On July 31, 2009, Unity Bank (the "Bank"), a New Jersey state chartered commercial bank and the wholly owned subsidiary of the Registrant, entered into the Third Amendment to Lease (the "Amended Lease") with Clinton Unity Group, LLC (the "Landlord"), amending the lease dated December 15, 1995, previously amended on March 1, 1997 and September 19, 2003. The Amended Lease is with respect to the property located at 64 Old Highway 22, Clinton, New Jersey (the "Property"), where the Bank and the Registrant's headquarters are located.

The term of the Amended Lease has been extended until December 31, 2013 at a reduced annual base rent of $400,000 from $550,000, payable in monthly installments of $33,333.34. The annual base rent shall be subject to annual increases equal to the increases in the consumer price index for the New York Metropolitan area; provided that, in no event shall the base rent increase by more than 3% per year.

In addition, the purchase option of the Amended Lease was revised to be exercisable between July 1, 2011 and June 30, 2013 at a price of the appraised value of the Property plus five hundred thousand ($500,000) dollars. If the Bank utilizes such option, the Bank agrees to further reimburse a portion of all capital improvements undertaken by the Landlord on the Property. The portion to be reimbursed shall be determined by a formula described in the Amended Lease.

David D. Dallas, the Chairman of the Board of the Registrant and the Bank, and Robert H. Dallas, a director of the Registrant and the Bank, are each members of the Landlord. Robert J. Van Volkenburgh Sr., the former Chairman of the Registrant and the Bank is a member of the Landlord. Mr. Robert J. Van Volkenburgh Sr. has no current position with the Registrant or the Bank. Robert J. Van Volkenburgh Jr. is a member of the Landlord. Mr. Robert J. Van Volkenburgh Jr. has no current position with the Registrant or the Bank. Daniel Van Volkenburgh is a member of the Landlord. Mr. Daniel Van Volkenburgh has no current position with the Registrant or the Bank. The Amended Lease was approved by the disinterested members of the Board of Directors.

A copy of the Amended Lease is annexed hereto as Exhibit 10.1

(d) Exhibits

Exhibit   Description of Exhibit



10.1       Third Amendment to Lease by and between Clinton
           Unity Group, LLC and Unity Bank dated July 31, 2009