Summary of SUN BANCORP INC /NJ/

Change in Directors or Principal Officers, Financial Statements and Exhibits

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 17, 2009, Sun Bancorp, Inc. (the "Registrant") announced that Dan A. Chila, Executive Vice President and Chief Financial Officer of the Registrant and Sun National Bank ("Bank") would be terminating his employment with the Company and the Bank as of December 31, 2009 (the "Separation Date") in order that he may pursue other opportunities.

In connection with Mr. Chila's resignation, the Registrant and the Bank, on the one hand, and Mr. Chila, on the other hand, entered into a Separation Agreement and General Release dated August 17, 2009 (the "Agreement"), a copy of which is filed herewith as Exhibit 10.1 and is incorporated herein by reference. The Agreement provides that Mr. Chila will receive a separation payment from the Company in the gross amount of $657,855.00 (the "Separation Payment") to be paid as of the first regularly scheduled payroll period following the Separation Date. This Separation Payment is contingent upon Mr. Chila's compliance with the noncompetition and nondisclosure provisions set forth in the existing Management Change in Control Severance Agreement dated December 18, 2008 between the Registrant and Mr. Chila except that the period during which the noncompetition provisions apply has been extended from seven and one-half months to one year and the nonsolicitation of employees and no public statement provisions have been extended to two year following the Separation Date. Mr. Chila will also be entitled to receive payment for any accrued but unused Paid Time Off as of the Separation Date for any Paid Time Off leave that was first accrued during calendar year 2009. For a period of 18 months, the Registrant will also continue to pay the premiums necessary to maintain a life insurance policy providing for a death benefit in the amount of $400,000.

The Agreement also provides that Mr. Chila will be entitled to receive a pro rata portion of existing unvested stock awards as of the Separation Date and that existing vested and exercisable options will remain exercisable following the Separation Date for the remaining term of such options without regard to his termination of employment. The Agreement also includes mutual releases of claims associated with any matters related to Mr. Chila's employment or the termination of such employment.