**EMPLOYMENT      AGREEMENT**

**THIS      AGREEMENT**
**UNION      NATIONAL FINANCIAL CORPORATION **
**UNION      NATIONAL COMMUNITY BANK **
**STEPHEN      D. STAMAN **

**WITNESSETH**
**:**

**WHEREAS,**

**WHEREAS,**

**WHEREAS,**

**WHEREAS,**

**AGREEMENT**
**:**

**NOW,      THEREFORE,**

| 1. | **Employment****.**                Corporation and Bank hereby employ Executive, and Executive hereby                accepts                employment with Corporation and Bank, under the terms and conditions                set                forth in this Agreement. |
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| 2. | **Duties                of Employee****.**                Executive shall perform and discharge well and faithfully such duties                as                an executive officer of Bank as may be assigned to Executive from                time to                time by the Board of Directors of Corporation and Bank. Executive                shall be                employed as Executive Vice President and Chief Revenue Officer of                the Bank                and shall hold such other titles as may be given to him from time                to time                by the Board of Directors of Corporation and Bank. Executive shall                devote                his full-time attention and energies to the business of Corporation                and                Bank during the Employment Period (as defined in Section 3 of this                Agreement); provided, however, that this Section 2 shall not be construed                as preventing Executive from (a) engaging in activities incident                or                necessary to personal investments so long as such investment does                not                exceed 5% of the outstanding shares of any publicly held company,                (b)                acting as a member of the Board of Directors of any other corporation                or                as a member of the Board of Trustees of any other organization, with                the                prior approval of the Board of Directors of Corporation and Bank,                or (c)                being involved in any other activity with the prior approval of the                Board                of Directors of Corporation and Bank. The Executive shall not engage                in                any business or commercial activities, duties or pursuits which compete                with the business or commercial activities of Corporation or Bank,                nor may                the Executive serve as a director or officer or in any other capacity                in a                company which competes with Corporation or Bank. Upon written approval                from the Corporation or Bank, the Executive may engage in voluntary                or                philanthropic endeavors. |
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| 3. | **Term                of Agreement****.** |
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|   | (a) | This                Agreement shall be for a three (3) year period (the “Employment Period”)                beginning on the date first written above, and if not previously                terminated pursuant to the terms of this Agreement, the Employment                Period                shall end three (3) years later (the “Initial Term”). The Employment                Period shall be extended automatically for one additional year on                the                third annual anniversary date of the commencement of the Initial                Term (the                date first above written), and then on each annual anniversary date                of                this Agreement thereafter, unless any of Corporation, Bank or Executive                gives contrary written notice to the other(s) not less than 60 days                before                any such anniversary date so that upon the anniversary date if notice                had                not been previously given as provided in this Section 3(a), the Employment                Period shall be and continue for a one-year period thereafter. References                in the Agreement to “Employment Period” shall refer to the Initial Term of                this Agreement and any extensions to the initial term of this                Agreement. |
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|   | (b) | Notwithstanding                the provisions of Section 3(a) of this Agreement, this Agreement                shall                terminate automatically for Cause (as defined herein) upon written                notice                from the Board of Directors of each of Corporation and Bank to Executive.                As used in this Agreement, “Cause” shall mean any of the following: (i)                the willful failure by the Executive to substantially perform his                duties                hereunder (other than a failure resulting from the Executive’s incapacity                because of physical or mental illness, as provided in Section 3(d)                hereof), after notice from the Corporation or Bank and a failure                to cure                such violation within thirty (30) days of said notice; (ii) the willful                engaging by the Executive in misconduct injurious to the Corporation                or                Bank; (iii) the willful violation by the Executive of the provisions                of                Sections 2, 8, 9 or 10 hereof, after notice from the Corporation                or Bank                and a failure to cure such violation within thirty (30) days of said                notice; (iv) the dishonesty or gross negligence of the Executive                in the                performance of his duties; (v) the breach of Executive’s fiduciary duty                involving personal profit; (vi) the violation of any law, rule or                regulation governing banks or bank officers or any final cease and                desist                order issued by a bank regulatory authority; (vii) conduct on the                part of                Executive which brings public discredit to the Corporation or Bank;                (viii)                unlawful discrimination by the Executive, including harassment against                Corporation’s or Bank’s employees, customers, business associates,                contractors, or visitors; (ix) theft or abuse by Executive of the                Corporation’s or Bank’s property or the property of Corporation’s or                Bank’s customers, employees, contractors, vendors, or business associates;                (x) failure of the Executive to follow the good faith lawful instructions                of the Board of Directors of Corporation or Bank with respect to                its                operations, after notice from the Corporation or Bank and a failure                to                cure such violation within thirty (30) days of said notice; (xi)                the                direction or recommendation of a state or federal bank regulatory                authority to remove the Executive’s position with Corporation and/or Bank                as identified herein; (xii) any final removal or prohibition order                to                which the Executive is subject, by a federal banking agency pursuant                to                Sections 8(e) and 8(g) of the Federal Deposit Insurance Act; (xiii)                the                Executive’s conviction of or plea of guilty or nolo contendere to a                felony, crime of falsehood or a crime involving moral turpitude,                or the                actual incarceration of Executive; (xiv) any act of fraud,                misappropriation or personal dishonesty; (xv) insubordination; (xvi)                misrepresentation of a material fact, or omission of information                necessary                to make the information supplied not materially misleading, in an                application or other information provided by the Executive to the                Corporation or any representative of the Corporation in connection                with                the Executive’s employment with Corporation; (xvii) the existence of any                material conflict between the interests of Corporation and the Executive                that is not disclosed in writing by the Executive to the Corporation                and                approved in writing by the Board of Directors of Corporation; or                (xviii)                the Executive takes action that is clearly contrary to the best interest                of the Corporation. |
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|   | (c) | Notwithstanding                the provisions of Section 3(a) of this Agreement, this Agreement                shall                terminate automatically upon Executive’s voluntary termination of                employment (other than in accordance with Section 5 of this Agreement)                for                Good Reason. The term “Good Reason” shall mean (i) the assignment of                duties and responsibilities inconsistent with Executive’s status as                Executive Vice President and Chief Revenue Officer of the Bank, (ii)                a                reassignment which requires Executive to move his principal residence                or                his office more than fifty (50) miles from the Bank’s principal executive                office immediately prior to this Agreement, (iii) any removal of                the                Executive from office or any adverse change in the terms and conditions                of                the Executive’s employment, except for any termination of the Executive’s                employment under the provisions of Section 3(b) hereof, (iv) any                reduction                in the Executive’s Annual Base Salary as in effect on the date hereof or                as the same may be increased from time to time, except such reductions                that are the result of a national financial depression or national                or bank                emergency when such reduction has been implemented by the Board of                Directors for the Corporation’s and Bank’s senior management, or (v) any                failure of Corporation and Bank to provide the Executive with benefits                at                least as favorable as those enjoyed by the Executive during the Employment                Period under any of the pension, life insurance, medical, health                and                accident, disability or other employee plans of Corporation and Bank,                or                the taking of any action that would materially reduce any of such                benefits                unless such reduction is part of a reduction applicable to all employees                of comparable position within Bank. If such termination occurs for                Good                Reason, then Corporation or Bank shall pay Executive an amount equal                to                two (2) times the Executive’s Annual Base Salary as defined in subsection                (a) of Section 4, which amount shall be payable in eighteen (18)                equal                monthly installments and shall be subject to federal, state and local                tax                withholdings. In addition, if Executive and his dependents who are                qualified beneficiaries are eligible to elect continuation of health                insurance benefits under the Consolidated Omnibus Budget Reconciliation                Act of 1995 (“COBRA”) and if Executive elects to purchase such COBRA                continuation coverage for himself and/or for his qualified beneficiaries,                then in such event the Employer shall reimburse Executive in an amount                equal to the monthly premium paid by him to obtain such coverage,                net of                the amount which employees of the Employer are required to contribute                toward the purchase of health insurance benefits under the personnel                policies of the Employer then in effect, which reimbursement shall                continue until the first of the following to occur: (i) the                expiration of 18 months following the date of termination of the                Employment Period and (ii) the qualification of Executive and his                qualified beneficiaries for substantially equivalent coverage under                any                health insurance policy maintained by any future employer of Executive.                Reimbursement as provided for herein shall be made by the Employer                to                Executive monthly within five (5) business days following the presentation                by Executive to the Employer of evidence of payment by him (in the                form of                a copy of a cancelled check or credit card draft or other documentary                evidence reasonably satisfactory to the Employer) of the monthly                COBRA                continuation coverage premium for that month. However, in the event                the                payment described herein, when added to all other amounts or benefits                provided to or on behalf of the Executive in connection with his                termination of employment, would result in the imposition of an excise                tax                under Internal Revenue Code of 1986, as amended (“Code”) Section 4999,                such payments shall be retroactively (if necessary) reduced to the                extent                necessary to avoid such excise tax imposition. Upon written notice                to                Executive, together with calculations of Corporation’s independent                auditors, Executive shall remit to Corporation the amount of the                reduction, plus such interest, as may be necessary to avoid the imposition                of such excise tax. Notwithstanding the foregoing or any other provision                of this contract to the contrary, if any portion of the amount herein                payable to the Executive is determined to be non-deductible pursuant                to                the regulations promulgated under Code Section 280G, the Corporation                shall                be required only to pay to Executive the amount determined to be                deductible under Code Section 280G. |
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|   | (d) | Notwithstanding                the provisions of Section 3(a) of this Agreement, this Agreement                shall                terminate automatically upon Executive’s Disability, and Executive’s                rights under this Agreement shall cease as of the date of such                termination. For purposes of this Agreement, the Executive shall                have a                “Disability” if, as a result of physical or mental injury or impairment,                Executive is unable to perform all of the essential job functions                of his                position on a full time basis, taking into account any reasonable                accommodation required by law, and without posing a direct threat                to                himself and others, for a period of one hundred eighty (180) days                or more. |
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|   | (e) | Executive                agrees that in the event his employment under this Agreement is                terminated, Executive shall resign as a director of Corporation and                Bank,                or any affiliate or subsidiary thereof, if he is then serving as                a                director of any of such entities. |
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| 4. | **Employment                Period Compensation****.** |
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|   | (a) | Annual                Base Salary.                For services performed by Executive under this Agreement, Corporation                or                Bank shall pay Executive an Annual Base Salary during the Employment                Period at the rate of $160,425.00 per year, minus applicable withholdings                and deductions, payable at the same times as salaries are payable                to other                executive employees of Corporation or Bank. Corporation or Bank may,                from                time to time, increase Executive’s Annual Base Salary, and any and all                such increases shall be deemed to constitute amendments to this Section                4(a) to reflect the increased amounts, effective as of the date                established for such increases by the Board of Directors of Corporation                or                Bank or any committee of such Board in the resolutions authorizing                such                increases. |
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|   | (b) | Bonus.                For services performed by Executive under this Agreement, Corporation                or                Bank may, from time to time, pay a bonus or bonuses to Executive                as                Corporation or Bank, in its sole discretion, deems appropriate. The                payment of any such bonuses shall not reduce or otherwise affect                any other                obligation of Corporation or Bank to Executive provided for in this                Agreement. As of the time of the execution of this Agreement, Executive’s                incentive compensation is anticipated to be calculated as described                in                Exhibit 1 to this Agreement. |
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|   | (c) | Vacations.                During the term of this Agreement, Executive shall be entitled to                paid                annual vacation in accordance with the policies as established from                time                to time by the Boards of Directors of Corporation and Bank. However,                Executive shall not be entitled to receive any additional compensation                from Corporation and Bank for failure to take a vacation, nor shall                Executive be able to accumulate unused vacation time from one year                to the                next, except to the extent authorized by the Boards of Directors                of                Corporation and Bank. |
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|   | (d) | Automobile.                Executive shall be eligible for reimbursement for business related                automobile mileage consistent with then applicable and current guidelines                and rates permitted by Internal Revenue                Service. |
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|   | (e) | Employee                Benefit Plans.                During the term of this Agreement, Executive shall be entitled to                participate in or receive the benefits of any employee benefit plan                currently in effect at Corporation and Bank, subject to the terms                of said                plan, until such time that the Boards of Directors of Corporation                and Bank                authorize a change in such benefits. Nothing paid to Executive under                any                plan or arrangement presently in effect or made available in the                future                shall be deemed to be in lieu of the salary payable to Executive                pursuant                to Section 4(a) hereof. |
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|   | (f) | Business                Expenses.                During the term of this Agreement, Executive shall be entitled to                receive                prompt reimbursement for all reasonable expenses incurred by him,                which                are properly accounted for, in accordance with the policies and procedures                established by the Boards of Directors of Corporation and Bank for                their                executive officers. |
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|   | (g) | Club                Membership.                Corporation or Bank will make initiation payments to the Lancaster                County                Club under the terms and conditions set forth in a letter dated December                12, 2005, which is attached as Exhibit 2 to this Agreement. However,                notwithstanding any provisions to the contrary in the letter of December                12, 2005, Corporation or Bank will pay membership dues and                business-related expenses, incurred by Executive at the Lancaster                Country                Club. |
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| 5. | **Termination                of Employment Following Change in Control****.** |
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|   | (a) | If                a Change in Control (as defined in Section 5(b) of this Agreement)                shall                occur and thereafter, there shall                be: |
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|   |   | (i) | any                involuntary termination of Executive’s employment (other than for the                reasons set forth in Section 3(b) or 3(d) of this Agreement); |
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|   |   | (ii) | any                reduction in Executive’s title, responsibilities, including reporting                responsibilities, or authority, including such title, responsibilities                or                authority as such may be increased from time to time during the term                of                this Agreement; |
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|   |   | (iii) | the                assignment to Executive of duties inconsistent with Executive’s office on                the date of the Change in Control or as the same may be increased                from                time to time after the Change in                Control; |
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|   |   | (iv) | any                reassignment of Executive to a location greater than fifty (50) miles                from                the location of Executive’s office on the date of the Change in                Control; |
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|   |   | (v) | any                reduction in Executive’s Annual Base Salary in effect on the date of the                Change in Control or as the same may be increased from time to time                after                the Change in Control; |
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|   | (vi) | any                failure to provide Executive with benefits at least as favorable                as those                enjoyed by Executive under any of Corporation’s or Bank’s retirement or                pension, life insurance, medical, health and accident, disability                or other                employee plans in which Executive participated at the time of the                Change                in Control, or the taking of any action that would materially reduce                any                of such benefits in effect at the time of the Change in                Control; |
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|  | (vii) | any                requirement that Executive travel in performance of his duties on                behalf                of Corporation or Bank for a significantly greater period of time                during                any year than was required of Executive during the year preceding                the year                in which the Change in Control occurred; |
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|  | (viii) | any                sustained pattern of interruption or disruption of Executive for                matters                substantially unrelated to Executive’s discharge of Executive’s duties on                behalf of Corporation and Bank; or |
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|  | (ix) | a                good faith determination by Executive that he can no longer work                with the                new management of Corporation and Bank, provided, however, that Executive                cannot make such a determination during the first five (5) months                following a Change in Control. |
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|   |   | (ii) | any                “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange                Act, other than Corporation or Bank or any “person” who on the date hereof                is a director or officer of Corporation or Bank is or becomes the                “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),                directly or indirectly, of securities of Corporation or Bank representing                fifty (50%) percent or more of the total value or combined voting                power of                Corporation or Bank’s then outstanding securities, or |
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|   |   | (iii) | during                any period of one (1) year during the term of Executive’s employment under                this Agreement, individuals who at the beginning of such period constitute                the Board of Directors of Corporation or Bank cease for any reason                to                constitute at least a majority thereof, unless the election of each                director who was not a director at the beginning of such period has                been                approved in advance by directors representing at least two-thirds                of the                directors then in office who were directors at the beginning of the                period. |
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| 6. | **Rights                    in Event of Termination of Employment Following Change in                    Control****.** |
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|   | (a) | In                the event that Executive delivers a Notice of Termination (as defined                in                Section 5(a) of this Agreement) to Corporation and Bank, Executive                shall                be entitled to receive the compensation and benefits set forth                below: |
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|   | (b) | Executive                shall not be required to mitigate the amount of any payment provided                for                in this Section 6 by seeking other employment or otherwise. Unless                otherwise agreed to in writing, the amount of payment or the benefit                provided for in this Section 6 shall not be reduced by any compensation                earned by Executive as the result of employment by another employer                or by                reason of Executive’s receipt of or right to receive any retirement or                other benefits after the date of termination of employment or                otherwise. |
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|   | (c) | Notwithstanding                any other provision, in the event that Executive is determined to                be a key                employee as that term is defined in Code Section 409A no payment                shall be                made until one day following six months from the date of separation                of                service as that term is defined in Code Section                409A. |
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| 7. | **Rights                in Event of Termination of Employment Absent Change in                Control****.** |
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|   | (b) | Executive                shall not be required to mitigate the amount of any payment provided                for                in this Section 7 by seeking other employment or otherwise. Unless                otherwise agreed to in writing, the amount of payment or the benefit                provided for in this Section 7 shall not be reduced by any compensation                earned by Executive as the result of employment by another employer                or by                reason of Executive’s receipt of or right to receive any retirement or                other benefits after the date of termination of employment or                otherwise. |
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| 8. | **Covenant                Not to Compete****.** |
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|   | (a) | Executive                hereby acknowledges and recognizes the highly competitive nature                of the                business of Corporation and Bank and accordingly agrees that, during                and                for the applicable period set forth in Section 8(c) hereof, Executive                shall not, except as otherwise permitted in writing by the Corporation                and                the Bank: |
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|   |   | (i) | be                engaged, directly or indirectly, either for his own account or as                agent,                consultant, employee, partner, officer, director, proprietor, investor                (except as an investor owning less than 5% of the stock of a publicly                owned company) or otherwise of any person, firm, corporation or enterprise                engaged in (1) the banking (including bank holding company) or financial                services industry, or (2) any other activity in which Corporation                or Bank                or any of their subsidiaries are engaged during the Employment Period,                and                remain so engaged at the end of the Employment Period, in any county                and                contiguous county in which, at the date of termination of the Executive’s                employment, a branch location, office, loan production office, or                trust or                asset and wealth management office of Corporation, Bank or any of                their                subsidiaries is located, whether inside or outside of the Commonwealth                of                Pennsylvania, (the “Non-Competition Area”); or |
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|   |   | (ii) | provide                financial or other assistance to any person, firm, corporation, or                enterprise engaged in (1) the banking (including bank holding company)                or                financial services industry, or (2) any other activity in which                Corporation or Bank or any of their subsidiaries are engaged during                the                Employment Period, in the Non-Competition Area;                or |
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|   |   | (iii) | directly                or indirectly solicit persons or entities who were customers or referral                sources of Corporation, Bank or their subsidiaries within one year                of                Executive’s termination of employment, to a become customer or referral                source of a person or entity other than Corporation, Bank or their                subsidiaries; or |
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|  | (iv) | directly                or indirectly solicit employees of Corporation, Bank or their subsidiaries                who were employed within one year of Executive’s termination of employment                to work for anyone other than Corporation, Bank or their                subsidiaries. |
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|   | (b) | It                is expressly understood and agreed that, although Executive and                Corporation and Bank consider the restrictions contained in Section                8(a)                hereof reasonable for the purpose of preserving for Corporation and                Bank                and their subsidiaries their good will and other proprietary rights,                if a                final judicial determination is made by a court having jurisdiction                that                the time or territory or any other restriction contained in Section                8(a)                hereof is an unreasonable or otherwise unenforceable restriction                against                Executive, the provisions of Section 8(a) hereof shall not be rendered                void but shall be deemed amended to apply as to such maximum time                and                territory and to such other extent as such court may judicially determine                or indicate to be reasonable. |
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|   | (c) | The                provisions of this Section 8 shall be applicable commencing on the                date of                this Agreement and ending on one of the following dates, as                applicable: |
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|   |   | (ii) | if                Executive’s employment terminates in accordance with the provisions of                Section 3(c) of this Agreement (relating to termination for Good                Reason),                eighteen (18) months following the effective date of termination                of                employment; or |
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| 9. | **Unauthorized                Disclosure****.**                During the term of his employment hereunder, or at any later time,                the                Executive shall not, without the written consent of the Boards of                Directors of Corporation and Bank or a person authorized thereby,                knowingly disclose to any person, other than an employee of Corporation                or                Bank or a person to whom disclosure is reasonably necessary or appropriate                in connection with the performance by the Executive of his duties                as an                executive of Corporation and Bank, any material confidential information                obtained by him while in the employ of Corporation and Bank with                respect                to any of Corporation’s and Bank’s services, products, improvements,                formulas, designs or styles, processes, customers, methods of business                or                any business practices, the disclosure of which could be or will                be                damaging to Corporation or Bank; provided, however, that confidential                information shall not include any information known generally to                the                public (other than as a result of unauthorized disclosure by the                Executive                or any person with the assistance, consent or direction of the Executive)                or any information of a type not otherwise considered confidential                by                persons engaged in the same business or a business similar to that                conducted by Corporation and Bank or any information that must be                disclosed as required by law. |
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| 10. | **Work                Made for Hire.**** **Any                work performed by the Executive under this Agreement  should                be considered a “Work Made for Hire” as the phrase is defined by the U.S.                patent laws and shall be owned by and for the express benefit of                Corporation, Bank and their subsidiaries and affiliates. In the event                it                should be established that such work does not qualify as a Work Made                for                Hire, the Executive agrees to and does hereby assign to Corporation,                Bank,                and their affiliates and subsidiaries, all of his rights, title,                and/or                interest in such work product, including, but not limited to, all                copyrights, patents, trademarks, and propriety                rights. |
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| 11. | **Return                of Company Property and Documents.**                The Executive agrees that, at the time of termination of his employment,                regardless of the reason for termination, he will deliver to Corporation,                Bank and their subsidiaries and affiliates, any and all company property,                including, but not limited to, automobile, keys, security codes or                passes,                mobile telephones, records, data, notes, reports, proposals, lists,                correspondence, specifications, drawings, blueprints, sketches, software                programs, equipment, other documents or property, or reproductions                of any                of the aforementioned items developed or obtained by the Executive                during                the course of his employment. |
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| 12. | **Liability                Insurance****.**                Corporation and Bank shall use their best efforts to obtain insurance                coverage for the Executive under an insurance policy covering officers                and                directors of Corporation and Bank against lawsuits, arbitrations                or other                legal or regulatory proceedings; however, nothing herein shall be                construed to require Corporation and/or Bank to obtain such insurance,                if                the Board of Directors of the Corporation and/or Bank determine that                such                coverage cannot be obtained at a reasonable price. In the event that                the                Corporation and Bank are unable to procure insurance coverage for                the                Executive, Executive may terminate this contract upon sixty (60)                days                notice and the provisions of Paragraph 8 shall not                apply. |
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| 13. | **Notices****.**                Except as otherwise provided in this Agreement, any notice required                or                permitted to be given under this Agreement shall be deemed properly                given                if in writing and if mailed by registered or certified mail, postage                prepaid with return receipt requested, to Executive’s residence, in the                case of notices to Executive, and to the principal executive offices                of                Corporation and Bank, in the case of notices to Corporation and                Bank. |
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| 14. | **Waiver****.**                No                provision of this Agreement may be modified, waived or discharged                unless                such waiver, modification or discharge is agreed to in writing and                signed                by Executive and an executive officer specifically designated by                the                Boards of Directors of Corporation and Bank. No waiver by either                party                hereto at any time of any breach by the other party hereto of, or                compliance with, any condition or provision of this Agreement to                be                performed by such other party shall be deemed a waiver of similar                or                dissimilar provisions or conditions at the same or at any prior or                subsequent time. |
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| 15. | **Assignment****.**                This Agreement shall not be assignable by any party, except by Corporation                and Bank to any successor in interest to their respective                businesses. |
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| 16. | **Entire                Agreement****.**                This Agreement supersedes any and all agreements, either oral or                in                writing, between the parties with respect to the employment of the                Executive by the Bank and/or Corporation and this Agreement contains                all                the covenants and agreements between the parties with respect to                employment. |
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| 17. | **Binding                Agreement****.** |
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| 18. | **Arbitration****.**                Corporation, Bank and Executive recognize that in the event a dispute                should arise between them concerning the interpretation or implementation                of this Agreement, lengthy and expensive litigation will not afford                a                practical resolution of the issues within a reasonable period of                time.                Consequently, each party agrees that all disputes, disagreements                and                questions of interpretation concerning this Agreement (except for                any                enforcement sought with respect to Sections 8, 9, 10 or 11 which                may be                litigated in court, including an action for injunction or other relief)                are to be submitted for resolution, in Philadelphia, Pennsylvania,                to the                American Arbitration Association (the “Association”) in accordance with                the Association’s National Rules for the Resolution of Employment Disputes                or other applicable rules then in effect (“Rules”). Corporation, Bank or                Executive may initiate an arbitration proceeding at any time by giving                notice to the other in accordance with the Rules. Corporation and                Bank and                Executive may, as a matter of right, mutually agree on the appointment                of                a particular arbitrator from the Association’s pool. The arbitrator shall                not be bound by the rules of evidence and procedure of the courts                of the                Commonwealth of Pennsylvania but shall be bound by the substantive                law                applicable to this Agreement. The decision of the arbitrator, absent                fraud, duress, incompetence or gross and obvious error of fact, shall                be                final and binding upon the parties and shall be enforceable in courts                of                proper jurisdiction. Following written notice of a request for                arbitration, Corporation, Bank and Executive shall be entitled to                an                injunction restraining all further proceedings in any pending or                subsequently filed litigation concerning this Agreement, except as                otherwise provided herein or any enforcement sought with respect                to                Sections 8, 9, 10 or 11 of this Agreement, including an action for                injunction or other relief. |
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| 19. | **Validity****.**                The invalidity or unenforceability of any provision of this Agreement                shall not affect the validity or enforceability of any other provision                of                this Agreement, which shall remain in full force and                effect. |
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| 20. | **Applicable                Law****.**This                Agreement shall be governed by and construed in accordance with the                domestic, internal laws of the Commonwealth of Pennsylvania, without                regard to its conflicts of laws principles provided that this Agreement                shall also be interpreted as is minimally required to qualify any                payment                hereunder as not triggering any penalty on the Executive or the                Corporation or Bank pursuant to Code Section                409A. |
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| 21. | **Headings****.**                The section headings of this Agreement are for convenience only and                shall                not control or affect the meaning or construction or limit the scope                or                intent of any of the provisions of this                Agreement. |
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**IN      WITNESS WHEREOF,**

|                             |                                                |                                         |
|----------------------------------|-----------------------------------------------------|----------------------------------------------|
| ATTEST:                          | UNION                NATIONAL FINANCIAL CORPORATION |
|                        |                                           |                                    |
| /s/              Donna J. Stoudt | By:                                       | /s/              Mark              D. Gainer |
|                             | Mark                D. GainerChairman&CEO       |

|                               |                                           |                                                   |
|------------------------------------|------------------------------------------------|--------------------------------------------------------|
|                               | UNION                  NATIONAL COMMUNITY BANK |
|                          |                                      |                                              |
| /s/                Donna J. Stoudt | By:                                  |  /s/                Mark D.                Gainer |
|                               | Mark D. GainerChairman&CEO                 |

|                                                  |              |                                   |
|-------------------------------------------------------|-------------------|----------------------------------------|
| WITNESS:                                              | EXECUTIVE         |
|                                             |         |                              |
| /s/                  R.                  Michael Mohn | By:     | /s/                  Stephen D. Staman |
|                                                  | Stephen D. Staman |

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