HUDSON UNITED BANCORP
MAYO AGREEMENT
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Letter Agreement
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS LETTER AGREEMENT</B> (the
&#147;Agreement&#148;), is made this 1 day of December, 2004, among Hudson United
Bancorp, a New Jersey corporation, Hudson United Bank, a New Jersey state chartered bank
(collectively, the &#147;Company&#148;), that maintain principal offices at 1000 MacArthur
Boulevard, Mahwah, New Jersey, and James Mayo (the &#147;Executive&#148;). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          In consideration of a payment by the Company of $306,800.00, receipt of which
          is hereby acknowledged by the Executive, the Change in Control, Severance and
          Employment Agreement entered into between the Company and the Executive, as
          amended on September 17, 2003, is hereby terminated. The Company and the
          Executive agree that such payment relieves the Company of all obligations and
          terminates all rights of the Executive under such Change in Control, Severance
          and Employment Agreement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The only benefits payable by the Company to the Executive arising from the
          Company&#146;s termination of employment of the Executive with the Company or
          its subsidiaries shall be those, if any, set forth in the new Company-wide
          severance plan, adopted by the Company on December 1, 2004. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The terms of this Agreement shall be governed by, and interpreted and construed
          in accordance with, the laws of New Jersey. This Agreement supersedes all prior
          agreements and understandings with respect to the matters covered hereby. Any
          amendment of this Agreement may be made only in a writing executed by the
          Company and the Executive, and no amendment or termination of this Agreement
          shall be effective unless and until made in such a writing. This Agreement may
          be executed in two or more counterparts, each of which shall be deemed an
          original, and it shall not be necessary in making proof of this Agreement to
          produce or account for more than one such counterpart. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the Company has caused this Letter Agreement to be signed by its duly
authorized representatives pursuant to the authority of its Board of Directors&#146;
Compensation Committee, and the Executive has personally executed this Letter Agreement,
as his own act, all as of the day and year first above written. </FONT></P>

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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTEST:<BR><BR><BR>
<BR>&nbsp;&nbsp;/s/&nbsp;&nbsp;Ann LaCarubba<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Ann LaCarrubba, Assistant<BR>Corporate Secretary&nbsp;&nbsp;&nbsp;&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>HUDSON UNITED BANCORP AND <BR>HUDSON UNITED BANK<BR><BR>
<BR>By:&nbsp;&nbsp;/s/ John H. Tatigian, Jr.<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John H. Tatigian, Jr., &nbsp;&nbsp;&nbsp;&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairperson,
Compensation Committee</FONT></TD>
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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WITNESS:<BR><BR>
<BR>&nbsp;&nbsp;/s/&nbsp;&nbsp;Victoria S. Freund<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Victoria S. Freund<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXECUTIVE<BR><BR>
<BR>&nbsp;&nbsp;/s/&nbsp;&nbsp;James Mayo<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;James Mayo<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
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