Document:

HUBCO, INC. DIRECTORS DEFERRED COMPENSATION PLAN

     Effective as of February 1, 1995, HUBCO, Inc. (the "Company") hereby
establishes the HUBCO, Inc. Directors Deferred Compensation Plan (the "Plan").
The Plan is intended to constitute an unfunded pension plan maintained for
members of the Board of Directors who are not employees of the Company. The
purpose of the Plan is to provide a means by which the payment of Directors fees
and Committee fees can be postponed for future enjoyment while at the same time
giving the Company the present use of the fees postponed. The Plan is not an
employee pension benefit plan within the meaning of Section 3(2) the Employee
Retirement Income Security Act of 1974, as amended. The Plan is not a qualified
plan under the Internal Revenue Code of 1986, as amended. The Plan is intended
to comply with the provisions of Revenue Ruling 71-419, 1971-2 C.B. 220.
Benefits are paid directly by the Company out of its general assets.

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<PAGE>

                                   ARTICLE I

                                  Definitions

     1.1 "Account Balance" means the sum of the Fees credited to the
Participants and interest accrued thereon pursuant to Article III.

     1.2 "Board of Directors" means the Board of Directors of the Company.

     1.3 "Code" means the Internal Revenue Code of 1986, as amended.

     1.4 "Company" means HUBCO, Inc. and any members of the controlled group of
corporations of which it is a member within the meaning of Section 414(b) of the
Code, which with the consent of the Board of Directors of HUBCO, Inc. adopts
this Plan.

     1.5 "Compensation Committee" means the Compensation Committee of the Board
of Directors.

     1.6 "Eligible Member" means any outside director of the Board of Directors
other than an honorary director or director emeritus.

     1.7 "Fees" means all fees received by a Participant including retainers,
regular meeting fees, committee fees and special meeting fees.

     1.8 "Participant" means an Eligible Member who becomes a Participant
pursuant to Article II.

     1.9 "Plan" means this HUBCO, Inc. Directors Deferred Compensation Plan, as
set forth herein, as amended from time to time.

     1.10 "Plan Year" means each twelve (12) consecutive month

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<PAGE>

period commencing each January 1 and ending on the following December 31.

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

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<PAGE>
                                   ARTICLE II

                                 Participation

     2.1 Election

     An Eligible Member will become a Participant upon filing a Notice of
Participation with the Compensation Committee within thirty days after the
Effective Date of this Plan. Fees will be deferred pursuant to the Notice of
Participation effective as of the first day of the month after filing the
Notice.

     In the case of an individual elected to fill a vacancy by the Board of
Directors or stockholders after the Effective Date of this Plan, the Eligible
Member will become a Participant, if a Notice of Participation is filed within
thirty days after election to the Board of Directors and will apply to Fees
received after such Notice of Participation is filed. An Eligible Member may
elect to defer either 100% or 50% of his Fees. A separate election may be made
with respect to Fees paid as a retainer.

     2.2 Continuance of Participation

     After an individual becomes a Participant in this Plan, his membership
shall continue until his Account Balance is distributed to him or his designated
beneficiary in full. A Participant may elect to cease deferring at any time
under this Plan by filing a Notice of Termination with the Compensation
Committee.

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<PAGE>

                                  ARTICLE III

                                Interest Credits

     Amounts deferred by a Participant pursuant to Section 2.1 shall be credited
with interest at the highest rate Hudson United Bank is paying from time to time
on passbook savings and will be compounded and credited to the account of each
Participant in the same manner as interest on such passbook savings account.

                                   ARTICLE IV

                                 Death Benefits

     4.1 Death Benefit

     If a Director dies while actively serving in such capacity, or prior to
receipt of all installments under Article V, payment of the Participant's
remaining Account Balance shall be made to his designated Beneficiary in a lump
sum as of the 1st day of January next following the date of his death.

     4.2 Designated Beneficiary

     A Participant shall designate a beneficiary on the Notice of Participation
to receive any remaining Account Balance following his death. In the event the
Participant fails to designate a beneficiary, or the beneficiary predeceases
him, payment shall be made to the surviving spouse, or if there is no surviving
spouse, the estate.

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<PAGE>
                                   ARTICLE V

                                Time of Payment

     5.1 Termination of Director Status

     A Participant's Account Balance shall be paid in a lump sum within thirty
days after the date he ceases to serve as a Director or in ten annual
installments beginning with the 1st day of date of the calendar year immediately
following the date he ceases to serve as a Director. Each subsequent annual
payment of the Participant's Account Balance shall be paid on January 1st. A
Participant shall choose whether payment will be made in a lump sum or in
installments when he files the Notice of Participation with the Compensation
Committee.

     5.2 Notice of Termination

     If a Participant files a Notice of Termination with the Compensation
Committee pursuant to Section 2.2, the election method chosen in the Notice of
Participation shall be disregarded and payment of the Participant's Account
Balance shall be made in ten annual installments commencing with the 1st day of
the calendar year immediately following the date the Notice of Termination is
filed.

     5.3 Acceleration of Payment

     Notwithstanding the foregoing Sections, the Compensation Committee shall
accelerate any remaining installments and make payment in a lump sum within
thirty days after occurrence of one of following events:

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<PAGE>

     (a) If a former Director becomes a proprietor, officer, partner, employee
     or otherwise becomes affiliated with any business that is in competition
     with the Company; or

     (b) If a former Director becomes disabled or incurs a hardship, which
     constitutes an unforeseeable emergency. An unforeseeable emergency is a
     severe financial hardship of the Participant resulting from a sudden and
     unexpected illness or accident of the Participant or of a dependant (as
     defined in Section 152(a) of the Code) of the Participant, loss of the
     Participant's property due to casualty, or other similar extraordinary and
     unforeseeable circumstances arising as a result of events beyond the
     control of the Participant. Payment may not be made to the extent that such
     hardship is or may be relieved:

          (i)  Through reimbursement or compensation by insurance
          or otherwise;

          (ii) By liquidation of the Participant's assets, to the extent the
          liquidation of such assets would not itself cause sever financial
          hardship; or

          (iii) By cessation of deferrals under the Plan.

     Lump sum distributions of amounts because of an unforeseeable emergency
     must only be permitted to the extent reasonably needed to satisfy the
     emergency need.

                                   ARTICLE VI

                                 Administration

     6.1 Compensation Committee

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

     6.2 Responsibilities and Powers of the Compensation Committee

     The Compensation Committee shall have the responsibility:

     (a) To administer the Plan in accordance with the terms hereof, and to
     exercise all powers specifically conferred upon

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<PAGE>

     the Compensation Committee hereby or necessary to carry out the provisions
     thereof;

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

     (c) The Compensation Committee shall be responsible for construing this
     Plan, which construction shall be conclusive, correcting any defects,
     supplying omissions, and reconciling inconsistencies to the extent
     necessary to effectuate the Plan.

     6.3 Operation of the Compensation Committee

     In carrying out the Compensation Committee's functions hereunder:

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

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

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

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

     6.4  Indemnification

     In addition to any other indemnification that a fiduciary, including but
not limited to a member of the Compensation Committee is entitled to, the
Company shall indemnify such fiduciary from all

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<PAGE>

claims for liability, loss or damage (including payment of expenses in
connection with defense against such claim) arising from any act or failure to
act which constitutes a breach of such individual's fiduciary responsibilities
with respect to this Plan under any aspects of the law.

                                  ARTICLE VII

                                 Miscellaneous

     7.1 Benefits Payable by the Company

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

     7.2 Amendment or Termination

     (a) The Board of Directors of HUBCO, Inc. reserves the right to amend,
modify, or restate or terminate the Plan; provided, however, that no such action
by the Board of Directors shall reduce

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<PAGE>

a Participant's existing Account Balance. Any amendment to the Plan shall be
made in writing by HUBCO's Board of Directors, with or without a meeting, or
shall be made in writing by the Compensation Committee to the extent that
HUBCO's Board of Directors has specifically delegated the authority to make such
amendment to the Plan the Compensation Committee.

     (b) If the Plan is terminated, a determination shall be made of each
Participant's Account Balance as of the Plan termination date (determined in
accordance with Section 7.2(a)). Each Participant's Account Balance shall be
payable to the Participant at the time it would have been payable under Articles
IV and V if the Plan had not been terminated; provided, however, that HUBCO's
Board of Directors may elect to instead immediately distribute all Participants'
Account Balances in lump sums upon Plan termination.

     7.3 Payments to Incompetents

     If a Participant entitled to receive any benefits hereunder is adjudged to
be legally incapable of giving valid receipt and discharge for such benefits,
they will be paid to the duly appointed guardian of such incompetent or to such
other legally appointed person as the Compensation Committee might designate.
Such payment shall, to the extent made, be deemed a complete discharge of any
liability for such payment under the Plan.

     7.4 Inalienability of Benefits

     The right of any person to any benefit or payment under the Plan shall not
be subject to voluntary or involuntary transfer, alienation or assignment, and,
to the fullest extent permitted by

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<PAGE>

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

     7.5 Governing Law

     The provisions of the Plan will be construed according to the laws of the
State of New Jersey.

                                      -11-RESIGNATION AGREEMENT

     THIS RESIGNATION AGREEMENT (this "Agreement"), is entered into as of July
14, 2000 by and among Hudson United Bancorp ("HUB"), and Betsy Z. Cohen
(hereinafter referred to as "Cohen").

                                   BACKGROUND

     WHEREAS, Cohen is currently a member of the Board of Directors of HUB; and

     WHEREAS, Cohen is resigning, effective today, as a Director of
HUB and will not be a nominee  for  election  as a  Director  of HUB at the 2000
Annual Meeting of HUB; and

     WHEREAS, Cohen desires to sell, and desires to have certain persons and
entities affiliated with her and listed on Exhibit A hereto (the "Cohen
Affiliates") sell, an aggregate of 908,612.348 shares of HUB common stock, which
shares are listed on Exhibit A hereto (the "Shares") to HUB at a price which is
a premium above the current market price of HUB common stock and desires to
receive certain other benefits relating to her Supplemental Employee Retirement
Plan ("SERP"); and

     WHEREAS, in consideration of HUB's agreement to purchase the Shares and the
additional benefits being given to Cohen with respect to the SERP, Cohen has
agreed to be subject to the terms and conditions of this Agreement and, on or
before the Closing referred to herein at which their Shares are purchased, the
Cohen Affiliates will execute and deliver to HUB a copy of this Agreement
agreeing to be bound by the provisions of Article III hereof. (For those Cohen
Affiliates which are trusts, the individuals for whose benefit the trusts are
formed will execute and deliver to HUB a copy of this Agreement agreeing to be
bound by the provisions of Article III hereof, and all

<PAGE>

references in this Agreement to "Cohen Affiliates" shall be deemed to be
references to such individuals for such purposes.)

     NOW, THEREFORE, for good and valuable consideration, HUB and Cohen (and
with respect to Article III the Cohen Affiliates who execute and deliver to HUB
a copy of this Agreement), each intending to be legally bound hereby, agree as
follows:

                                    ARTICLE I

                                TERM OF AGREEMENT

     The term of the covenants under this Agreement shall commence on the date
hereof, and shall continue in effect for a period of five (5) years (hereinafter
the "Term").

                                   ARTICLE II

                                 STOCK PURCHASE

     2.1 PURCHASE AND SALE OF SHARES. Subject to the terms and conditions of
this Agreement, HUB agrees to purchase and acquire from Cohen and the Cohen
Affiliates, and Cohen agrees to sell, assign, transfer and deliver to HUB (or
cause the Cohen Affiliates to sell, assign, transfer and deliver to HUB, as the
case may be) the Shares, free and clear of all liens and encumbrances. Cohen
represents and warrants that all the Shares were beneficially owed by her or her
immediate family for a period of more than six (6) months (or the Shares and the
options pursuant to which the Shares were acquired were beneficially owned for
an aggregate of more than six (6) months) and that the Shares listed on Exhibit
A hereto represent all of the Shares beneficially owed by her and all of the
Shares beneficially owned by her family. The purchase and sale of the Shares
shall occur on a date mutually agreed by HUB and Cohen, but not later than July
17, 2000 (the "Closing Date"); provided that if, on the Closing Date, Cohen has
not collected the signatures

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<PAGE>

of all Affiliates on copies of this Agreement for delivery to HUB and/or all
Affiliates are not prepared to close (in person or through powers of attorney in
form reasonably satisfactory to HUB), then the closing of the purchase and sale
of the Shares shall occur only as to those shares as to which such conditions
are met and a subsequent closing shall occur as to the remaining shares (without
any interest or other increase in the purchase price arising from the delay) on
a date mutually agreed by HUB and Cohen (also a "Closing Date"), but in no event
more than five business days following written notice from Cohen to HUB that she
has collected the signatures of all Affiliates on copies of this Agreement for
delivery to HUB and that she and the Affiliates are prepared to close (in person
or through powers of attorney in form reasonably satisfactory to HUB) on all
remaining shares.

     2.2 PURCHASE PRICE FOR SHARES. As consideration for the Shares, HUB shall
pay to Cohen (or to Cohen and one or more of the Cohen Affiliates if so directed
by Cohen in writing), on the Closing Date, against delivery of the Shares,
$25.625 per Share. Based on all 908,612.348 Shares being purchased and sold, the
total consideration for the Shares would be $23,283,191.42. Payment shall be
made by wire transfer in immediately available funds to an account specified by
Cohen in writing (or divided among multiple accounts as may be specified by
Cohen in writing). Purchase and sale of the Shares on the Closing Date is
referred to herein as the "Closing".

     2.3 POST-CLOSING PURCHASE PRICE ADJUSTMENT. The parties shall consult the
Wall Street Journal to determine the closing price of HUB common stock on each
trading day during the period (the "Measurement Period") beginning on July 14,
2000 and ending on (and including) September 8, 2000. At the conclusion of the
Measurement Period, the parties shall determine the average of the five highest
closing prices during the Measurement Period (the "Five High Day Average"). If
the Five High Day Average exceeds $25.625, then on September 11, 2000, HUB

                                      -3-
<PAGE>

shall pay to Cohen (or to Cohen and one or more of the Cohen Affiliates if so
directed by Cohen in writing) as additional consideration for the Shares (by
wire transfer in immediately available funds to the account or accounts
previously specified by Cohen in writing) an amount equal to such excess
multiplied by the number of Shares which HUB had purchased at the Closing.

                                   ARTICLE III

                                   STANDSTILL

     Cohen agrees that she will not, will cause her spouse not to, and will urge
the rest of her immediate family not to, alone or in concert with others,
directly or indirectly, during the Term, do any of the things listed in clauses
(i) through (vii) below. Each Cohen Affiliate who has executed and delivered to
HUB a copy of this Agreement agrees that he, she or it will not, will cause his
or her spouse (if any) not to, and will urge the rest of his or her immediate
family (if any) not to, alone or in concert with others, directly or indirectly,
during the Term, do any of the things listed in clauses (i) through (vii) below:

          (i) beneficially own any voting securities of HUB,

          (ii) propose to HUB or any other person any transaction between any
     person or entity with whom Cohen is affiliated, whether directly or
     indirectly, as shareholder, employee, director, officer, principal or
     agent, or in any other capacity, and HUB and/or its security holders or
     involving any of its securities or security holders.

          (iii) assist, advise or encourage any other persons in acquiring,
     directly or indirectly, control of HUB or any of HUB's securities,
     businesses or assets,

          (iv) solicit proxies or initiate, propose or become a "participant" in
     a "solicitation" (as such terms are defined in Regulation 14A under the
     Exchange Act) in opposition

                                      -4-
<PAGE>

     to any matter which has been recommended by the majority of members of the
     Board of Directors of HUB or in favor of any matter which has not been
     approved by a majority of the Directors of HUB,

          (v) act to seek to affect or influence the control of the management
     or Board of Directors of HUB or its business operations or affairs, or make
     any public statements with respect thereto,

          (vi) act for the purpose of acquiring, holding, voting or disposing of
     voting securities of the Company, or otherwise become a "person" or a
     member of a "group" within the meaning of Section 13(d) of the Securities
     Exchange Act of 1934, or

          (vii) aid or abet or otherwise induce any person to take any of the
     actions enumerated in (i) through (vi) of
this Article III.

     If a publicly held company with which Cohen is affiliated as a director but
which she does not control takes any action set forth above, such action shall
not be deemed a breach of this Article III if Cohen has neither suggested,
initiated nor encouraged such action, nor participated in the company's
consideration of such action.

     Cohen agrees that she will, will cause her spouse to, and will urge the
rest of her immediate family to, vote all shares held of record as of the record
date for HUB's 2000 Annual Meeting in accordance with the recommendations of HUB
management. Each Cohen Affiliate who has executed and delivered to HUB a copy of
this Agreement agrees that he, she or it will, will cause his or her spouse (if
any) to, and will urge the rest of his or her immediate family (if any) to, vote
all shares held of record as of the record date for HUB's 2000 Annual Meeting in
accordance with the recommendations of HUB management.

                                      -5-
<PAGE>

                                   ARTICLE IV

                                NON-DISPARAGEMENT

     During the Term, Cohen shall not directly or indirectly herself or through
her immediate family make or cause to be made any written or oral statement
disseminated outside of her immediate family which does, is intended to, or
which a reasonable person hearing or reading the statement would assume is
intended to, disparage HUB or a subsidiary of HUB, or any director, officer or
employee of HUB or of any of its subsidiaries with respect to any matter
relating to or reflecting on their business or the conduct of their business.

     During the Term, HUB shall, and shall cause its subsidiaries or other
entities over which it exercises control not to, not directly or indirectly
itself or through its directors or officers make or cause to be made any written
or oral statement disseminated outside of HUB or such subsidiaries or other
entities which does, is intended to, or which a reasonable person hearing or
reading the statement would assume is intended to, disparage Cohen with respect
to any matter relating to or reflecting on Cohen's service as an officer or
director of HUB or its predecessors or affiliates, or on the businesses
conducted by her or her conduct with respect to those businesses.

                                    ARTICLE V

                              ACCELERATION OF SERP

     Pursuant to Section 5.b of the Employment Agreement dated as of March 19,
1997 but effective as of January 1, 1997, as between JeffBanks, Inc.
("JeffBanks") and Cohen (the "Employment Agreement"), a "SERP" was established
for the benefit of Cohen (the "SERP"). In the Termination of Employment
Agreement dated as of March 31, 2000, between Cohen and HUB, for itself and as
successor by merger to JeffBanks (the "Termination Agreement"), the Employment
Agreement was terminated. However, Section 3 of the Termination Agreement
provided, among

                                      -6-
<PAGE>

other things, that the termination of the Employment Agreement was not to affect
Cohen's rights under the SERP. In consideration of the mutual promises provided
hereunder, HUB hereby agrees to accelerate the date as of which the SERP
benefits will commence to Cohen to the first day of the calendar month following
the month in which she attains age sixty (60). At that time, she will begin to
receive $ 28,437.50 per month for her life until the month of her death, except
that in the event that her death occurs prior to her receipt of at least one
hundred twenty (120) months of retirement benefits under the SERP, then such
retirement benefits shall continue to be paid to Cohen's estate (or designated
beneficiary, as applicable) until a total of one hundred twenty (120) months of
such benefits shall have been paid. Notwithstanding the last clause of the
preceding sentence, any payments due to Cohen's estate (or designated
beneficiary, as applicable) following her death under the SERP shall be paid to
the estate (or designated beneficiary, as applicable) in a lump sum within six
(6) months after her death, calculated as the present value of the remaining
payments due, discounted using the then current Federal Reserve Bank Discount
Rate, plus one percent (1%). In addition, HUB agrees to establish a grantor
trust (the "Rabbi Trust") with a trustee to be mutually agreed upon by HUB and
Cohen. Within thirty (30) days of the date hereof, HUB will contribute such
assets to the Rabbi Trust as are mutually agreed by HUB and Cohen to be
reasonably necessary to fund the SERP benefits, described herein, using a 7.5%
discount rate. HUB and Cohen shall mutually agree on the types of investments
which are to be made by the Rabbi Trust, and the agreement governing the Rabbi
Trust shall provide that, upon a change in control of HUB, additional assets
shall be contributed to the trust, if and to the extent necessary so that the
trust has a level of assets at the time of the change in control at least as
high as it would have had if the investments made by the trust between the date
of its creation and the date of the change in control had earned a 7.5% rate of
return.

                                      -7-
<PAGE>

                                   ARTICLE VI

                           AGREEMENTS REGARDING OFFICE

     On or before July 15, 2000, Cohen shall terminate her use of the office
space currently occupied by her at 1845 Walnut Street, Philadelphia,
Pennsylvania. Cohen shall be entitled to retain, without additional payment to
HUB, the office furniture and furnishings currently located at the office space
currently occupied by her at 1845 Walnut Street which are described on Exhibit B
hereto.

                                   ARTICLE VII

                                  MISCELLANEOUS

     7.1 SPECIFIC PERFORMANCE. In the event of an actual or threatened breach by
Cohen of any of the covenants contained in this Agreement, it is agreed that HUB
and its respective successors shall be entitled, in addition to any other
remedies at law, to injunctive relief restraining Cohen from committing or
attempting such breach.

     7.2 CHANGES. This Agreement may not be modified, changed, amended, or
altered except in a writing signed by Cohen and HUB.

     7.3 NOTICES. All notices given or required to be given herein shall be in
writing and be hand-delivered or sent by United States first-class certified or
registered mail, return receipt requested, postage prepaid, to Cohen at the
last-known residence or business address for Cohen, and to HUB at the principal
executive office for HUB (or any successor thereto), to the attention of the
Chief Executive Officer. All such notices shall be effective when received or
open refusal of the addressee to accept delivery. Either party by a notice in
writing to the other party may change or designate the place for receipt of such
notices.

                                      -8-
<PAGE>

     7.4 NON-ASSIGNABILITY. This Agreement is personal to each of the parties
and none of the parties may assign or delegate any of its rights or obligations
under this Agreement without the prior written consent of the other party.

     7.5 ENTIRE AGREEMENT. This Agreement contains the entire agreement between
the parties hereto with respect to the matters contemplated hereby, and
supersedes all prior negotiations, arrangements or understandings, written or
oral, with respect thereto. Except as specifically contemplated hereby, this
Agreement does not affect any existing agreement between the parties hereto, or
between either party hereto (or an affiliate of that party) and an affiliate of
the other party.

     7.6 GOVERNING LAW. This Agreement shall be governed in all respects and be
interpreted by and under the laws of the State of New Jersey.

     7.7 JURISDICTION; SERVICE. The federal and state courts located within the
State of New Jersey shall have exclusive jurisdiction with respect to any legal
proceeding brought to enforce any aspect of this Agreement. Service of process
may be effected by regular mail to the corporate headquarters of HUB and to the
last known residence or business address of Cohen.

     7.8 LEGAL FEES. HUB shall reimburse Cohen for the reasonable legal fees and
expenses incurred by Cohen in connection with the negotiation of this Agreement
not to exceed $5,000 ($10,000 when combined with fees and expenses for William
Lamb).

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -9-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on
the date and year first written above.

                                                 HUDSON UNITED BANCORP

                                                 By: ___________________________
                                                        Kenneth T. Neilson
                                                        Chairman, President and
                                                        Chief Executive Officer

                                                 -------------------------------
                                                 BETSY Z. COHEN

The undersigned "Cohen Affiliates" have executed and delivered to HUB a copy of
this Agreement, thereby evidencing our intent to be bound by Article III hereof:

- -------------------------------     --------------------------------

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                                      -10-

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