[LETTERHEAD OF HUDSON UNITED BANCORP]




March __, 2000

Mr. Thomas R. Nelson
c/o Hudson United Bank
1000 MacArthur Boulevard
Mahwah, New Jersey 07430

Dear Mr. Nelson:

Hudson  United  Bancorp,  Hudson  United Bank and you are party to the  attached
Change In Control,  Severance and Employment  Agreement  dated January ___, 1998
(the "Agreement").  As indicated in the Background section of the Agreement, one
of the  reasons  for  entering  into the  Agreement  was to cause  you not to be
distracted  by the  personal  uncertainties  and risks  created by any  proposed
business  combination  with another  entity.  To further  that goal,  we wish to
clarify  certain  provisions  of the Agreement to make certain that they reflect
unambiguously the original intent of the parties to the Agreement. While we view
these matters as  clarifications of our existing  understanding,  we intend this
letter to have the force and effect of an amendment to the  Agreement.  Thus, if
and to the extent that the Agreement is inconsistent with this letter, we hereby
agree that the terms set forth in this letter shall be controlling.

We hereby  clarify the Agreement (and if and to the extent that the Agreement is
inconsistent with the following, we hereby amend the Agreement) as follows:

A. Time of Change in Control: Section 1(b)(ii)(B) of the Agreement provides that
a Change in Control of HUBCO shall be deemed to occur:

                        forty-five (45) days prior to the date HUBCO enters into
                        a definitive agreement to merge, consolidate, combine or
                        sell the  assets of HUBCO;  provided  however,  that for
                        purposes of any resignation by the Executive, the Change
                        in  Control  shall  not be  deemed  to occur  until  the
                        consummation of the merger,  consolidation,  combination
                        or sale, as the case may be, except if this Agreement is
                        not  expressly  assumed  in  writing  by  the  acquiring
                        company,  then the Change in Control  shall be deemed to
                        occur  the day  before  the  consummation;  and  further
                        provided  that if any  definitive  agreement  to  merge,
                        consolidate,   combine  or  sell  assets  is  terminated
                        without consummation of the acquisition,  then no Change
                        in Control shall have been deemed to have occurred . . .

It is our mutual  intention  with  respect to the  foregoing  language,  and the
foregoing language shall be so construed, as follows (or such language is hereby
amended  if  and to  the  extent  necessary  to  make  it  consistent  with  the
following):

            The concept of looking back 45 days prior to entry into a definitive
agreement  was  intended  solely to assure the  Executive  that the  Executive's
change in control  protection  would be available if the parties  negotiating  a
merger  terminated the Executive's  employment  before  executing the definitive
merger  agreement.  Thus,  the  45  day  "look-back"  is to be  used  solely  in
determining  when the  "Contract  Period"  begins  under the  Agreement.  In the
context of the pending  Hudson-Dime  merger  (assuming it is  consummated),  the
"Contract Period" began 45 days prior to execution of the merger  agreement,  or
August 1, 1999.  However,  we also  included  language in this  subparagraph  to
assure  that the  Executive  could not  trigger  Change in Control  payments  by
resigning  before the merger was completed.  Thus, in the context of the pending
Hudson-Dime  merger,  if the Executive resigns before the merger is consummated,
the  "Contract  Period"  would be deemed never to have begun,  and the Executive
would not be entitled to payment under the Agreement.


B.  Definition  of Good Reason:  "Good Reason" is defined in Section 1(e) of the
Agreement to include the following, if taken without Executive's express written
consent:

                                    "(i)  The  assignment  to  Executive  of any
                        duties inconsistent with, or the reduction of authority,
                        powers or responsibilities  associated with, Executive's
                        position,  title,  duties,  responsibilities  and status
                        with  the  Company  immediately  prior  to a  Change  in
                        Control;  any removal of Executive  from, or any failure
                        to re-elect  Executive to, any  position(s) or office(s)
                        Executive  held  immediately  prior  to such  Change  in
                        Control.   A  change   in   position,   title,   duties,
                        responsibilities  and status or position(s) or office(s)
                        resulting  from a Change in  Control or from a merger or
                        consolidation  of the Company  into or with another bank
                        or  company  shall  not  meet the  requirements  of this
                        paragraph  if, and only if, the  Executive's  new title,
                        duties and  responsibilities  are accepted in writing by
                        the Executive, in the sole discretion of the Executive."

It is our mutual  intention  with  respect to the  foregoing  language,  and the
foregoing language shall be so construed, as follows (or such language is hereby
amended  if  and to  the  extent  necessary  to  make  it  consistent  with  the
following):

            The  language,  "A change . . . shall not meet the  requirements  of
this  paragraph  if,  and  only  if  the  Executive's  new  title,   duties  and
responsibilities  are  accepted  in  writing  by  the  Executive,  in  the  sole
discretion of the Executive" was intended to assure that the Executive will have
complete  and  absolute  discretion  to waive (or not to waive) the  Executive's
rights to claim "Good Reason" based upon a particular change, or set of changes,
in  position,  title,  duties  and/or  responsibilities.  Subject to paragraph C
below,  no waiver is to occur,  or be  inferred,  from any act of the  Executive
other than delivery of a document,  signed by the Executive,  which specifically
states  that the  Executive  accepts  the  Executive's  new  title,  duties  and
responsibilities for purposes of section 1(e) of the Agreement. Without delivery
of such a document,  no continuation in the employ of the surviving  corporation
or its subsidiaries following the merger, and no other document(s) signed by the
Executive of any sort (including  without  limitation any documents relating to,
or in the  capacity of, the  Executive's  new  position,  title,  duties  and/or
responsibilities),  will waive the right to claim Good  Reason  under  paragraph
1(e) of the Agreement.


C. Resignation for Good Reason: Section 9(b) of the Agreement provides that "The
Executive  may resign for Good  Reason  during the  Contract  Period  upon prior
written notice to the Company."

It is our mutual  intention  with  respect to the  foregoing  language,  and the
foregoing language shall be so construed, as follows (or such language is hereby
amended  if  and to  the  extent  necessary  to  make  it  consistent  with  the
following):

            It is intended that the language, "the Executive may resign for Good
Reason during the Contract  Period" will give the Executive a reasonable  period
of time to resign for Good  Reason  following  an event which  constitutes  Good
Reason.  We  acknowledge  and agree that nine months  constitutes  a  reasonable
period of time for this purpose.  Thus,  the  Executive  shall have the absolute
right to resign for Good Reason so long as the  Executive  gives  notice of such
resignation  at any time within the nine month period  following the event which
constitutes  Good Reason.  In no event shall the  Executive  have less than nine
months from the date of consummation of the merger in which to validly give such
notice. If the Executive does not give notice of resignation prior to expiration
of nine months  following an event  constituting  Good Reason (or if Good Reason
occurs prior to consummation of the merger,  nine months following  consummation
of the merger),  the Executive will be deemed to have waived the right to resign
for that particular Good Reason.


D. Cash Compensation: Section 4 of the Agreement provides, in part, as follows:

                        The Company shall pay to the Executive  compensation for
his services during the Contract Period as follows:

                        a. Annual  Salary.  An annual salary equal to the annual
                        salary in effect as of the Change in Control. The annual
                        salary shall be payable in  installments  in  accordance
                        with the  Company's  usual  payroll  method.  The annual
                        salary shall not be reduced during the Contract Period.

                        b. Annual Bonus. An annual cash bonus equal to higher of
                        a) the highest  bonus paid to the  Executive  during the
                        three  fiscal years prior to the Change in Control or b)
                        the highest full year bonus to which the Executive would
                        have been  entitled  during the three fiscal years prior
                        to the Change in Control.  The bonus shall be payable at
                        the time and in the manner  which the Company  paid such
                        bonuses prior to the Change in Control.

It is our mutual  intention  with  respect to the  foregoing  language,  and the
foregoing language shall be so construed, as follows (or such language is hereby
amended  if  and to  the  extent  necessary  to  make  it  consistent  with  the
following):

            It is  intended  that the  references  to "Change in Control" in the
above-quoted  language shall mean the consummation of the merger.  The statement
that "annual salary shall not be reduced during the Contract Period" is intended
to mean that the Executive  will be entitled to receive  either the  Executive's
salary as in effect at the time of the  merger,  or such  greater  salary as may
become effective during the Contract Period due to an increase in salary.  Thus,
assuming that the Hudson-Dime merger closes during calendar 2000:

o           The Executive's  post-merger  Contract Period annual salary shall be
            not less than the  greater of (x) the  Executive's  salary in effect
            just prior to the  closing of the merger or (y) the  highest  annual
            salary  level  received  by the  Executive  during  the  post-merger
            Contract Period.

o           The Executive's post-merger annual cash bonus shall be not less than
            the  aggregate  amount of cash  bonuses paid to the  Executive  with
            respect to either 1997, 1998, or 1999, whichever amount is highest.


E.  Payments and Benefits:  Section 9(c) of the Agreement provides as follows:

                        If the Company  terminates  the  Executive's  employment
                        during  the  Contract  Period  without  Cause  or if the
                        Executive  resigns for Good Reason under paragraph 9(b),
                        the Company  shall,  . . . pay the  Executive a lump sum
                        (the "Lump  Sum")  equal to 2.0 times the sum of (i) the
                        annual salary of the Executive  immediately prior to the
                        Change in Control  and the higher of,  (ii) the  highest
                        bonus  paid to the  Executive  during  the three  fiscal
                        years  prior to the  Change  in  Control  or,  (iii) the
                        highest  full year  bonus to which the  Executive  would
                        have been  entitled  during the three fiscal years prior
                        to the Change in Control. . .

It is our mutual  intention  with  respect to the  foregoing  language,  and the
foregoing language shall be so construed, as follows (or such language is hereby
amended  if  and to  the  extent  necessary  to  make  it  consistent  with  the
following):

            It is intended that the language,  "immediately  prior to the Change
in  Control," as used in Section 9(c) and in the context of a merger such as the
Hudson-Dime merger, means "immediately prior to the consummation of the merger."


F. Interpretation of Specific Events as "Good Reason":  "Good Reason" is defined
in Section 1(e) of the  Agreement  to include the  following,  if taken  without
Executive's express written consent:

                                    "(i)  The  assignment  to  Executive  of any
                        duties inconsistent with, or the reduction of authority,
                        powers or responsibilities  associated with, Executive's
                        position,  title,  duties,  responsibilities  and status
                        with  the  Company  immediately  prior  to a  Change  in
                        Control;  any removal of Executive  from, or any failure
                        to re-elect  Executive to, any  position(s) or office(s)
                        Executive  held  immediately  prior  to such  Change  in
                        Control.   A  change   in   position,   title,   duties,
                        responsibilities  and status or position(s) or office(s)
                        resulting  from a Change in  Control or from a merger or
                        consolidation  of the Company  into or with another bank
                        or  company  shall  not  meet the  requirements  of this
                        paragraph  if, and only if, the  Executive's  new title,
                        duties and  responsibilities  are accepted in writing by
                        the Executive,  in the sole discretion of the Executive"
                        . . .

It is our mutual  intention  with  respect to the  foregoing  language,  and the
foregoing language shall be so construed, as follows (or such language is hereby
amended  if  and to  the  extent  necessary  to  make  it  consistent  with  the
following):

            Exhibit A sets forth  certain facts which we  acknowledge  and agree
have occurred prior to the date hereof.  We further  acknowledge  and agree that
these facts constitute Good Reason under the language quoted above.


                                    * * * * *

We trust that this letter  satisfactorily  clarifies issues of concern to you in
connection  with the Agreement.  Please  countersign and deliver to us a copy of
this letter.  Upon our mutual execution and delivery of this letter, this letter
shall be binding upon each of us, our  successors and assigns as fully as if set
forth in the Agreement.

Very truly yours,

HUDSON UNITED BANCORP


By: __________________________

                                        Accepted and agreed to by the Executive
HUDSON UNITED BANK                      as of the date set forth above:


By: _________________________           ________________________________
                                        THOMAS R. NELSON, individually