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                                                                    Exhibit 10.1

                            1ST CONSTITUTION BANCORP

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
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                                    ARTICLE I

                              ESTABLISHMENT OF PLAN

Effective as of October 1, 2002, 1st Constitution Bancorp ("Bancorp") hereby
establishes a plan designed to provide a nonqualified pension benefit to certain
selected key executives of Bancorp and 1st Constitution Bank ("Bank").

                                   ARTICLE II

                                   DEFINITIONS



2.1   ACTUARIAL EQUIVALENT

      "Actuarial Equivalent" means an amount or benefit of equal value based on
      an interest rate established by the Committee from time to time, based
      upon market conditions, as determined in the sole discretion of the
      Committee.

2.2   BENEFICIARY

      "Beneficiary" means one or more persons designated in writing by a Member
      in the manner specified by the Committee to receive the Member's benefits
      under the Plan in the event of his or her death, or in the event of no
      such designation, the term will mean the estate of the Member.

2.3   BOARD OF DIRECTORS

      "Board of Directors" means the Board of Directors of Bancorp.

2.4   CAUSE

      "Cause" shall mean conviction or a plea of nolo contendre with respect to
      a felony or a similar class crime committed while employed by the Company,
      or if any regulatory agency requires the Company to sever its relationship
      with the Member, or if the Member is required to not be associated with
      any public company arising out of actions of the Member as an employee of
      the Company. If the Member contests the determination of Cause, and if he
      or she is successful in causing such determination to be reversed, then he
      or she will be entitled to all benefits hereunder, plus interest and
      reasonable legal fees in connection with such contest. If he or she
      contests the determination of Cause and loses,
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      he or she will be responsible for the Company's legal fees if it is
      determined by a court of competent jurisdiction that his or her contesting
      the determination of Cause was done in bad faith. The Board of Directors
      shall have the complete discretionary responsibility to determine whether
      Cause exists, without participation of the Member involved.

2.5   CHANGE OF CONTROL

      A "Change of Control" will be deemed to have occurred if -

            (X) any "person" (as such term is used in Sections 13(d) and 14(d)
      of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
      other than a trustee or other fiduciary holding securities under an
      employee benefit plan of the Company or a person engaging in a transaction
      of the type described in clause (Z) below of this definition but which
      does not constitute a change in control under such clause (Z), hereafter
      becomes the "beneficial owner" (as defined in Rule 13d-3 under the
      Exchange Act), directly or indirectly, of securities of Bancorp
      representing more than 50% of the combined voting power of Bancorp's then
      outstanding securities; or

            (Y) during any period of twenty-four (24) consecutive months during
      the term of this Agreement, individuals who at the beginning of such
      period constitute the Board of Directors, and any new director (other than
      a director designated by a person who has entered into an agreement with
      Bancorp to effect a transaction described in clauses (X) or (Z) of this
      definition) whose election by such Board of Directors, or nomination for
      election by Bancorp's shareholders, was approved by a vote of at least
      two-thirds (2/3) of the directors then still in office who either were
      directors at the beginning of the period or whose election or nomination
      for election was previously so approved, cease for any reason to
      constitute a majority thereof; or

            (Z) Bancorp completes a merger, consolidation or similar transaction
      of Bancorp with or into any other corporation or entity, or a binding
      share exchange involving Bancorp's securities, other than any such
      transaction which would result in the voting securities of Bancorp
      outstanding immediately prior thereto continuing to represent (either by
      remaining outstanding or by being converted into voting securities of the
      surviving entity) at least 50% of the combined voting power of the voting
      securities of Bancorp or



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      such surviving entity outstanding immediately after such transaction, or
      Bancorp completely liquidates, sells or otherwise disposes of all or
      substantially all of its assets.

2.6   COMMITTEE

      "Committee" means a committee of the Board of Directors to which is
      delegated responsibility to administer this Plan.

2.7   COMPANY

      "Company" means Bancorp and/or Bank.

2.8   DISABILITY

      "Disability" means (i) the Member is determined to be disabled within the
      meaning of the Company's long term disability plan, (ii) the Member is
      unable to perform his or her job functions in full for a period of 180
      days as a result of a physical or mental condition, or (iii) the Committee
      determines that the Member is disabled after appropriate medical
      consultants, all to be determined in the sole discretion of the Committee.

2.9   ELIGIBLE EMPLOYEE

      "Eligible Employee" means any executive employed by the Company who is
      designated by the Committee as a Member under the Plan.

2.10  FINAL BASE COMPENSATION

      "Compensation" means a Member's highest annual rate of base compensation
      in effect during the twelve (12) month period prior to termination of
      employment, excluding bonuses, overtime pay, commissions, other
      extraordinary payments, reimbursements or other expense allowances, equity
      compensation, fringe benefits (cash and non-cash), moving expenses,
      deferred compensation, and welfare benefits, paid by the Company to such
      Employee for services rendered by him or her to the Company.
      Notwithstanding the foregoing, Compensation shall include any amount which
      is contributed by the Company pursuant to a salary reduction agreement and
      which is not includible in the gross income of the Member under Section
      125, 402(e)(3), or 402(h)(1)(B) of the Internal Revenue Code of 1986, as
      amended. Notwithstanding the above, in the event of the death of a Member
      (while still employed by the Company) prior to his or her attaining age 65
      and

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      also prior to a Change of Control, then Final Base Compensation used
      to calculate the SERP Benefit shall be determined for such Member in
      accordance with Appendix C.

2.11  MEMBER

      "Member" means an Eligible Employee who becomes a Member pursuant to
      Article III.

2.12  NORMAL RETIREMENT DATE

      "Normal Retirement Date" means a Member's 65th birthday.

2.13  PLAN

      "Plan" means this 1st Constitution Bancorp Supplemental Executive
      Retirement Plan, as set forth herein, as amended from time to time.

2.14  SERP BENEFIT

      "SERP Benefit" shall mean the annual retirement benefit payable to a
      Member pursuant to the terms of this Plan.

2.15  YEARS OF SERVICE

      "Years of Service" means each full year in which a Member serves as an
      employee of the Company (including years prior to implementation of this
      Plan).

2.16  For purposes of this Plan, unless the context requires otherwise, the
      masculine includes the feminine, the singular the plural, and vice versa.
      Any reference to a "Section" or "Article" shall mean the indicated section
      or article of this Plan unless otherwise specified.

                                   ARTICLE III

                                  PARTICIPATION


An Eligible Employee listed in Appendix A shall become a Member of the Plan
effective as of October 1, 2002. Each other Eligible Employee shall become a
Member upon appointment by the Committee (provided that the Committee also
determines a percentage multiplier for such new Member).


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                                   ARTICLE IV

                                  SERP BENEFIT



4.1   AMOUNT OF SERP BENEFIT

      Each Member who retires on or after his or her Normal Retirement Date
      shall be entitled to a SERP Benefit. The amount of a Member's SERP Benefit
      at his or her Normal Retirement Date shall be equal to the percentage
      multiplier established by the Committee for such Member (as set forth in
      Appendix A) multiplied by the Member's Final Base Compensation.

4.2   BENEFITS UPON REEMPLOYMENT

      If a Member is rehired by the Company after he or she becomes entitled to
      a SERP Benefit, his or her SERP Benefit shall not be paid during such
      period of reemployment, but shall commence or resume not sooner than the
      first day of the month following his or her subsequent retirement or
      separation. The SERP Benefit payable after his or her subsequent
      retirement or separation shall be recalculated under this Plan at such
      subsequent retirement under the terms of the Plan then in effect (but
      shall in no case be less than the SERP Benefit to which he or she was
      entitled at the time of the first retirement).

4.3   EARLY RETIREMENT BENEFIT

      Upon a Member's separation from service from the Company prior to his or
      her Normal Retirement Date (for reasons other than Disability, death or
      Change of Control), the SERP Benefit (i.e., the benefit payable at Normal
      Retirement Date) will be reduced by five percent (5%) for each full or
      partial year by which such Member's date of separation from service
      precedes his or her Normal Retirement Date.

4.4   DISABILITY RETIREMENT BENEFIT

      Upon a Member's separation from service from the Company as a result of
      Disability, he or she will be 100% vested and entitled to the SERP
      Benefit, which SERP Benefit shall



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      commence at Normal Retirement Date, unreduced for early retirement, in the
      form of a lifetime annuity with a 15-year guarantee.

                                    ARTICLE V

                                     VESTING



A Member shall be vested in his SERP Benefit in accordance with the following
schedule:

<TABLE>
<CAPTION>
         Year(s) of Service                                Vested Percentage
         ------------------                                -----------------
<S>                                                        <C>
         Less than 1 Year of Service                               0%

         1 Year of Service, but less than
         2 Years of Service                                       10%

         2 Years of Service, but less than
         3 Years of Service                                       20%

         3 Years of Service, but less than
         4 Years of Service                                       30%

         4 Years of Service, but less than
         5 Years of Service                                       40%

         5 Years of Service, but less than
         6 Years of Service                                       50%

         6 Years of Service, but less than
         7 Years of Service                                       60%

         7 Years of Service, but less than
         8 Years of Service                                       70%

         8 Years of Service, but less than
         9 Years of Service                                       80%

         9 Years of Service, but less than
         10 Years of Service                                      90%

         10 or more Years of Service                             100%
</TABLE>


If a Member terminates employment with the Company and each affiliated employer
with fewer than ten (10) Years of Service, any portion of the Member's SERP
Benefit which is not vested shall be forfeited.

Notwithstanding the foregoing, a Member shall be one hundred percent (100%)
vested in his or her SERP Benefit if, while he or she is employed by the
Company, he or she dies, he or she



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separates from service with the Company as a result of Disability, or a Change
of Control occurs. In addition, a Member will be fully vested if he or she
retires on or after the Member's Normal Retirement Date. All benefits under the
Plan with respect to a Member will be forfeited if he or she is terminated (or
treated as terminated following actual termination) for Cause.

                                   ARTICLE VI

                                 DEATH BENEFITS



6.1   DEATH PRIOR TO SERP BENEFIT COMMENCEMENT

      If the Member dies prior to commencement of the SERP Benefit while
      employed by the Company (or after separating from service with the Company
      as a result of Disability, as set forth in Section 4.4), the Member's
      Beneficiary shall be entitled to a lump sum payment equal to the Actuarial
      Equivalent of the SERP Benefit payable at the Normal Retirement Date.

6.2   DEATH AFTER SERP BENEFIT COMMENCEMENT

      If the Member dies after commencement of the SERP Benefit, the Member's
      Beneficiary shall be entitled to a lump sum payment equal to the Actuarial
      Equivalent of the remaining SERP Benefit otherwise payable to the Member.

                                   ARTICLE VII

                            TIME AND FORM OF PAYMENT



7.1   TIME OF PAYMENT

      Payment of a Member's SERP Benefit will commence as follows:

      -     for retirement on his or her Normal Retirement Date, on the first
            day of the month following retirement;


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      -     for retirement from the Company prior to Normal Retirement Date, on
            the first day of the month following such retirement, or the first
            day of the month next following his or her 65th birthday (at the
            election of the Member);

      -     for payment to a Beneficiary as a result of death, on or about the
            first day of the month following such death;

      -     for termination following a Change of Control, the SERP Benefit will
            be 100% vested (with a deemed 10 Years of Service) and will be paid
            at age 65 or at any time following a Change of Control (as elected
            by the Member) (with a five percent (5%) reduction for each year (or
            portion thereof) by which the commencement date precedes his or her
            65th birthday).

      -     for termination as a result of Disability, on the first day of the
            month following the Member's attainment of age 65.

7.2   FORM OF PAYMENT

      Upon becoming a Member in the Plan, the Member shall elect the form of
      distribution of his or her SERP Benefit on a form provided by the
      Committee for such purpose. If a Member fails to timely elect a form of
      distribution, the lump sum will be treated as the default election. An
      election hereunder shall be irrevocable except as hereinafter provided. A
      Member may elect a different form of distribution in accordance with
      procedures established by the Committee. However, any such election shall
      be null and void if made less than nine (9) months prior to the Member's
      termination of employment, in which case the form of distribution shall be
      determined by the terms of the last election (including a default
      election) validly in effect. The following distribution options are
      available:

      -     for payments commencing on or after Normal Retirement Date or
            following a Change of Control, the Member will be entitled to a
            lifetime annuity with a 15 year minimum guarantee, or a lump sum
            that is the Actuarial Equivalent of the annuity benefit


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      -     for payments commencing prior to Normal Retirement Date (except
            following a Change of Control), the Member will be entitled to a 15
            year guaranteed annuity (but not a lifetime annuity), commencing at
            the time set forth above, or a lump sum that is the Actuarial
            Equivalent of such annuity benefit.

      For purposes of this Article VII, an Employee shall not be deemed to have
      terminated employment until he has terminated employment with the Company
      and all affiliated employers.

7.3   CALCULATION OF LUMP SUM AMOUNT

      A lump sum amount payable under the Plan shall be calculated by
      determining the amount of the monthly immediate annuity payable in
      accordance with the otherwise applicable provisions of the Plan in the
      distribution form described in Section 6.2(a) and multiplying such amount
      by a factor derived from the Actuarial Equivalent assumptions described in
      Section 2.1.

                                  ARTICLE VIII

                                 ADMINISTRATION



8.1   COMMITTEE

      The Committee shall supervise the daily management and administration of
      the Plan.

8.2   RESPONSIBILITIES AND POWERS OF THE COMMITTEE

      The Committee shall have the responsibility:

      (a)   To administer the Plan in accordance with the terms hereof, and to
            exercise all powers specifically conferred upon the Committee hereby
            or necessary to carry out the provisions thereof.


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      (b)   To construe and interpret the Plan, which construction shall be
            conclusive, correct any defects, supply omissions, and reconcile
            inconsistencies to the extent necessary to effectuate the Plan.

      (c)   To keep all records relating to Members of the Plan and such other
            records as are necessary for proper operation of the Plan.

8.3   OPERATION OF THE COMMITTEE

      In carrying out the Committee's functions hereunder:

      (a)   The Committee may adopt rules and regulations necessary for the
            administration of the Plan and which are consistent with the
            provisions hereof.

      (b)   All acts and decisions of the Committee shall be approved by a
            majority of the members of the Committee and shall apply uniformly
            to all Members in like circumstances. Written records shall be kept
            of all acts and decisions.

      (c)   The Committee may authorize one or more of its members to act on its
            behalf. The Committee may also delegate, in writing, any of its
            responsibilities and powers to an individual(s) who is not a
            Committee member.

      (d)   The Committee shall have the right to hire, at the expense of the
            Company, such professional assistants and consultants as it, in its
            sole discretion, deems necessary or advisable, including, but not
            limited to, accountants, actuaries, consultants, counsel and such
            clerical assistance as is necessary for proper discharge of its
            duties.

8.4   INDEMNIFICATION

      In addition to any other indemnification that a fiduciary, including but
      not limited to a member of the Committee, is entitled to, the Company
      shall indemnify such fiduciary from all claims for liability, loss or
      damage (including payment of expenses in connection with defense against
      such claim) arising from any act or failure to act which constitutes a


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      breach of such individual's fiduciary responsibilities with respect to
      this Plan under any aspects of the law.

                                   ARTICLE IX

                                  MISCELLANEOUS


9.1   BENEFITS PAYABLE BY THE COMPANY

      All benefits payable under this Plan constitute an unfunded obligation of
      the Company. Payments shall be made, as due, from the general funds of the
      Company. The Company, at its option, may maintain one or more bookkeeping
      reserve accounts to reflect its obligations under the Plan and may make
      such investments as it may deem desirable to assist it in meeting with
      obligations. Any such investments shall be assets of the Company subject
      to claims of its general creditors. No person eligible for a benefit under
      this Plan shall have any right, title to interest in any such investments.

9.2   AMENDMENT OR TERMINATION

      (a)   The Board of Directors reserves the right to amend, modify, or
            restate or terminate the Plan; provided, however, that no such
            action by the Board of Directors shall reduce a Member's vested SERP
            Benefit calculated as of the time thereof, except as set forth in
            Section 9.2(d). The provisions of this Section prohibiting an action
            by the Board of Directors which would reduce a Member's vested SERP
            Benefit cannot be amended without the consent of all Members
            (including those who have retired). Any amendment to the Plan shall
            be made in writing by the Board of Directors, with or without a
            meeting, or shall be made in writing by the Committee, to the extent
            that Board of Directors has specifically delegated the authority to
            make such amendment to the Plan to the Committee.

      (b)   This Plan constitutes the entire agreement of the Company with
            respect to the provision of SERP Benefits and cannot be modified
            orally or in any writing other than a resolution pursuant to the
            provisions of Section 9.2(a).


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      (c)   Except as provided in Section 9.2(d), if the Plan is terminated, a
            determination shall be made of each Member's SERP Benefit as of the
            Plan termination date, and if a Member has not then attained age 65,
            he or she shall be treated as if the Member had terminated
            employment with the Company and each affiliated employer at such
            date. A Member's SERP Benefit, as determined in accordance with the
            preceding sentence, shall be calculated as if such Member has ten
            Years of Service (regardless of the actual number of Years of
            Service), if such Member is an employee of the Company on the Plan
            termination date. The amount of such vested SERP Benefit shall be
            payable to the Member in accordance with the otherwise applicable
            terms of the Plan unless the Plan is amended to provide otherwise
            and the Member consents in writing to such amendment.

      (d)   Bancorp may terminate the Plan or suspend payments or suspend
            operation of the Plan if the Company is subjected to regulatory
            discipline limiting its ability to pay compensation to Members, or
            if the Company is advised by a regulatory agency that payments to a
            particular Member or continuation of the Plan will result in
            regulatory sanctions against the Company, its officers or directors.

9.3   STATUS OF EMPLOYMENT

      Nothing herein contained shall be construed as conferring any rights upon
      any Member of any person for a continuation of employment, nor shall it be
      construed as limiting in any way the right of the Company to discharge any
      Member or to treat him or her without regard to the effect which such
      treatment might have upon him or her as a Member of the Plan.

9.4   PAYMENTS TO MINORS AND INCOMPETENTS

      If a Member or beneficiary entitled to receive any benefit hereunder is a
      minor or is deemed by the Committee or is adjudged to be legally incapable
      of giving valid receipt and discharge for such benefits, they will be paid
      to the duly appointed guardian of such minor or incompetent or to such
      other legally appointed person as the Committee might



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      designate. Such payment shall, to the extent made, be deemed a complete
      discharge of any liability for such payment under this Plan.

9.5   INALIENABILITY OF BENEFITS

      The right of any person to any benefit or payment under the Plan shall not
      be subject to voluntary or involuntary transfer, alienation or assignment,
      and, to the fullest extent permitted by law, shall not be subject to
      attachment, execution, garnishment, sequestration or other legal or
      equitable process. In the event a person who is receiving or is entitled
      to receive benefits under the Plan attempts to assign, transfer or dispose
      of such right, or if an attempt is made to subject said right to such
      process, such assignment, transfer or disposition shall be null and void.

9.6   TAXES

      It is the intent of the Company that amounts deferred under the Plan shall
      not be subject to federal income tax until distributed from the Plan.
      However, the Company does not guarantee or warrant that Plan benefits will
      be excludable from a Member's gross income for federal or state income tax
      purposes until distributed, and the Member (or Beneficiary) shall in all
      cases be liable for any taxes due on benefits attributable to such Member
      or Beneficiary.

      The Committee shall make appropriate arrangements to (a) withhold
      FICA/FUTA taxes due on amounts accrued and vested under the Plan and (b)
      withhold federal and state income taxes due on amounts distributed from
      the Plan. Further, the Committee may make any arrangements it deems
      appropriate to withhold for any other taxes required to be withheld by any
      government or governmental agency.

9.7   GOVERNING LAW

      Except to the extent pre-empted by federal law, the provisions of the Plan
      will be construed according to the laws of the State of New Jersey.


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                                   APPENDIX A


The following Eligible Employees are Members of the Plan as of January 1, 2002:

<TABLE>
<CAPTION>
                                           PERCENTAGE OF
       EXECUTIVE                      FINAL BASE COMPENSATION
       ---------                      -----------------------
<S>                                   <C>
    Robert Mangano                              50%
   Richard Copeland                             25%
    Joseph Reardon                              25%
    Irving Wischik                              25%
</TABLE>


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                                   APPENDIX B

                                     EXAMPLE

The Member elects to retire at age 59. He has 8 years of service (and is
therefore 80% vested). He is retiring 6 years before age 65 (30% reduction (6
years, multiplied by 5% per year) from the 50% of his final pay benefit = 35%).
Therefore, his benefit will be 80% of 35% = 28% of his final base pay to be paid
at age 60 or 65 for 15 years, or a lump-sum equivalent.


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                                   APPENDIX C

For purposes of this Appendix C only, Final Base Compensation shall mean
Compensation determined at the date of death, but deemed adjusted by four
percent (4%) increases, compounded annually, until age 65.


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