Document:

Exhibit 10.1

BRANCH PURCHASE AND ASSUMPTION AGREEMENT

This Agreement, dated as of November 6, 2006 is made by and between Sun National Bank, a national banking association organized under the laws of the United States of America and having its principal place of business in Vineland, New Jersey
(“Seller”), and 1st Constitution Bank, a commercial bank chartered under the laws of the State of New Jersey and having its principal place of business in Cranbury, New Jersey (“Buyer”). 

I.             DEFINITIONS 

1.1    Certain Defined Terms. 

  Some of the capitalized terms appearing in this Agreement are defined below. The definition of a term expressed in the singular also applies to that term as used in the plural and vice versa. 

  “Affiliate” means a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, a specified Person, except in those cases where the controlling Person exercises
control solely in a fiduciary capacity. 

  “Amount of Premium” has the meaning set forth in Section 3.1 of this Agreement. 

  “Assets” has the meaning set forth in Section 2.1 of this Agreement. 

“Assignment” shall mean, with respect to the Leased Realty, each Landlord’s written consent to the assignment and assumption of such Lease related to the Leased Realty or a certificate of estoppel with respect to the remaining term of
the Lease with respect to the Leased Realty for the benefit of Buyer with respect to the Branch.

  “ATM” means automatic teller machine. 

  “Benefit Plan” means any pension, profit-sharing, or other employee benefit, fringe benefit, severance or welfare plan maintained by or with respect to which contributions are made by, Seller or any of its Affiliates with respect to
Seller’s employees. 

  “Branch” means the branch office of Seller located at 140 Mercer Street, Hightstown, New Jersey 08520. 

  “Branch Cash” means cash on hand at the Branch, including vault cash, teller drawer cash, petty cash and ATM cash. 

  “Business Day” means any Monday, Tuesday, Wednesday, Thursday or Friday on which Seller is open for business. 

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  “Closing” means the purchase of the Assets by Buyer and the assumption of the Liabilities by Buyer on the Closing Date. 

  “Closing Date” has the meaning set forth in Section 9.1 of this Agreement. 

  “Deposit Accounts” means the deposit accounts at the Branch, the balances of which are included in the Deposits or would be so included if the Deposit Account had a positive balance. 

  “Deposits” or “Deposit Liabilities” means all deposits (as defined in 12 U.S.C. Section 1813(l)) which are booked at the Branch on the Closing Date, including in each case accrued but unpaid interest and both collected and
uncollected funds, but excluding (i) deposits held in accounts for which Seller acts as fiduciary and are not transferring from Seller to Buyer (other than deposits held by Retirement Plans that are transferring from Seller to Buyer in accordance
with this Agreement) and (ii) deposits constituting official checks, travelers checks, money orders or certified checks (“Excluded Deposits” shall refer to excluded deposits referred to at (i) and (ii)). A true and accurate list of the
Deposits as of a date within 5 days prior to the date of this Agreement is attached hereto as Exhibit A. 

“Dispute Resolver” means an independent accounting firm or other independent third-party mutually acceptable to Buyer and Seller to act as Dispute Resolver. 

  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

  “ERISA Affiliate” means any entity that is considered one employer with Seller under Section 4001 of ERISA or Section 414 of the Internal Revenue Code of 1986, as amended. 

  “Equipment Leases” means those operating and financial leases and conditional sales contracts covering Fixed Assets which Seller may assign to Buyer without restriction or with the lessor’s written consent.

  “Federal Funds Rate” means, for any day, the rate per annum (expressed on a basis of calculation of actual days in a year) equal to the “near closing bid” federal funds rate published in The Wall Street Journal on the
Business Day following the Closing Date. 

  “Fixed Assets” means all fixtures (including signage poles), leasehold improvements, furnishings, vaults, safe deposit boxes, equipment (including, for example, all coin counters, security equipment and ATMs, but excluding any other
computer and telecommunications equipment located at the Branch), supplies (other than forms and other supplies which bear Seller’s name or logo), and other personal property, that are owned or (to the extent of Seller’s interest as
lessee) leased by Seller, that are located at the Branch on the Closing Date, as detailed on Schedule 2.1(a) . 

  “FDIC” means the Federal Deposit Insurance Corporation. 

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  “Governmental Entity” means any government or any agency, bureau, board, commission, court, department, official, political subdivision, tribunal or other instrumentality of any government having authority in the United States, whether
federal, state or local. 

  “Hazardous Material” means any substance presently listed, defined, designated or classified as hazardous, toxic, radioactive or dangerous or otherwise regulated, under any applicable state or federal law relating to the protection,
preservation or restoration of the environment, including, but not limited to, the following federal environmental laws: the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendment and Reauthorization
Act, the Water Pollution Control Act of 1972, the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act of 1976, the Solid Waste Disposal Act, the Toxic Substances Control Act and the Insecticide, Fungicide and Rodenticide
Act, each as amended. 

  “Loans” means (i) those loans identified on Exhibit B attached hereto pursuant to which Seller has a security interest in a Deposit transferred hereunder, and (ii) those lines of credit identified on Exhibit C attached hereto which are
provided as overdraft protection by Seller for a Deposit transferred hereunder. 

  “Leased Realty” shall mean Seller’s rights as lessee in and to any real property leased by Seller at the Branch as detailed under the List of Leases set forth at Schedule 1.2, together with all of Seller’s rights and
interests in the leasehold improvements therein. 

  “Liabilities” has the meaning set forth in Section 2.2 of this Agreement. 

  “Overdrafts” means those overdrafts of the book balance of any Deposit Accounts which are not overdrawn for more than seven days as of the Closing Date and which are not evidenced by a Loan. 

  “Person” means an association, a corporation, an individual, a partnership, a trust or any other entity or organization, including a Governmental Entity. 

“Retirement Plans” means those non-discretionary individual retirement accounts (IRAs) and Keogh retirement plan accounts relating to the Deposits for which Seller acts as custodian or trustee. 

“Safe Deposit Contracts” has the meaning set forth in Section 2.1(e) of this Agreement. 

  “Welfare Benefit Plans” means those Benefit Plans which are “welfare benefit plans” as defined by ERISA. 

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II.            PURCHASE OF ASSETS AND ASSUMPTION OF LIABILITIES 

2.1     Purchase of Assets. 

  Subject to the terms and conditions of this Agreement, Seller agrees to sell, assign and transfer possession of and all right, title and interest of Seller in and to the following assets to Buyer (collectively, the “Assets”) and Buyer
agrees to purchase the same from Seller, as of the close of business on the Closing Date: 

(a)     the Fixed Assets; 

(b)     the Branch Cash; 

(c)     the Overdrafts; 

(d)     Seller’s rights with respect to the Leased Realty; 

(e)     all lease contracts related to rental of safe deposit boxes at the Branch (“Safe Deposit Contracts”) and the rented and unrented safe deposit boxes at the Branch; 

(f)     With regard to each Retirement Plan, all of Seller’s right, title and interest in and to the related plan or trustee or custodial arrangement, and in and to all assets held by Seller pursuant thereto; and 

(g)     the Loans. 

 2.2     Assumption of Liabilities. 

  Buyer agrees to assume, pay, perform and discharge the following liabilities of Seller (the “Liabilities”) as of the close of business on the Closing Date: 

 (a)     the Deposits and all terms and agreements relating to the Deposit Accounts, excluding the deposit accounts set forth at Schedule 2.2(a);  

 (b)     Seller’s duties and responsibilities relating to the Deposits arising after the Closing Date with respect to: (i) the abandoned property laws of any state, (ii) any legal process which is served on Seller on or before the Closing Date with
respect to claims against or for the Deposits that is not against Seller or is over and above the amount of the Deposits; or (iii) any other applicable law; 

(c)     Seller’s duties and responsibilities with respect to any Equipment Leases;

(d)     Seller’s duties and responsibilities with respect to the Safe Deposit Contracts;

 (e)     Seller’s duties and responsibilities with respect to the Retirement Plans; 

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  (f)     Seller’s duties and responsibilities with respect to the Leased Realty; and 

  (g)     Seller’s duties and responsibilities with respect to the Loans.  

2.3     Transfer of Records. 

(a) At the Closing, Seller also shall transfer to Buyer possession and all right, title and interest of Seller in and to all books and records relating to the Assets and the Liabilities which are maintained at the Branch. 

(b) All books and records relating to the Assets and the Liabilities held by either Seller or Buyer after the Closing Date shall be maintained in accordance with (and for the period provided in) that party’s standard recordkeeping policies and
procedures and subject to applicable laws and regulations governing records retention. Throughout such period, the party holding such books and records shall comply with the reasonable request of the other party to provide copies of specified
documents, at the expense of the requesting party. The requesting party shall give reasonable notice of any such request. 

 2.4     Tax Matters. 

 Each party shall be responsible for its sales and use taxes and any interest and penalties thereon which are payable or arise as a result of this Agreement or the consummation of any of the transactions contemplated by this Agreement. Seller shall
be responsible for any taxes as a result of the sale and transfer of the Leased Realty and the payment of any taxes or levies that may arise under the New Jersey Bulk Sales Act with respect to the Branch for all transactions occurring on or prior to
the Closing Date.

 2.5     Proration of Certain Items. 

  Except as detailed at Section 2.4 herein, all rental income or expenses associated with the operation of the Branch (including, but not limited to rental lease payments related to the Branch, safe deposit box rental fees actually collected, and
any security deposits or prepaid rents paid related to such Leased Realty), real estate taxes, personal property taxes (tangible or intangible), utility, water and sewer charges and assessments, and any and all other pre-paid charges related to the
operation of the Branch shall be prorated between Buyer and Seller as of the close of business on the Closing Date. In addition, any quarterly assessments actually paid by Seller to the Deposit Insurance Fund of the FDIC prior to the Closing Date
for the quarterly assessment period containing the Closing Date with respect to the Deposits, shall be prorated between Buyer and Seller as of the close of business on the Closing Date based upon the daily assessment rate in effect as of such
assessment quarter with respect to Seller, the Deposits subject to assessment that actually transfer as of the Closing Date and the number of calendar days remaining until the end of such assessment quarter, such that Seller shall receive a
reimbursement from Buyer for such number of calendar days remaining until the end of such assessment quarter. 

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 2.6     Back Office Conversion. 

  Seller and Buyer shall cooperate with each other and shall use their reasonable best efforts (consistent with their internal day-to-day operations) in order to cause the timely transfer of information concerning the Assets and the Liabilities
which is maintained on Seller’s data processing systems so that Buyer can incorporate such information into Buyer’s data processing systems no later than the opening of business on the Business Day following the Closing Date, including
testing of such data transfers prior to the Closing Date. Buyer shall bear the costs of any third-party programming requirements related to such data processing efforts. 

 2.7     Certain Transitional Matters Following the Closing Date 

  (a)     Buyer agrees to honor in accordance with applicable law, up to the collected amount on deposit (and any other funds available by reason of any agreement between the depositor and Buyer), all properly drawn and presented checks, drafts,
electronic debits and credits and withdrawal orders presented to Buyer by  mail, over its counters, throughout the check clearing system, and Automated Clearing House of the banking industry, by depositors of the accounts assumed, whether drawn on
the checks, withdrawal or draft forms provided by Seller, or by Buyer, and all other respects to discharge, in the usual course of the banking business, the duties and obligations of Seller with respect to the balances due and owing to the
depositors whose accounts are assumed by Buyer.  Buyer’s obligation under this Section to honor checks, withdrawal, draft forms and electronic debits and credits provided by Seller and carrying its imprint shall expire at the close of business
on the 60th business day following the Closing Date or a date mutually agreeable to both parties. 

  (b)     If any of such depositors, instead of accepting the obligation of Buyer to pay the Deposit Liabilities assumed, shall demand payment from Seller for all or any part of any such assumed Deposit Liabilities, Seller shall not be liable or
responsible for making such payment.  Instead, Seller may, at its discretion, assume custody of the check or other item presented for payment, including electronic items, on an account which has been transferred with the Branch, batch such items and
send them to Buyer by fax and by mail by the next business day after receipt thereof by Seller.  Seller shall not, at any time, be liable or responsible for making payment on such items by reason of its obtaining custody of them for transmittal to
Buyer. Nothing herein shall, however, be construed to relieve the Seller of any liability which it may have for accepting custody of any check or item presented for payment on a Deposit which Seller does not timely batch and send to Buyer in
accordance with this Section 2.7(b), to the extent Buyer’s ability to satisfy such check or other item has been prejudiced by such delay. 

  In order to reduce the continuing charges to Seller through the check clearing system of the banking industry which will result from check forms of Seller being used after the Closing Date by the depositors whose accounts are assumed, Buyer
agrees, at its cost and expense within 30 days prior to the Closing Date, to notify depositors of Buyer’s assumption of Deposit Liabilities. Within 10 days of the Closing Date, Buyer shall, at its sole cost and expense and without cost to
depositors, (i) furnish each depositor of an assumed account with not less than
	fifty (50) checks on the forms of Buyer, with instructions to utilize
	Buyer’s 

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checks and to
destroy unused checks of Seller as of the Closing Date and (ii) notify holders
of ATM cards that
all ATM cards held by Branch customers will be void as of the Closing Date, and that they will receive new ATM cards on or immediately prior to the Closing Date. Buyer will send Seller a copy of notification letters forwarded to depositors by Buyer.
Seller hereby agrees that after the 60th business day following the Closing Date or a date mutually agreeable to both parties, it shall, with respect to the Branch, at its sole option, either: (1) return such check or other item with
reference to the maker thereof; or (2) assume custody thereof and deliver the same in the manner aforesaid. 

  (c)     Buyer agrees, no later than the start of the second business day after demand by Seller, to pay Seller an amount equivalent to the amount of any uncollected item included in a depositor’s balance on the Closing Date which is returned
after the Closing Date as not collected to the extent that Buyer has not suffered a loss with respect thereto. Buyer shall be required to make such payment for an item only up to the amount on deposit with Buyer at the time Seller makes the demand
aforesaid. 

  (d)     Buyer shall timely forward to Seller any mail, facsimile or other correspondence, received at the Branch after the Closing Date, that is (i) addressed to Seller, or (ii) addressed to Buyer but relating to an obligation of Seller that
originated prior to the Closing Date. 

  (e)     Adjustments after the Closing Date shall be made daily as may be required. Such adjustments shall be by wire transfer. 

2.8     Information Returns. 

  Buyer shall file all required information returns with the Internal Revenue Service with respect to interest paid on the Deposits after the Closing Date, interest received on Overdrafts after the Closing Date, and any other information returns
required with respect to the Assets and the Liabilities for the periods beginning after the Closing Date. Seller will file all required information returns with the Internal Revenue Service and any information returns required by state or local tax
authorities with respect to interest paid on the Deposits on or before the Closing Date, interest received on the Overdrafts on or before the Closing Date, and any other information returns required with respect to the Assets and the Liabilities for
periods ending on or before the Closing Date. 

2.9     Assignment and Assumption of Branch Lease. 

  Promptly following execution of this Agreement, Buyer and Seller, shall use its commercially reasonable efforts to obtain the Assignment from the Landlord and any other party related to the Leased Realty effective as of the Closing Date.  

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III.          CONSIDERATION 

3.1     Calculation. 

  In consideration of Buyer’s purchase of the Assets and its assumption of the Liabilities, Seller agrees to pay to Buyer in immediately available funds not later than 2:00 pm, New Jersey time, on the Closing Date an amount equal to the
Deposits to be transferred under Section 2.2(a), plus accrued interest on such Deposits to be transferred, less the sum of the following, in each case calculated as of the close of business on the Closing Date (except as otherwise detailed herein):

 (a)     the sum equal to the aggregate net book value of the Fixed Assets and Leasehold Improvements as of the Closing Date as set forth at Schedule 2.1(a) ; 

 (b)     the amount of Branch Cash; 

 (c)     the principal amount of the Overdrafts, provided however that Seller shall refund to Buyer the amount of such Overdrafts to the extent that such amount shall remain uncollected as of 30 days following the Closing Date, plus accrued interest
from the Closing Date through the date of collection at the contract rate determined in accordance with the policies of Seller as detailed at Schedule 3.1(c); 

 (d)     the net amount (which may be a negative amount) of any adjustments under Section 2.5 (i.e., the amount payable by Buyer less the amount payable by Seller);

(e)     an amount equal to the Amount of Deposit Premium. The “Amount of Deposit Premium” shall be equal to: (i) four percent (4.00%) of the average closing daily Deposits attributable to the Branch for the thirty (30) calendar day period
ending as of the calendar day two days prior to the Closing Date, in the case of Deposits which are not municipal Deposits or Deposits of a state or local government or agency, plus (ii) four percent (4.00%) of the average closing month-end balance
for the twelve (12) calendar month periods completed as of or immediately prior to the Closing Date, in the case of Deposits attributable to the Branch which are municipal Deposits or Deposits of a state or local government or agency. For purposes
of this subparagraph, Deposits shall exclude any pledged deposits or accounts where such pledged deposits or accounts secure a loan that is not being transferred and any Excluded Deposits;

 (f)     an amount in cash equal to prepaid safe deposit box rental fees actually collected, prorated for the period from the Closing Date to the end of the respective Safe Deposit Contract; and 

 (g)     the aggregate outstanding principal and interest balances with respect to the Loans. 

 3.2     Settlement. 

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 (a)     Not later than three (3) business days prior to the Closing Date, Seller
shall deliver to Buyer the Closing Statement prepared in accordance with Seller’s customary practices and procedures used in preparing financial statements, substantially in the form of Exhibit B to this Agreement, which shall be
completed based upon information as of the close of business five business days prior to the Closing Date and shall be the basis of the payment made to Buyer’s account as of the Closing Date in the manner detailed at Section 3.1 herein (the
“Settlement Payment”).

 (b)     The parties shall cooperate in the preparation of the Adjusted Closing Statement within 30 days after the Closing Date, which shall be prepared in accordance with Seller’s customary practices and procedures used in preparing financial
statements, substantially in the form of Exhibit C to this Agreement, which shall be completed as of the close of business on the Closing Date. On the Business Day after Buyer and Seller agree to the Adjusted Closing Statement, or Buyer and
Seller receive notice of any determination of the Adjusted Closing Statement under subsection (c) (the “Adjusted Settlement Date”), Seller shall pay to Buyer (or Buyer shall pay to Seller, as the case may be) an amount (the
“Adjustment Payment”) equal to the amount due stated on the Adjusted Closing Statement, plus interest from the day after the Closing Date until the calendar day before the Adjustment Payment is made at a rate per annum (calculated
daily based on a 360-day year) equal to the daily Federal Funds Rate. 

(c)     The Settlement Payment and the Adjustment Payment shall each be made by wire transfer of immediately available funds to the account of the party receiving the payment, which account shall be identified by the party receiving the funds to the
other party not less than two Business Days prior to such payment. 

(d)     Any errors associated with the Deposits or other items or calculations as detailed on the Closing Statement or the Adjusted Closing Statement (“Mistakes-in-Fact”) which are determined as of the date of the Adjusted Closing Statement
shall be reconciled as of such date and appropriate adjustments of payments shall be made to Seller or Buyer, as appropriate, at such time. Notwithstanding the foregoing, or anything else herein to the contrary, any Mistakes-in-Fact which shall be
determined by Seller or Buyer thereafter related to the Transaction consummated under this Agreement shall nevertheless be reconciled by adjustment or payment to Seller or Buyer, as appropriate, within 30 days of such determination; provided that
either party shall notify the other of any such alleged Mistakes-in-Fact within one year after the Closing Date in order for a claim to be made with respect thereto.

(e)     Seller and Buyer shall use their best efforts to resolve any disagreement related to the Adjusted Closing Statement during the thirty (30) day period following receipt by Seller of notice from Buyer as to any such disagreement. If the
disagreement is not resolved during such thirty (30) day period, the dispute shall be referred to a Dispute Resolver, and such Adjusted Closing Statement shall be modified by any such resolution and thereupon such Adjusted Closing Statement shall
become final and binding on Buyer and Seller provided, however, that for any claim that does not exceed $5,000, in the event the fees of such Dispute Resolver
as estimated by such firm would exceed fifty percent (50%) of the net amount in
dispute, the parties agree that such firm will not be engaged by either party 

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and that such net amount in dispute will be equally
apportioned between Seller, on the one hand, and Buyer, on the other hand.  Such Dispute Resolver shall be instructed to resolve the disputed items within ten (10) Business Days of engagement, to the extent reasonably practicable. All determinations
under this Agreement made by a Dispute Resolver shall be binding upon Buyer and Seller. Buyer and Seller shall share equally in the cost of any Dispute Resolver.

IV.          SELLER’S REPRESENTATIONS AND WARRANTIES 

Seller makes the following representations and warranties to Buyer. 

 4.1     Power and Authority. 

 (a)     The execution and delivery of this Agreement has been duly authorized by all necessary corporate action by Seller. Upon execution and delivery by both parties, this Agreement will constitute a valid and binding obligation of Seller, enforceable
in accordance with its terms, subject to conservatorship, receivership, and a court’s right under general principles of equity to refuse to direct specific performance. 

 (b)     The performance of this Agreement by Seller will not violate any provision of the Articles of Association or Bylaws of Seller, or any applicable law, rule, regulation, or any governmental permit or license or order or any contract or instrument
by which Seller is bound, except for such violations which alone, or taken in the aggregate, would not reasonably be expected to have a material adverse effect on the consummation of the transactions contemplated by this Agreement (a “Seller
Material Adverse Effect”). 

(c)     The Seller is a national banking association duly organized and validly existing under the laws of the United States of America, and has full corporate power to own the Branch, and to conduct the business of the Branch and to enter into and
perform this Agreement. 

 4.2     Litigation and Regulatory Proceedings. 

  There are no actions, complaints, petitions, suits or other proceedings, or any decree, injunction, judgment, order or ruling, entered, promulgated or pending or (to Seller’s knowledge) threatened against Seller or any of the Assets or the
Liabilities, which alone, or taken in the aggregate, reasonably would be expected to have a Seller Material Adverse Effect. No governmental agency has notified Seller that it would oppose or not approve or consent to the transactions contemplated by
this Agreement and Seller knows of no reason for any such opposition, disapproval or non-consent, including, but not limited to Seller’s compliance with the Community Reinvestment Act, the Bank Secrecy Act and the Truth-in-Lending Act.

 4.3     Consents and Approvals. 

  Except for required regulatory approvals, no consents, approvals, filings or
	registrations with any third party or any public body, agency or authority
	are required in connection with Seller’s consummation of the 

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transactions contemplated by this Agreement,
other than any required Assignments relating to the Leased Realty or any required lessor consents to the assignment of any the Equipment Leases, as detailed at Schedule 4.3, and as may be required as a result of any facts or circumstances
relating solely to Buyer. 

 4.4     Leased Realty. 

 Schedule 4.4 sets forth a copy of the Lease applicable to the Leased Realty. Except for (a) exceptions to title that do not interfere materially with Seller’s use and enjoyment of the Leased Realty, (b) liens for current real estate
taxes not yet delinquent, or being contested in good faith, properly reserved against, and (c) items listed in Schedule 4.4, Seller, as lessee, has the right under a valid and subsisting lease to occupy, use and possess the Leased Realty, and
Seller has not experienced any material uninsured damage or destruction with respect to the Leased Realty since the commencement date of the Lease.  The Leased Realty is in good operating condition and repair.  Seller enjoys peaceful and undisturbed
possession under the Lease for the use of the Leased Realty, and the Lease is a valid and binding obligation of Seller in accordance with the terms thereof. Seller is not in material default under the Lease, and there has occurred no default by
Seller or event which with the lapse of time or the giving of notice, or both, would constitute a material default under the Lease.  There are no laws, conditions of record, or other impediments which materially interfere with Seller’s use or
Buyer’s intended use of the Leased Realty. Seller knows of no reason why the parties may not be able to obtain the consent of the landlord of the Leased Realty to assign the Lease. 

 4.5     Fixed Assets. 

  Seller has good and marketable title to the Fixed Assets as detailed at Schedule 3.1(a), free and clear of all encumbrances, claims, charges, security interests, or liens.

 4.6     Loans. 

 (a)     Except for the Loans, no loans are being sold by Seller to Buyer in this transaction.

(b)     None of the Loans is void or voidable by any person as a matter of law, pursuant to any public policy, or otherwise; 

(c)     Each of the Loans and the loan documents relating thereto are enforceable against the borrower in accordance with their respective terms; 

(d)     The Loans and the loan documents relating thereto are in compliance with all applicable laws; and 

(e)     No notice of default or other failure (including breach, non-payment, or non-performance) has been sent by Seller and is outstanding and uncured with respect to any of the Loans or the loan documents relating thereto. 

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4.7     Compliance with Certain Laws. 

  The Deposit Accounts were opened, extended or made, and have been maintained, in accordance with all applicable federal and state laws, regulations, rules and orders, and the Branch has been operated in compliance with Seller’s policies and
procedures and all applicable federal and state laws, regulations, rules and orders, except for such instances of noncompliance which do not have, and are not reasonably likely to have, a Seller Material Adverse Effect. 

 4.8     FDIC Insurance. 

  The Deposits are insured by the FDIC through the Deposit Insurance Fund to the extent permitted by law, and all premiums and assessments required to be paid in connection therewith have been paid when due by Seller. 

 4.9     Absence of Employment Agreements. 

  There are no employment agreements, contracts, incentive plans (other than such agreements, contracts and plans that will terminate automatically on the Closing Date) or disputes between Seller and Seller’s Employees at the Branch, whether
written or otherwise, relating to wages, hours, terms of employment, benefits or working conditions. 

4.10   Books and Records.

The books and records of Seller respecting the operations of the Branch accurately reflect, in accordance with Regulatory Accounting Principles consistently applied, the amount of Branch Cash and the total balance of each Deposit Account being
transferred to Buyer. 

4.11   Deposit Accounts.

To the best of Seller’s knowledge, all of the Deposit Accounts were originated and have been administered in compliance, in all material respects, with the document governing the relevant type of Deposit Account and all applicable laws. Seller
has properly accrued interest on the Deposit Accounts and the records respecting the Deposit Accounts accurately reflects such accruals of interest. Seller has delivered to Buyer a true and complete copy of each of the documents governing the
Deposit Accounts and a true and correct copy of the current Deposit Account forms for each of the types of Deposit Accounts offered by Seller at the Branch. 

4.12   No Broker.

No agent, broker, investment banker or other person acting on behalf or under the authority of Seller is or will be entitled to any broker’s or finder’s fee or any other commission or similar fee directly or indirectly in connection with
this Agreement. 

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4.13  Community Reinvestment Act.

Seller is in compliance in all material respects with the Community Reinvestment Act (“CRA”) and its implementing regulations and, there are no threatened or pending actions, proceedings, or allegations by any person or regulatory agency
which may cause bank regulatory authorities to deny any application or non-objection required to be filed pursuant to this Agreement. Seller has received a rating of not less than “satisfactory” on its most recent CRA examination.  In
addition, Seller has not been advised of any supervisory concerns regarding compliance with CRA. 

4.14   Disclosure. 

Exhibit A, attached hereto, is a comprehensive list of deposit accounts domiciled at the branch as of the date indicated thereon. Without limiting the generality of the foregoing, the information concerning the Loans and the Deposit Accounts
contained in or delivered by the Seller pursuant to this Agreement, heretofore provided to Purchaser fairly and accurately describes the liabilities to be assumed and purchased by Purchaser pursuant to this Agreement, in all material respects. 

V.           BUYER’S REPRESENTATIONS AND WARRANTIES 

 Buyer makes the following representations and warranties to Seller. 

5.1     Power and Authority. 

 (a)     The execution and delivery of this Agreement has been duly authorized by all necessary corporate action by Buyer. Upon execution and delivery by both parties, this Agreement will constitute a valid and binding obligation of Buyer, enforceable
in accordance with its terms subject to conservatorship, receivership, and a court’s right under general principles of equity to refuse to direct specific performance. 

 (b)     The performance of this Agreement by Buyer will not violate any provision of the Articles of Incorporation, Bylaws or similar governing documents of Buyer, or any applicable law, rule, regulation, or order or any contract or instrument by which
Buyer is bound except for such violations which alone, or taken in the aggregate, would not reasonably be expected to have a material adverse effect on the consummation of the transactions contemplated by this Agreement (a “Buyer Material
Adverse Effect”). 

 (c)     The Buyer is a commercial bank duly organized and validly existing under the laws of the State of New Jersey, and has full corporate power to enter into and perform this Agreement. 

 5.2     Litigation and Regulatory Proceedings. 

  There are no actions, complaints, petitions, suits or other proceedings, or
	any decree, injunction, judgment, order or ruling, entered, promulgated or
	pending or (to Buyer’s knowledge) threatened against Buyer 

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or any of its properties or assets which alone, or taken in
the aggregate, reasonably would be expected to have a Buyer Material Adverse Effect.  No governmental agency has notified Buyer that it would oppose or not approve or consent to the transactions contemplated by this Agreement, and Buyer knows of no
reason for any such opposition, disapproval or non-consent, including, but not limited to Buyer’s compliance with the Community Reinvestment Act, the Bank Secrecy Act and the Truth-in-Lending Act.

 5.3     Consents and Approvals. 

  Except for required regulatory approvals, no consents, approvals, filings or registrations with any third party or any public body, agency or authority are required in connection with Buyer’s consummation of the transactions contemplated by
this Agreement, other than any required Assignments relating to the Leased Realty, other than what may be required as a result of any facts or circumstances relating solely to Seller. 

5.4     FDIC Insurance. 

Buyer is authorized to hold Deposits that are insured by the FDIC through the Deposit Insurance Fund to the extent permitted by law, and all premiums and assessments required to be paid in connection therewith have been paid when due.

5.5     No Broker.

Except for Raymond James & Associates, Inc., no agent, broker, investment banker or other person acting on behalf or under the authority of Buyer is or will be entitled to any broker’s or finder’s fee or any other commission or similar
fee directly or indirectly in connection with this Agreement. 

5.6     Community Reinvestment Act.

Buyer is in compliance in all material respects with the CRA and its implementing regulations and there are no threatened or pending actions, proceedings, or allegations by any person or regulatory agency that may cause bank regulatory authorities
to deny any application or non-objection required to be filed pursuant to this Agreement. Buyer has received a rating of not less than “satisfactory” on its most recent CRA examination. In addition, Buyer has not been advised of any
supervisory concerns regarding compliance with CRA. 

VI.          ADDITIONAL AGREEMENTS OF SELLER 

6.1     Access to Seller’s Premises, Records and Personnel. 

(a)     Upon execution of this Agreement, Seller shall give
Buyer and its representatives such access to the Branch as Buyer may reasonably
request, provided that Buyer does not unreasonably interfere with the Branch’
business operations. Seller shall not be required to provide access to or to
disclose information where such access or disclosure might violate or prejudice
the rights of any 

14

customer or employee or would be
contrary to law, rule, regulation or any legal or regulatory order or process or any fiduciary duty or binding agreement entered into prior to the date of this Agreement. To the extent the confidential and proprietary information consists of
“non-public personal information” within the meaning of the Gramm-Leach-Bliley Act Section 509(4), each party receiving such information shall take reasonable measures to: (i) ensure the security and confidentiality of such non-public
personal information; (ii) protect against any anticipated threats or hazards to the security or integrity of such non-public personal information; and (iii) protect against unauthorized access to or use of such non-public personal information. 

 (b)     Anything contained in this Agreement to the contrary notwithstanding, Seller shall not be required to disclose, or to cause the disclosure to Buyer or its representatives (or provide access to any offices, properties, books or records of
Seller, that could result in the disclosure to such Persons or others), of any tax returns and/or any work papers relating thereto or any other confidential information relating to income or franchise taxes or other taxes of Seller, or trade
secrets, patent or trademark applications, or product research and development belonging to or performed by or for Seller, nor shall Seller be required to permit or to cause others to permit Buyer or its representatives to copy or remove from the
offices or properties of Seller any documents, drawings or other materials that might reveal any such confidential information; provided, however, Buyer shall have access to tax returns to the extent that liability for the taxes at issue could be
imposed on Buyer. 

 (c)     At Buyer’s request, Seller shall authorize and permit certain of its officers and members of management to engage in discussions with Buyer for the purposes of discussing the Branch business, and Buyer shall maintain the confidentiality of
any information furnished by such officers or members of management of Seller pursuant to such discussions with Buyer. 

 6.2     Regulatory Approvals. 

  Seller agrees to use its reasonable best efforts to obtain promptly any regulatory approval on which its consummation of the transactions contemplated by this Agreement is conditioned. Seller also agrees to cooperate with Buyer in obtaining any
regulatory approval that Buyer must obtain before the Closing.  Seller shall notify Buyer promptly of any significant development with respect to any application it files under this Section. Seller also shall provide Buyer with a copy of any
regulatory approval it receives under this Section, promptly after Seller’s receipt of the same. 

 6.3     Conduct of Business. 

Except as provided in this Agreement or as may otherwise be agreed upon by Buyer, Seller will continue to carry on the business at the Branch until the Closing in the ordinary course of business, consistent with prudent business practices,
and will use reasonable efforts to preserve the goodwill of all depositors at the Branch, all employees at the Branch and all others having business relations with the Branch. Seller shall not terminate the operation of the Branch, unless those
operations cease due to events beyond Seller’s control.  Seller will
notify Buyer of any event of which Seller obtains knowledge that would make any of Seller’s representations under Article IV of this Agreement false in any material respect. 

15

 6.4     Returned Items.

If Seller accepts an item before the Closing Date, which item is returned as uncollectible, and no offset of funds is available to Buyer, then Seller shall be liable for such item in an amount equal to the portion not covered by offset.  Adjustment
to the Settlement Payment will be made as necessary to reflect Seller’s liability. 

6.5     Branch Property Lease and Other Consents.

Seller and Buyer shall use commercially reasonable efforts to obtain (i) any necessary consents or non-objections of the Landlord of the Leased Realty to the Assignment of the Leased Realty to Buyer, (ii) from the Landlord its consent to the
Subordination, Non-Disturbance and Attornment (Recognition) Agreement (the “Subordination Agreement”) substantially similar to the form attached hereto as Exhibit D, and (iii) any other consents necessary to properly assign to Buyer the
Fixed Assets, Equipment Leases and Loans. 

6.6      Employee Payroll.

Seller shall not increase the wages of any employee of the Branch, as detailed at Schedule 6.6, other than in accordance with the salary budget guidelines presently in effect, as detailed at Schedule 6.6, without the approval of a
representative of Buyer, which shall not be unreasonably withheld or delayed. 

 6.7     Branch Operations.

Seller shall not materially alter the products or services presently offered at the Branch or materially alter the pricing policy applicable to such products without prior notice to Buyer. 

 6.8     Final Payroll.

Seller shall pay all of its employees not later than as of the close of business on the Closing Date all sums due for all wages earned, including overtime pay, and all accrued vacation leave as of such time. 

6.9     Customer Records.  

At least thirty (30) days prior to the Closing Date, or as otherwise agreed, Seller agrees to provide to Buyer a list of all Deposits, identifying the types of each such deposit, the amount thereof, the interest rate(s) paid thereon, the name(s) and
address(es) of each deposit as well as all other pertinent information regarding each depositor and his or her Deposit. Buyer shall have the right, prior to the Closing Date, to review the books and records of Seller relating to such Deposits for
the purpose of verifying the accuracy of the foregoing list. 

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6.10   IRA and Keogh Plan Deposits.

(a)     On or before the Closing Date, to the extent that such accounts will transfer to Buyer, Seller shall: (i) resign as of the close of business on the Closing Date as the trustee or custodian, as applicable, of each IRA and Keogh Plan of which it
is the trustee or custodian; (ii) to the extent permitted by the documentation governing each such IRA or Keogh Plan and applicable law, appoint Buyer as successor trustee or custodian, as applicable, of each such IRA or Keogh Plan, and Buyer hereby
accepts each such trusteeship or custodianship under the terms and conditions of Buyer’s plan documents for its IRA and Keogh Plans, and assumes all fiduciary and custodial obligations with respect thereto as of the close of business on the
Closing Date; and (iii) deliver to the IRA grantor or Keogh Plan named fiduciary, of each such IRA or Keogh Plan such notice of the foregoing as is required by the documentation governing such IRA or Keogh Plan or applicable law. Buyer shall be
solely responsible for delivering its IRA and Keogh Plan documents to the applicable IRA grantor and Keogh Plan named fiduciary, including, but not limited to, a beneficiary designation form to be completed by the applicable IRA grantor or Keogh
Plan participant; provided, however that in the event the IRA grantor or Keogh Plan participant dies before such time as Buyer receives a properly completed beneficiary designation form, Seller shall make available to Buyer such information as may
exist in Seller’s files regarding any beneficiary designation it may have regarding such decedent. If, pursuant to the terms of the documentation governing any such IRA or Keogh Plan or applicable law; (x) Seller is not permitted to appoint
Buyer as successor trustee or custodian, or the IRA grantor or Keogh Plan or named fiduciary objects in writing to such designation, or is entitled to, and does, in fact, name a successor trustee or custodian other than Buyer; or (y) such IRA or
Keogh Plan includes assets that are not Deposits and are not being transferred to Buyer or the assumption of such deposit liabilities included in such IRA or Keogh Plan or would result in a loss of qualification of such IRA or Keogh Plan under the
Code, all deposit liabilities of Seller held under such IRA or Keogh Plan shall be excluded from the Deposits. Upon appointment as a successor custodian for such IRAs or as a successor trustee for such Keogh Plans, Buyer shall perform the services
and carry out the duties and obligations required of it under the applicable plans, the Code and applicable federal and state laws and regulations. 

(b)     To the extent the Deposits include certain IRAs and Keogh Plans that are required to make certain periodic distributions to the IRA account owner or Keogh Plan participant (or beneficiary) either at the account owner’s or participant’s
request or because the account owner or participant has attained age 70-1/2, effective as of the Closing Date, Buyer agrees to continue to make such periodic distributions in accordance with the reasonable distribution instructions forwarded by
Seller to Buyer. Buyer hereby assumes the obligation to pay each minimum distribution required by federal law by December 31 of the calendar year in which the Closing occurs and, in consideration thereof, Seller agrees not to withhold the amount of
such distributions from the aggregate amount of the Deposits. 

(c)     Prior to the Closing Date, Seller shall provide to Buyer copies of all plan documents and beneficiary designation forms in Seller’s possession with respect to the
IRAs and Keogh Plans.

17

 6.11     Non-Solicitation After Closing.

 (a)     Seller agrees that, for a period of one (1) year after the Closing, neither the Seller nor its Affiliates shall directly or indirectly solicit Bank Deposits (as hereinafter defined) from customers of the Branch maintaining Deposits transferred
to the Buyer pursuant to this Agreement, except that (a) nothing herein shall prevent Seller from making general solicitations of the public (or any segment of the public), through advertising campaigns or otherwise, for the purpose of having the
public establish Bank Deposits of the Seller, so long as such solicitations are not specifically directed toward customers of the Branch, (b) nothing herein shall prevent Seller from soliciting so-called “brokered” certificates of deposit,
and (c) nothing herein shall prevent Seller from displaying brochures and other marketing materials with respect to Bank Deposits at Seller’s offices. As used herein, “Bank Deposits” means demand deposits, time deposits and
certificates of deposit insured by the FDIC. 

(b)     Seller agrees that, for a period of one (1) year after the Closing, Seller shall not, within the “Restricted Area” described below, open or maintain any banking branch office or purchase any single banking branch office from a
third-party, other than an office operated by the Seller as of the date of the Agreement. For the purposes of this Agreement, the Restricted Area shall be defined as the geographic area within a five mile radius of the Branch.

(c)     Notwithstanding the foregoing, the provisions in this Section 6.11 shall not apply to Seller or its successors or assigns if the Seller (a) is acquired in a merger or asset sale transaction with a third-party, or (b) Seller acquires another
bank, thrift or financial institution by merger or asset sale consisting of at least two retail banking offices and one or more of such offices falls within the Restricted Area. 

VII.         ADDITIONAL AGREEMENTS OF BUYER 

 7.1     Regulatory Approvals. 

  Buyer agrees to use its reasonable best efforts to obtain promptly any regulatory approval on which its consummation of the transactions contemplated by this Agreement is conditioned.  Buyer shall prepare and file all necessary regulatory notices
and applications related to the transaction contemplated by the Agreement within 30 calendar days of the execution date of the Agreement. Buyer also agrees to cooperate with Seller in obtaining any regulatory approval which Seller must obtain before
the Closing.  Buyer shall notify Seller promptly of any significant development with respect to any application it files under this Section. Buyer also shall provide Seller with a copy of any regulatory approval it receives under this Section,
promptly after Buyer’s receipt of the same. 

18

7.2     Change of Name, Etc. 

Immediately after the Closing, Buyer will (a) change the name and logo on all documents and facilities relating to the Assets and the Liabilities to Buyer’s name and logo, and (b) provide all appropriate notices to the FDIC and any
other regulatory authorities required as a result of the consummation of such transactions. Buyer agrees not to use any forms or other documents bearing Seller’s name or logo after the Closing without the prior written consent of Seller, and,
if such consent is given, Buyer agrees that all such forms or other documents to which such consent relates will be stamped or otherwise marked in such a way that identifies Buyer as the party using the form or other document.  Buyer shall use its
best efforts to encourage these customers to begin using such checks and cease using checks bearing Seller’s name. 

VIII.       SELLER’S EMPLOYEES 

 8.1     Transferred Employees. 

 (a)     Buyer will offer employment to all branch personnel employed at the Branch immediately prior to Closing and who have not been suspended, placed on leave or been subject to disciplinary actions within the 90 days prior to the Closing Date. Buyer
shall notify the Seller in writing not less than thirty days prior to the Closing Date detailing by name any employees at the Branch to whom the Buyer shall not offer employment.  Seller’s employees who become employees of Buyer after the
Closing shall be referred to as “Transferred Employees.” 

 (b)     Seller is responsible for the filing of Forms W-2 with the Internal Revenue Service and any required filing with state tax authorities, with respect to wages and benefits paid to each Transferred Employee for periods ending on or prior to the
Closing Date. 

 8.2     Employee Benefits. 

 (a)     From and after the Closing Date, Buyer shall provide the Transferred Employees with the employee benefits, if any, provided to employees of Buyer and its Affiliates, subject to the terms of Buyer’s benefit plans; 

 (b)     Buyer will grant for purposes of determination of vacation benefits, severance pay and all welfare benefit plans (as defined in ERISA)
	past service credit to all Transferred Employees for periods of time
	credited to such Transferred Employees as employees of Seller. To the extent
	that any Transferred Employee has satisfied in whole or in part any annual
	deductible under a Welfare Benefit Plan, or has paid any out-of-pocket
	expenses pursuant to any Welfare Benefit Plan co-insurance provision, such
	amount shall be counted toward the satisfaction of any applicable deductible
	or out-of-pocket expense maximum, respectively, under the benefit plans and
	programs provided to Transferred Employees by Buyer, and such plans and
	programs shall be applied without regard to any limitations relating to
	preexisting conditions or required physical examinations that would not
	otherwise apply 

19

under the respective Welfare Benefit Plans
to the extent that such Transferred Employees are covered by the Welfare Benefit Plans on the Closing Date; provided, however, such treatment shall be contingent on Buyer obtaining the consent of its Insurers for Buyer’s Insured Welfare Benefit
Plans. Seller agrees to furnish Buyer with information regarding Transferred Employees’ deductibles and out-of-pocket maximums within one week after the Closing Date. 

 (c)     Buyer shall take whatever action is necessary, if any, including amendment of its defined contribution pension plan, to grant to each Transferred Employee past service credit for purposes of eligibility and vesting under Buyer’s defined
contribution pension plan for all periods of service credited to each such Transferred Employee under Seller’s defined contribution pension plan. Within 30 days before the anticipated Closing Date, Seller shall provide to Buyer such information
as Buyer reasonably requires to establish the service for the Transferred Employees credited under Seller’s defined contribution pension plan; and

 (d)     Buyer agrees to cause its 401(k) plan to accept eligible rollover distributions from the Seller’s 401(k) plan with respect to the Transferred Employees. 

8.3     Training. 

  Seller shall permit Buyer to train the Transferred Employees during the 30-day period before Closing with regard to Buyer’s operations, policies and procedures at Buyer’s sole cost and expense. This training shall take place outside of
normal business hours and may, at Seller’s option, take place at the Branch.

IX.          CLOSING AND CONDITIONS TO CLOSING 

9.1     Time and Place of Closing. 

  The Closing shall be on a date mutually agreed upon by the parties (the “Closing Date”), which shall be no more than 45 days after the last regulatory approval or non-objection necessary for the Closing has been obtained (without regard
to any statutory waiting periods following such approval), but in no event later than February 15, 2007 to the extent feasible and acceptable to Seller’s and Buyer’s respective data processing services. The Closing shall take place at
Seller’s offices located at 226 Landis Avenue, Vineland, New Jersey 08360 at 10:00 a.m. on the Closing Date, or at a time and place otherwise determined by mutual agreement of the parties. 

 9.2     Exchange of Closing Documents. 

  The parties shall exchange drafts of all documents to be delivered at the Closing (including a preliminary Closing Statement) at least three (3) Business Days prior to the Closing Date. 

20

 9.3     Buyer’s Conditions to Closing. 

  Buyer’s obligations to purchase the Assets and assume the Liabilities is contingent upon and subject to the fulfillment of the following conditions in all material respects: 

 (a)     the parties obtaining all regulatory approvals which are required in order for them to proceed with the transactions contemplated by this Agreement and the expiration of any required waiting period without the commencement of adverse
proceedings by any governmental authority with jurisdiction over the transactions contemplated by this Agreement;

 (b)     each representation and warranty of Seller in this Agreement being true and correct in all material respects as of the Closing Date and all covenants and conditions of Seller to be performed or met by Seller on or before the Closing Date having
been performed or met in all material respects; 

 (c)     Seller’s delivery to Buyer of the following documents in form and substance reasonably satisfactory to Buyer: 

	(i)     bills of sale, assignments and other instruments of transfer sufficient to convey to Buyer all of Seller’s right, title, and interest in and to the Assets;
	

	(ii)     a certificate executed by an appropriate officer of Seller attesting, to the officer’s best knowledge, to Seller’s compliance with the conditions set forth in Section 9.3(b);

	(iii)     documentation executed by both parties with respect to the transfer of the trusteeship under the Retirement Plans;

	(iv)     the Assignment of the Leased Realty by the Landlord effective as of the Closing Date; and
	

	(v)     the Subordination Agreement executed by the Landlord and the Seller.
	

 (d)     Buyer’s receipt of the Closing Statement and the Settlement Payment as provided in Section 3.2, in a form substantially similar to that furnished pursuant to Section 9.2 herein. 

 (e)     There shall have been no structural or other damages to the Leased Realty not covered by insurance between the date of this Agreement and the Closing Date which prevents the continued operations of the Branch. 

9.4     Seller’s Conditions to Closing. 

Seller’s obligation to sell the Assets and transfer the Liabilities to Buyer is contingent upon and subject to the fulfillment of the following conditions in all material respects: 

21

 (a)     the parties obtaining all regulatory approvals which are required in order for them to proceed with the transactions contemplated by this Agreement and the expiration of any required waiting period without the commencement of adverse
proceedings by any governmental authority with jurisdiction over the transactions contemplated by this Agreement; 

 (b)     each representation and warranty of Buyer in this Agreement being true and correct in all material respects as of the Closing Date and all covenants and conditions of Buyer to be performed or met by Buyer on or before the Closing Date having
been performed or met in all material respects; 

 (c)     Buyer’s delivery to Seller of the following documents in form and substance reasonably satisfactory to Seller: 

	(i)     one or more executed instruments assuming the Deposits and all other Liabilities;

	(ii)     a certificate executed by an appropriate officer of Buyer attesting, to the officer’s best knowledge, to Buyer’s compliance with the conditions set forth in Section 9.4(b); and
	

	(iii)     the Assignment of the Leased Realty by the Landlord effective as of the Closing Date.
	

 9.5     Survival of Representations and Warranties. 

  Unless provided otherwise in this Agreement, Buyer’s and Seller’s representations and warranties under this Agreement or contained in any certificate or instrument delivered by either party at the Closing shall survive the Closing Date
for a period of one year. 

X.            TERMINATION 

 10.1  Termination by Either Party. 

  Either party may terminate this Agreement upon written notice to the other if: 

 (a)     as a result of any material breach of any representation, warranty or covenant by the other party, the party terminating this Agreement has given the other party written notice of such breach and such breach is not cured within 30 days
thereafter;

 (b)     the Closing does not occur on or before February 15, 2007;

(c)     the other party so agrees in writing; 

22

(d)     the parties fail to obtain the necessary Assignment of the Leased Realty after Buyer and Seller both make commercially reasonable efforts to obtain such assignment; or 

(e)     either party is unable to obtain the required regulatory approvals or becomes subject to bankruptcy or similar proceeding involving the assignment of such party’s assets for the benefit of creditors. 

  The termination of this Agreement under subsection (a) shall not absolve the breaching party from any liability to the other party arising out of its breach of this Agreement. 

XI.          MISCELLANEOUS 

 11.1   Continuing Cooperation. 

 (a)     On and after the Closing Date, Seller agrees to execute, acknowledge and deliver such documents and instruments as Buyer may reasonably request to vest in Buyer the full legal and equitable title to the Assets and Liabilities. 

 (b)     On and after the Closing Date, Buyer shall execute, acknowledge and deliver such documents and instruments as Seller may reasonably request to relieve and discharge Seller from its obligations with respect to the Liabilities. 

 (c)     Seller and Buyer shall cooperate with each other in connection with any examination conducted by any tax authority subsequent to the Closing Date by promptly providing upon request information relating to the tax liability of any business
operated by Seller or Buyer with respect to the Branch and promptly informing the other of the institution of, any material developments concerning, and the outcome of, the same. 

 (d)     Except as provided in Section 7.2, no interest in or right to use Sun National Bank’s logo or its name, or any other similar word, name, symbol or device in which Seller has any interest by itself or in combination with any other word,
name, symbol or device, or any similar variation of any of the foregoing (collectively, the “Retained Names and Marks”) is being transferred to Buyer pursuant to the transactions contemplated hereby. Unless permitted pursuant to Section
7.2, Buyer shall not after the Closing Date in any way knowingly use any materials or property, whether or not in existence on the Closing Date, that bear any Retained Name or Mark; provided, however, that nothing herein shall prevent Buyer from
utilizing the Retained Name or Mark in any materials delivered to Branch customers in accordance with this Agreement or de minimus uses within 30 days following the Closing Date.  Buyer agrees that Seller shall have no responsibility for
claims by third parties arising out of, or relating to, the use by Buyer of any Retained Name or Mark after the Closing Date, and Buyer agrees to indemnify and hold harmless Seller from any and all claims (and all expenses, including reasonable
attorneys’ fees and disbursements incurred in connection with any such claim) that may arise out of the use thereof by Buyer. 

23

 11.2   Merger and Amendment. 

  This Agreement sets out the complete agreement of the parties with respect to the matters discussed in this Agreement, and it supersedes all prior agreements between the parties, whether written or oral, which apply to these matters. No provision
of this Agreement may be changed or waived except as expressly stated in a document executed by both parties. 

 11.3   Indemnification. 

  After the Closing Date, and unless otherwise provided in the Agreement: 

 (a)     Buyer shall indemnify and hold Seller harmless from and against all claims, lawsuits, costs (including reasonable counsel fees) and liabilities which arise out of or relate to transactions or operations at the Branch after the Closing Date, and
from any loss or damage resulting from any breach by Buyer of any representation, warranty or covenant of Buyer contained in this Agreement. If any claim or lawsuit is made or commenced as to which Seller proposes to demand such indemnification, it
shall notify Buyer with reasonable promptness; provided, however, that any failure by Seller to notify Buyer shall not relieve Buyer from its obligations hereunder, except to the extent that Buyer is actually prejudiced by such failure to give
notice. Buyer shall have the option of defending such claim or lawsuit with counsel of its own choosing at its own cost and expense and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with Seller and
any counsel designated by Seller. Buyer shall be liable for any settlement of any claim or lawsuit against Seller made with Buyer’s written consent, which consent shall not be unreasonably withheld.

 (b)     Seller shall indemnify and hold Buyer harmless from and against all claims, lawsuits, costs (including reasonable counsel fees) and liabilities which arise out of or relate to transactions or operations at the Branch on or before the Closing
Date, and from any loss or damage resulting from any breach by Seller of any representation, warranty or covenant of Seller contained in this Agreement. If any claim or lawsuit is made or commenced as to which Buyer proposes to demand such
indemnification, it shall notify Seller with reasonable promptness; provided, however, that any failure by Buyer to notify Seller shall not relieve Seller from its obligations hereunder, except to the extent Seller is actually prejudiced by such
failure to give notice. Seller shall have the option of defending such claim or lawsuit with counsel of its own choosing at its own cost and expense and such counsel shall, to the extent consistent with its professional responsibilities, cooperate
with Buyer and any counsel designated by Buyer. Seller shall be liable for any settlement of any claim or lawsuit against Buyer made with Seller’s written consent, which consent shall not be unreasonably withheld.

 (c)     Notwithstanding anything to the contrary contained in this Section 11.3, no indemnification shall be required to be made by either party until the aggregate amount of all such claims by a party exceeds $10,000. 

 11.4   Counterparts. 

  This Agreement may be executed in any number of counterparts, each of which
will constitute an original, but all of which taken together shall constitute one and the same instrument. 

24

11.5   Exhibits and Schedules. 

  All exhibits and schedules referred to in this Agreement shall constitute a part of this Agreement. 

11.6   Assignment. 

  This Agreement is not assignable by either party without the written consent of the other party, which shall not be unreasonably withheld. 

11.7   Headings. 

  The headings contained in this Agreement are inserted for convenience only and shall not affect the meaning of this Agreement or any of its provisions. 

11.8   Notices. 

  Any notice under this Agreement shall be made in writing and shall be deemed given when delivered in person, when delivered by first class mail postage prepaid (in which case the notice shall be deemed given on the third Business Day
following the date on which the notice is postmarked), or when delivered by facsimile transmission, which transmission also shall be sent by first class mail, postage prepaid before the second Business Day following the transmission (in which case
the notice shall be deemed given on the day transmitted if transmitted before or during normal business hours or, otherwise, on the next succeeding Business Day) to the parties at the respective addresses set forth below or at such other addresses
as each party shall inform the other in writing. 

	
If to Buyer to: 
		
Robert F. Mangano 
	
	
 
		
President and Chief Executive Officer 
	
	
 
		
1st Constitution Bank 
	
	
 
		
2650 Route 130 
	
	
 
		
Cranbury, New Jersey 08512 
	
	
 
	
	
With a copy to: 
		
Pitney Hardin, LLP 
	
	
 
		
7 Times Square 
	
	
 
		
New York, NY 10036 
	
	
 
		
Attention: Frank Lawatsch, Esq. 
	

25

	If to Seller to: 
		Dan A. Chila  
	 
		Executive Vice President and Chief Financial Officer 
		
	 
		Sun National Bank 
	
	 
		226 Landis Avenue 
	
	 
		Vineland, New Jersey 08360 
	
	 
	
	With a copy to: 
		Malizia Spidi & Fisch, PC 
		
	 
		901 New York Avenue, NW 
	
	 
		Suite 210 East 
	
	 	Washington, DC 20001
	 
		Attention: Richard Fisch, Esq. 
		

 11.9   Expenses. 

  Unless specifically stated to the contrary in this Agreement, each party will assume and pay for the expenses it incurs with respect to the purchase and sale of the Assets and assumption of the Liabilities under this Agreement; provided, however,
that each party shall pay all fees and expenses associated with obtaining the required regulatory approvals with respect to such party. Each party shall be responsible for any fee payable to any agent, broker or finder acting on its behalf in this
transaction. 

11.10 Notice to Customers/Public Disclosures. 

  As mutually agreed upon by the parties, Buyer and/or Seller shall notify holders of all accounts at the Branch prior to the Closing Date of the Transaction and its impact on such account holders.

 (a)     Any press release, public notice or notice to local officials regarding this Agreement or the transactions contemplated herein to be made prior to the Closing Date shall be approved in writing by both parties prior to its release, unless the
form and content of such release or notice are mandated by law, regulations or regulatory authority or required under the terms of this Agreement. Where required, the approval of either party shall not be unreasonably withheld or delayed. Where
approval is not required, the parties, nevertheless agree to confer prior to any such release or notice. 

 (b)     After all applicable regulatory approvals have been received, Seller shall mail a notice to all depositors of the Branch whose accounts are to be assumed for the purpose of advising them of the transactions contemplated by this Agreement. Prior
to mailing, Seller shall submit the proposed form of such notice to Buyer for review and approval, which approval shall not be unreasonably withheld. Alternatively, Seller may, at no expense to Seller, fulfill its obligations under this subsection
(c) by joining in the notice to be mailed by Buyer pursuant to this Agreement. 

11.11 Governing Law; Jurisdiction. 

 This Agreement and the legal relations between the parties shall be governed by and
construed in accordance with the laws of the State of New Jersey applicable to contracts made and to be performed entirely within the State of New Jersey, except to the extent that federal law shall be deemed to apply. 

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11.12 No Third Party Beneficiaries.

  The parties intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any Person other than Seller and Buyer. 

27

IN WITNESS WHEREOF, each of the parties to this Agreement has caused this Agreement to be executed by a duly authorized officer as of the date first written on page one of this Agreement. 

	
Sun National Bank (Seller) 
	
	
 
	
 
	
	
 
	
	
/s/ DAN A. CHILA 
	
	
By: 
		
Dan A. Chila 
	
	
Its: 
		
Executive Vice President and Chief 
	
	
 
		
Financial Officer 
	
	
 
	
	
 
	
	
1st Constitution Bank (Buyer) 
	
	
 
	
	
 
	
	
 
	
	
/s/ ROBERT F. MANGANO 
	
	
By: 
		
Robert F. Mangano 
	
	
Its: 
		
President and Chief Executive Officer 
	

28Exhibit 10.5

                             PARTICIPATION AGREEMENT
                             -----------------------

                            WEST CAMERON 109 PROSPECT

        This Participation Agreement ("Agreement") is entered into and is
effective as of the 1st, day of June, 2006 (the "Effective Date"), by and
between Nexen Petroleum Offshore U.S.A. Inc. ("Nexen") whose address is 12790
Merit Drive, Suite 800, Dallas, TX 75251 and Ridgewood Energy P Fund, LLC (the
"P Fund") a Delaware Limited Liability Company, and Ridgewood Energy T Fund, LLC
(the "T Fund"), a Delaware Limited Liability Company, whose address is 11700 Old
Katy Road, Suite 280, Houston, Texas 77079. As used herein, "Ridgewood" shall
mean individually, collectively, and interchangeably any, each and/or all of the
P Fund and the T Fund. Nexen and Ridgewood are sometimes hereinafter referred to
as "Party" or collectively as "Parties", as the context requires. As used herein
"REC" shall mean Ridgewood Energy Corporation, as manager of the P Fund and T
Fund.

                                   WITNESSETH:

WHEREAS, Nexen currently owns one-hundred percent of eight-eighths (100% of
8/8ths) of the record title interest in and to, the following Oil and Gas Lease
(hereinafter collectively referred to as the "Nexen Lease"):

        Oil and Gas Lease bearing Serial No. OCS-G 23744, effective May 1, 2002,
        by and between the United States of America, as Lessor, and Nexen
        Petroleum Offshore U.S.A. Inc., as Lessee, covering all of Block 109,
        West Cameron Area, OCS Leasing Map, Louisiana Map No. 1, containing
        5,000 acres more or less; and

NOW, THEREFORE, for and in consideration of the sum of Ten Dollars ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, together with the mutual covenants,
conditions, and obligations contained herein, Nexen and Ridgewood do hereby
agree to enter into this Agreement under the following terms and conditions:

                                    ARTICLE 1
                                    ---------
                                   DEFINITIONS
                                   -----------

1.1     AFE: shall mean the Authorization for Expenditure for the OCS-G 23744
(West Cameron 109) Well No. 1, attached hereto as Exhibit "C-1".

1.2     Well Plan: shall mean the well plan for the ITW, attached hereto as
Exhibit "C-2"

1.3     Initial Test Well ("ITW"): shall mean the OCS-G 23744 (West Cameron 109)
Well No. 1, or its Substitute Well(s), as defined in Section 3.3 below, to be
drilled on the Nexen Lease to the Objective Depth as set forth in the AFE and
Well Plan for said ITW.

                                       1
<PAGE>

1.4     Objective Depth: the objective depth in the ITW for the purposes of this
Participation Agreement is defined as the depth at which the well encounters and
sufficiently tests the Marg "A" sand, subsurface objective interval, defined as
16,517 feet total vertical depth as described in the AFE and Well Plan
identified in Sections 1.1 and 1.2 above.

1.5     Operating Agreement: shall mean the Offshore Operating Agreement
("Operating Agreement") attached hereto as Exhibit "B" which shall be effective
as of June 1, 2006.

                                    ARTICLE 2
                                    ---------
                               DRILLING OF THE ITW
                               -------------------

2.1     Commitment in the ITW: By executing this Agreement and returning it with
signed originals of the attached AFE and Operating Agreement, Ridgewood commits
to participate in the drilling and evaluation of the ITW on the Nexen Lease and
to pay sixty percent (60%) of the costs of drilling and evaluation to Objective
Depth of said well when such drilling and evaluation is performed pursuant to
the Well Plan and the AFE. The "Drilling and Evaluation Costs" shall include
permitting, rig mobilization, drilling, sidetracking for mechanical reasons,
evaluation, testing (not production testing), and plugging/abandonment or
temporary abandonment of the well, but not the costs of completing the well as a
producer. Ridgewood's obligation to pay more than its proportionate share of
Drilling and Evaluation Costs shall not apply to any Drilling and Evaluation
Costs incurred after the earlier of (a) the ITW reaching Objective Depth; or (b)
the cumulative Drilling and Evaluation Costs of the ITW reaching $22,128,966.
Regardless of the depth to which the ITW has been drilled at the time, if a
decision is made by Nexen not to drill the ITW to Objective Depth due to
encountering mechanical difficulties, uncontrolled influx of subsurface water,
abnormal pressures, pressured or heaving shale, salt, granite or other
practicably impenetrable substances, or other similar conditions prevail in the
hole which, in Nexen's reasonable opinion, render further drilling
impracticable, Ridgewood, subject to the limitation in (b) above, shall remain
obligated to pay sixty percent (60%) of the ITW costs incurred prior to the date
of Nexen's decision not to drill the ITW to Objective Depth, sixty percent (60%)
of the cost of plugging/abandonment or temporary abandonment and sixty percent
(60%) of the costs to drill any Substitute Well, as defined in Section 3.3
below. In addition to the promoted Drilling and Evaluation Costs for the ITW or
any Substitute Well, as defined in Section 3.3 below, (i.e. payment of sixty
percent (60%) of such costs up to the $22,128,966 cap limit), and subject to
Section 8.7 of the Operating Agreement, Ridgewood agrees to pay forty
five-percent (45%) of the costs of drilling and evaluation to Objective Depth of
the ITW or any Substitute Well above the initial $22,128,966 cumulative Drilling
and Evaluation Costs of the ITW or any Substitute Well.

2.2     Subject to (a) Force Majeure, as defined in Section 10.10 below or other
events beyond the reasonable control of Nexen, (b) Nexen's receipt of all
necessary permits required by the Minerals Management Service ("MMS") or any
other governmental body having jurisdiction, (c) completion of Nexen's
operations on Eugene Island Block 295, (d) rig delay or availability, Nexen
shall "commence drilling operations" or "cause drilling operations to commence"
on or before August 30, 2006, for the ITW in accordance with this Agreement and
the provisions of the Operating Agreement. For purposes of this Agreement,
"commence drilling operations" or "cause drilling operations to commence"

                                       2
<PAGE>

shall mean the time when the drilling rig mentioned in Article 3.5 below
mobilizes from Eugene Island Block 295 to the ITW drill site.
2.3     AFE and Well Plan: Prior to the execution hereof, Nexen and Ridgewood
have reviewed and agreed on the form and content of the AFE, the Well Plan and
the Operating Agreement. The ITW or its Substitute Well(s), as defined in
Section 3.3 below, shall be drilled in accordance with this Agreement, the
Operating Agreement, and the attached AFE and Well Plan. The AFE and Well Plan
for the ITW shall be considered approved upon execution of this Agreement by the
Parties.

2.4     Relationship of the Parties: This Agreement is not intended to create,
and shall not be construed to create, a relationship of partnership or an
association for profit between or among the Parties. Notwithstanding any
provision herein that the rights and liabilities hereunder are several and not
joint or collective, or that this Agreement and operations hereunder shall not
constitute a partnership, if, for federal income tax purposes, this Agreement
and the operations hereunder are regarded as a partnership, each Party hereby
affected elects to be excluded from the application of all of the provisions of
Subchapter "K", Chapter 1, Subtitle "A", of the Internal Revenue Code of 1986,
as permitted and authorized by Section 761 of the Code and the regulations
promulgated thereunder. Operator is authorized and directed to execute on behalf
of each Party hereby affected such evidence of this election as may be required
by the Secretary of the Treasury of the United States or the Federal Internal
Revenue Service, including specifically, but not by way of limitation, all of
the returns, statements, and the data required by Federal Regulations 1.761.
Should there be any requirements that each Party hereby affected give further
evidence of this election, each such Party shall execute such documents and
furnish such other evidence as may be required by the Federal Internal Revenue
Service or as may be necessary to evidence this election. No such Party shall
give any notices or take any other action inconsistent with the election made
hereby. If any present or future income tax laws of the state or states in which
the Nexen Lease is located or any future income tax laws of the United States
contain provisions similar to those in Subchapter "K", Chapter 1, Subtitle "A",
of the Internal Revenue Code of 1986, under which an election similar to that
provided by Section 761 of the Code is permitted, each Party hereby affected
shall make such election as may be permitted or required by such laws. In making
the foregoing election, each such Party states that the income derived by such
Party from operations hereunder can be adequately determined without the
computation of partnership taxable income. Also, each Party elects to be
excluded from the application of all provisions of sub part D of part 2, chapter
1, Title 47, Louisiana Revised Statutes of 1950, as amended, as permitted and
authorized by Section 2203 of said revised statutes and the regulations
promulgated thereunder.

                                    ARTICLE 3
                                    ---------
                               DRILLING OPERATIONS
                               -------------------

3.1     Operatorship: Nexen Petroleum U.S.A. Inc. ("NPUSA") shall be the
designated operator under the Operating Agreement and shall operate the ITW and
any Substitute Well, as defined in Section 3.3 below, and all other operations
on the Nexen Lease pursuant to the terms of this Agreement and the Operating
Agreement.

                                       3
<PAGE>

3.2     Designation of Operator: Ridgewood shall promptly execute and deliver to
NPUSA the necessary "Designation of Operator" forms (Minerals Management Service
("MMS") form 1123) designating NPUSA as the operator as well as the necessary
MMS forms designating NPUSA as the designated applicant for oil spill financial
responsibility for the lease upon which the ITW is drilled under this Agreement,
along with any other documents required to allow NPUSA to serve as operator
under the Operating Agreement and applicable regulations.

3.3     Substitute Well: In the event the ITW encounters conditions or develops
mechanical difficulties that, in Nexen's reasonable opinion, would render
further drilling impractical prior to reaching Objective Depth, and/or require
that the ITW be permanently plugged and abandoned, Nexen shall have the
continuing option, but not the obligation, to commence operations for the
drilling of a "Substitute Well" to replace the ITW. Any Substitute Well shall be
commenced within one hundred eighty (180) days from the date operations on the
ITW (or a previous substitute) were completed or abandoned, whichever is the
latest to occur. Operations on such Substitute Well shall be conducted and
performed under the same terms and conditions as the ITW pursuant to the terms
of this Agreement and the Operating Agreement. However, the drilling of a
Substitute Well pursuant to this Section 3.3 shall in no way increase or
otherwise alter Ridgewood's commitments and obligations set out in Section 2.1
above; i.e., Ridgewood's total commitment for the ITW, which includes any
associated Substitute Well, is limited to the amount determined according to
Section 2.1 above.

3.4     Rig Utilization: NPUSA, as operator, intends to utilize the Ensco 105
drilling rig to drill the ITW with a $140,000 day-rate.

3.5     Well Information: Ridgewood will be entitled to receive any and all raw
well data, analysis and/or information obtained from the ITW, subject to being
in compliance with all applicable provisions of this Agreement and the Operating
Agreement.

3.6     Confidentiality: The confidentiality provisions of the Operating
Agreement shall govern the confidentiality obligations and/or disclosure rights
and restrictions of the Parties with respect to any geological, geophysical, or
reservoir information or any logs or other information pertaining to the
progress, tests, or results of any well drilled pursuant to this Agreement.

3.7     Confidentiality of Well Data for the ITW: Certain information
customarily disclosed at weekly Offshore Oil Scout meetings as provided for in
the Operating Agreement may be withheld, at Nexen's sole discretion, including,
but not limited to, information regarding the proposed and actual bottomhole
locations for the well.

3.8     Exploratory Well: The ITW and any Substitute Well therefore drilled in
accordance with Operating Agreement shall be deemed the first Exploratory Well
for purposes of the Operating Agreement.

                                       4
<PAGE>

                                    ARTICLE 4
                                    ---------
                               ASSIGNMENT OF LEASE
                               -------------------

4.1     Governmental Approval of Assignment: The Assignments pursuant to this
Agreement require approval by the MMS. Each Party's obligation hereunder to
transfer or assign such an interest shall be subject to and conditional upon the
other securing the necessary consent or approval of the MMS. Accordingly,
without limiting the generality of the foregoing and subject to the other
provisions of Article 4 and Sections 6.1 and 6.2, immediately after Ridgewood
has been duly qualified by the MMS to hold an interest in the Nexen Lease, REC
shall assign all of its interest in the Nexen Lease to Ridgewood as follows:
fifty percent to the P Fund and fifty percent to the T Fund. Ridgewood shall
furnish and execute all certificates and documents that Nexen may deem
reasonably necessary in connection therewith. Each Party shall cooperate fully
with the other in obtaining such consent or approval by the MMS. Once the
assignments are executed, Ridgewood shall promptly (i) file of record the
Assignments in the appropriate governmental records and (ii) file for approval
with the MMS (or other applicable governmental agencies) all Assignment
documents for the assigned property. Should approval of the MMS (or any other
similar governmental agency having jurisdiction) be denied, the Party receiving
notice of such denial agrees to provide the other Party with written notice of
such occurrence, along with a copy of all associated written communications, and
the Parties agree to develop a revised form of assignment in an effort to meet
the MMS's requirements for approval. In connection with such assignments, each
Party shall execute and deliver, or cause to be executed and delivered, such
other documents, and take such other action as a Party may reasonably request.

4.2     Assignments of Lease: Within fifteen (15) days following the execution
of this Agreement, but subject to receipt by Nexen of Ridgewood's payment of
$159,750.00 for its proportionate share of Nexen's sunk costs, Nexen shall
assign to REC, in the form attached hereto as Exhibit "A", an undivided
forty-five percent of eight-eighths (45% of 8/8ths) record title interest in and
to the Nexen Lease with an effective date of June 1, 2006. REC shall provide
Nexen with all of the necessary designations required to allow NPUSA to retain
the role of operator on the Nexen Lease.

4.3     Re-Assignments of Lease: In the event Ridgewood does not fulfill its
commitments and obligations pursuant to Section 2.1 above, Ridgewood and/or REC,
whichever applies, shall execute and deliver to Nexen an assignment, in the form
attached hereto as Exhibit "A", of an undivided forty-five percent of
eight-eighths (45% of 8/8ths) record title interest in and to the Nexen Lease
with an effective date of June 1, 2006.

4.4     Contents of Assignments: Any assignments delivered by the Parties
pursuant to this Agreement shall be delivered without warranty of title, save
and except a warranty of title by, through and under the assignor, and shall be
free and clear of any liens, mortgages, burdens or other encumbrances (other
than the assigning Party's proportionate share of the royalty obligation to the
MMS and the 2.50% of 8/8ths overriding royalty obligation to Mako Offshore
Exploration, Inc.). Said assignment(s) shall be subject to agreements described
in the assignment document. Any subsequently created burdens would be borne by
the Party creating the additional burden.

                                       5
<PAGE>

                                    ARTICLE 5
                                    ---------
                      APPLICABILITY OF OPERATING AGREEMENT
                      ------------------------------------

5.1     Execution of Operating Agreement: Upon the execution of this Agreement,
Nexen and REC shall simultaneously execute the Operating Agreement.

5.2     Conflicts or Inconsistencies: Should any conflict or inconsistency exist
between this Agreement and the Operating Agreement, or in the event this
Agreement addresses matters not included in the Operating Agreement, this
Agreement shall prevail.

5.3     Facilities Use: If a Party contracts with another entity for the use of
that entity's facilities for either the gathering or transportation of
hydrocarbons produced from a well drilled pursuant to this Agreement or for the
production or handling of such hydrocarbons, that Party shall use reasonable
efforts to negotiate for the other Party the opportunity to participate on a pro
rata basis in such contracts on the same terms and conditions applicable to the
contracting Party. In the event that an offsite facility, gathering or
transportation system is owned solely by NPUSA or Nexen, any contract respecting
the use of such facility for the gathering or transportation of hydrocarbons or
for the processing or handling of production will be at rates similar to those
prevalent in the industry for similar water depths, operating conditions and
transported products.

                                    ARTICLE 6
                                    ---------
                       ASSIGNMENTS, SUCCESSORS AND ASSIGNS
                       -----------------------------------

6.1     Assignment: Notwithstanding anything herein to the contrary, this
Agreement may not be assigned in whole or in part by Ridgewood, without the
prior written consent of Nexen. No consent from Nexen will be required for REC
to assign to the P Fund and T Fund. An assignment by a Party of any interest in
the Nexen Lease shall be made expressly subject to, and the assignee shall agree
to assume and comply with, the terms and provisions of this Agreement.
Notwithstanding any other provision of this Agreement, simultaneous with any
assignments, the assignee shall ratify, assume the assignor's obligations under,
and become a party to the Operating Agreement. No assignment shall release a
Party from its obligations and liabilities arising under this Agreement.
Notwithstanding any assignments made by Nexen, it will retain operatorship
through completion of operations on the ITW or any Substitute Well.

6.2     Successors and Assigns: This Agreement shall be binding upon and inure
to the benefit of the Parties and their respective successors, representatives
and assigns and shall constitute a covenant running with the Nexen Lease.

6.3     Payment to Ridgewood: Notwithstanding anything contained in this
Agreement or the Operating Agreement to the contrary, (a) any payments due to
Ridgewood under the JOA or the Nexen Lease will be remitted to REC and any such
payments remitted to REC shall be deemed to be made to Ridgewood and (b)
Ridgewood shall cause REC to pay to Nexen all amounts due by Ridgewood to Nexen
under this Agreement and the Operating Agreement.

                                       6
<PAGE>

                                    ARTICLE 7
                                    ---------
                                 APPLICABLE LAW
                                 --------------

7.1     Applicable Law: THIS AGREEMENT AND ALL OPERATIONS CONDUCTED HEREUNDER BY
THE PARTIES SHALL BE SUBJECT TO ALL VALID AND APPLICABLE FEDERAL LAWS, RULES,
REGULATIONS AND ORDERS ("FEDERAL LAW"). TO THE EXTENT REQUIRED BY FEDERAL LAW,
THE LAWS OF THE STATE ADJACENT TO THE NEXEN LEASE SHALL APPLY. THIS AGREEMENT
SHALL OTHERWISE BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE
LAWS OF THE STATE OF LOUISIANA, EXCLUSIVE OF ANY PROVISIONS THAT WOULD DIRECT
THE APPLICATION OF THE SUBSTANTIVE LAW OF ANY OTHER JURISDICTION.

                                    ARTICLE 8
                                    ---------
                                     NOTICES
                                     -------

8.1     Notices: Nexen and Ridgewood agree that any notices, communications, or
documents that either of them desire or that may be required to be delivered to
the other Party pursuant to this Agreement shall be in writing and sent via
telecopy, delivered in person or sent certified mail, postage prepaid, return
receipt requested, addressed to the Parties at the following respective
addresses stated for each:

                           Nexen Petroleum U.S.A. Inc.
                           12790 Merit Drive, Suite 800
                           Dallas, Texas 75251-1270
                           Attention:   Mr. Steven McMillan
                           Telephone:   (972) 450-4672
                           Facsimile:   (972) 450-4749

                           Ridgewood Energy Corporation
                           11700 Old Katy Road, Suite 280
                           Houston, Texas 77079
                           Attention:   Mr. Randy Bennett
                           Telephone:   (281) 293-9384
                           Facsimile:   (281) 293-7391

For purposes hereof, if facsimile or personal delivery is not possible, refusal
by any Party hereto to accept correspondence sent by certified mail or two (2)
unsuccessful attempts by the U.S. Postal Service to serve any communication sent
by certified mail shall be deemed receipt of such correspondence. Any notice
delivered on Saturday, Sunday, a legal holiday or after 4:15 p.m. in the office
of the recipient shall be deemed to have been delivered on the business day next
following the date of actual receipt. Either Party may change its address for
notices by written notice to the other of them.

                                       7
<PAGE>

                                    ARTICLE 9
                                    ---------
                                      TERM
                                      ----

9.1     Term: The term of this Agreement shall commence on June 1, 2006 and
shall terminate upon the expiration of the last effective Operating Agreement
executed or ratified pursuant hereto, or by mutual agreement of the Parties,
whichever event occurs first.

                                   ARTICLE 10
                                   ----------
                            MISCELLANEOUS PROVISIONS
                            ------------------------

10.1    Entire Agreement: This Agreement, together with the instruments and
exhibits referred to in Section 10.4 embody the entire agreement between the
Parties with regard to the subject matter hereof, supersedes all other
agreements, arrangements and understandings, written or oral, relating to the
subject matter hereof, except the Confidentiality Agreement dated May 17, 2006
between Nexen, NPUSA and Ridgewood, and may be supplemented, altered, amended,
modified or revoked only in writing, signed by all Parties hereto. In the event
of a conflict between the provisions of this Agreement and the Confidentiality
Agreement, the provisions of this Agreement shall govern.

10.2    Headings: Except for the definition headings contained in Article 1, all
of the captions, numbering sequences and paragraph headings used in this
Agreement are inserted for convenience only and shall in no way define, limit or
describe the scope or intent of this Agreement or any part thereof, nor shall
they have any legal effect other than to aid a reasonable interpretation of this
Agreement.

10.3    Independent Representation: Each Party has had the benefit of
independent representation with respect to the subject matter of this Agreement.
This Agreement, though drawn by one Party, shall be construed fairly and
reasonably and not more strictly against one Party than the other.

10.4    Incorporation of Exhibits: Each of the Exhibits referenced in this
Agreement (Exhibit "A" Assignment of Record Title Interest, Exhibit "B" West
Cameron 109 Offshore Operating Agreement, Exhibit "C-1" AFE, Exhibit "C-2" Well
Plan) are incorporated into this Agreement by reference as fully as if the text
of each Exhibit were set forth within the body of this Agreement.

10.5    News Releases: No Party shall issue a press release concerning this
Agreement unless all Parties have approved the issuance and content of such
press release, which approval shall be timely pursued and shall not be
unreasonably withheld, or unless the press release is allowed under the terms of
the Operating Agreement.

10.6    Multiple Counterparts: This Agreement may be executed by signing the
original or a duplicate original counterpart hereof. If this Agreement is
executed in multiple duplicate original counterparts, each such counterpart
shall be deemed an original and all of which when taken together shall
constitute but one and the same Agreement with the same effect as if all Parties
had signed the same instrument. This Agreement may also be ratified by separate

                                       8
<PAGE>

instrument referring to this Agreement and adopting by reference all the
provisions of this Agreement. A ratification shall have the same effect as an
execution of the original Agreement.

10.7    Force Majeure: Any delays in performance or failure by a Party to
perform hereunder, other than the delay or failure to pay money when owed, shall
not constitute default or breach hereunder if and to the extent such delays or
failures of performances are caused by: (i) an act of God; (ii) an act of war,
terrorism, rebellion, or sabotage, or damage resulting therefrom; (iii) a fire,
flood, explosion, accident; (iv) a riot, or strike; (v) any government's
(foreign, federal or state) law, or a rule, regulation or order of any public
body or official exerting or purporting to exercise authority or control
concerning the operations covered hereby (except that a Party's failure to
obtain any necessary and applicable federal, state or local permits shall not be
considered Force Majeure hereunder if the cause or failure to receive such
permits was the result of that Party's negligence or other fault); or (vi) any
other act or event that is beyond the reasonable control of that Party.

10.8    Severability: If any provision of this Agreement is for any reason held
to violate any applicable law, governmental rule or regulation, or if the
provision is held to be unenforceable or unconscionable, then such provision
shall be deemed null and void; but the invalidity of that specific provision
shall not be held to invalidate the remaining provisions of this Agreement. All
other provisions in the entirety of this Agreement (including all Exhibits)
shall remain in full force and effect unless the removal of the invalid
provision destroys the legitimate purposes of this Agreement, in which event
this Agreement shall be canceled and terminated.

10.9    Access to Information: Nexen shall provide Ridgewood access to Nexen's
relevant and applicable records and data that are not subject to contractual or
legal limitations or restrictions on disclosure so that Ridgewood may perform
its due diligence review of Nexen's ownership and obligations associated with
the Nexen Lease. Nexen shall provide Ridgewood with access to technical data
associated with the Nexen Lease, including seismic, maps, well data and geologic
data, subject however, to all legal confidentiality and license restrictions.

10.10   Binding Effect: This Agreement does not benefit or create any rights in
any person or entity not a party to this Agreement. Further, each Party
represents that upon execution of this Agreement it has secured all necessary
management approvals or other corporate approvals necessary to make this
Agreement a fully binding contract.

10.11   Guaranty: Ridgewood shall cause REC to guarantee all of the obligations
of Ridgewood hereunder pursuant to guarantee agreement(s) in form and substance
reasonably required by Nexen.

10.12   Further Documentation: Ridgewood agrees to be bound, in the same manner
as REC, under that certain Confidentiality Agreement dated May 17, 2006 by and
between Nexen and REC, and shall, upon the request of Nexen, enter into a
confidentiality agreement with Nexen in substantially the same form as said
Confidentiality Agreement between Nexen and REC. Ridgewood shall furnish, and
shall cause REC to furnish, to Nexen all information, approvals, opinions,
documents, and instruments that Nexen may reasonably require in connection with
this Agreement and the Operating Agreement.

                                       9
<PAGE>

EXECUTED as of the date shown.

WITNESSES:                              Nexen Petroleum Offshore U.S.A. Inc.

[Signature Illegible]                   By: /s/ Gregg E. Radetsky
-----------------------------------         ------------------------------------

[Signature Illegible]                   Name:  Gregg E. Radetsky
-----------------------------------            ---------------------------------
                                        Title: Vice President, General Counsel
                                               and Asst. Secretary

                                        Date:         8/9/06
                                               ---------------------------------

WITNESSES:                              Ridgewood Energy P Fund, LLC
                                            By: Ridgewood Energy Corporation,
                                                Manager

[Signature Illegible]                   By: /s/ W G Tabor
-----------------------------------         ------------------------------------
                                                W. Greg Tabor
[Signature Illegible]                           Executive Vice President
-----------------------------------

                                        Date:       8/14/06
                                               ---------------------------------

WITNESSES:                              Ridgewood Energy T Fund, LLC
                                           By: Ridgewood Energy Corporation,
                                                Manager

[Signature Illegible]                   By: /s/ W G Tabor
-----------------------------------         ------------------------------------
                                                W. Greg Tabor
[Signature Illegible]                           Executive Vice President
-----------------------------------
                                        Date:       8/14/06
                                              ----------------------------------

WITNESSES:                              Ridgewood Energy Corporation

[Signature Illegible]                   By: /s/ W G Tabor
-----------------------------------         ------------------------------------
                                                W. Greg Tabor
[Signature Illegible]                           Executive Vice President
-----------------------------------

                                        Date:       8/14/06
                                               ---------------------------------

Signature page to Participation Agreement dated effective June 1, 2006, by and
between Nexen Petroleum Offshore U.S.A. Inc., Ridgewood Energy Corporation and
Ridgewood Energy Corporation, Manager, Ridgewood Energy P Fund, LLC, and
Ridgewood Energy T Fund, LLC.

                                       10
<PAGE>

                                   Exhibit "A"

 Attached to and made a part of that certain Participation Agreement dated June
   1, 2006, by and between Nexen Petroleum Offshore U.S.A. Inc. and Ridgewood
                               Energy Corporation

                           ASSIGNMENT OF RECORD TITLE
                           --------------------------
                                   OCS-G 23744
                                   -----------

UNITED STATES OF AMERICA
OUTER CONTINENTAL SHELF
GULF OF MEXICO

        For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, and also in consideration of the mutual covenants
and conditions herein contained, Nexen Petroleum Offshore U.S.A. Inc., having an
address of 12790 Merit Drive, Suite 800, Dallas, Texas 75251 (hereinafter
referred to as "Assignor"), does hereby grant, transfer, convey and assign to
Ridgewood Energy Corporation, having an address of 11700 Old Katy Road, Suite
280, Houston, Texas 77079 (hereinafter called "Assignee"), an undivided
forty-five percent of eight-eighths (45% of 8/8ths) Record Title Interest in and
to the following described Oil and Gas Lease (hereinafter referred to as
"Lease"):

        Federal Lease No. OCS-G 23744 effective May 1, 2002, between the United
        States of America, as Lessor, and Nexen Petroleum Offshore U.S.A. Inc.,
        as Lessee, covering all of Block 109, West Cameron Area, OCS Leasing
        Map, Louisiana Map No. 1.

        The assigned Interest is conveyed subject to the terms and conditions of
said Lease and that certain Assignment of Overriding Royalty dated October 4,
2002, effective May 1, 2002, by and between Nexen Petroleum Offshore U.S.A. Inc.
and Mako Offshore Exploration, Inc.

        The assigned Interest is conveyed subject to the terms and conditions of
said Lease and that certain Participation Agreement and Offshore Operating
Agreement dated June 1, 2006, by and between Nexen Petroleum Offshore U.S.A.
Inc. and Ridgewood Energy Corporation.

        This Assignment is made and accepted without any title or other
representations or warranties, whether express or implied, except as to persons
lawfully claiming by, through or under Assignor, but not otherwise, provided
Assignee shall have the right of full substitution and subrogation in and to any
and all rights and actions of warranty which the Assignor has or may have
against all preceding owners of the Assigned Interest.

        Assignee hereby expressly accepts and agrees to perform all the duties
and obligations attributable to the Assigned Interest, as provided for in Said
Lease, in the other above-described agreement and in any law, regulation, rule,
order or other directive of any governmental or judicial body or agency having
jurisdiction thereof.

        This Assignment shall inure to the benefit of and be binding upon the
respective successors and assigns of each of the Parties hereto.

<PAGE>

        IN WITNESS HEREOF, this Assignment is executed this ______ day of
____________, 2006, effective as of ____________, 2006, subject to the approval
of the Minerals Management Service under the provisions of 30 CFR Part 256.

                                        ASSIGNOR:
WITNESSES:                              Nexen Petroleum Offshore U.S.A. Inc.

______________________________          By __________________________________
                                               Gregg E. Radetsky
______________________________                 Vice President, General Counsel
                                               and Assistant Secretary

                                        ASSIGNEE:
WITNESSES:                              Ridgewood Energy Corporation

______________________________          By __________________________________

______________________________

STATE OF TEXAS     )
COUNTY OF DALLAS   )

        On this ____ day of ________, 2006, before me, appeared Gregg E.
Radetsky, to me personally known, who, being by me duly sworn, did say that he
is the Vice President, General Counsel and Assistant Secretary of Nexen
Petroleum Offshore U.S.A. Inc. and that said instrument was signed on behalf of
said corporation by authority of its Board of Directors and said Gregg E.
Radetsky acknowledged said instrument to be the free act and deed of said
corporation.

                                     ___________________________________________
                                     Notary Public in and for the State of Texas

STATE OF ____________          )
COUNTY OF __________      )

        On this ____ day of ________, 2006, before me, appeared ____________, to
me personally known, who, being by me duly sworn, did say that he is the
____________ of Ridgewood Energy Corporation and that said instrument was signed
on behalf of said corporation by authority of its Board of Directors and said
____________ acknowledged said instrument to be the free act and deed of said
corporation.

                                     ___________________________________________
                                     Notary Public in and for the State of Texas

                                       12
<PAGE>

                                   EXHIBIT "C"

                          AUTHORIZATION FOR EXPENDITURE

                                 [FORM OMITTED]

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