SETTLEMENT AGREEMENT AND GENERAL RELEASE
Settlement Agreement and General Release (“Agreement”) dated as of December 31, 2003, by and
among Unity Bank, Unity Bancorp., Inc. each having an address at 64 Old Highway 22, Clinton, New Jersey
08809 (collectively “Unity”), and Anthony J. Feraro, residing at 10 Winterberry Court, Whitehouse Station, New
Jersey 08889, (referred to throughout this Agreement as “Feraro”).
WHEREAS, Unity and Feraro are parties to an Employment Agreement dated as of February 26, 2002
(the “Employment Agreement”); and
WHEREAS, Feraro has been employed by Unity and is a Director and Officer of Unity Bank, Unity
Bancorp, Inc., and various subsidiaries thereof; and
WHEREAS, Unity and Feraro have agreed that Feraro’s relationship with Unity Bank will cease
effective December 31, 2003.
NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby
acknowledged, the parties agree as follows:
1. Last Day of Employment . Feraro’s last day of employment with Unity was December 31,
2. Payment . Unity Bank shall pay to Feraro: (i) One Hundred Thousand Dollars
($100,000.00) within two (2) business days after receipt of a letter from Feraro in the form attached hereto as
Exhibit A; and (ii) thereafter, during 2004, Two Hundred Twenty Thousand Dollars ($220,000.00) payable in
twenty-six bi-weekly installments of Eight Thousand, Four Hundred Sixty-One Dollars and Fifty-Four Cents
($8,461.54) which shall be paid as part of and with Unity Bank’s regular payroll through December 31, 2004
(the “Severance Period”). Feraro, his heirs and executors, shall have the right to receive all such payments
regardless of the employment or death of Feraro during or after the Severance Period.
3. No Other Payments . Feraro acknowledges and agrees that, except as set forth in this