THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Hudson United Bancorp (HU)

3/23/2005 Proxy Information

The son-in-law of Mr. Calcagnini, a director of the Company, is a partner in a law firm that was paid $127,325 in legal fees by HUB for services to HUB in 2004 in connection with the closing of loans. Of this amount, $67,237 was paid directly by HUB's customers. Management believes the terms and conditions of these transactions with this law firm were equivalent to terms and conditions available from an independent third party. Mr. Calcagnini himself received no benefits from these payments.

During 2004, HUB agreed to a $5 million sponsorship of Quinnipiac University's new athletic center, which will be known as the Hudson United Bank Center. Mr. Calcagnini, a director of the Company, is also a member of Quinnipiac University's Board of Trustees and chairman of the finance committee. Mr. Calcagnini himself received no benefits from HUB's sponsorship of Quinnipiac University's new athletic center.

Mr. W. Peter McBride, a director of the Company, owns 2% of the outstanding shares of McBride Corporate Real Estate. McBride Corporate Real Estate was retained to assist in the sale and/or leasing of various Company and/or HUB properties and earned commissions of $27,977 during 2004. Management believes the terms and conditions of the transactions with McBride Corporate Real Estate were equivalent to terms and conditions available from an independent third party.

During 2004, Poggi Press was paid $133,754 for printing work. Mr. Poggi's two sons own 100% and are executive officers of Poggi Press. Management believes the terms and conditions of the transactions with Poggi Press were equivalent to terms and conditions available from an independent third party.

3/17/2004 Proxy Information

Compensation Committee Interlocks and Insider Participation

The members of the Company's Compensation Committee during 2003 were Robert J. Burke, Joan David, John H. Tatigian, Jr. and Charles F.X. Poggi who served as chairman of the Compensation Committee until the fourth quarter 2003.

During 2003, Poggi Press was paid $205,036 for printing work. Mr. Poggi's two sons own 100%, and are executive officers, of Poggi Press. Management believes the terms and conditions of the transactions with Poggi Press were equivalent to terms and conditions available from an independent third party.

Certain Transactions with Management

HUB has made in the past and, assuming continued satisfaction of generally applicable credit standards, expects to continue to make loans to directors, executive officers and their associates (i.e., corporations or organizations for which they serve as officers or directors or in which they have beneficial ownership interests of 10% or more). These loans have been made in the ordinary course of HUB's banking business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and do not involve more than the normal risk of collectibility or other unfavorable features. Borrowings from HUB by directors, executive officers and their associates during 2003 and during 2004 through the date of this proxy statement were substantially less than 10% of the bank's equity capital for any one director or executive officer (together with their associates) and substantially less than 20% of the bank's equity capital for all directors and executive officers and their associates as a group.

The son-in-law of Mr. Calcagnini, a director of the Company, is a partner in a law firm which was paid approximately $170,805 in legal fees by HUB and $59,319 in legal fees by HUB's customers for services to HUB in 2003. Management believes the terms and conditions of these transactions were equivalent to terms and conditions available from an independent third party. Mr. Calcagnini himself received no benefits from these payments.

3/14/2003 Proxy Information

Mr. Poggi was formerly President of Poggi Press, a general printing company. He is no longer a director, shareholder or executive officer of Poggi Press. During 2002, Poggi Press was paid $267,305 for printing work. Management believes the terms and conditions of the transactions with Poggi Press were equivalent to terms and conditions available from an independent third party.

Mr. McBride own 3% of the outstanding shares of McBride Corporate Real Estate. McBride Corporate Real Estate was retained to assist in the sale and/or leasing of various Hudson United Bancorp properties and in doing so earned commissions of approximately $87,576. Management believes the terms and conditions of the transactions with McBride Corporate Real Estate were equivalent to terms and conditions available from an independent third party.

HUB has made in the past and, assuming continued satisfaction of generally applicable credit standards, expects to continue to make loans to directors, executive officers and their associates (i.e., corporations or organizations for which they serve as officers or directors or in which they have beneficial ownership interests of 10% or more). These loans have been made in the ordinary course of the banking business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and do not involve more than the normal risk of collectibility or other unfavorable features. Directors, executive officers and their associates during 2002 or during 2003 through the date of this proxy statement borrowed from HUB an amount substantially less than 10% of the bank's equity capital for any one director or executive officer (together with their associates) and substantially less than 20% of the bank's equity capital for all directors and executive officers and their associates as a group.

The son-in-law of Mr. Calcagnini, a director of the Company, is a partner in a law firm which was paid approximately $123,780 in legal fees by HUB and $52,450 in legal fees by HUB's customers for services to HUB in 2002. Management believes the terms and conditions of these transactions were equivalent to terms and conditions available from an independent third party. Mr. Calcagnini himself received no benefits from these payments.

As a result of the Corporation's acquisition of Shoppers Charge Account Company in 1994, the Corporation became the successor to a Split Dollar Life Insurance Agreement with Thomas Nelson and his wife. The Split Dollar Life Agreement provided for a $400,000 face amount insurance policy on the life of Mr. Nelson. On December 14, 2002, the Split Dollar Agreement was terminated by mutual agreement. Mr. Nelson reimbursed the Corporation $73,260 for all premiums previously paid by the Corporation and the Corporation released any interest in the policy on the life of Mr. Nelson. The cash surrender value of the policy at the time of the mutual agreement to terminate was $62,892 and the death value was $431,038.