(e) On March 19, 2009, Unity Bancorp, Inc. ("Unity"), entered into Waiver Agreements with each of James A. Hughes, Alan J. Bedner, Michael F. Downes and John J. Kauchak, waiving certain provisions of Unity's employment agreement with Mr. Hughes and its retention agreements with the other executives. In December 2008, Unity participated in the U.S. Treasury's Capital Purchase Program ("CPP") and received an investment of $20.6 million. The employment and retention agreements complied with all of the terms of the CPP then in effect. However, the terms of the CPP were revised by the American Reinvestment and Recovery Act of 2009, adopted on February 17, 2009 (the "ARRA"). The ARRA prohibits the payment of severance to the senior executive officers of an institution participating in the CPP. In order to comply with this restriction, each of Messrs. Hughes, Bedner, Downes and Kauchak have waived their respective rights to severance under their respective agreements.

(d) Exhibits

Exhibit   Description of Exhibit



10.1       Waiver Agreement executed by James A. Hughes
10.2       Form of Waiver Agreement related to Retention
           Agreements with each of Alan J. Bedner, Michael F.
           Downes and John J. Kauchak