § 1828(k) and any regulations promulgated thereunder, including the FDIC’s Regulations applicable to Golden Parachute Payments at 12 C.F.R. Part 359. 

(b) Notwithstanding anything herein to the contrary, in the event that the Executive’s employment with the Bank is terminated (other than
upon the death or disability of such Executive) at such time that the Bank or the Company is deemed to be in “troubled condition” in accordance with 12 USC § 1831i and applicable regulations of the OCC or the FRB or is otherwise
subject to the provisions of 12 C.F.R. Part 359, then any payments of severance in accordance with this Agreement or otherwise shall not be made by the Bank unless or until the Bank shall have received the prior written approval of the OCC and the
FDIC’s written concurrence with such approval. In such event, the Bank will promptly make and diligently pursue an application for approval of such payment by the appropriate federal banking agencies. 

(c) Clawback Provision. The Executive covenants and agrees that the Bank and its successors and assigns shall have the right to demand the
return of any “golden parachute payments” (as defined in 12 C.F.R. Part 359) in the event that any of them obtain information indicating that the Executive committed, is substantially responsible for, or has violated, the respective acts
or omissions, conditions, or offenses contained in 12 C.F.R. § 359.4(a)(4), and the Executive shall promptly return any such “golden parachute payment” upon such demand. 

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

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

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

“Termination of Employment” shall have the same meaning as “separation from service”, as that phrase is defined in Code
Section 409A (taking into account all rules and presumptions provided for in the Code Section 409A regulations). 
 (c)
Notwithstanding the six-month delay rule set forth in Section 5(c) above: 
 (i) To the maximum extent permitted under Code
Section 409A and Treas. Reg. §1.409A-1(b)(9)(iii) (or any similar or successor provisions), the Bank will pay the Executive an amount equal to the lesser of two times (1) the maximum amount that may be taken into account under a
qualified plan pursuant to Code Section 401(a)(17) for the year in which the Executive’s Termination of Employment occurs, and (2) the sum of the Executive’s annualized compensation based upon the annual rate of pay for services
provided to the Bank for the taxable year of the Executive preceding the taxable year of the Executive in which his Termination of Employment occurs (adjusted for any increase during that year that was expected to continue indefinitely if the
Executive had not had a Termination of Employment); provided that amounts paid under this Section 6(c) must be paid no later than the last day of the second taxable year of the Executive following the taxable year of the Executive in which
occurs the Termination of Employment and such amounts paid will count toward, and will not be in addition to, the total payment amount required to be made to the Executive by the Bank under Sections 3 or 4; and 

(ii) To the maximum extent permitted under Code Section 409A and Treas. Reg. §1.409A-1(b)(9)(v)(D) (or any similar or successor
provisions), within ten (10) days of the Termination of Employment, the Bank will pay the Executive an amount equal to the applicable dollar amount under Code Section 402(g)(1)(B) for the year of the Executive’s Termination of
Employment; provided that the amount paid under this Section 6(c) will count toward, and will not be in addition to, the total payment amount required to be made to the Executive by the Bank under Section 3. 

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

7. No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment of severance benefits if he or she
accepts other compensation for employment with another entity. 
 8. Successors and Assigns. 

(a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Bank which shall acquire,
directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Bank. 
 (b)
The Executive shall be precluded from assigning or delegating his rights or duties hereunder without first obtaining the written consent of the Bank. 

9. Amendments. No amendments or additions to this Agreement shall be binding upon the parties hereto unless made in writing and signed
by both parties, except as herein otherwise specifically provided. 
 10. Applicable Law. This agreement shall be governed by all
respects whether as to validity, construction, capacity, performance or otherwise, by the laws of the State of New Jersey, except to the extent that Federal law shall be deemed to apply. 

11. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision
shall not affect the validity or enforceability of the other provisions hereof. 
 12. Arbitration. Any controversy or claim arising
out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the rules then in effect of the district office of the American Arbitration Association (“AAA”) nearest to the home office of
the Bank, and judgment upon the award rendered may be entered in any court having jurisdiction thereof, except to the extend that the parties may otherwise reach a mutual settlement of such issue. The Bank shall reimburse Executive for all
reasonable costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, following the delivery of the decision of the arbitrator that the Executive’s claim has merit, whether or not the
arbitrator finds in favor of the Executive. The provisions of this Section 12 shall survive the expiration of this Agreement. 

  
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 13. Non-Disclosure. The Executive will not, during
or after the Term of this Agreement, directly or indirectly, disseminate or disclose to any person, firm or entity, except to his or her legal advisor, the terms of this Agreement without the written consent of the Bank. 

14. Entire Agreement. This Agreement together with any understanding or modifications thereof as agreed to in writing by the parties,
shall constitute the entire agreement between the parties hereto and shall supersede any prior agreements with respect to the matters set forth herein. 

15. Representations by Executive. The Executive hereby represents and warrants that the information furnished to the Bank with respect
to his application for employment and the personal, professional and financial information and disclosures provided by the Executive to the Bank and to the OCC as required for review and approval by the OCC with respect to the Executive’s
employment as a senior officer of the Bank are true, complete and correct in all respects. In the event that the Bank or the OCC subsequently determines that any such information furnished by the Executive is not true, complete or correct, the
Executive acknowledges and agrees that such circumstance may result in the OCC not issuing a letter of non-objection with respect to the Bank’s employment of the Executive or the Bank determining to terminate the employment of the Executive
within its sole discretion without regard to any determination made by the OCC. Notwithstanding anything in this Agreement to the contrary, the Executive hereby acknowledges and agrees that under such circumstances, the Bank may determine to
terminate the employment of the Executive and that the Bank shall have no liability or obligation to the Executive with respect to any compensation or benefits following such termination of employment by the Bank. 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first hereinabove
written. 
  

							
		 		 		 	SUN NATIONAL BANK
		 		 		 	
				
	ATTEST:	 		 	By:	 	/s/ Thomas M. O’Brien
		 		 		 	Thomas M. O’Brien, President and Chief Executive Officer
		 		 		 	
				
	/s/ Patricia Schaubeck	 		 	  
	 	  

	Patricia Schaubeck, General Counsel	 		 		 	
		 		 		 	
		 		 		 	
	WITNESS:	 		 		 	
				
	/s/ Michele Estep	 		 	  
	 	/s/ Thomas R. Brugger
		 		 		 	Thomas R. Brugger, Executive

  
 9EX-10.25

 Exhibit 10.25 

SUN BANCORP, INC. 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is hereby entered into effective as of November 20, 2014 (the
“Effective Date”), by and between Sun Bancorp, Inc. (the “Company”), a New Jersey corporation and the holding company for Sun National Bank, with its principal executive offices at 350 Fellowship Road, Suite 101, Mt. Laurel, New
Jersey 08054 (the “Executive Offices”), and Mr. Nicos Katsoulis (“Executive”). Any reference to the “Bank” in this Agreement shall mean Sun National Bank, or any successor to Sun National Bank. 

WHEREAS, Executive and the Board of Directors of the Company desire to enter into an employment agreement setting forth the terms and
conditions of the employment of Executive and the related rights and obligations of each of the parties. 
 NOW, THEREFORE, in
consideration of the promises and mutual covenants herein contained, it is hereby agreed as follows: 
  

	1.	Position and Responsibilities. 

 (a) During the period of Executive’s employment
under this Agreement, Executive agrees to serve as Executive Vice President and Chief Lending Officer of the Company and of the Bank. Executive shall have responsibility for the general management and control of the business and affairs of the
Company and its affiliates and shall perform all duties and shall have all powers which are commonly incident to the offices of Executive Vice President and Chief Lending Officer or which, consistent with those offices, are delegated to him by the
President and Chief Executive Officer or the Board of Directors of the Company (the “Board of Directors”), and Executive shall report directly to the President and Chief Executive Officer. 

(b) During the period of Executive’s employment under this Agreement, except for periods of absence occasioned by illness, vacation, and
reasonable leaves of absence, Executive shall devote substantially all of his business time, attention, skill and efforts to the faithful performance of his duties under this Agreement, including activities and services related to the organization,
operation and management of the Company and its affiliates, as well as participation in community, professional and civic organizations, which may promote the business affairs of the Company. 

(c) The Company will furnish Executive with the working facilities and staff customary for executive officers with the titles and duties set
forth in this Agreement and as are necessary for him to perform his duties. The location of such facilities and staff shall be at the Executive Offices, or such other location as is mutually agreed to between the Company and Executive. 

 

	2.	Period of Employment. 

 Executive’s employment under this Agreement shall commence
within thirty calendar days following the date of receipt by both the Company and the Bank of the final applicable regulatory approvals or non-objections from the FRB and OCC, respectively, as described in Section 20(b) below. The Company and
Executive acknowledge and agree that Executive’s employment is “at-will,” meaning that Executive’s employment is for no definite period of time, and Executive or the Company may terminate such employment relationship at any time
for any reason or no reason. The employment at-will relationship remains in full force and effect regardless of any statements to the contrary made by company personnel or set forth in any documents other than those explicitly made to the contrary
and signed by an authorized representative of the Board of Directors of the Company. 

	3.	Compensation and Benefits. 

 (a) Base Salary. The Company agrees to pay Executive
during the period of Executive’s employment under this Agreement a base salary at the rate of $420,000 per annum, payable in accordance with the customary payroll practices of the Company, or those of the Bank in accordance with
Section 8(b) below. The Board of Directors or the Compensation Committee of the Board of Directors shall review annually the rate of Executive’s base salary based upon factors they deem relevant, and may maintain or increase his base
salary, provided that, no such action shall reduce the rate of base salary below the rate then in effect without Executive’s express written consent. In the absence of action by the Board of Directors, Executive shall continue to receive
a base salary at the per annum rate specified above or, if another rate has been established under the provisions of this Section 3, the rate last properly established by action of the Board of Directors. 

(b) Incentive Compensation. Executive shall be entitled to participate in annual bonuses and other incentive compensation programs in
accordance with the following terms: 
 (i) Annual Cash Bonus Opportunity. During each fiscal year of the Company ending during the
period of Executive’s employment, Executive will be eligible to receive an annual incentive award, payable in cash not later than March 15 immediately following the completion of the fiscal year that is the applicable performance period,
with a target award opportunity of not less than 50% of Executive’s annual base salary as in effect at the time that the applicable performance goals are established, with any applicable performance goals to be mutually developed and agreed
upon by Executive and the Compensation Committee of the Board of Directors within the first 90 days of the performance period; provided that, for the 2014 fiscal year, Executive’s annual bonus shall be guaranteed at $125,000, provided
that the Executive shall commence employment not later than November 20, 2014, and such 2014 annual bonus amount shall be paid to Executive not later than March 15, 2015. 

(ii) Annual Equity Award. During each fiscal year of the Company during the period of Executive’s employment, commencing with the
2015 fiscal year, Executive will be granted an annual equity award (in the form of restricted stock or stock options, or a combination thereof, as mutually agreed to by the Company and Executive, and with such awards based on mutually agreed upon
performance goals) with a grant date value (in the case of stock options based on the assumptions and methodology used by the Company for financial accounting purposes) of not less than 50% of Executive’s annual base salary as in effect at the
time that such performance goals are established. Such equity awards will be granted not later than March 15 immediately following the completion of the fiscal year that is the applicable performance period upon a determination by the Company
that the applicable performance goals have been attained, and such awards will vest at the rate of 25% beginning two years from the date of grant and 25% each year thereafter, subject to Executive’s continued employment with the Company;
provided that, notwithstanding the foregoing, upon Executive’s termination of employment due to his death or Disability (as defined in Section 4(c) below), no less than 50% of such Stock Award shall be deemed vested, earned and
non-forfeitable. If more than 50% of the full vesting period has elapsed, 100% of such Stock Award shall be deemed vested, earned and non-forfeitable. 

For the 2014 fiscal year, Executive will receive an equity award with a grant date value equal to 50% of Executive’s annual base salary,
pro-rated based upon the number of months employed by the Company during 2014, and such award shall be granted not later than March 15, 2015. Upon termination of employment other than termination for Cause (as defined in Section 4(a)
below), options to purchase Company stock that are, or that then become, exercisable shall remain exercisable for 90 days following such termination, provided that the Executive shall be in compliance with the post-termination,
non-competition and non-solicitation limitations set forth in Sections 6 and 7 below. 

  
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 (iii) Matching Equity Grant. To the extent that Executive purchases Company stock directly
from the Company with his own funds directly or through his retirement accounts, up to a maximum aggregate purchase of $600,000, during the period beginning immediately following the filing of a Current Report on Form 8-K with the Securities and
Exchange Commission disclosing Executive’s anticipated employment with the Company as its Executive Vice President and Chief Lending Officer (which shall be filed on the same date as the Company’s first public release of such information)
and ending on the date that is sixty (60) days following the date on which the Company and the Executive enter into an Addendum to this Agreement, after first receiving approval of such Addendum in accordance with 12 C.P.R. Part 359 in
accordance with Section 21 herein (the “Purchased Shares”), then within five (5) business days following each such purchase (but in no event prior to the date of Executive’s commencement of employment with the Company as its
Executive Vice President and Chief Lending Officer, Executive will be awarded matching shares of restricted stock by the Company in an amount equal to 1.5 shares of Company stock for each one (1) Purchased Share (“Matching Stock”).
Executive may purchase shares from the Company during this period at a price per share equal to the average of the twenty-four (24) hour daily weighted average trading prices of the Company’s common stock on the NASDAQ Global Select Market
(as calculated by Bloomberg Screen AQR) on each of the five (5) trading days ending one (1) business day prior to the purchase. Matching Stock will vest at the rate of 25% after 24 months, 25% after 36 months, and 50% after 48 months from
the date Executive commences employment with the Company, subject to Executive’s continued employment with the Company; provided that, notwithstanding the foregoing, upon Executive’s termination of employment due to his death or
Disability, awards that would otherwise vest within 18 months of the date of termination of employment without regard to such death or Disability shall nevertheless vest upon such termination of employment. Any dividends paid on the Company common
stock shall be paid on the Purchased Shares and Matching Stock at the same time and on the same terms and without regard to whether such shares are then vested, provided that such shares of Matching Stock have not previously been forfeited.
Matching Stock which has previously become vested will nevertheless be subject to restrictions on sale and transfer until the first to occur of (x) Executive’s termination of employment for any reason and (y) a “Change in
Control” of the Company (as defined in the Company’s 2010 Stock- Based Incentive Plan; provided, however, that a Change in Control shall not be deemed to occur solely by reason of the event
that any person, or persons acting in concert, that have previously been a party to the Securities Purchase Agreement between the Company and WLR SBI Acquisition Co, LLC dated July 7, 2010 or the Securities Purchase Agreement among the Company
and Bernard A. Brown, Sidney R. Brown, Jeffrey S. Brown, Anne E. Koons, The Four B’s, Interactive Logistics, LLC, National Distribution Centers, L.P. and National Freight, Inc. dated July 7, 2010, each as set forth in the Company’s
proxy statement dated September 28, 2010, shall become the beneficial owner(s) of 25% or more of a class of the Company’s voting securities), other than permissible transfers to satisfy tax withholding requirements upon the vesting of such
shares, and any stock certificates issued with respect to shares of Matching Stock shall bear a legend setting forth such restrictions and limitations. In the event of termination of employment prior to such Matching Stock becoming vested as
provided above, such unvested Matching Stock shall be forfeited as of the date of such termination of employment and the restrictions on sale and transfer of such unvested Matching Stock shall not be removed. The Purchased Shares that entitle
Executive to a Matching Stock award shall be subject to a holding period of thirty-six (36) months from the date of purchase, but in no event later than the first to occur of (x) Executive’s termination of employment for any reason
and (y) a Change in Control of the Company. 
 (v) As of the grant date (or as soon as practicable thereafter) of any equity awards,
including the Purchased Shares and the Matching Stock, the Company shall cause the shares underlying such awards to be registered under the Securities Act of 1933, pursuant to a registration statement on Form S-8 (or other appropriate form) and
registered or qualified under applicable state law, and the Company shall take all actions required to maintain the effectiveness of such registration statement until all common stock that may be issued, sold or delivered to Executive has been so
issued, sold and/or 

  
 3 

 
delivered or the Company’s obligations have lapsed. The Board of Directors of the Company shall take all necessary action to ensure that the grants and purchases contemplated by this
Agreement are approved for purposes of Rule 16b-3 of the Securities Exchange Act of 1934. 
 (c) Other Employee Benefits. In addition
to any other compensation or benefits provided for under this Agreement, Executive shall be entitled to participate in any employee benefits, fringe benefits, perquisites and business expense reimbursements that the Company or the Bank offers to
full-time employees or executive management now or in the future on a basis no less favorable than those provided to similarly situated executives. Without limiting the generality of the foregoing provisions of this paragraph, Executive shall be
entitled to participate in or receive benefits under all plans relating to stock purchases, pension, profit sharing, employee stock ownership, supplemental retirement, group life insurance, medical and other health and welfare coverage that are made
available by the Company or the Bank as of the date Executive commences employment or at any time in the future during the period of Executive’s employment under this Agreement, subject to and on a basis consistent with the terms, conditions
and overall administration of such plans and arrangements. Notwithstanding the foregoing, it is agreed that Executive’s participation in the Annual Cash Bonus Opportunity set forth at Section 3(b)(i) herein shall be a substitute for
participation in the annual cash bonus under the Management Committee and Shared Services Incentive Compensation Plan, participation in the Annual Equity Award set forth at Section 3(b)(ii) herein shall be a substitute for participation in the
annual equity awards under the Management Committee and Shared Services Incentive Compensation Plan, and the opportunity to receive Matching Stock as set forth at Section 3(b)(iv) herein shall be a substitute for participation in the proposed
2014 Performance Equity Plan. 
  

	4.	Termination for Cause; Death; Disability; Good Reason. 

 (a) Termination for
Cause. With respect to termination of Executive’s employment, “Cause” shall be considered to exist if Executive: (i) has willfully failed or refused to perform his assigned duties under this Agreement in any material respect
(including, for these purposes, Executive’s inability to perform such duties as a result of drug or alcohol dependency); (ii) has committed gross negligence in the performance of, or is guilty of continual neglect of, his assigned duties;
(iii) has been convicted or entered a plea of guilty or nolo contendere to, the commission of a felony or any other crime involving dishonesty, personal profit or other circumstance likely, in the reasonable judgment of the Board of Directors
of the Company, to have a material adverse effect on the Bank and the Company or their business, operations or reputation taken as a whole; (iv) has violated, in any material respect, any law, rule, regulation, written agreement or final
cease-and-desist order applicable to the Bank or the Company in his performance of services for the Bank or the Company or the Company’s or the Bank’s code of conduct; or (v) has willfully and intentionally breached the material terms
of this Agreement in any material respect. For purposes of this definition, no act or failure to act on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without
reasonable belief that Executive’s action or omission was in the best interests of the Bank and the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board of Directors of the Company,
the board of directors of the Bank or the Executive Committee of either board or based upon the written advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best
interests of the Bank and the Company. Any such determination must be made by a majority vote of the entire membership of the Board of Directors of the Company at a meeting of the Board of Directors called and held for that purpose, finding that, in
the good faith opinion of the Board of Directors, Executive’s conduct satisfies the requirements for termination for Cause. Termination for Cause shall be effected by written Notice of Termination (as described below) to Executive setting forth
with particularity the grounds for termination. Notwithstanding any other provision to the contrary, and for the avoidance of doubt, other than with respect to earned but unpaid salary and such other vested benefits as are set forth in this
Agreement and in 

  
 4 

 
any other agreement or plan, Executive shall not have the right to receive compensation or other benefits for any period after termination for Cause. Notwithstanding anything herein to the
contrary, Executive acknowledges and agrees that commencement of employment is further conditioned upon the Company’s prior receipt of satisfactory results regarding customary drug testing. 

(b) Death. Notwithstanding any other provision of this Agreement to the contrary, in the event of Executive’s death during the
period of his employment under this Agreement, the Company shall make payment to his estate in the amount of Executive’s base salary through the end of the month in which the death occurred, and such other vested benefits as are set forth in
this Agreement and in any other agreement or plan. This provision shall not negate any rights Executive or his beneficiaries may have to death benefits under any employee benefit plan of the Company or the Bank. 

(c) Disability. The Company may terminate Executive’s employment upon a determination, by vote of a majority of the members of the
Board of Directors of the Company, acting in reliance on the written advice of a medical professional acceptable to them and reasonably acceptable to Executive or his guardian, that Executive is suffering from a “Disability,” which shall
mean a physical or mental impairment which, at the date of the determination, has prevented Executive from performing his assigned duties on a substantially full-time basis for a period of at least sixty (60) days during the period of six
(6) months ending with the date of the determination or is likely to result in death or prevent Executive from performing his assigned duties on a substantially full-time basis for a period of at least sixty (60) days during the period of
six (6) months beginning with the date of the determination. As a condition to any benefits, the Board of Directors may require Executive to submit to such physical or mental evaluations and tests as it deems reasonably appropriate. In the
event of Executive’s Disability, Executive will be entitled to payment from the Company in the amount of all earned but unpaid salary as of the date of termination of employment and such other vested benefits as are set forth in this Agreement
and in any other agreement or plan. This provision shall not negate any rights Executive may have to disability benefits under any other plan of the Company or the Bank. A termination of employment due to Disability under this Section 4(c)
shall be effected by Notice of Termination given to Executive by the Company and shall take effect on the later of the effective date of termination specified in such notice or sixty (60) days after the date on which the Notice of Termination
is given to Executive, provided that Executive has not resumed, on a substantially full-time basis, his employment with the Company as President and Chief Executive Officer. 

(d) Termination for Good Reason. With respect to termination of Executive’s employment, “Good Reason” shall be
considered to exist upon the occurrence of any of the following events without Executive’s consent: 
 (i) the assignment to duties
materially inconsistent with Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by this Agreement; 

(ii) a material diminution in the authorities, duties or responsibilities of the person to whom Executive is required to report, including a
requirement that Executive report to an officer or employee instead of reporting directly to the Board; 
 (iii) a material reduction in
Executive’s annual base salary, target annual bonus or target annual equity award; 
 (iv) the Company’s requiring Executive to be
based at any office or location resulting in a material increase in Executive’s commute to and from Executive’s primary residence (for this purpose an increase in the Executive’s commute by 50 miles or more shall be deemed material);
or 

  
 5 

 (v) any other action or inaction that constitutes a material breach by the Company of this
Agreement; 
 provided that, within ninety (90) days after the initial existence of such event, the Company shall be given notice and an
opportunity, of not less than thirty (30) days, to remedy in good faith the condition constituting such “Good Reason” as asserted by Executive. Executive’s employment shall continue in effect during such time so long as the
Company makes diligent efforts during such time to cure the asserted Good Reason event or condition. In the event that the Company shall remedy in good faith the event or condition constituting Good Reason, then Executive’s notice of
termination for Good Reason shall be null and void, and, as a result of such event, the Executive shall not be entitled to resign with Good Reason. The Company’s remedy of any Good Reason event or condition with or without notice from Executive
shall not relieve the Company from any obligations to Executive under this Agreement or otherwise and shall not affect Executive’s rights upon the reoccurrence of the same, or the occurrence of any other, Good Reason event or condition.
Executive’s resignation hereunder for Good Reason shall not occur later than one hundred fifty (150) days following the initial date on which the event Executive claims constitutes Good Reason occurred. In the event of Executive’s
termination of employment for Good Reason, Executive will be entitled to payment from the Company in the amount of all earned but unpaid salary as of the date of termination of employment and such other vested benefits as are set forth in this
Agreement and in any other agreement or plan. 
  

	5.	Notice. 

 (a) Any notice or communication permitted or required by this Agreement shall
be in writing and shall become effective two days after mailing by certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	If to the Company, to:		Sun Bancorp, Inc.
			Attn: Corporate Secretary
			350 Fellowship Road
			Suite 101
			Mt. Laurel, NJ 08054

 If to Executive, to his address most recently on file with the Company. 

(b) Any purported termination of employment by the Company or by Executive shall be communicated by Notice of Termination to the other party
hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon to provide a basis for termination of Executive’s
employment. 
  

	6.	Post-Termination Obligations. 

 All payments and benefits to Executive under this
Agreement shall be subject to Executive’s compliance with Section 7 of this Agreement. Executive shall, upon reasonable notice, furnish such information and assistance to the Company as may reasonably be required by the Company in
connection with any litigation to which it or any of its affiliates is, or may become, a party, other than any litigation between Executive and the Company or its affiliates. The Company shall reimburse Executive for reasonable costs incurred by
Executive in providing such information and assistance. 
  

	7.	Non-Competition, Non-Solicitation and Non-Disclosure. 

 (a) For a period of one
(1) year following Executive’s termination of employment for any reason other than death, Executive agrees to the application of, and to abide by, the non-competition and 

  
 6 

 
non-solicitation restrictions and covenants set forth in this Section 7(a). Notwithstanding the foregoing, no such non-competition and non-solicitation restrictions shall apply in the event
of a termination of employment upon or following a “Change in Control” (as defined above in Section 3(b)(iv)) that occurs after the initial term of the change in control and severance agreement contemplated by Section 21. 

(i) Executive will not contact (with a view toward selling any product or service competitive with any product or service sold or proposed to
be sold by the Company, the Bank, or any subsidiary of such entities) any person, firm, association or corporation (1) to which the Company, the Bank, or any subsidiary of such entities sold any product or service during the thirty-six
(36) month period immediately prior to Executive’s termination of employment, or (2) which Executive was otherwise aware was a client of the Company, the Bank, or any subsidiary of such entities at the time of termination of
employment. Executive will not directly or indirectly make any such contact, either for his own benefit or for the benefit of any other person, firm, association, or corporation. 

(ii) Executive hereby agrees that he shall not engage in providing professional services or enter into employment as an employee, director,
consultant, representative, or similar relationship to any financial services enterprise (including but not limited to a savings and loan association, bank, credit union, or insurance company) engaged in the business of offering retail customer and
commercial deposit and/or loan products whereby Executive will have a work location within the “Geographic Territory”. For purposes of this Agreement, the term “Geographic Territory” means any location within twenty-five
(25) miles of any retail branch offices of the Bank and any loan production offices or commercial lending offices of the Company, the Bank, or any subsidiary of such entities transacting business from such office directly with retail or
commercial deposit and/or loan customers existing as of the date of such termination of employment, provided that the Geographic Territory shall not extend outside the State of New Jersey, unless or until, following the date hereof, the
Company or the Bank has opened and is operating outside of the State of New Jersey any retail branch offices of the Bank and any loan production offices or commercial lending offices of the Company, the Bank, or any subsidiary of such entities
transacting business from such office directly with retail or commercial deposit and/or loan customers, in which event the Geographic Territory shall include any location within twenty-five (25) miles of
each such additional branch or office existing as of the date of such termination of employment. 
 (iii) Executive hereby agrees that he
shall not, on his own behalf or on behalf of others, employ, solicit, or induce, or attempt to employ, solicit or induce, any employee of the Company, the Bank, or any subsidiary of such entities, for employment with any enterprise, nor will the
Executive directly or indirectly, on his behalf or for others, seek to influence any employee of the Company, the Bank, or any subsidiary of such entities to leave the employ of the Company, the Bank, or any subsidiary of such entities. 

The provisions of this Section 7(a) shall survive the expiration of this Agreement. 

(b) Non-Disparagement. Executive shall not make any statements that disparage the Company, the Bank, or any subsidiary of such entities
or the business practices of the Company, the Bank, or any subsidiary of such entities, except to the extent required by law or by a court or other governmental agency of competent jurisdiction. The Company and the Bank shall not knowingly or
intentionally make any statements that disparage Executive, and the Company and the Bank shall each instruct its directors and officers not to make any statements that disparage Executive. The provisions of this Section 7(b) shall survive the
expiration of this Agreement. 
 (c) Non-Disclosure. Executive acknowledges that during his employment he will learn and have access
to confidential information regarding the Company and the Bank and its customers and 

  
 7 

 
businesses (“Confidential Information”). Executive agrees and covenants not to disclose or use for his own benefit, or the benefit of any other person or entity, any such Confidential
Information, unless or until the Company or the Bank consents to such disclosure or use, or such information becomes common knowledge in the industry or is otherwise legally in the public domain. Executive shall not knowingly disclose or reveal to
any unauthorized person any Confidential Information relating to the Company, the Bank, or any subsidiaries or affiliates, or to any of the businesses operated by them, and Executive confirms that such information constitutes the exclusive property
of the Company and the Bank. Executive shall not otherwise knowingly act or conduct himself (1) to the material detriment of the Company or the Bank, or its subsidiaries, or affiliates, or (2) in a manner which is inimical or contrary to
the interests of the Company or the Bank. Notwithstanding the foregoing, it shall not be a breach of this Section 7(c) for Executive to disclose Confidential Information to the extent that disclosure is (A) requested by the Company or its
affiliates or (B) required by a court or other governmental agency of competent jurisdiction. The provisions of this Section 7(c) shall survive the expiration of this Agreement. 

(d) Subject to the final sentence of this Section 7(d), the parties hereto, recognizing that irreparable injury will result to the
Company or its affiliates, its business and property in the event of Executive’s breach of any provision of this Section 7, agree that in the event of any such breach by Executive, the Company or its affiliates will be entitled, in
addition to any other remedies and damages available, to an injunction issued by any court of competent jurisdiction to restrain the violation or attempted violation hereof by Executive, Executive’s partners, agents, servants, employees and all
persons acting for or under the direction of Executive. Executive further agrees that the period of restriction set forth in this Section 7 shall be tolled during any period of violation thereof by Executive. Executive represents and admits
that in the event of his termination of employment with the Company, Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines and/or of a different nature than the Company or its
affiliates, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood. Nothing herein will be construed as prohibiting the Company or its affiliates from pursuing any other remedies available to
the Company or its affiliates for such breach or threatened breach, including the recovery of damages from Executive. Notwithstanding the foregoing, in the event that Executive’s employment is terminated by the Company or its affiliates without
Cause or by Executive for Good Reason, the parties hereto agree that the only remedy available to the Company or its affiliates upon a breach of this Section 7 is termination of the post-termination option exercise period contemplated by
Sections 3(b)(ii) and (iii) of any then outstanding options as of the date of such breach. 
  

	8.	Source of Payments. 

 (a) All payments provided for in this Agreement shall be timely
paid in cash or check from the general funds of the Company, subject to Section 8(b). 
 (b) Any compensation or benefits provided to
Executive by any direct or indirect subsidiary of the Company or the Bank shall be applied to offset the obligations of the Company hereunder in such manner as the Company and the Bank may mutually agree, it being intended that this Agreement set
forth the aggregate compensation and benefits payable to Executive for all services to the Company, the Bank and all of their respective direct or indirect subsidiaries and affiliates. 

 

	9.	Entire Agreement. 

 This Agreement, together with any subsequent understanding or
modifications thereof as agreed to in writing by the parties, contain all of the terms agreed upon by the parties with respect to the subject matter of this Agreement and supersede all prior agreements, arrangements and communications between the
parties concerning such subject matter, whether oral or written. Notwithstanding anything herein to the contrary, any period that Executive shall have served the Company, the Bank or any related entity as a

  
 8 

 
consultant and not as an employee prior to the commencement of Executive’s employment under this Agreement shall not be deemed service to the Company as an employee, and shall not be
considered or included in any calculation or determination of time employed by the Company for purposes of this Agreement. 
  

	10.	No Attachment. 

 Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation, or to execution, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary
or involuntary, to affect any such action shall be null, void and of no effect. 
  

	11.	Modification and Waiver. 

 (a) This Agreement may not be modified or amended except by an
instrument in writing signed by the parties hereto. 
 (b) No term or condition of this Agreement shall be deemed to have been waived, nor
shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically
stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived. 

 

	12.	Severability. 

 If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any remaining part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with
law continue in full force and effect. 
  

	13.	Headings for Reference Only. 

 The headings of sections and paragraphs herein are
included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement. 
  

	14.	Governing Law. 

 Except to the extent preempted by federal law, the validity,
interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of New Jersey, without regard to principles of conflicts of law of New Jersey. 

 

	15.	Arbitration. 

 Except as provided in Section 7(d) above, any controversy or claim
arising out of or relating to this Agreement, or the breach thereof, shall be settled exclusively by arbitration in accordance with the rules then in effect of the district office of the American Arbitration Association (“AAA”) nearest to
the Executive Offices of the Company, and judgment upon the award rendered may be entered in any court having jurisdiction thereof, except to the extent that the parties may otherwise reach a mutual settlement of such issue. The provisions of this
Section 15 shall survive the expiration of this Agreement. 

  
 9 

	16.	No Duty of Mitigation. 

 Executive shall not be required to mitigate the amount of any
payment of severance benefits if he accepts other compensation for employment with another entity. 
  

	17.	Indemnification. 

 Except as prohibited by applicable law, the Company shall provide
Executive (including his heirs, executors and administrators) with coverage under a directors’ and officers’ liability insurance policy at its expense on terms and conditions at least as favorable as the most favorable coverage in effect
for other directors and officers of the Company (or any successor) and shall indemnify Executive (and his heirs, executors and administrators) to the fullest extent permitted under New Jersey law against all expenses and liabilities reasonably
incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved by reason of his having been a director or officer of the Company or its affiliates (whether or not he continues to be a director or
officer at the time of incurring such expenses or liabilities), such expenses and liabilities to include, but not be limited to, judgments, court costs and attorneys’ fees and the costs of reasonable settlements. The provisions of this
Section 17 shall survive the expiration of this Agreement. 
  

	18.	Successors and Assigns. 

 This Agreement shall be binding upon, and inure to the benefit
of, Executive, the Company and their respective successors and assigns. The Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business or
assets of the Bank or the Company, expressly and unconditionally to assume and agree to perform the Company’s obligations under this Agreement, in the same manner and to the same extent that the Company would be required to perform if no such
succession or assignment had taken place. Executive shall not assign any part of Executive’s rights under this Agreement without the written consent of the Company. 
  

	19.	Withholding; 409A. 

 (a) All payments required to be made by the Company hereunder to
Executive shall be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as the Company may reasonably determine should be withheld pursuant to any applicable law or regulation. 

(b) To the extent that any reimbursements or in-kind payments are subject to Section 409A of the Code, then such reimbursements or
in-kind payments (other than medical expenses) shall be made in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during
Executive’s lifetime (or during a shorter period of time specified in this Agreement); (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other calendar year; (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and
(iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 
  

	20.	Regulatory Matters. 

 (a) Nothing in this Agreement shall be deemed to constitute an
obligation of the Company or the Bank to make any payments or agree to make any payments to Executive which require prior approval in accordance with the Federal Deposit Insurance Corporation (“FDIC”) regulation 12 C.F.R. Part 359,
Golden Parachute and Indemnification Payments. 

  
 10 

 (b) Notwithstanding anything herein to the contrary, Executive shall not commence employment
with the Company or the Bank prior to both the Company’s and the Bank’s receipt of the required regulatory approvals or non-objections with respect to Executive’s employment as contemplated in this Agreement, including the approval or
non-objection by both the Office of the Comptroller of the Currency (“OCC”) and the Board of Governors of the Federal Reserve System (“FRB”) to Interagency Notices of Change in Director or Senior Executive Officer. Further, in
the event that (i) either of the Notices of Change in Director or Senior Executive Officer (the “Notices”) filed by the Bank and Company under Section 32 of the Federal Deposit Insurance Act, 12 U.S.C. § 183li, to request
approval to hire Executive as its Executive Vice President and Chief Lending Officer of the Bank and the Company is denied by the OCC or the FRB, respectively, or (ii) the OCC or the FRB indicates that such agency is unlikely to approve the
respective Notice, then the Company shall give notice of such determination to Executive and thereafter this Agreement shall be deemed null and void. 
  

	21.	Related Matters. 

 Following the execution of this Agreement, Executive and the Company
shall cooperate to promptly negotiate in good faith the terms of a change in control and severance agreement, whether in the form of an amendment to this Agreement or a separate agreement, to be entered into between Executive and the Company after
first receiving approval in accordance with 12 C.F.R. Part 359. 
 [signature page follows] 

  
 11 

 IN WITNESS WHEREOF, Sun Bancorp, Inc. has caused this Agreement to be executed by its duly
authorized officer, and Executive has signed this Agreement, on this 27 day of January 2015. 
  

							
	 ATTEST:
	 		 	SUN BANCORP, INC.
				
	/s/ Rita Gannon	 		 	By:	 	 /s/ Thomas M. O’Brien

	Rita Gannon	 		 		 	Thomas M. O’Brien
		 		 	 Its:
	 	President and Chief Executive Officer

  

					
	WITNESS:	 		 	EXECUTIVE
			
	/s/ Rita Gannon	 		 	 /s/ Nicos Katsoulis 

	Rita Gannon	 		 	Nicos Katsoulis

  
 12

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