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

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Exhibit 10.5

THE SECURITIES REPRESENTED BY THIS AGREEMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

FORBRIGHT, INC.

OPTION AWARD AGREEMENT

THIS AWARD AGREEMENT (this “Agreement”) is made and entered into this [__] day of [MONTH], [YEAR] (the “Award Date”) by and between (i) Forbright, Inc. (the “Company”), and (ii) [individual], an employee of Forbright Bank, the wholly owned subsidiary of the Company (the “Participant”).

RECITALS

A.    The Company has adopted the Congressional Bancshares, Inc. 2014 Stock Incentive Plan, as amended (the “Plan”) authorizing the Company to make awards to persons associated with the Company and to persons associated with the Company’s wholly owned subsidiary, Forbright Bank (the “Bank”).

B.    The Company, through its Board or the Nominating, Compensation and Governance Committee of its Board, has determined that, under and pursuant to the terms and conditions of the Plan, the Participant is eligible to receive awards under the Plan.

C.    The Company desires to make an award to the Participant, and the Participant, in connection therewith, is desirous of participating in the Plan and receiving an award under the Plan.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Participant hereby agree as follows:

1.    Grant of Award. The Company hereby grants to the Participant, as a separate inducement in connection with his or her employment with the Bank, and not in lieu of any salary or other compensation for his or her services, an award of the number options to purchase shares of the Company’s Common Stock (“Common Stock”) at an exercise price per share (the “Units”) set forth in Appendix A to this Agreement, pursuant to the Plan and this Agreement (the “Award”). The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. Participant has read and understands the terms and provisions thereof, and accepts the Award subject to all the terms and conditions of the Plan and this Agreement.

2.    Vesting of Award. The Units shall vest in accordance with the vesting schedule and other terms set forth in Appendix A to this Agreement (“Appendix A”).

3.    Forfeiture of Award. Except as set forth in Appendix A, the Award shall be forfeited as provided in the Plan.

4.    Exercise, Term. Except as set forth in Appendix A, upon vesting, the Award may be exercised in accordance with the terms of the Plan. If not otherwise vested and exercised or terminated, the Award will expire 10 years from the Award Date.

5.    Voting Rights; Dividends. The Participant shall not have, with respect to any Units, any of the rights of a holder of shares, including without limitation (a) the right to vote, (b) the right to receive dividends, if any, as may be declared from time to time, and (c) the rights available to holders of shares upon any merger, consolidation, reorganization, liquidation or dissolution, stock split-up, stock dividend or recapitalization undertaken by the Company.

6.    Amendment of Award. Without the consent of the Participant, no modification or amendment of the Award shall reduce or limit, in any respect, any of the Participant’s rights under the Award.

7.    Employment/Service. The Award does not impose any independent obligation upon the Company or the Bank to retain the Participant in its employ or service for any period.

8.    Representations. The Award has been issued by the Company in reliance upon the following representations of the Participant:

(a)    The Units and the underlying shares are being acquired for investment and not with a view to the sale or distribution of any part thereof, and the Participant has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption pursuant to the Securities Act.

(b)    The Participant understands (i) that neither the Units nor the underlying shares are registered under the Securities Act or qualified under applicable state securities laws on the ground that the issuance will be exempt from the registration and qualifications requirements thereof pursuant to Section 4(a)(2) of the Securities Act and/or any applicable rule under the Securities Act and any applicable state securities laws, and (ii) that the Company’s reliance on such exemption is predicated on the Participant’s representations set forth in this Section 8.

(c)    The Participant has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment and has the ability to bear the economic risks of his or her investment.

(d)    The Participant understands that the Company has no obligation to register with the Securities and Exchange Commission pursuant to Section 15(d) of the Securities Act, to file reports pursuant to Section 12 of the Exchange Act or to file a registration statement covering the Units or the underlying shares under the Securities Act. The Participant further understands that if the Company does not register pursuant to Section 15(d) of the Securities Act, file reports pursuant to Section 12 of the Exchange Act, or have a registration statement covering the Units or the underlying shares under the Securities Act in effect when the Participant desires to sell the shares, the Participant may

be required to hold such securities for an indefinite period. The Participant also understands that any sale of the underlying shares that might be made in reliance upon Rule 144 under the Securities Act may be made only in accordance with the terms and conditions of that Rule and that the Company has no obligation to seek to make such Rule available.

(e)    Participant understands that there may be adverse tax consequences upon exercise of the Award or disposition of the underlying shares and that Participant should consult a tax adviser prior to such exercise or disposition.

9.    Agreement not to Solicit.    The Award has been issued by the Company to the Participant in consideration of the following: with the exception of any employees approved in advance by the Company in writing, Participant agrees that commencing on the Award Date and continuing through the Participant’s separation of employment with the Bank, and for twelve (12) months thereafter, Participant will not, either directly or indirectly, on the Participant's own behalf or in the service of or on behalf of any other person or entity, solicit or attempt to solicit any person who then is or who was at any time in the preceding six (6) month period an employee, independent contractor or client of the Company or its subsidiaries to cease, curtail or refrain from entering into such a relationship with the Participant or to form such a relationship with any other person or entity.  The Participant agrees and acknowledges that the restrictions contained in this Section 9 are reasonable in terms of time period and subject matter and that they protect legitimate business interests of the Company and its subsidiaries.  The Participant further agrees that in the event that the Participant breaches any provision of this Section 9, the Company and its subsidiaries will suffer irreparable injury that could not be adequately remedied by money damages and therefore the Company and its subsidiaries will be able to obtain any appropriate form of injunctive relief to enforce said provision, in addition to all other relief that a Court may deem proper.

10.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland as such laws are applied to agreements between Maryland residents entered into and to be performed entirely within Maryland, except for those provisions required to be governed by the Delaware General Corporation Law. If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

11.    Incorporation by Reference. All of the other terms of the Plan as currently in effect are hereby incorporated into this Agreement by reference.

12.    Defined Terms. Any terms whose definition is not specified in this Agreement shall have the meaning given to them in the Plan.

13.    Headings. The headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, the Award.