STOCK OPTION AGREEMENT
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FOR INCENTIVE STOCK OPTIONS UNDER SECTION 422
OF THE INTERNAL REVENUE CODE
PURSUANT TO THE
SUN BANCORP, INC.
AMENDED AND RESTATED
1997 STOCK OPTION PLAN
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FOR OFFICERS AND EMPLOYEES
STOCK OPTIONS for a total of shares of _____________ Common Stock of
Sun Bancorp, Inc. (the "Company"), which Option is intended to qualify as an
Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986,
as amended, is 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 Amended and Restated 1997 Stock Option Plan (the "Plan")
adopted by the Company which is incorporated by reference herein, receipt of
which is hereby acknowledged.
1. Option Price. The Option 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. Exercises of Option. This Option shall be exercisable in accordance
with provisions of the Plan, provided the holder of such Option is an employee,
director or advisory director of the Company as of such date, as follows:
(a) Schedule of Rights to Exercise.
Percentage of
Total Shares
Awarded Which
Are Exercisable/
Date Options Non-forfeitable
---- ------- ---------------
Upon grant................................ 0 0%
As of _____________....................... _____ 50%
As of _____________....................... _____ 100%
Options awarded to the Optionee shall continue to vest annually during
such period that he serves as an employee, director or director emeritus of Sun
National Bank or the Company. Notwithstanding any provisions in this Section 2,
in no event shall this Option be exercisable prior to six months following the
date of grant, except in the event of death or Disability of the Optionee or
upon a Change in Control of the Company. Options shall be 100% vested and
exercisable upon the death or Disability of the Optionee or upon a Change in
Control of the Company.
(b) Method of Exercise. This Option shall be exercisable
by a written notice 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 certified or bank cashier's or teller's
check. The certificate or certificates for shares of Common Stock as to which
the Option shall be exercised shall be registered in the name of the person or
persons exercising the Option.
(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.
5. Reload Options. The Optionee will receive the right to a further
Option (a "Reload Option") in the event the Optionee exercises all or a part of
an Option (an "Original Option"), by
2
surrendering already owned Shares of Common Stock in full or partial payment of
the Option Price under such Original Option. Each such Reload Option shall be
granted on the date of exercise of the Original Option, shall cover a number of
Shares of Common Stock not exceeding the whole number of Shares of Common Stock
surrendered in payment of the Option Price under such Original Option, and any
Shares of Common Stock used to satisfy any taxes incident to the exercise of the
Original Option, shall have an Option Price equal to the fair market value of
the Common Stock on the date of grant of such Reload Option, shall expire on the
stated expiration date of the Original Option and shall be subject to such other
terms and conditions as the Committee may determine.
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:
---------------- ------------------------------
Attest:
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[SEAL]
3
INCENTIVE STOCK OPTION EXERCISE FORM
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PURSUANT TO THE
SUN BANCORP, INC.
AMENDED AND RESTATED
1997 STOCK OPTION PLAN
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(Date)
Sun Bancorp, Inc.
000 Xxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxxxx 00000
Dear Sir:
The undersigned elects to exercise the Incentive Stock Option to
purchase ________ shares of Common Stock of Sun Bancorp, Inc. under and pursuant
to a Stock Option Agreement dated _______________________.
Delivered herewith is a certified or bank cashier's or teller's check
and/or shares of Common Stock, valued at the fair market value of the stock on
the date of exercise, as set forth below.
$__________ of cash or check
__________ of Common Stock
$ Total
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The name or names to be on the stock certificate or certificates and
the address and Social Security Number of such person(s) is as follows:
Name
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Address
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Social Security Number
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Very truly yours,
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