EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT


     AGREEMENT made as of the 2nd day of September, 1986, by and between QNB,
Corp., a registered bank holding company ("QNB") and Thomas J. Bisko
(the "Executive").

                                W I T N E S S E T H:

     WHEREAS, the Executive is currently employed by QNB as its President, and
is willing to serve QNB on a full-time basis during the period, and on the terms
and conditions hereinafter set forth; and

     WHEREAS, QNB has determined that the future services of the Executive will
be of value to QNB and desires to provide an inducement to the Executive to
remain an employee of QNB;

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

     1. Employment. QNB hereby employs the Executive and the Executive hereby
accepts employment upon the terms and conditions hereinafter set forth.

     2. Term of Employment. The term of this Agreement shall begin on September
1, 1986, and shall terminate on December 31, 2013; provided that either party
hereto may give three years prior written notice to the other party of the
intention of that party not to have the Agreement extended, in which case this
Agreement shall terminate three years from the date of such notice.

     3. Duties.

         3.1 Job Description. The Executive is engaged as President and agrees
       to perform such duties and render such services consistent therewith as
       may from time to time be reasonably required by him by the Board of
       Directors of QNB (the "Board"). In addition, the Executive is engaged as
       President of Quakertown National Bank, a wholly owned subsidiary of QNB
       (the "Bank") and agrees to perform such services as may be requested of
       him by The Quakertown National Bank's Board of Directors, provided that
       such services are consistent with his position as President. Executive
       shall devote his entire productive time, ability and attention (except
       for normal vacation periods or illness) to the performance of his duties
       for The Quakertown National Bank and QNB.

         3.2 Reassignment. The Executive may be reassigned and asked services
       consistent with his position as President to any other banking
       corporations which become affiliated with QNB and agrees to perform such
       services, provided, however, that the Executive shall not be appointed to
       a position at a location is excess of 15 miles from his personal
       residence in Quakertown, Pennsylvania.

         3.3 Evaluations. The Executive will report directly to the Board or to
       such other person as the Board may designate. Executive's job performance
       will be evaluated at least annually for consideration of merit increases
       in salary, bonus and any other form of supplemental income or benefits
       that QNB or The Quakertown National Bank may award to its senior
       officers.

     4. Base Salary and Reimbursement for Expenses.

         4.1 Base Salary. During the term of this agreement, QNB will pay to
       Executive a base salary at an annual rate not less than $ 67,580 subject



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       to an annual review and subject to such upward adjustment based on
       performance as may be deemed appropriate by the Board or a designated
       committee thereof. Such base salary is payable at regular intervals in
       accordance with QNB's normal payroll practices now or hereafter in
       effect.

         4.2 Reimbursement for Expenses. QNB shall reimburse Executive for all
       expenses incurred by Executive which QNB determines to be reasonable and
       necessary (in accordance with its normal reimbursement practices now or
       hereafter in effect) for Executive to carry out his duties hereunder.

     5. Fringe Benefits.

         5.1 Programs. The Executive shall be entitled to participate in any and
       all fringe benefit programs presently offered or hereafter established by
       QNB, including without limitation, profit sharing plans, thrift and
       savings plans, insurance plans, supplemental insurance and benefit plans,
       and other benefits which are generally available to QNB's executives at
       the Executive's level. QNB shall establish and maintain fringe benefit
       programs for its executive officers substantially comparable to the
       fringe benefit programs for executive officers established and maintained
       by The Quakertown National Bank. However, nothing contained herein shall
       be construed as requiring The Quakertown National Bank to establish any
       fringe benefit program or QNB to maintain any fringe benefit programs not
       maintained by The Quakertown National Bank.

     6. Facilities. The Executive shall be furnished with such office, supplies
and personnel which, after consultation with the Board's Executive Committee,
The Quakertown National Bank shall deem necessary and appropriate for the
adequate performance by the Executive of this duties for The Quakertown National
Bank.

     7. Non-Disclosure. The Executive shall not, at any time during the term of
the Agreement of thereafter, except as properly required in the conduct of the
business of QNB, and as authorized by QNB, disclose or authorize anyone else to
disclose: (i) any secret, confidential, technical, planning or policy matter
relating to any aspect of QNB's business; (ii) any operational, technical,
management, financial control system or tax matter, information or process
relating to QNB or its customers; (iii) any trade name, trademark, patent,
copyright, product, design, system, formula, product composition, label,
document, book record, or any other printed or nonprinted matter used by, or
contemplated for use by QNB or any of its customers; or (iv) any mailing or
customer list.

     8. Termination.

         8.1 Discharge Prior to a Change in Control. Prior to a change in
       control, as defined in section 8.2 hereof, QNB may, at any time,
       discharge the Executive, provided that QNB has just or proper cause for
       such discharge. Without limiting the foregoing, such just or proper cause
       shall include:

         (a) Executive's failure to properly perform his duties under this
         Agreement;

         (b) Executive's violation of any covenants or commitments set forth in
         this Agreement;

         (c) Executive's failure or refusal to comply with the proper and
         reasonable written policies or directives of the Board which do not
         violate any of the provisions hereof.

         (d) Any conduct on the part of the Executive which violates any
         applicable state of federal law.



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         (e) Any conduct on the part of the Executive which, in the reasonable
         discretion of the Board, would make Executive's continued employment
         hereunder prejudicial to the best interest of QNB.

         8.2 Discharge Following a Change in Control. If any one person or group
       obtains voting control of common shares representing 25% of the
       outstanding common stock of QNB (a "change in control"), thereafter
       Section 8.1 shall be inoperative and QNB may only terminate Executive's
       employment if Executive:

         (a) materially breaches his obligation hereunder;

         (b) fails or refuses to comply with the proper and reasonable written
         policies or directives of the Board which do not violate any of the
         provisions hereof;

         (c) is convicted of any felony.

         8.3 Deemed Termination. If the Executive is required to perform
       services inconsistent with his position as President, or it the Executive
       is appointed to a position at a location in excess of 15 miles from his
       personal residence in contravention of Paragraph 3.2 hereof, the
       executive's employment shall be deemed terminated by QNB for reasons
       other that conduct specified in Paragraph 8.1 or 8.2 hereof.

         8.4 Death or Disability. If the Executive dies or if in the opinion of
       a physician selected by QNB, he becomes mentally or physically disabled,
       and if he has for six successive months, or for shorter periods
       aggregating, 9 months in any period of 18 consecutive months, been unable
       to perform the duties assigned to him, Executive's employment hereunder
       shall terminate automatically.

         8.5 Payment Upon Termination. If Executive's employment hereunder is
       terminated by QNB for reasons other than death or disability or conduct
       specified in paragraphs 8.1 or 8.2 hereof or is deemed terminated
       pursuant to Paragraph 8.3 hereof, The Quakertown National Bank shall pay
       to the Executive, in a lump sum, severance pay equal to 2.99 times
       Executive's then current base salary, which shall be due and payable
       within 30 days of such termination.

         8.6 Payment Upon Death or Disability. If the Executive's employment
       hereunder is terminated due to death or disability pursuant to Paragraph
       8.4 hereof, The Quakertown National Bank shall pay to the Executive, the
       Executive's estate or a beneficiary designated by the Executive, as the
       case may be, in twelve equal monthly installments, an amount equal to the
       Executive's then current annual base salary. QNB's obligation hereunder
       shall be offset by all payments made to the Executive, the Executives
       estate or a designated Beneficiary, pursuant to any life or disability
       insurance contract maintained by, and at the expense of, QNB.

     9. Notices. Unless either party notifies the other to the contrary, any
notice required hereunder shall be duly given if delivered in person or by
registered first class mail:

                                      If to QNB, to:

                                          QNB, Corp.
                                          Third and West Broad Streets
                                          Quakertown, PA

                                      Attn: Chairman, Executive Compensation
                                            Committee, Board of Directors

                                      If to Executive, to:

                                             Thomas J. Bisko
                                             9 Clover Lane
                                             Quakertown, PA



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     10. General Provisions.

       10.1 This Agreement shall be binding upon and inure to the benefit of QNB
       and its successors and assigns and Executive, his designees, and his
       estate. Neither Executive, his designees, nor his estate shall commute,
       pledge, encumber, sell of or otherwise dispose of the rights to receive
       the payments provided in this Agreement, which payments and the rights
       thereto are expressly declared to be nontransferable and nonassignable.

       10.2 This Agreement shall be governed by the laws of the Commonwealth of
       Pennsylvania from time to time in effect.

       10.3 If Executive resorts to the courts to recover any amounts due to him
       in the event his employment is terminated following a "change in
       control", Executive shall be reimbursed by QNB for his legal fees and the
       costs of the proceedings on a monthly basis. Provided, however, if a
       court later determines that Executive's action was commenced and
       maintained in bad faith, Executive shall repay such reimbursements to
       QNB. Further, provided, if Executive wins an award in such action
       resulting from a termination following a "change in control", he shall be
       entitled to receive interest on such award payable from the date of
       termination to the date of payment at the rate of prime plus 5% per
       annum, compounded monthly, with prime being equal to the rate designated
       as such by The Quakertown National Bank or its successor.

         10.4 This Agreement represents the entire agreement between Executive
       and QNB with respect to the subject matter hereof, and replaces all prior
       agreements between the parties. This Agreement may not be amended or
       modified except by a writing signed by the parties hereto. Any written
       amendment, waiver or termination hereof executed by QNB and Executive (or
       his estate) shall be binding upon them and upon all Persons, without the
       necessity of securing the consent of any other Person and no person shall
       be deemed to be a third party beneficiary under this Agreement.

         10.5 This Agreement may be executed in one or more counterparts, each
       of which shall be deemed an original, but all of which taken together
       shall constitute one and the same Agreement.

         10.6 Except as otherwise expressly set forth herein, no failure on the
       part of any party hereto to exercise and no delay in exercising any
       right, power or remedy hereunder shall operate as a waiver thereof; nor
       shall any single or partial exercise of any right, power or remedy
       hereunder preclude any other or further exercise thereof or the exercise
       of any other right, power or remedy.

         10.7 The headings of the Paragraphs of this Agreement have been
       inserted for convenience of reference only and shall in no way restrict
       any of the terms or provisions hereof.


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

ATTEST:                                     QNB CORP.

/s/ Donald T. Knauss                        /s/ Philip D. Miller
-----------------------                     ---------------------
Secretary                                   Chairman

WITNESS:                                    EXECUTIVE

/s/ Edgar L. Stauffer                        /s/ Thomas J. Bisko
------------------------                     ----------------------


Quakertown National Bank, intending to be legally bound hereby, agrees to act as
surety for and guarantor of all obligations of QNB to Executive under this
Agreement, and under any amendment hereto binding upon QNB and Executive,
regardless of whether Quakertown National Bank consents to such amendment.

ATTEST:                                     QUAKERTOWN NATIONAL BANK

/s/ Donald T. Knauss                        By: /s/ Philip D. Miller
--------------------                            -------------------
Secretary                                       Chairman