THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Sun Bancorp, Inc. (SNBC)

4/13/2006 Proxy Information

Ike Brown, Sidney R. Brown, Anne E. Koons and Jeffrey S. Brown are the children of Bernard A. Brown.

Mr. Galetto served as the Secretary of Sun Bancorp, Inc. from April 1990 to March 1997.

Bernard A. Brown, the Chairman of the Board of Directors of the Company and the Bank, is an owner of Vineland Construction Company and 226 Landis Avenue Associates, LLC (the "Related Companies"). The Company and the Bank lease office space from Vineland Construction Company and 226 Landis Avenue Associates, LLC. The Company believes that the transactions with the Related Companies are on terms substantially the same, or at least as favorable to the Company and the Bank, as those that would be provided by a non-affiliate. The Company paid $1.7 million to the Related Companies during the fiscal year ended December 31, 2005.

Anne E. Koons, a director of the Company, is the sole owner of ABK Realty, to which the Bank paid approximately $165,000 in annual rental and rental expenses under a lease obligation to ABK Realty during the fiscal year ended December 31, 2005.

Anthony Russo, III, a director of the Company, is a general partners of MedSun Bank Properties, to which the Bank paid approximately $96,000 during the year ended December 31, 2005 in annual rent under a lease obligation. The Bank also made purchases from Russo's Landscaping and Russo's Fruit & Vegetable totaling approximately $18,000 and $10,000, respectively, during the year ended December 31, 2005.

The Company believes that the transactions described above are on terms substantially the same, or at least as favorable to the Company and the Bank, as those that would be provided by a non-affiliate.

The Bank has a policy of offering various types of loans to officers, directors and employees of the Bank and of the Company. These loans have been made in the ordinary course of business and on substantially the same terms and conditions (including interest rates and collateral requirements) as, and following credit underwriting procedures that are not less stringent than, those prevailing at the time for comparable transactions by the Bank with its other unaffiliated customers and do not involve more than the normal risk of collectibility, nor present other unfavorable features. All of these loans were current at December 31, 2005.