Document:

EX-10.6

 Exhibit 10.6 

FORM OF LOCK-UP AGREEMENT 

THIS LOCK-UP AGREEMENT (this “Agreement”) is made and entered into as
of                , 2021 by and between Rover Group, Inc., a Delaware corporation (the “Company”) (formerly known as Nebula Caravel Acquisition Corp., a
Delaware corporation), and each of Nebula Caravel Holdings, LLC, a Delaware limited liability company (“Sponsor”), the Persons set forth on Schedule 1 hereto (the “Sponsor Key Holders”) and certain
stockholders of A Place for Rover, Inc. d/b/a Rover, a Delaware corporation (“Rover”), set forth on Schedule 2 hereto (such stockholders, the “Company Holders”). The Sponsor, the Sponsor Key Holders, the Company
Holders and any Person who hereafter becomes a party to this Agreement pursuant to Section 2 are referred to herein, individually, as a “Holder” and, collectively, as the “Holders.” 

WHEREAS, capitalized terms used but not otherwise defined in this Agreement have the meaning ascribed to such terms in the Business
Combination Agreement and Plan of Merger, dated as of February 10, 2021, by and among the Company, Fetch Merger Sub, Inc., and Rover (as amended, restated, modified or supplemented from time to time, the “Merger Agreement”).

 WHEREAS, in connection with transactions contemplated by the Merger Agreement, and in view of the valuable consideration to be
received by the parties thereunder, the Company and each of the Holders desire to enter into this Agreement, pursuant to which the Holders’ Lock-Up Shares (as defined below) shall become subject to
limitations on Transfer (as defined below) as set forth herein. 
 NOW, THEREFORE, in consideration of the premises set forth above,
which are incorporated in this Agreement as if fully set forth below, and intending to be legally bound hereby, the Company hereby agrees with each of the Holders as follows: 

1. Definitions. The terms defined in this Section 1 shall, for all purposes of this Agreement, have the
respective meanings set forth below: 
 (a) “Lock-Up Period” shall mean the period
beginning on the Closing Date and ending on the six (6) month anniversary of the Closing Date. 
 (b) “Lock-Up Shares” shall mean with respect to (i) Sponsor, the Sponsor Key Holders and their respective Permitted Transferees, the shares of Parent Common Stock held by such Person immediately following
the Closing (other than the PIPE Shares or shares of Parent Common Stock acquired in the public market) and (ii) the Company Holders and their respective Permitted Transferees, the shares of Parent Common Stock held by such Person immediately
following the Closing (other than the PIPE Shares or shares of Parent Common Stock acquired in the public market). 
 (c) “Permitted
Transferee” shall mean any Person to whom a Holder is permitted to transfer Lock-Up Shares prior to the expiration of the Lock-Up Period pursuant to
Section 2(b). 
 (d) “PIPE Shares” shall means shares of Parent Common Stock purchased in the PIPE
Investment or pursuant to the Sponsor Backstop Subscription Agreement (other than the “Backstop Shares” as defined therein, which shall not be deemed to be “PIPE Shares” for purposes of this Agreement). 

(e) “Transfer” shall mean the (i) sale, exchange or transfer or assignment of, offer to sell, contract or agreement to
sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call
equivalent position within the meaning of Section 16 of the Exchange Act with respect to, any security, or any right or interest therein, (ii) entry into any swap or other arrangement that transfers to another Person, in whole or in part,
any of the economic consequences of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (iii) public announcement of any intention to effect any transaction specified
in clause (i) or (ii). 

 2. Lock-Up Provisions. 

(a) Subject to Section 2(b), each Holder agrees that it shall not Transfer any
Lock-Up Shares until the end of the Lock-Up Period. 
 (b)
Notwithstanding the provisions set forth in Section 2(a), each Holder or its respective Permitted Transferees may Transfer the Lock-Up Shares during the
Lock-Up Period: (i) to (A) the Company’s or the Sponsor’s officers or directors, (B) any Affiliates or family members of the Company’s or the Sponsor’s officers or directors,
(C) in the case of the Sponsor or Sponsor Key Holders, any direct or indirect partners, members or equity holders of the Sponsor or Sponsor Key Holders or any related investment funds or vehicles controlled or managed by such Persons or their
respective Affiliates, or (D) any direct or indirect partners, members or equity holders of such Holder, any Affiliates of such Holder or any related investment funds or vehicles controlled or managed by such Persons or their respective
Affiliates; (ii) in the case of an individual, by gift to the spouse, domestic partner, parent, sibling, child or grandchild of such Holder or any other natural person with whom such Holder has a relationship by blood, marriage or adoption not
more remote than first cousin, or to a charitable organization; (iii) in the case of a trust, to a trustor or beneficiary of the trust or to the estate of a beneficiary of such trust; (iv) in the case of an individual, by virtue of laws of
descent and distribution upon death of the individual; (v) in the case of an individual, pursuant to a qualified domestic relations order, divorce settlement, divorce decree or separation agreement; (vi) to a nominee or custodian of a
Person to whom a Transfer would be permitted under clauses (i) through (v) above; (vii) in the case of the Sponsor or Sponsor Key Holders, to the partners, members or equity holders of such Holder by virtue of the Sponsor’s limited
liability company agreement, as amended from time to time; (viii) in connection with any bona fide mortgage, encumbrance, pledge or other grant of a security interest in Lock-Up Shares to one or more
financial or lending institutions as collateral or security for or in connection with any bona fide loans, advances or extensions of credit or debt transaction (or enforcement thereunder) entered into by Holder or any of its Affiliates, or any
refinancings thereof, and any transfers of such Lock-Up Shares upon foreclosure thereof shall be deemed permitted for purposes of this Section 2(b) so long as each applicable
transferee agrees in writing to be bound by the restrictions set forth in this Agreement as a Permitted Transferee; (ix) as part of the establishment of a trading plan pursuant to Rule 10b5-1
promulgated under the 1934 Act; provided, however, that such plan does not provide for the Transfer of Lock-Up Shares during the Lock-Up Period;
(x) to the Company in connection with the repurchase of such Lock-up Holder’s shares in connection with the termination of the Lock-up Holder’s employment
with the Company pursuant to contractual agreements with the Company; (xi) to satisfy tax withholding obligations in connection with the exercise of options to purchase shares of Parent Common Stock or the vesting of Parent stock-based awards;
(xii) in payment on a “net exercise” or “cashless” basis of the exercise or purchase price with respect to the exercise of options to purchase shares of Parent Common Stock; (xiii) in connection with (but subject to the
completion of) a bona fide liquidation, merger, stock exchange, reorganization, tender offer approved by the Board of Directors of the Company or a duly authorized committee thereof or other similar transaction which results in all of the
Company’s stockholders having the right to exchange their shares Common Stock for cash, securities or other property subsequent to the Closing Date; (xiv) in connection with any legal, regulatory or other order; provided,
however, that in the case of clauses (i) through (vi) such Permitted Transferees must enter into a written agreement with the Company agreeing to be bound by the transfer restrictions in this Section 2; or
(xv) if Triggering Event III occurs, at any time or from time to time on or after the ninetieth (90th) day following the Closing Date, provided that no more than fifty percent (50%) of the Lock-Up Shares issued to each Holder (which number of shares shall be equitably adjusted for stock splits, reverse stock splits, stock dividends, reorganizations, recapitalizations, reclassifications, combination,
exchange of shares or other like change or transaction with respect to Company common stock occurring on or after the closing of the Business Combination) may be Transferred pursuant to this clause (xv). 

  
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 (c) In order to enforce this Section 2, the Company may impose
stop-transfer instructions with respect to the Lock-Up Shares until the end of the Lock-Up Period. 

(d) For the avoidance of doubt, each Holder shall retain all of its rights as a stockholder of the Company with respect to the Lock-Up Shares during the Lock-Up Period, including the right to vote any Lock-Up Shares that such Holder is entitled to vote. 

(e) If any Holder is granted a release or waiver from (i) any lock-up agreement (such holder a
“Triggering Holder”) executed in connection with the Closing or (ii) the lock-up restrictions set forth in Article VI, Section 6.8 of the bylaws of the Company prior to the
expiration of the Lock-up Period, then the undersigned shall also be granted an early release from its obligations hereunder on the same terms and on a pro-rata basis
with respect to such number of Lock-Up Shares rounded down to the nearest whole security equal to (A) the total percentage of Lock-Up Shares (or “Lock-up Shares” as defined in the bylaws of the Company) held by the Triggering Holder immediately following the consummation of the Closing that are being released from the
lock-up agreement or lock-up restrictions multiplied by (B) the total number of Lock-Up Shares held by the undersigned
immediately following the consummation of the Closing. 
 3. Miscellaneous. 

(a) Governing Law; Jurisdiction. This Agreement, and all claims or causes of action (whether in contract, tort or otherwise) that may be
based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in
connection with this Agreement) shall be governed by and construed in accordance with the law of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. Each of the parties hereto
hereby irrevocably and unconditionally (i) submits, for itself and its property, to the exclusive jurisdiction of the Delaware Court of Chancery (or, only if the Delaware Court of Chancery declines to accept jurisdiction over a particular
matter, the Delaware Superior Court or the United States District Court for the District of Delaware), and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the negotiation, execution
or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), or for recognition or enforcement of any judgment, and
agrees that all claims in respect of any such action or proceeding shall be heard and determined in such Delaware Court of Chancery (or, only if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, the Delaware
Superior Court or the United States District Court for the District of Delaware), (ii) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in
connection with this Agreement) in the Delaware Court of Chancery or in the Delaware Superior Court or the United States District Court for the District of Delaware, (iii) waives, to the fullest extent permitted by Law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court and (iv) agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by Law. Each of the parties hereto agrees that service of process, summons, notice or document by registered mail addressed to it in accordance with Section 3(g) shall be effective
service of process for any suit, action or proceeding brought in any such court. 

  
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 (b) Waiver of Jury Trial. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE
ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, EXECUTION, PERFORMANCE AND ENFORCEMENT OF THIS
AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY ACTION OR PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. 
 (c) Assignment; Third Parties. This Agreement and all of the provisions hereof will
be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and permitted assigns. This Agreement and all obligations of a Holder are personal to such Holder and may not be transferred or delegated at any
time. Nothing contained in this Agreement shall be construed to confer upon any Person who is not a signatory hereto any rights or benefits, as a third-party beneficiary or otherwise. 

(d) Specific Performance. The parties agree that irreparable damage for which monetary damages, even if available, would not be an
adequate remedy, would occur in the event that the parties hereto do not perform the provisions of this Agreement in accordance with its specified terms or otherwise breach or threaten to breach such provisions. The parties acknowledge and agree
that the parties hereto shall be entitled, in addition to any other remedy to which they are entitled at law or in equity, to an injunction, specific performance and other equitable relief to prevent breaches or threatened breaches of this Agreement
and to enforce specifically the terms and provisions hereof. Without limiting the foregoing, each of the parties agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that
(i) there is adequate remedy at law or (ii) an award of specific performance is not an appropriate remedy for any reason at law or in equity. Any party seeking an order or injunction to prevent breaches or threatened breaches and to
enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction. 

(e) Amendment; Waiver. Upon (i) the approval of a majority of the total number of directors serving on the Board of Directors of
the Company who are not nominated or designated pursuant to contractual rights of Holders, (ii) the written consent of the Sponsor and (iii) the written consent of the Holders of a majority of the total
Lock-Up Shares, compliance with any of the provisions, covenants and conditions set forth in this Agreement may be waived by the Company, or any of such provisions, covenants or conditions may be amended or
modified; provided, however, that notwithstanding the foregoing, any amendment hereto or waiver hereof that adversely affects a Holder, solely in its capacity as a holder of Lock-Up Shares, shall
require the consent of the Holder so affected. No course of dealing between any Holder or the Company and any other party hereto or any failure or delay on the part of a Holder or the Company in exercising any rights or remedies under this Agreement
shall operate as a waiver of any rights or remedies of any Holder or the Company. No single or partial exercise of any rights or remedies under this Agreement by a party shall operate as a waiver or preclude the exercise of any other rights or
remedies hereunder or thereunder by such party. 

  
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 (f) Interpretation. The titles and subtitles used in this Agreement are for
convenience only and are not to be considered in construing or interpreting this Agreement. In this Agreement, unless the context otherwise requires: (i) any pronoun used in this Agreement shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (ii) “including” (and with correlative meaning “include”) means including without limiting the generality of any
description preceding or succeeding such term and shall be deemed in each case to be followed by the words “without limitation”; (iii) the words “herein,” “hereto,” and “hereby” and other words of similar
import in this Agreement shall be deemed in each case to refer to this Agreement as a whole and not to any particular section or other subdivision of this Agreement; and (iv) the term “or” means “and/or”. The parties have
participated jointly in the negotiation and drafting of this Agreement. Consequently, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 

(g) Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given (i) when
delivered personally by hand (with written confirmation of receipt by other than automatic means, whether electronic or otherwise), (ii) when sent by email (with no automated reply, such as an out-of-office notification, no mail undeliverable notification or other rejection notice) or (iii) one (1) Business Day following the day sent by an internationally recognized overnight courier (with
written confirmation of receipt), in each case, addressed, if to the Company, to: 
 Rover Group, Inc. 

Attn: [                 ] 

Email: [                 ] 

with a copy to: 
 Wilson Sonsini
Goodrich & Rosati 
 701 5th Avenue #5100, 

Seattle, WA 98104 
 Attn:
[                 ] 
 Email:
[                 ] 
 and if to any Holder, at such Holder’s address or
email address as set forth in the Company’s books and records. 
 (h) Severability. This Agreement shall be deemed severable, and
the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or
provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible that is valid and enforceable. 

(i) Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the
subject matter hereof and supersede all prior and contemporaneous agreements, representations, understandings, negotiations and discussions between the parties, whether oral or written. Notwithstanding the foregoing, nothing in this Agreement shall
limit any of the rights, remedies or obligations of the Company or any of the Holders under any other agreement between any of the Holders and the Company, and nothing in any other agreement, certificate or instrument shall limit any of the rights,
remedies or obligations of any of the Holders or the Company under this Agreement. 
 (j) Several Liability: The liability of any
Holder hereunder is several (and not joint). Notwithstanding any other provision of this Agreement, in no event will any Holder be liable for any other Holder’s breach of such other Holder’s obligations under this Agreement. 

  
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 (k) Counterparts. This Agreement may be executed in two or more counterparts (any of
which may be delivered by electronic transmission), each of which shall constitute an original, and all of which taken together shall constitute one and the same instrument. 

[Remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the parties have executed this
Lock-Up Agreement as of the date first written above. 
  

			
	ROVER GROUP, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Lock-Up Agreement] 

 IN WITNESS WHEREOF, the parties have executed this
Lock-Up Agreement as of the date first written above. 
  

			
	NEBULA CARAVEL HOLDINGS, LLC
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Lock-Up Agreement] 

 IN WITNESS WHEREOF, the parties have executed this
Lock-Up Agreement as of the date first written above. 
  

			
	 [Company Holder]

		
	By:	 	  

		 	 Name:

		 	 Title:

 [Signature Page to Lock-Up Agreement] 

 IN WITNESS WHEREOF, the parties have executed this
Lock-Up Agreement as of the date first written above. 
  

			
	By:	 	  

		 	Name:

 [Signature Page to Lock-Up Agreement] 

 SCHEDULE 1 

SPONSOR KEY HOLDERS 

 SCHEDULE 2 

COMPANY HOLDERSExhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (this “Agreement”) is dated as of February 9,
2021 and is made by and among 1st Constitution Bancorp,
a New Jersey corporation having its principal place of business at 2650 Route 130 North, Cranbury, New Jersey 08512 (the “Company”),
and 1st Constitution Bank, a New Jersey commercial bank having its principal place of business at 2650 Route
130 North, Cranbury, New Jersey 08512 (the “Bank”), on one hand, and Stephen
J. Gilhooly (the “Employee”), on the other hand.

 

WHEREAS,
the Employee has heretofore been employed as the Senior Vice President and Chief Financial Officer of each of the Company and the
Bank;

 

WHEREAS,
the Company and the Bank are collectively referred to in this Agreement as the “Employer”;

 

WHEREAS,
the Bank is a wholly owned subsidiary of the Company;

 

WHEREAS,
the Employee and the Bank are parties to a certain Letter Agreement dated and entered into effective as of January 31, 2014 (the
“Letter Agreement”);

 

WHEREAS,
the parties desire by this writing to set forth their intentions with respect to the employment
relationship between the Employee on one hand and the Employer on the other hand and the termination of the Letter Agreement.

 

NOW,
THEREFORE, it is AGREED as
follows:

 

1.             Employment; Duties.

 

a.         
Employment. Each of the Company
and the Bank hereby employs the Employee, and the Employee hereby accepts continued employment by the Company and the Bank, as
the Senior Vice President and Chief Financial Officer of the Company and the Bank.

 

b.        
Duties. Subject to the direction
of the President of the Bank, the Employee shall have responsibility for all duties and responsibilities consistent with the Employee’s
position of Chief Financial Officer and title of Senior Vice President, as well as all reasonable responsibilities as are
delegated to him by the President of the Employer.

 

2.             Base Compensation. The Employer agrees to pay the Employee so long as he is employed pursuant to this Agreement a base salary
at the total rate of Two Hundred Fifty Thousand Dollars ($250,000) per annum commencing with the Commencement Date (as defined
below) or at such higher rate as the Board of Directors of the Company (the “Board”) may thereafter establish (the
“Base Salary”). The Base Salary shall be payable on the same schedule as salaries of other executive officers of the
Bank are paid. Once increased, the Base Salary may not thereafter be decreased. The Commencement Date shall be February
9, 2021.

 

3.             Term. The Employee’s employment by the Employer pursuant to this Agreement is for the period commencing on the Commencement
Date and ending twelve (12) months thereafter or on such earlier date as is determined in accordance with Sections 10 and 12 of
this Agreement or such later date as provided herein. On the first anniversary of the Commencement Date and on each successive
anniversary of such date thereafter, the term of this Agreement shall be automatically extended for one additional year, unless
this Agreement is sooner terminated as provided in Sections 10 and 12 unless either the Board or the Employee advises the other,
in writing no less than ninety (90) days prior to any anniversary of the Commencement Date, that this Agreement will no longer
be extended. Notwithstanding the foregoing, in the event of a Change in Control (as defined below), the date the Change in Control
occurs shall become the Commencement Date for all purposes thereafter, and each Change in Control thereafter shall result in a
new Commencement Date on the date of the latest Change in Control.

 

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4.             Equity Participation. The Employee will participate in the Company’s equity plans on at least an annual basis
at levels appropriate for the Senior Vice President and Chief Financial Officer, as determined in the sole discretion of the compensation
committee of the Board (the “Compensation Committee”).

 

5.             Cash Bonuses.
The Employer will pay the Employee a cash bonus within ninety (90) days after the end of each calendar year. The amount of the
bonus will be determined by the Compensation Committee based upon the annual incentive compensation plan of the Company approved
by the Board for such calendar year.

 

6.             Other Benefits.

 

a.         
Participation in 401(k) Plan, Medical Plans, Insurance Plans and Other Benefits.
The Employee shall be entitled to participate in the employee benefit plans that the Employer maintains from time to time for the
benefit of its employees generally and which include its executive employees relating to (i) 401(k) benefits; (ii) medical
insurance and/or the reimbursement of uninsured medical expenses; (iii) group term life insurance benefits (for which the current
death benefit applicable to the Employee will be $50,000); and (iv) group short term and long term disability benefits. This provision
shall not preclude the Employer from making any amendment to, or termination of, any such plan so long as the total scope and value
of the benefits is not materially reduced after the date of this Agreement.

 

b.        
Expenses. The Employee shall be entitled to be reimbursed by the Bank for all reasonable out-of-pocket business expenses
which he shall incur in connection with his rendition of services under this Agreement upon substantiation of such expenses in
accordance with applicable policies of the Bank. Such reimbursements shall be made no later than the end of the calendar year following
the year in which the expenses are incurred. The Bank shall provide the Employee with a monthly automobile allowance during the
term of this Agreement. The monthly allowance at the date of this Agreement is $400 which is subject to upward adjustment by the
Bank from time-to-time and once adjusted shall not be decreased.

 

7.             Loyalty.

 

a.         
Devotion to Performance. During
the period of his employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence,
the Employee shall devote all his of full business time, attention, skill, and efforts to the faithful performance of his duties
hereunder. The phrase “full business time” as used herein means that the Employee cannot be gainfully employed (whether
as an employee, agent, contractor or owner) in any other position or job, and that the time devoted to the Employer by the Employee
shall be at least that amount of time usually devoted to like companies by similarly situated executive officers. During the term
of his employment under this Agreement, the Employee shall not engage in any business or activity contrary to the business affairs
or interests of the Company or its subsidiaries.

 

b.        
Investments. Nothing contained
in this Section 7 shall be deemed to prevent or limit the Employee’s right to invest in the capital stock or other securities
of any business dissimilar from that of the Employer or, solely as a passive or minority investor, in any business.

 

8.             Standards.

 

a.         
General. The Employee shall perform
his duties under this Agreement in accordance with such reasonable standards as the Board may establish from time to time. The
Employer will provide the Employee with working facilities and staff customary for similarly situated executive officers and necessary
for him to perform his duties.

 

b.        
Written Budget. During the term
of this Agreement, the Employee will assist the President of the Employer in the preparation of a budget for the Company and the
Bank for each fiscal year.

 

9.             Vacation. At such reasonable times as the Employee’s workload and the
Bank’s business and staffing needs shall permit, consistent with the Bank’s safe and sound operations, the Employee
shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his employment with respect to the
Employer under this Agreement, all such voluntary absences to count as vacation time, provided that:

 

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a.         
Annual Vacation. The Employee shall be entitled to an annual vacation of twenty (20) business days (Monday through Friday on
days upon which the Bank is open for business) to be taken in accordance with such policies as the Board may periodically establish
for senior management employees of the Bank.

 

b.        
No Additional Compensation. The
Employee shall not receive any additional compensation from the Employer on account of his failure to take a vacation, and the
Employee shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized
by the Board.

 

10.             Termination and Termination Pay. The Employer may terminate the Employee’s
employment hereunder at any time and for any reason and nothing herein shall be interpreted to circumscribe that right; however,
the Employer and the Employee agree that differing financial obligations and entitlements shall pertain to various types of termination
as described in this Agreement.

 

a.         
Death. Employment under this Agreement
shall terminate upon the Employee’s death during the term of this Agreement, in which event the Employee’s estate shall
be entitled to receive the Base Salary due the Employee through the last day of the calendar month in which his death occurred.

 

b.        
Disability. Employment may be
terminated hereunder upon the Board’s determination that the Employee is suffering a Disability. For purposes of this Agreement,
“Disability” means the Employee’s incapacity due to physical or mental illness such that the Employee
shall have become qualified to receive benefits under the Company’s long-term disability plans or any equivalent coverage
provided to the Employee pursuant to any other plan or agreement, whichever is applicable.
In the event of such termination, the Employee shall be entitled to the Base Salary through his date of termination, plus any benefits
that may be available to him under the Employer’s disability plans, subject to payment of the employee contribution requirements
if any (to the extent that such benefits can be provided by the terms of the applicable plans).

 

c.         
Just Cause. In the event that
employment hereunder is terminated by the Employer for Just Cause, the Employee shall not be entitled to receive compensation or
other benefits for any period after such termination, except as provided by law. The phrase “Just Cause” as used herein
means a good faith determination by the Board that there shall have occurred one or more of the following events with respect to
the Employee: (i) the conviction or plea of no lo contendere of the Employee for a felony or similar crime, or the
willful commission by the Employee of a criminal or other act that in the judgment of the Board causes or will likely cause substantial
economic damage to the Company or substantial injury to its business reputation; (ii) the
commission by the Employee of an act of fraud in the performance of such Executive’s duties on behalf of the Company;
(iii) the continuing willful failure of the Employee to perform the duties of such Executive to the Company (other than
any such failure resulting from the Employee’s incapacity due to physical or mental illness) after written notice thereof
(specifying the particulars thereof in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given
to the Employee by the Compensation Committee; or (iv) the order of a federal
or state regulatory agency or a court of competent jurisdiction requiring the termination of the Employee’s employment.
Notwithstanding the foregoing, Just Cause shall not be deemed to exist unless there shall have been delivered to the Employee a
copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at
a meeting of the Board called and held for the purpose (after reasonable notice to the Employee and an opportunity for the Employee
to be heard before the Board), finding that in the good faith opinion of the Board the Employee was guilty of conduct described
above and specifying the particulars thereof. Prior to holding a meeting at which the Board is to make a final determination whether
Just Cause exists, if the Board determines in good faith at a meeting of the Board, by not less than a majority of its entire membership,
that there is probable cause for it to find that the Employee is guilty of conduct constituting Just Cause as described above,
the Board may suspend the Employee from his duties hereunder for a reasonable time not to exceed fourteen (14) days pending a further
meeting at which the Employee shall be given the opportunity to be heard before the Board. For purposes of this subparagraph, no
act, or failure to act, on the Employee’s part shall be considered “willful” unless done, or omitted to be done,
by him not in good faith and without reasonable belief that his action or omission was in the best interests of the Bank and the
Company.

 

d.        
Termination Without Just Cause. The Board may, during the term of this Agreement, by written notice to the Employee,
immediately terminate his employment at any time for a reason other than Just Cause. In the event of such a termination, the Employee
shall be entitled to receive, as a severance benefit, an amount equal to the Employee’s annual Base Salary; provided,
however, if such termination is made during the eighteen (18) month period following a Change in Control of the Company, then
the provisions of Section 12 shall apply instead of this Section 10(d). Except as provided in this Agreement, said sum shall be
paid in one lump sum (less all applicable withholding amounts) within ten (10) days after such termination.

 

    		3	

    	 

    

 

e.         
Voluntary Termination by the Employee.
The Employee may voluntarily terminate employment with the Bank during the term of this Agreement without Good Reason upon at least
ninety (90) days’ prior written notice to the Board. In the event of such voluntary termination hereunder, the Employee shall
receive only his compensation, vested rights and employee benefits up to the date of his termination, except as otherwise required
by law.

 

11.             Covenant Not to Compete. Regardless of the reason for termination or discontinuation
of employment, the Employee covenants and agrees, and acknowledges receipt of adequate consideration for such covenant and agreement,
that he will not for one year following such termination or discontinuation of employment serve as an officer or director or employee
of any community bank, savings association or mortgage company with principal offices in Middlesex, Mercer, Monmouth or Somerset
County, New Jersey, and which offers products and/or services from offices in Middlesex, Mercer, Monmouth or Somerset County, New
Jersey, competing with those offered by the Bank.

 

12.             Change in Control.

 

a.         
Payments upon Termination after a Change in Control. Notwithstanding any provision herein to the contrary, if, within
eighteen (18) months after any Change in Control, the employment of the Employee is terminated by the Board (for reasons other
than death, Disability, or Just Cause), or if the Employee terminates employment for Good Reason during such eighteen (18) month
period following any Change in Control, then the Employee shall be entitled to receive, as a severance benefit, an amount equal
to one hundred fifty percent (150%) of the Employee’s annual unreduced Base Salary. Except as provided in this Agreement,
said sum shall be paid in one lump sum (less all applicable withholding amounts) within ten (10) days after such termination. 

 

b.        
Death, Disability, Just Cause and Voluntary Termination other than for Good Reason. If the Employee’s employment is
terminated during the eighteen (18) month period following any Change in Control (i) due to the Employees’ death, (ii) by
the Board for reason of the Employee’s Disability or for Just Cause, or (iii) by the Employee other than for Good Reason,
then the provisions of Section 10 shall apply.

 

c.         Good Reason. For purposes of this Agreement, “Good Reason” shall mean: (A) a material diminution in the
Employee’s Base Salary; (B) a material diminution in the Employee’s authority,
duties or responsibilities; (C) a material diminution in the authority, duties or
responsibilities of the supervisor to whom the Employee is required to report; (D) a material
diminution in the budget over which the Employee retains authority; (E) a materially
change in the geographic location at which the Employee must perform his services;
(F) any other action or inaction that constitutes a material breach by the Employer of this Agreement;
or (G) failure of the Company to obtain the express written assumption of, and agreement to perform, this Agreement by any
applicable successor. It is the intention of the parties that Good Reason shall be interpreted
and applied in conformity with the “good reason” rules in effect under Section 409A of the Internal Revenue Code of
1986, as amended (and all guidance thereunder) (the “Code”).

 

The
Executive may not terminate his employment for Good Reason unless he has provided a written Notice of Termination to the Company
setting forth the existence of a condition described in this subparagraph within a period not to exceed ninety (90) days of the
initial existence of the condition, and the Company has had a period of at least thirty (30) days from the date such Notice of
Termination is provided to remedy the condition. In the event that the condition is cured during such cure period, then the Notice
of Termination will be deemed withdrawn by the Employee.

 

d.        
“Change in Control” Defined. The term “Change in Control”
shall mean if any of the following events shall occur after the effective date of this Agreement:

 

i.          
the acquisition by any person, directly or indirectly, of beneficial ownership or
power to vote more than thirty-five percent (35%) of the Company’s voting stock;

 

    		4	

    	 

    

 

ii.         
the first purchase of the Company’s voting stock pursuant to a tender or exchange
offer (other than a tender or exchange offer made by an affiliate of the Company);

 

iii.        
the acquisition by any person, directly or indirectly, of the control of the election
of a majority of the Company’s directors;

 

iv.        
the exercise of a controlling influence over the management or policies of the Company
by any person or by persons acting as a group within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”);

 

v.         
during any period of two (2) consecutive years, individuals who at the beginning of
such two-year period constitute the Board (the “Continuing Directors”) cease for any reason to constitute at least
two-thirds (2/3) thereof; provided that, any individual whose election or nomination for election as a member of the Board was
approved by a vote of at least two-thirds (2/3) of the Continuing Directors then in office shall be considered a Continuing Director;
or

 

vi.        
the approval by the Company’s shareholders of (A) a merger or consolidation
of the Company with or into another company (other than a merger or consolidation in which the Company is the surviving company
and which does not result in any reclassification or reorganization of the Company’s then outstanding shares of common stock
of the Company or a change in the Company’s directors, other than the addition of not more than three directors); (B) a
sale or disposition of all or substantially all of the Company’s assets; or (C) a plan of liquidation or dissolution
of the Company.

 

The
term “person” as used above means an individual, corporation, partnership, trust, association, joint venture, pool,
syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein, or a person
or persons acting as a group within the meaning of Sections 13(d)(3) or 14(d)(2) of the Exchange Act. Any other provision hereof
to the contrary notwithstanding, no Change in Control shall be deemed to have occurred for purposes of this Agreement as a result
of an offering registered with the Securities and Exchange Commission of stock to the Company’s
shareholders and/or other investors or other offering conducted by the Company to meet regulatory capital requirements at the demand
of a bank regulatory authority. In no event shall a payment be made hereunder if the Bank is placed in conservatorship or
receivership in connection with a Change in Control and the Board determines in good faith that the Change in Control was directed
by or otherwise required by the Federal Deposit Insurance Corporation.

 

13.             Dispute Resolution. In the event
that any dispute arises between the Employee on one hand and the Company or the Bank on the other hand as to the terms or interpretation
of this Agreement, each party hereto agrees that such dispute shall, at the request of any party hereto, be submitted initially
to non-binding mediation before the American Arbitration Association in Middlesex County, New Jersey or any other professionally
recognized alternate dispute resolution company or forum to which the parties can agree. If there is no resolution of the dispute
within ninety (90) days of notice from one party to the other of such dispute, either party may seek any legal remedies available
to it in any forum.

 

14.             Limitation of Payments. In the event that any payment or benefit received
or to be received by the Employee in connection with a Change in Control or the termination of the Employee’s employment
(whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, the Bank, a successor
or an affiliate of the Company or a successor) (collectively with the payments and benefits hereunder, “Total Payments”)
would not be deductible (in whole or part) as a result of Section 280G of the Code, by the Company, the Bank, an affiliate
or other person making such payment or providing such benefit, the payments and benefits hereunder shall be reduced until no portion
of the Total Payments is not deductible, or the payments and benefits hereunder are reduced to zero. Any such reduction
shall be made by the Employer in its sole discretion consistent with the requirements of Section 409A of the Code. For
purposes of this limitation (i) no portion of the Total Payments the receipt or enjoyment of which the Employee shall have
effectively waived in writing prior to the date of payment under subsection (a) shall be taken into account; (ii) no portion
of the Total Payments shall be taken into account which, in the opinion of a national accounting or benefits consulting firm selected
by the Employer, and is not likely to constitute a “parachute payment” within the meaning of section 280G(b)(2) of
the Code; (iii) the payments and benefits hereunder shall be reduced only to the extent necessary
so that, in the opinion of a national accounting or benefits consulting firm referred
to in clause (ii), the Total Payments (other than those referred to in clauses (i) or (ii)) in their entirety are likely
to constitute reasonable compensation for services actually rendered within the meaning of section 280G(b)(4) of the Code or are
otherwise not likely to be subject to disallowance as deductions; and (iv) the value of any non-cash benefit or any deferred payment
or benefit included in the Total Payments shall be determined by the Company’s independent auditors in accordance with the
principles of sections 280G(d)(3) and (4) of the Code.

 

    		5	

    	 

    

 

15.             Other Limitations on Payments. In the event that the Total Payments would not be deductible (in whole or part) as
a result of Section 162(m) of the Code, or any combination of Section 162(m) and Section 280G of the Code, by the Company, an affiliate
or other person making such payment or providing such benefit, the payments and benefits hereunder shall be reduced until no portion
of the Total Payments is not deductible, or the payments and benefits hereunder are reduced to zero.
Any such reduction shall be made by the Employer in its sole discretion consistent with the requirements of Section 409A
of the Code. For purposes of this limitation (i) no portion of the Total Payments the receipt or enjoyment of which the Employee
shall have effectively waived in writing prior to the date of payment under subsection (a) shall be taken into account, and (ii)
the payments and benefits hereunder shall be reduced only to the extent necessary so that, in the opinion of tax counsel selected
by the Employee and acceptable to the Company’s independent auditors, the Total Payments (other than those referred to in
clause (i)) in their entirety do not exceed the $1,000,000 limitation of Section 162(m)(1) of the Code, or are otherwise not likely
to be subject to disallowance as deductions.

 

16.             Successors and Assigns. This Agreement shall inure to the benefit of, and be enforceable by, the Employee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Employee
should die while any amounts would still be payable to the Employee hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Employee’s devisee, legatee
or other designee or, if there be no such designee, to the Employee’s estate. The rights or obligations of the Employee hereunder
shall not be assignable by the Employee, except as provided in this Section. The Employer
will require any successor (whether direct or indirect, by purchase, merger, consolidated or otherwise) to all or substantially
all of the business and/or assets of the Company, by written agreement in form and substance satisfactory to the Employee to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the Employer would be required to perform
it if no such succession had taken place. As used in this Agreement, references to the “Employer,” the “Company”
and the “Bank” shall mean the Employer, the Company and the Bank, respectively, as hereinbefore defined, and any successor
to the Company’s business and/or assets, whether by operation of law or otherwise.

 

17.             Confidentiality of Information. The Employee agrees to maintain the confidentiality
of any proprietary, confidential or other non-public information known to the Employee concerning the Company and its business
(including the Company’s subsidiaries and their businesses), which information includes but is not limited to the operation
and financial status of the Company and the Bank, the names or addresses of any of the Bank’s customers, borrowers and depositors,
any information concerning or obtained from such customers, borrowers and depositors and any other information, knowledge or data
of or concerning the Bank or the Company to which the Employee may be exposed during the course of his employment. The Employee
further agrees that, unless required by law or specifically permitted by the Employer in writing, he will not disclose to any person
or entity, either during or subsequent to his employment, any of the above-mentioned non-public information which is not generally
known to the public nor shall he employ such information in any way other than for the benefit of the Company and the Bank. The
forgoing restrictions shall not apply to any information which is already in the public domain through any source other than the
Employee in violation of this provision.

 

18.             Injunctive Relief. If there is a breach or threatened breach of the provisions
of Sections 11 or 13 of this Agreement, the Employee acknowledges and agrees that there is no adequate remedy at law for such breach
and that the Company and the Bank shall be entitled to injunctive relief restraining the Employee from such breach or threatened
breach, but such relief shall not be the exclusive remedy hereunder for such breach.

 

19.             Representation of the Employee. The Employee hereby represents and warrants
to the Company and the Bank that he has full power and authority to enter into this Agreement and to perform his duties and obligations
hereunder, and that the execution and performance hereof is not and will not in any manner conflict with or result in a violation
of any other contract, agreement, covenant.

 

    		6	

    	 

    

 

20.             Reimbursement of Legal Fees; Interest on Amounts Due. If litigation
or other proceedings shall be brought to enforce or interpret any provision contained herein or in connection with any tax audit
to the extent attributable to the application of Section 4999 of the Code to any payment or benefit provided hereunder, the Company
shall indemnify the Employee for his reasonable attorney’s fees and disbursements incurred in connection therewith and pay
prejudgment interest on any money judgment obtained by the Employee calculated at Citibank, N.A., New York, prime rate of interest
in effect from time to time from the date that payment should have been made under the Agreement; provided, that if the Employee
initiated the proceedings, the Employee shall not have been found by the court or other fact finder to have acted in bad faith
in initiating such litigation or other proceeding, which finding must be final without further rights of appeal.

 

21.             Section 409A of the Code. It is the intent of the Employee and the Employer
that this Agreement be drafted, interpreted and administered in accordance with Section 409A of the Code. Specifically, but
without limitation, whether and when a termination of employment has occurred shall be determined in accordance with Section 409A,
and the Employer is authorized to delay any payments due hereunder as a result of termination of employment until the first (1st)
day of the seventh (7th) month following such termination of employment, if such delay is determined to be necessary
in order to avoid violating the Section 409A requirements with respect to specified employees. Each payment due hereunder
shall be considered to be a separate payment, as opposed to a series of payments, for purposes of Section 409A of the Code.

 

22.             Federal Deposit Insurance Act Et Al. Neither the Company nor the Bank shall be required to make any payment
under this Agreement (i) if the Company or the Bank has been advised by a bank regulatory authority that doing so may result in
the imposition of fines or other penalties on the Company or the Bank or their respective directors or officers or a finding that
the Company or the Bank is engaging in an unsafe or unsound banking practice, (ii) if such payment would violate the terms of any
agreement, memorandum of understanding or similar arrangement between the Company or the Bank and a bank regulatory authority or
resolutions of the directors of the Company or the Bank adopted at the direction of a bank regulatory authority, (iii) result in
the Company or the Bank failing to meet, or while it does not meet, minimum capital requirements under applicable law, or (iv)
if it should violate any federal or state laws or regulations applicable to the Company or the Bank or any entity which controls
the Company, including, but not limited to, Section 18 (k) of the Federal Deposit Insurance Act or any regulation of the Federal
Deposit Insurance Corporation adopted thereunder.

 

23.             Compensation
Recovery. Notwithstanding anything in this Agreement to the contrary, in the event that the Company is required to
materially restate its financial results due to the Company’s material noncompliance with any financial reporting requirement
under Federal securities laws, excluding a restatement of such financial results due solely a change in generally accepted accounting
principles in the United States or such other accounting principles that may be adopted by the Securities and Exchange Commission
and are or become applicable to the Company, the Company may, in its discretion or as necessary to comply with applicable law,
require the Employee to repay the Company
or the Bank an amount by offset to any payment made pursuant to this Agreement which is equal to all or any portion of any incentive
compensation (including stock and stock-based awards) that has been paid, issued or granted to the Employee pursuant to any incentive
compensation program with the two years preceding the date on which the Company is required to prepare an accounting restatement,
to the extent that such amount was based on the erroneous data and exceeded the amount that would have been paid, issued or granted
to the Employee under the accounting restatement. Such repayment obligation shall be effective as of the date specified by the
Company; provided, however, that if any such offset is prohibited under applicable law, the Company shall not permit such
offset and may require immediate repayment by the Employee. Notwithstanding the foregoing, to the extent required to comply with
applicable law, any applicable stock exchange listing requirements, and/or any compensation recovery or claw back policy adopted
by the Company or the Bank, the Employer may unilaterally amend this Section 21 and such amendment shall be binding on the Employee;
provided, however, regardless of whether the Employer makes such a unilateral amendment, the Employee shall be bound by any compensation
recovery or clawback policy adopted by the Company or the Bank, whether adopted before or after the date of this Agreement.

 

24.             Termination of the Letter Agreement. Effective on the Commencement Date, the Letter Agreement is terminated without any
further liability of the Employer.

 

    		7	

    	 

    

 

25.             Notices. For purposes of this Agreement, notices and
all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered
or mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows:

 

If
to the Employee:

 

at
the address on file with the Company

 

If to the Company:

 

1st Constitution Bancorp

2650 Route 130 North

Cranbury, NJ 08512

Attention: President

 

or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective
only upon receipt.

 

26.             Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect. Any provision in this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition
or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

27.             Waiver of Jury Trial.
The Employee hereby
irrevocably and unconditionally waives any right he may have to a trial by jury in respect of any litigation directly or indirectly
arising out of or relating to this Agreement.

 

28.             Miscellaneous. No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing, signed by the Employee and such officer as may be specifically designated by the Board. No waiver
by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No assurances or representations, oral or otherwise, express or implied, with respect
to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. However, this
Agreement is in addition to, and not in lieu of, any other plan providing for payments to or benefits for the Employee or any agreement
that hereafter may be entered into, between the Employer and the Employee. The validity, interpretation, construction and performance
of this Agreement shall be governed by the laws of the State of New Jersey.

 

[Remainder
of page intentionally left blank. Signature page follows.]

 

    		8	

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the day and year first above written.

 

 

 

	WITNESS:	 	THE COMPANY:	 
	 	 	 	 	 
	 	 	1st CONSTITUTION BANCORP	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Jacalyn Nakushian  	 	By:  	/s/ Robert F. Mangano 	 
	 	 	 	 	 
	 	 	Name: 	Robert F. Mangano	 
	 	 	Title:   	President & Chief Executive Officer	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	WITNESS:	 	THE BANK:	 
	 	 	 	 	 
	 	 	1st CONSTITUTION BANCORP	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Jacalyn Nakushian	 	By:  	/s/ Robert F. Mangano	 
	 	 	 	 	 
	 	 	Name: 	Robert F. Mangano	 
	 	 	Title:   	President & Chief Executive Officer	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	WITNESS:	 	EMPLOYEE:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Jacalyn Nakushian 	 	By:  	/s/ Stephen J. Gilhooly	 
	 	 	 	 	 
	 	 	 	STEPHEN J. GILHOOLY, Individually	 

 

 

9

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