Document:

_______________, 2007

Western United Financial Corporation
c/o Western United Management, LLC
70 South Lake Avenue, Suite 900
Pasadena, California  91101

      Re:   INITIAL PUBLIC OFFERING

Ladies and Gentlemen:

      This letter is being delivered to you in accordance with the  Underwriting
Agreement (the  "UNDERWRITING  AGREEMENT")  entered into by and between  Western
United  Financial  Corporation,  a Delaware  corporation  (the  "Company"),  and
Sandler  O'Neill  &  Partners,   L.P.  (the   "UNDERWRITER"),   relating  to  an
underwritten  initial  public  offering (the "IPO") of the Company's  units (the
"UNITS"),  each Unit comprised of one share of the Company's  Common Stock,  par
value  $0.01  per  share  (the  "COMMON  STOCK"),  and  one  warrant,  which  is
exercisable for one share of Common Stock. Certain capitalized terms used herein
are defined in paragraph 11 hereof.

      In order to induce  the  Company  and the  Underwriter  to enter  into the
Underwriting  Agreement and to proceed with the IPO, and in  recognition  of the
benefit that such IPO will confer upon the  undersigned  as a stockholder of the
Company,  and for  other  good  and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, the undersigned hereby agrees with
the Company and the Underwriter as follows:

1.  If  the  Company  solicits  approval  of  its  stockholders  of  a  Business
Combination,  the  undersigned  will  vote  all  Insider  Shares  owned  by  the
undersigned in accordance  with the majority of the votes cast by the holders of
the IPO Shares.

2. In the event that the  Company  fails to  consummate  a Business  Combination
within  twenty-four  (24) months  from the  effective  date of the  Registration
Statement  (the  "EFFECTIVE  DATE"),  the  undersigned  will take all reasonable
actions  within  the  undersigned's  power to (i) cause the Trust  Account to be
liquidated and  distributed to the holders of IPO Shares in accordance with that
Investment  Management  Trust  Agreement  to be  entered  into by and  among the
Company,  the Underwriter  and Wells Fargo Bank,  National  Association  ("Wells
Fargo"),  as  Trustee;  and (ii)  cause  the  Company  to  liquidate  as soon as
reasonably practicable.  The undersigned hereby waives any and all right, title,
interest or claim of any kind (each a "CLAIM") in or to (x) any  distribution of
the Trust Account with respect to the undersigned's Insider Shares in connection
with a  liquidation  and (y) any  remaining net assets of the Company after such
liquidation.

3. Except as disclosed in the Registration  Statement,  none of the undersigned,
any  member  of  the  family  of  the  undersigned,  nor  any  Affiliate  of the
undersigned will be entitled to receive and will not accept any compensation for
services rendered to the Company prior to or in connection with the consummation
of the Business Combination; provided that the undersigned

                                       1
<PAGE>

shall be  entitled  to  reimbursement  from the  Company  for the  undersigned's
reasonable  out-of-pocket  expenses  incurred  in  connection  with  seeking and
consummating a Business Combination.

4. None of the undersigned, any member of the family of the undersigned, nor any
Affiliate  of the  undersigned  will be  entitled  to receive or accept from the
Company a finder's fee or any other  compensation in the event the  undersigned,
any member of the family of the  undersigned or any Affiliate of the undersigned
originates a Business Combination.

5. The undersigned shall escrow the undersigned's Insider Shares until the first
anniversary  of the  consummation  of the Business  Combination,  subject to the
terms of a Securities  Escrow  Agreement  which the Company will enter into with
the  undersigned  and  Wells  Fargo,  as  escrow  agent,  in form and  substance
acceptable to the Company.

6. The undersigned  agrees to be Chairman of the Board,  Chief Executive Officer
and a director of the Company and  currently  intends to serve until the earlier
of the consummation by the Company of a Business  Combination or the liquidation
of the Company.  The  undersigned's  Questionnaire  for  Directors  and Officers
furnished to the Company and attached hereto as EXHIBIT A and the  undersigned's
biographical  information in the Registration  Statement is true and accurate in
all  respects  and does not omit any  material  information  with respect to the
undersigned's background.  The undersigned's NASD Questionnaire furnished to the
Underwriter  and  annexed  as  EXHIBIT  B  hereto  is true and  accurate  in all
respects. The undersigned represents and warrants that:

      6.1 the  undersigned  is not  subject  to, or a  respondent  in, any legal
action for any  injunction,  cease-and-desist  order or order or  stipulation to
desist  or  refrain  from  any  act or  practice  relating  to the  offering  of
securities in any jurisdiction;

      6.2 the  undersigned  has never been convicted of or pleaded guilty to any
crime (i) involving any fraud,  (ii)  relating to any financial  transaction  or
handling of funds of another  person or (iii)  pertaining to any dealings in any
securities, and he is not currently a defendant in any such criminal proceeding;

      6.3 the  undersigned  has never been suspended or expelled from membership
in any securities or commodities  exchange or association or had a securities or
commodities license or registration denied suspended or revoked;

      6.4 a petition under any federal bankruptcy laws or any state, territorial
or  provincial  insolvency  law was not filed by or against,  nor was a receiver
fiscal  agent or  similar  officer  appointed  by a court  for the  business  or
property of the undersigned, or for any partnership in which the undersigned was
a general  partner within the past two years or for any  corporation or business
association of which the  undersigned  was an executive  officer within the past
two years;

      6.5 the undersigned  has not been subject to any order  prohibiting and is
not subject to any legal  proceeding  seeking to prohibit the  undersigned  from
engaging in any type of business practice;

                                       2
<PAGE>

      6.6  the   undersigned  has  not  been  found  by  a  court  of  competent
jurisdiction  in a civil action by the Securities and Exchange  Commission or by
any other  federal  or state  administrative  or  regulatory  authority  to have
violated any federal or state securities law;

      6.7  the   undersigned  has  not  been  found  by  a  court  of  competent
jurisdiction in a civil action by the Commodity Futures Trading Commission or by
any other  federal  or state  administrative  or  regulatory  authority  to have
violated any federal or state commodities law; and

      6.8 the Escrow Agreement,  dated as of __________,  2007, by and among the
Company,  Wells Fargo, the undersigned and the other stockholders of the Company
party  thereto is  enforceable  against  the  undersigned  (except:  (i) as such
enforceability  may be  limited by  bankruptcy,  insolvency,  reorganization  or
similar laws affecting  creditors' rights  generally;  (ii) as enforceability of
any  indemnification or contribution  provision may be limited under the federal
and state securities laws; and (iii) that the remedy of specific performance and
injunctive  and other forms of equitable  relief may be subject to the equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought) and will not,  with or without the giving of notice or the lapse
of time or both,  result in a breach of, or  conflict  with any of the terms and
provisions  of, or  constitute a default  under,  any agreement or instrument to
which the undersigned is a party.

7. The  undersigned  agrees that until the earlier of (i) the  consummation of a
Business  Combination or the liquidation of the Company or (ii) such time as the
undersigned  ceases  to be an  officer  or  director  of the  Company,  (X)  the
undersigned  shall  present  to the  Company  for  its  consideration  prior  to
presentation to any other entity, any business  opportunity which may reasonably
be  deemed  appropriate  for  the  Company  based  on  the  description  in  the
Registration  Statement of the Company's  proposed business or which is required
to be presented to the Company  under  Delaware law subject to any  pre-existing
fiduciary or contractual obligations the undersigned has and (Y) the undersigned
shall not assist or  participate  with any other person or entity in the pursuit
of or negotiation with respect to such business opportunity unless and until the
undersigned  receives  written  notice  from the  Company  that the  Company has
determined not to pursue such business opportunity.

8. This letter agreement shall be binding on the Company and the undersigned and
the undersigned's  respective  successors,  heirs, personal  representatives and
assigns.  This letter  agreement  shall terminate on the earlier of (i) the date
upon which the Business  Combination is consummated and (ii) the date upon which
the  liquidation and  distribution  of the Trust Account is completed,  provided
that the following  Sections shall survive such termination:  3, 4, 5, 9, 10 and
12.

9. This letter  agreement  shall be governed by and  construed  and  enforced in
accordance  with the  laws of the  State of New  York  applicable  to  contracts
executed in and to be performed in that State,  including,  without  limitation,
Sections  5-1401 and 5-1402 of the New York General  Obligations Law and the New
York  Civil  Practice  Laws  and  Rules  327(b).  Each  of the  Company  and the
undersigned  hereby (i) agrees that any action,  proceeding or claim against him
or it arising out of or relating  in any way to this letter  agreement  shall be
brought and enforced in

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<PAGE>

the courts of the State of New York or the United States  District Court for the
Southern  District of New York, and  irrevocably  submits to such  jurisdiction,
which  jurisdiction  shall be  exclusive  and (ii) waives any  objection to such
exclusive jurisdiction and that such courts represent an inconvenient forum.

10. As used herein:

      10.1  "AFFILIATE"  shall have the meaning  ascribed to it in Rule 12b-2 of
the General Rules and Regulations under the Securities  Exchange Act of 1934, as
amended.

      10.2. "BUSINESS  COMBINATION" shall mean the Company's initial acquisition
of one or more banks,  thrifts and their respective  holding companies and other
financial services organizations through a merger, capital stock exchange, asset
or stock  acquisition,  exchangeable share transaction or other similar business
combination.

      10.3 "INSIDERS" shall mean each of the following:

           V. Charles Jackson
           Richard Alston
           Timothy R. Chrisman
           Peter W. Kuyper
           Richard W. Dalbeck
           George Strong
           Western United Funding, LLC

      10.4 "INSIDER  SHARES" shall mean (i) all of the shares of Common Stock of
the Company owned by the undersigned prior to the IPO and (ii) all of the shares
of Common Stock of the Company held in the name of Western United  Funding,  LLC
with respect to which the undersigned has voting rights.

      10.5 "IPO  SHARES"  shall mean the shares of Common Stock  comprising  the
Units issued in the Company's IPO.

      10.6 "REGISTRATION  STATEMENT" shall mean the registration statement filed
by the Company on Form S-1 (No.  333-138263)  with the  Securities  and Exchange
Commission  on October 27, 2006,  and any amendment or  supplement  thereto,  in
connection with the IPO.

      10.7 "TRUST ACCOUNT" shall mean the trust account  established  with Wells
Fargo, the amounts therein to be released as set forth in the Trust Agreement.

11. No term or  provision  of this letter  agreement  may be  amended,  changed,
waived altered or modified except by written  instrument  executed and delivered
by the undersigned and the Company.

                  [remainder of page intentionally left blank]

                                       4
<PAGE>

                                            Sincerely,

                                            ____________________________________
                                            Name: V. Charles Jackson

Accepted and agreed:

WESTERN UNITED FINANCIAL CORPORATION

By:_________________________________________
Name: Richard Alston
Title: Chief Financial Officer

                                       5
                                [Insider Letter]
<PAGE>

                                   EXHIBIT A:

                    QUESTIONNAIRE FOR DIRECTORS AND OFFICERS

<PAGE>

                                   EXHIBIT B:

                               NASD QUESTIONNAIRE_______________, 2007

Western United Financial Corporation
c/o Western United Management, LLC
70 South Lake Avenue, Suite 900
Pasadena, California 91101

      Re:   INITIAL PUBLIC OFFERING

Ladies and Gentlemen:

      This letter is being delivered to you in accordance with the  Underwriting
Agreement (the  "UNDERWRITING  AGREEMENT")  entered into by and between  Western
United  Financial  Corporation,  a Delaware  corporation  (the  "Company"),  and
Sandler  O'Neill  &  Partners,   L.P.  (the   "UNDERWRITER"),   relating  to  an
underwritten  initial  public  offering (the "IPO") of the Company's  units (the
"UNITS"),  each Unit comprised of one share of the Company's  Common Stock,  par
value  $0.01  per  share  (the  "COMMON  STOCK"),  and  one  warrant,  which  is
exercisable for one share of Common Stock. Certain capitalized terms used herein
are defined in paragraph 11 hereof.

      In order to induce  the  Company  and the  Underwriter  to enter  into the
Underwriting  Agreement and to proceed with the IPO, and in  recognition  of the
benefit that such IPO will confer upon the  undersigned  as a stockholder of the
Company,  and for  other  good  and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, the undersigned hereby agrees with
the Company and the Underwriter as follows:

1.  If  the  Company  solicits  approval  of  its  stockholders  of  a  Business
Combination,  the  undersigned  will  vote  all  Insider  Shares  owned  by  the
undersigned in accordance  with the majority of the votes cast by the holders of
the IPO Shares.

2. In the event that the  Company  fails to  consummate  a Business  Combination
within  twenty-four  (24) months  from the  effective  date of the  Registration
Statement  (the  "EFFECTIVE  DATE"),  the  undersigned  will take all reasonable
actions  within  the  undersigned's  power to (i) cause the Trust  Account to be
liquidated and  distributed to the holders of IPO Shares in accordance with that
Investment  Management  Trust  Agreement  to be  entered  into by and  among the
Company,  the Underwriter  and Wells Fargo Bank,  National  Association  ("Wells
Fargo"),  as  Trustee;  and (ii)  cause  the  Company  to  liquidate  as soon as
reasonably practicable.  The undersigned hereby waives any and all right, title,
interest or claim of any kind (each a "CLAIM") in or to (x) any  distribution of
the Trust Account with respect to the undersigned's Insider Shares in connection
with a  liquidation  and (y) any  remaining net assets of the Company after such
liquidation.

3. Except as disclosed in the Registration  Statement,  none of the undersigned,
any  member  of  the  family  of  the  undersigned,  nor  any  Affiliate  of the
undersigned will be entitled to receive and will not accept any compensation for
services rendered to the Company prior to or in connection with the consummation
of the Business Combination; provided that the undersigned

                                       1
<PAGE>

shall be  entitled  to  reimbursement  from the  Company  for the  undersigned's
reasonable  out-of-pocket  expenses  incurred  in  connection  with  seeking and
consummating a Business Combination.

4. None of the undersigned, any member of the family of the undersigned, nor any
Affiliate  of the  undersigned  will be  entitled  to receive or accept from the
Company a finder's fee or any other  compensation in the event the  undersigned,
any member of the family of the  undersigned or any Affiliate of the undersigned
originates a Business Combination.

5. The undersigned shall escrow the undersigned's Insider Shares until the first
anniversary  of the  consummation  of the Business  Combination,  subject to the
terms of a Securities  Escrow  Agreement  which the Company will enter into with
the  undersigned  and  Wells  Fargo,  as  escrow  agent,  in form and  substance
acceptable to the Company.

6.  The  undersigned  agrees  to be Chief  Financial  Officer,  Secretary  and a
director of the Company and currently  intends to serve until the earlier of the
consummation by the Company of a Business  Combination or the liquidation of the
Company. The undersigned's Questionnaire for Directors and Officers furnished to
the Company and attached hereto as EXHIBIT A and the undersigned's  biographical
information in the  Registration  Statement is true and accurate in all respects
and does not omit any material  information  with  respect to the  undersigned's
background.  The undersigned's NASD  Questionnaire  furnished to the Underwriter
and  annexed  as  EXHIBIT B hereto is true and  accurate  in all  respects.  The
undersigned represents and warrants that:

      6.1 the  undersigned  is not  subject  to, or a  respondent  in, any legal
action for any  injunction,  cease-and-desist  order or order or  stipulation to
desist  or  refrain  from  any  act or  practice  relating  to the  offering  of
securities in any jurisdiction;

      6.2 the  undersigned  has never been convicted of or pleaded guilty to any
crime (i) involving any fraud,  (ii)  relating to any financial  transaction  or
handling of funds of another  person or (iii)  pertaining to any dealings in any
securities, and he is not currently a defendant in any such criminal proceeding;

      6.3 the  undersigned  has never been suspended or expelled from membership
in any securities or commodities  exchange or association or had a securities or
commodities license or registration denied suspended or revoked;

      6.4 a petition under any federal bankruptcy laws or any state, territorial
or  provincial  insolvency  law was not filed by or against,  nor was a receiver
fiscal  agent or  similar  officer  appointed  by a court  for the  business  or
property of the undersigned, or for any partnership in which the undersigned was
a general  partner within the past two years or for any  corporation or business
association of which the  undersigned  was an executive  officer within the past
two years;

      6.5 the undersigned  has not been subject to any order  prohibiting and is
not subject to any legal  proceeding  seeking to prohibit the  undersigned  from
engaging in any type of business practice;

                                       2
<PAGE>

      6.6  the   undersigned  has  not  been  found  by  a  court  of  competent
jurisdiction  in a civil action by the Securities and Exchange  Commission or by
any other  federal  or state  administrative  or  regulatory  authority  to have
violated any federal or state securities law;

      6.7  the   undersigned  has  not  been  found  by  a  court  of  competent
jurisdiction in a civil action by the Commodity Futures Trading Commission or by
any other  federal  or state  administrative  or  regulatory  authority  to have
violated any federal or state commodities law; and

      6.8 the Escrow Agreement,  dated as of __________,  2007, by and among the
Company,  Wells Fargo, the undersigned and the other stockholders of the Company
party  thereto is  enforceable  against  the  undersigned  (except:  (i) as such
enforceability  may be  limited by  bankruptcy,  insolvency,  reorganization  or
similar laws affecting  creditors' rights  generally;  (ii) as enforceability of
any  indemnification or contribution  provision may be limited under the federal
and state securities laws; and (iii) that the remedy of specific performance and
injunctive  and other forms of equitable  relief may be subject to the equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought) and will not,  with or without the giving of notice or the lapse
of time or both,  result in a breach of, or  conflict  with any of the terms and
provisions  of, or  constitute a default  under,  any agreement or instrument to
which the undersigned is a party.

7. The  undersigned  agrees that until the earlier of (i) the  consummation of a
Business  Combination or the liquidation of the Company or (ii) such time as the
undersigned  ceases  to be an  officer  or  director  of the  Company,  (X)  the
undersigned  shall  present  to the  Company  for  its  consideration  prior  to
presentation to any other entity, any business  opportunity which may reasonably
be  deemed  appropriate  for  the  Company  based  on  the  description  in  the
Registration  Statement of the Company's  proposed business or which is required
to be presented to the Company  under  Delaware law subject to any  pre-existing
fiduciary or contractual obligations the undersigned has and (Y) the undersigned
shall not assist or  participate  with any other person or entity in the pursuit
of or negotiation with respect to such business opportunity unless and until the
undersigned  receives  written  notice  from the  Company  that the  Company has
determined not to pursue such business opportunity.

8. This letter agreement shall be binding on the Company and the undersigned and
the undersigned's  respective  successors,  heirs, personal  representatives and
assigns.  This letter  agreement  shall terminate on the earlier of (i) the date
upon which the Business  Combination is consummated and (ii) the date upon which
the  liquidation and  distribution  of the Trust Account is completed,  provided
that the following  Sections shall survive such termination:  3, 4, 5, 9, 10 and
12.

9. This letter  agreement  shall be governed by and  construed  and  enforced in
accordance  with the  laws of the  State of New  York  applicable  to  contracts
executed in and to be performed in that State,  including,  without  limitation,
Sections  5-1401 and 5-1402 of the New York General  Obligations Law and the New
York  Civil  Practice  Laws  and  Rules  327(b).  Each  of the  Company  and the
undersigned  hereby (i) agrees that any action,  proceeding or claim against him
or it arising out of or relating  in any way to this letter  agreement  shall be
brought and enforced in

                                       3
<PAGE>

the courts of the State of New York or the United States  District Court for the
Southern  District of New York, and  irrevocably  submits to such  jurisdiction,
which  jurisdiction  shall be  exclusive  and (ii) waives any  objection to such
exclusive jurisdiction and that such courts represent an inconvenient forum.

10. As used herein:

      10.1  "AFFILIATE"  shall have the meaning  ascribed to it in Rule 12b-2 of
the General Rules and Regulations under the Securities  Exchange Act of 1934, as
amended.

      10.2. "BUSINESS  COMBINATION" shall mean the Company's initial acquisition
of one or more banks,  thrifts and their respective  holding companies and other
financial services organizations through a merger, capital stock exchange, asset
or stock  acquisition,  exchangeable share transaction or other similar business
combination.

      10.3 "INSIDERS" shall mean each of the following:

           V. Charles Jackson
           Richard Alston
           Timothy R. Chrisman
           Peter W. Kuyper
           Richard W. Dalbeck
           George Strong
           Western United Funding, LLC

      10.4 "INSIDER  SHARES" shall mean (i) all of the shares of Common Stock of
the Company owned by the undersigned prior to the IPO and (ii) all of the shares
of Common Stock of the Company held in the name of Western United  Funding,  LLC
with respect to which the undersigned has voting rights.

      10.5 "IPO  SHARES"  shall mean the shares of Common Stock  comprising  the
Units issued in the Company's IPO.

      10.6 "REGISTRATION  STATEMENT" shall mean the registration statement filed
by the Company on Form S-1 (No.  333-138263)  with the  Securities  and Exchange
Commission  on October 27, 2006,  and any amendment or  supplement  thereto,  in
connection with the IPO.

      10.7 "TRUST ACCOUNT" shall mean the trust account  established  with Wells
Fargo, the amounts therein to be released as set forth in the Trust Agreement.

11. No term or  provision  of this letter  agreement  may be  amended,  changed,
waived altered or modified except by written  instrument  executed and delivered
by the undersigned and the Company.

                  [remainder of page intentionally left blank]

                                       4
<PAGE>

                                            Sincerely,

                                            ____________________________________
                                            Name: Richard Alston

Accepted and agreed:

WESTERN UNITED FINANCIAL CORPORATION

By:_________________________________
Name: V. Charles Jackson
Title: Chief Executive Officer

                                [Insider Letter]
<PAGE>

                                   EXHIBIT A:

                    QUESTIONNAIRE FOR DIRECTORS AND OFFICERS

<PAGE>

                                   EXHIBIT B:

                               NASD QUESTIONNAIRE

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