A BE58 PLT FLYING THE TEB 5 DEP OUT OF TEB CLBED PREMATURELY ABOVE THE 1500 FT RESTR TO 1700 FT WHEN THE PNF SET 2000 FT IN THE ALT SELECT PANEL.

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WE DEP THE TEB ARPT ON A NO PAX EMPTY LEG TO FRG AND 29 MILES AWAY. WE WERE GIVEN THE TEB 5 DEP AND BRIEFED THE PROC 3 TIMES AND ONCE TO OURSELVES. THE PIC WAS SITTING IN THE R SEAT AND THE NEWLY HIRED SIC WAS SITTING IN THE L SEAT. ALL CONDITIONS WERE NORMAL AND VMC. AFTER WE WERE CLRED FOR TAKEOFF ON RWY 24 THE PROC CALLS FOR RWY HEADING TO 1500 FT. ONCE AT 1500 FT YOU MUST TURN TO 280 DEGS WHICH WE HAD COMPLIED WITH. THE NEXT ALT ON THE DEP PROC WAS 2000 FT AND THE CLB TO 2000 FT CAN ONLY BE EXECUTED ONCE PASSING THE 4.5 DME FROM TEB... ONCE OUR AIRPLANE'S ALT WAS CAPTURED AT 1500 FT ON THE 280 DEG HEADING; THE PNF SET THE NEXT ALT ON THE ALT SELECT PANEL OF 2000 FT. AT THAT TIME THE PF THOUGHT THAT I; THE PNF; WAS PROMPTING HIM TO CLB TO 2000 FT PREMATURELY IN WHICH HE BEGAN A CLB AND EXCEEDING THE 1500 FT ALT RESTR BY +200 FT. THE PNF IMMEDIATELY TOOK CTL OF THE ACFT AT THE PIC AND PITCHED THE NOSE BACK TO 1500 FT IN WHICH THAT TIME ATC PROMPTLY QUESTIONED OUR FLT PATH. NO TFC OR SEPARATION CONFLICTS OCCURRED. AFTER THE FLT SAFETY LANDED FRG THE SIC APCHED THE PIC AND TOLD ME THAT HE WAS DISTRACTED WHEN I SET THE NEXT ALT TO 2000 FT ON THE ALT SELECT PANEL. PIC CONCLUDED THAT HE SHOULD HAVE ANNOUNCED THAT HE WAS SETTING THE NEW ALT RATHER THAN DOING IT SILENTLY.