EMPLOYMENT AGREEMENT (the “Agreement”) made as of this 23 rd day of March, 2004 by
and between JAMES A. HUGHES, an individual residing at 4 Lance Road, Lebanon, New Jersey 08833
(“Executive”), UNITY BANK, a New Jersey state bank with its principal place of business located at 64 Old
Highway 22, Clinton, New Jersey 08809 (the “Bank”), UNITY BANCORP, INC. a New Jersey corporation
and holding company of the Bank with its principal place of business located at 64 Old Highway 22, Clinton,
New Jersey 08809 (“Unity”) (Bank and Unity collectively, “Employer”).
WHEREAS, Executive and Employer desire for Executive to continue his employment with the
Employer and desire that this Agreement govern the terms and conditions of Executive’s employment.
NOW, THEREFORE, in consideration of the premises and covenants contained herein, and with the
intent to be legally bound hereby, the parties hereto hereby agree as follows:
1. Employment. Employer hereby agrees to employ the Executive, and the Executive hereby
accepts such employment, upon the terms and conditions set forth herein.
2. Position and Duties. The Executive shall be employed as President of Employer, to perform
such services in that capacity as are usual and customary for comparable institutions and as shall from time to time
be established the Board of Directors of the Employer.
3. Cash Compensation. Employer shall pay to the Executive compensation for his services as
(a) Base Salary. The Executive shall be entitled to receive an annual base salary (the “Base
Salary”) of $185,000 which shall be payable in installments in accordance with Employer’s usual payroll method.
Annually thereafter, on or prior to the anniversary date of this Agreement, the Board of Directors shall review the
Executive’s performance, the status of Employer and such other factors as the Board of Directors or a committee
thereof shall deem a