EXHIBIT 10.1
                         KEYSTONE HERITAGE GROUP, INC.
                                    1995 10K

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT made this 1st day of March,  1987 effective  January 1, 1987
by and  between  the  Lebanon  Valley  National  Bank of  Lebanon,  Pennsylvania
(hereinafter referred to as "Bank") and Albert B. Murry (hereinafter referred to
as "Executive")

                                WITNESSETH THAT:

     WHEREAS,  Executive has been  employed by Bank and is presently  serving as
its President and Chief Executive Officer; and

     WHEREAS,  Bank  wishes  to  assure  itself  of the  continued  services  of
Executive  during  the period and on the terms and  conditions  hereinafter  set
forth; and

     WHEREAS, Executive is willing to serve the Bank on a full time basis during
such period on such terms and conditions.

     NOW, THEREFORE,  in consideration of the promises hereinafter set forth, it
is mutually agreed as follows:

     1. Except as  otherwise  provided in  paragraph 2 below,  Bank shall employ
Executive as its Chief  Executive  officer or in any capacities as may from time
to time be specified by the Board of Directors,  provided that such duties shall
be consistent with Executive's current status as Bank's Chief Executive Officer.
Said  employment  shall be  continuous  and on a full time  basis for the period
beginning  January 1, 1987 and ending on December 31,  1989.  On the last day of
each month this  Agreement  shall  automatically  be extended for an  additional
month so that there

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is always a three year contract in effect.  Unless sooner terminated pursuant to
paragraph  2, below,  Bank may  terminate  this  Agreement at any time by giving
Executive 36 month's  written notice of the effective date of said  termination.
Executive  accepts  such  employment  and agrees that during such period he will
devote his best efforts,  and his full  business time and attention  (except for
normal  vacation  periods or illness) to the  performance of such duties for the
Bank as may be assigned to him from time to time by the Bank.

     2. Notwithstanding the provisions of paragraph 1 above, this contract shall
terminate under the following additional conditions:

          a. Upon the death of Executive.

          b. Mental or physical  disability of Executive which prevents him from
performing his normal duties for a period in excess of six (6) months.

          c. At the option of Executive by giving six (6) months  written notice
to Bank of his intent to resign or retire provided,  however,  that in the event
that Executive gives such notice, Bank shall have the option of terminating this
Agreement by giving  Executive  two (2) months  written  notice of its intent to
accelerate the termination date.

          d.  At the  option  of  Bank  if  Executive  is  convicted  of a crime
involving moral turpitude  involving actions not related to his employment or is
charged with a criminal offense arising out of his employment. Termination shall
become  effective  two (2) weeks after  written  notice to  Executive  of Bank's
intent to

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terminate this Agreement pursuant to this  subparagraph.  In the event that this
Agreement is terminated as the result of charges against Executive,  it shall be
reinstated retroactively in the event that said charges are dismissed.

          3. Beginning January 1, 1987 and continuing through December 31, 1987,
Bank will pay to  Executive  a base  salary at the  annual  rate of One  Hundred
Twenty-Two Thousand Dollars ($122,000.00) payable in bimonthly installments.  No
later  than  January 31 of each year of the term of this  Agreement,  Bank shall
review and give  consideration to the increase of the annual rate of Executive's
base salary effective the preceding January 1 during the period of his full time
employment.  In making such a  determination,  Bank shall  consider the Consumer
Price Index,  salary  increases  given to other  employees and officers of Bank,
salaries of chief executive officers of peer group banking  institutions as well
as the net  profits of Bank in the  preceding  year.  The base  salary in effect
during the preceding  calendar year shall remain in effect until the termination
of  this  Agreement  as  provided  herein  unless  increased  pursuant  to  this
paragraph.

          4. In addition to the base salary provided herein,  Executive shall be
entitled to such bonuses and other  benefits as are made  available to the other
officers and employees of Bank other than severance pay.

          5.  Executive  may elect to defer a portion of his annual  base salary
pursuant to a deferred  compensation  plan between Executive and Bank adopted on
December 18, 1983.

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          6. During the term of this Agreement or any extension thereof,  or for
two years immediately following  termination of this Agreement,  Executive shall
not engage in the banking  business as the employee or  consultant  of a bank or
savings and loan  association or the parent company of a wholly owned subsidiary
bank or  savings  and loan  association  which has an  office  in the  following
counties of Pennsylvania: Lebanon, Dauphin, Schuylkill, Berks and Lancaster.

          7. This  Agreement  shall be binding  upon the parties  hereto,  their
heirs, successors and assigns and shall not be modified except in writing signed
by all of the  parties  hereto.  

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first above written.

ATTEST:                                 LEBANON VALLEY NATIONAL BANK
/s/ Ernestine Batdorf                   By: /s/ Elvin H. Spitler
----------------------------            ---------------------------------
Assistant Secretary                     Chairman of the Board

WITNESS:
/s/ Glynnis M. Kofler                   /s/ Albert B. Murry
----------------------------            ---------------------------------
                                        Albert B. Murry