SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: S-1
Document Type: EX-10.5
Date Filed: 2026-05-15
Accession Number: 0001628280-26-035713
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162828026035713/exhibit105-sx1publicflip.htm

Chunk 2 of 4
Word Count: 1389
Character Count: 8476

Document Content:

Units Vesting as of third anniversary of Award Date: [__] iv. Units Vesting as of fourth anniversary of Award Date: [__] v. Units Vesting as of fifth anniversary of Award Date: [__] b. “B” Unit Vesting i. Units Vesting as of first anniversary of Award Date: [__] ii. Units Vesting as of second anniversary of Award Date: [__] iii. Units Vesting as of third anniversary of Award Date: [__] iv. Units Vesting as of fourth anniversary of Award Date: [__] v. Units Vesting as of fifth anniversary of Award Date: [__] c. “C” Unit Vesting i. Units Vesting as of first anniversary of Award Date: [__] ii. Units Vesting as of second anniversary of Award Date: [__] iii. Units Vesting as of third anniversary of Award Date: [__] iv. Units Vesting as of fourth anniversary of Award Date: [__] v. Units Vesting as of fifth anniversary of Award Date: [__]

d.    “D” Unit Vesting

i.    Units Vesting as of first anniversary of Award Date: [__]

ii.    Units Vesting as of second anniversary of Award Date: [__]

iii.    Units Vesting as of third anniversary of Award Date: [__]

iv.    Units Vesting as of fourth anniversary of Award Date: [__]

v.    Units Vesting as of fifth anniversary of Award Date: [__]

5.    Effect of Events on Vesting:

a.    Except as set forth in Section 5(c) below, in the event of the termination of the Participant’s employment or removal of the Participant as a director, as applicable, all further vesting shall cease upon such termination, and the Participant shall retain the previously vested portion of the Award subject to and in accordance with Sections 5(b), 5(c), 5(d) and 5(e) below.

b.    The vested portion of the “A” Units shall remain outstanding for 90 days after such termination, and to the extent not exercised during such 90-day period, shall

be forfeited upon the expiration of such 90-day period. The unvested portion of the “A” Units shall be forfeited immediately upon such termination.

c.    The vested portion of the “B” Units shall remain outstanding until the earlier to occur of (i) the expiration date of the Units and (ii) the 91st day following a Qualifying Trigger Event (the earlier of such dates, the “Forfeiture Date”), and the Exercise Price of such vested portion of the “B” Units shall remain subject to adjustment pursuant to Section 2(b) above; provided, that, if the Participant does not exercise the “B” Units on or prior to the date which is 90 days after the termination of Participant’s employment or removal of the Participant as a director, the “B” Units may not be exercised until the occurrence of a Qualifying Trigger Event. To the extent not exercised prior to the Forfeiture Date, or to the extent such “B” Units are not, or do not become, exercisable prior to the Forfeiture Date, the vested portion of the “B” Units shall be forfeited on the Forfeiture Date. The unvested portion of the “B” Units shall be forfeited immediately upon such termination.

d.    The vested portion of the “C” Units and “D” Units shall remain outstanding until the Forfeiture Date, and such vested portion of the “C” Units and “D” Units shall remain subject to the conditions to exercisability set forth in Section 3(a) above. To the extent not exercised prior to the Forfeiture Date, or to the extent such options are not, or do not become, exercisable prior to the Forfeiture Date, the vested portion of the “C” Units and “D” Units shall be forfeited on the Forfeiture Date. The unvested portion of the “C” Units and “D” Units shall be forfeited immediately upon such termination.

e.    Notwithstanding anything to the contrary in this Section 5, in the event the termination of Participant’s employment or removal of the Participant as a director, as applicable, is by the Participant’s employer and/or service recipient for “Cause” or in the event that the Participant breaches Section 9 of this Agreement, the Participant shall forfeit the entire Award immediately, including, for the avoidance of doubt, the vested and unvested portions of the Award.

6.    Definitions. For the purposes of this Award, the following terms shall have the following meanings:

a.     “Cause” shall have the meaning set forth in the employment agreement, if applicable, by and between the Participant and the Company or Bank, as applicable, and, if no such employment agreement exists, “Cause” shall mean:

i.    the Participant is indicted for, convicted of, or enters a no contest plea to (A) a felony or (B) a misdemeanor involving moral turpitude that would render the Participant unable to perform his or her duties as an employee, officer or director of the Company, as applicable;

ii.    the Participant engages in conduct that constitutes gross negligence or willful misconduct in carrying out his or her duties as an employee, officer or director of the Company;

iii.     the Participant’s failure or refusal to perform his or her duties, after (A) written notice to the Participant from the Board of Directors or the Participant’s supervisor, with reasonable specification of the matter(s) giving rise to the notice, including notice of the Company’s intent to terminate the Participant’s employment due to the matter(s) described in such notice and (B) ten (10) days to cure the matter described in such notice;

iv.    a material breach of the Participant’s fiduciary duty;

v.    a regulatory body with jurisdiction over the Company recommends that the Company remove the Participant as an employee, officer or director of the Company; or

vi.     any finding by the Securities and Exchange Commission pertaining to the Participant which, in the opinion of independent counsel selected by the Company, could reasonably be expected to impair or impede the Company’s ability to register, list or otherwise offer its stock to the public, or following any initial public offering, to maintain itself as a publicly traded company.

b.    “Investment Transaction Price” means the weighted average per share purchase price of Common Stock issued as part of the Investment Transaction in accordance with the terms of the SPA.

c.    “Sale Transaction” means the occurrence of any of the following:

(i)    any “person” (as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended and the rules and regulations of the Securities and Exchange Commission (“SEC”) promulgated thereunder as in effect on the date of this Agreement) or “group” (as defined in the Exchange Act and the rules and regulations of the SEC promulgated thereunder as in effect on the date of this Agreement) shall become, directly or indirectly, a “beneficial owner” (as such term is defined and used in Rule 13d-3 promulgated under the Exchange Act) of Common Stock representing a majority of the Common Stock of the Company on a fully diluted basis; or

(ii)    all or substantially all of the assets or business of the Company are sold or otherwise disposed of through the consummation of a merger, consolidation, sale of assets or other transaction (unless the shareholders of the Company immediately prior to such merger, consolidation or other transaction beneficially own, directly or indirectly, the Common Stock representing fifty percent (50%) or more of the voting power of the outstanding Common Stock of the entity or entities, if any, that acquire

such assets or otherwise succeed to the business of the Company, determined on a fully diluted basis).

Notwithstanding the foregoing, a Sale Transaction shall not include (1) the initial capital raise contemplated to occur on or about the effective date of this Award or (2) an initial public offering of the Company’s Common Stock.

d.    “Qualifying Trigger Event” means:

(i)    the Company shall close on an initial public offering with a gross offering proceeds of at least $250 million (a “Qualifying Public Offering”);

(ii)    the consummation of a Sale Transaction; or

(iii)    the Company shall close on a private equity financing with gross proceeds of at least $250 million in cash.

7.    Merger, Consolidation or Asset Sale:

Notwithstanding Section 8(C) of the Plan, the merger, consolidation or sale or disposition of substantially all of the assets of the Company shall not result in the acceleration or vesting or exercise of the Units granted hereunder to the extent such event does not otherwise result in the Units becoming vested or exercisable pursuant to the terms of this Agreement.

8.    Determination of Fair Market Value.