Document:

Exhibit 4.2                  

     

    
      
        	
                RIGHTS
      CERTIFICATE #:

              	
                NUMBER
      OF RIGHTS

              

      

    

    THE TERMS
AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY'S
PROSPECTUS

    DATED
______ __, 2009 (THE "PROSPECTUS") AND ARE INCORPORATED HEREIN BY
REFERENCE.   COPIES OF

    THE
PROSPECTUS ARE AVAILABLE UPON REQUEST FROM THE ALTMAN GROUP, THE INFORMATION
AGENT.

     

    MHI
Hospitality Corporation

    Incorporated
under the laws of the State of Maryland

     

    NON
- TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

     

    Evidencing
Non - Transferable Subscription Rights to Purchase Shares of Common Stock of MHI
Hospitality Corporation

     

    Subscription
Price:       $____ per Share

     

    THE
SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., NEW
YORK CITY

    TIME,
ON                     
, 2009, UNLESS EXTENDED BY THE COMPANY

    

    
      
        
          	
                  REGISTERED

                	 
      
	
                  OWNER:

                	 
      

        

      

    

    

    
      
        
          
            	
                    THIS
      CERTIFIES THAT the registered owner whose name is inscribed hereon is the
      owner of the number of non-transferable subscription rights (“Rights”) set
      forth above. Each whole Right entitles the holder thereof to subscribe for
      and purchase one share of Common Stock, with a par value of $0.01 per
      share, of MHI Hospitality Corporation, a Maryland corporation, at a
      subscription price of $_____ per share (the “Basic Subscription
      Privilege”), pursuant to a rights offering (the “Rights Offering”), on the
      terms and subject to the conditions set forth in the Prospectus and the
      “Instructions as to Use of MHI Hospitality Corporation Subscription Rights
      Certificates” accompanying this Subscription Rights Certificate. If any
      shares of Common Stock available for purchase in the Rights Offering are
      not purchased by other holders of Rights pursuant to the

                  	 	
                    exercise of their Basic Subscription Privilege (the
      “Excess Shares”), any Rights holder that exercises its Basic Subscription
      Privilege in full may subscribe for a number of Excess Shares pursuant to
      the terms and conditions of the Rights Offering, subject to proration, as
      described in the Prospectus (the “Over-Subscription Privilege”). The Rights
      represented by this Subscription Rights Certificate may be exercised by
      completing Form 1 and any other appropriate forms on the reverse side
      hereof and by retuning the
      full payment of the subscription price for each share of Common Stock in
      accordance with
      the “Instructions as to Use of MHI Hospitality
      Corporation Subscription
      Rights Certificates” that accompany this Subscription Rights
      Certificate.

                  

          

        

      

    

     

    This
Subscription Rights Certificate is not valid unless countersigned by the
subscription agent and registered by the registrar.

     

    Witness
the seal of Sample Corporation and the signatures of its duly authorized
officers.

     

    Dated:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        
                                                          ________________________

                                                        

                                                        Andrew
      M. Sims

                                                        President,
      Chief Executive Officer

                                                        and
      Principal Executive Officer

                                                      	
                                                        
                                                          __________________________

                                                        

                                                        William
      J. Zaiser

                                                        Executive
      Vice President, Chief

                                                        Financial
      Offier and Treasurer

                                                      	
                                                         

                                                      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      

      

    

    
    

    
      
        

      

    

    
    

     

    DELIVERY
OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE

     

    Delivery
other than in the manner or to the addresses listed below will not constitute
valid delivery.

     

    
      
        
          
            	
                    If
      delivering by hand:

                    American
      Stock Transfer & Trust Company

                    Attn:
      Reorganization Department

                    59
      Maiden Lane

                    New
      York, New York 10038

                  	
                    If
      delivering by mail or overnight courier:

                    American
      Stock Transfer & Trust Company

                    Operations
      Center

                    Attn:
      Reorganization Department

                    6201
      15th
      Avenue

                    Brooklyn,
      New York 11219

                  

          

        

      

    

     

    PLEASE PRINT ALL INFORMATION CLEARLY
AND LEGIBLY.

    

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	

                                                  FORM
      1-EXERCISE OF SUBSCRIPTION RIGHTS

                                                   

                                                  To
      subscribe for shares pursuant to your Basic Subscription Right, please
      complete lines (a) and (c) and sign under Form 3 below.  To
      subscribe for shares pursuant to your Over-Subscription Right, please also
      complete line (b) and sign under Form 3 below.  To the extent
      you subscribe for more Shares than you are entitled under either the Basic
      Subscription Right or the Over-Subscription Right, you will be deemed to
      have elected to purchase the maximum number of shares for which you are
      entitled to subscribe under the Basic Subscription Right or
      Over-Subscription Right, as applicable.

                                                	 	

                                                  FORM
      2-DELIVERY TO DIFFERENT ADDRESS

                                                   

                                                  If
      you wish for the Common Stock underlying your subscription rights or the
      proceeds of any sale of subscription rights to be delivered to an address
      different from that shown on the face of this Subscription Rights
      Certificate, please enter the alternate address below, sign under Form 3
      and have your signature guaranteed under Form 4.

                                                
	 
      	 	 
      
	

                                                  (a)
      EXERCISE OF BASIC SUBSCRIPTION RIGHT:

                                                	 	

                                                  FORM
      3-SIGNATURE

                                                
	 	 	 
	

                                                  I
      apply for _______________ shares x $
      ____                       =
        $_______________

                                                                   
      (no. of new
      shares)            
         (subscription price)     
          (amount enclosed)

                                                	 	

                                                  TO
      SUBSCRIBE: I acknowledge that I have received the Prospectus for this
      Rights Offering and I hereby irrevocably subscribe for the number of
      shares indicated above on the terms and conditions specified in the
      Prospectus.

                                                
	 	 	 
	

                                                  (b)
      EXERCISE OF OVER-SUBSCRIPTION RIGHT

                                                	 	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              	
                       

                    	 
      	

                      Signature(s):

                    	 
      

            

          

        

      

    

    
      	
              

                If
      you have exercised your Basic Subscription Right in full and wish to
      subscribe for additional shares
      pursuant to your Over-Subscription Right:

              

            	
               

            	 
      	 
      
	 
      	 
      	

              IMPORTANT: The signature(s) must correspond with
      the name(s) as printed on the reverse of this Subscription Rights
      Certificate in every particular, without alteration or enlargement,
      or any other change whatsoever.

            
	
               I apply for
      _______________ shares x $
      ____                  =
        $_______________

              
                                 
      (no. of new
      shares)            
         (subscription
      price)         (amount
      enclosed)

              

            	 	 
	 	 	 
	(c)
      Total Amount of Payment Enclosed   =
        $__________________	 	FORM
      4-SIGNATURE GUARANTEE
	 	 	 
	

              METHOD
      OF PAYMENT (CHECK ONE)

            	 	

              This
      form must be completed if you have completed Forms
  2.

            

    

     

    
      
        	 	
                 

              	
                 

              	

                Signature Guaranteed:

              	 
      
	o	
                

                        
                    Certified bank check or bank draft payable to
      American Stock
      Transfer &Trust
      Company, as subscription agent, f/b/o MHI Hospitality Corporation, drawn
      upon a United States bank; or

                  

                

              	 
      	
                (Name
      of Bank or
Firm)

              

      

    

    
      	 	
               

            	 
      	

              

                By:

              

            	 
      
	 ̈	
              Wire
      transfer of immediately available funds directly to the account maintained
      by American Stock Transfer & Trust Company, LLC, as
      Subscription Agent, for purposes of accepting subscriptions in this
      Rights Offering at JPMorgan Chase Bank, 55 Water Street, New York,
      New York 10005, ABA #021000021, Account # 323-213251, Account name:
      American Stock Transfer & Trust, Reference: MHI Hospitality Rights
      Offer, with reference to the rights holder's
      name.

            	 	
                (Signature
      of Officer)

               

              
                IMPORTANT:  The
      signature(s) should be guaranteed by an eligible guarantor institution
      (bank, stock broker, savings & loan association or credit union) with
      membership in an approved signature guarantee medallion program pursuant
      to Securities and Exchange Commission Rule
  17Ad-15.

              

            

      
      

    

     

    FOR
INSTRUCTIONS ON THE USE OF MHI HOSPITALITY CORPORATION SUBSCRIPTION RIGHTS
CERTIFICATES, CONSULT THE ALTMAN GROUP, THE INFORMATION AGENT, AT (866) 796-3419 or by email at
reorg@altmangroup.com.Exhibit
10.1

         

      

       

       

      FORM
OF

      STOCK
SUBSCRIPTION AGREEMENT

      UNION
NATIONAL FINANCIAL CORPORATION

      

      
        
          	
                  5,000
      Shares

                  5%
      Non-Cumulative Non-Voting Convertible Perpetual Preferred Stock, Series
      A

                  par
      value $0.25 per share

                  $1,000
      per share

                   

                    
      

                

        

      

      

                                                                

      
        
          	
                  Submit
      Subscription Agreement to:

                	
                  Union
      National Financial Corporation

                
	 	      
                  Attn:
      Mark D. Gainer, Chairman, President, and CEO

                  570
      Lausch Lane, Suite 300

                  Lancaster,
      PA  17601

                

        

      

       

      

      Ladies/Gentlemen:

      

      (I/We) (hereinafter referred
to as the “Undersigned”) subscribe and agree to purchase the following number of
shares of capital stock of Union National Financial Corporation (the “Company”)
as follows:

      

      
        	
                Type
      of Stock

                (the
      “Shares”)

              	 
      	
                Number
      of Shares

              	 
      	
                Price
      per Share

              	 
      	
                Total
      Purchase Price*

              
	
                5%
      Non-Cumulative Non-Voting Convertible Perpetual Preferred Stock, Series
      A**

              	 
      	
                __________

              	
                X

              	
                $1,000

              	 
      	
                $
      __________

              

      

      

      
        	
                * 

              	
                The
      minimum purchase of Convertible Preferred Stock is
  $25,000.

              

      

      
        	
                ** 

              	
                The
      maximum purchase of Convertible Preferred Stock by any single purchaser or
      multiple purchasers undercontrol of the same person is
      $1,000,000.

              

      

      

      Enclosed
is the Undersigned’s check, bank draft or money order made payable in United
States currency to the order of “Union National Financial
Corporation” or an authorization for withdrawal of collected funds on
deposit at Union National Community Bank in the amount of the Total Purchase
Price. The Shares should be issued in the name(s) and sent to the address
appearing at the end of this subscription agreement.

      

      The
Subscription Agreement shall be accepted and become an agreement binding on the
Company, only if and when executed in the name and on behalf of the Company and
when notice of execution and acceptance (which may be a copy or similar
counterpart hereof) is mailed to the Undersigned.  The Subscription
Agreement is binding after acceptance by the Company upon the heirs, estate,
legal representatives, assigns and successors of the Undersigned and shall
survive the death, disability, or dissolution of the Undersigned.

      

      Subscription
Agreement is Irrevocable

      Once
submitted to the Company, you will have no ability to revoke, cancel, terminate,
alter or otherwise change the Subscription Agreement, except that you will have
no obligation to pay the Company if your Subscription Agreement is rejected, in
whole or in part, by the Company.

      

      Non-Transferability

      Neither
this Subscription Agreement nor any interest therein may be transferred or
assigned to any person.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Sale
of Shares

      

      The sale
of Shares for which you have subscribed shall not occur until the Company has
advised you in writing that it has accepted your Subscription Agreement and
received the purchase price in cleared funds. The Company reserves the right, in
its sole discretion and for any reason whatsoever, to reject any Subscription
Agreement in whole or in part.

      

      Entire
Subscription Agreement and Governing Law

      The
Subscription Agreement constitutes the entire agreement among the parties hereto
with respect to the purchase of the shares.  The Subscription
Agreement shall be governed by the laws of the Commonwealth of Pennsylvania
applicable to contracts made and wholly performed in that jurisdiction and
without giving effect to conflict of laws provisions.  In the event
there is any conflict between the Memorandum and any supplements thereto and
this Subscription Agreement, the terms set forth in the Memorandum and any
supplements thereto shall be controlling.

      

      Representations
and Warranties

      In
consideration for the Company accepting my Subscription Agreement, I make the
following representations and warranties to the officers, directors and control
persons of the Company.  The representations, warranties and other
information that I have provided to the Company are true and accurate as of the
date hereof.  If any of the representations, warranties or information
becomes inaccurate at any time prior to acceptance by the Company of the
Subscription Agreement, I promptly will give written notice to the Company at
its principal place of business explaining which representations, warranties or
information have become inaccurate and the reasons therefor.

      

      
        	
                1.  

              	
                I
      received and read a copy of the Private Placement Memorandum dated
      September 16, 2009 and any supplement thereto, including all exhibits
      attached thereto and documents incorporated by reference
      therein.

              

      

      

      
        	
                2.  

              	
                I
      have completed the attached Investment Questionnaire and represent to the
      officers and directors and control persons of the Company that I am an
      Accredited Investor as that term is defined in Rule 501(a) of U.S.
      Securities & Exchange Commission (“SEC”) Regulation D or have such
      knowledge and experience in financial and business matters that I am
      capable of evaluating the merits and risks of the prospective investment
      or my personal representative has such experience in financial and
      business matters;

              

      

      

      
        	
                3.  

              	
                I
      agree, within 10 days of receipt of a written request, to provide the
      Company with a current personal financial
  statement.

              

      

      

      
        	
                4.  

              	
                I
      have received from the Company all documents that I requested relating to
      information described or referenced in the Memorandum and the Company has
      provided answers to all of my questions concerning the offering of
      Shares.  In evaluating the suitability of an investment in the
      Shares, I have not relied upon any representations or other information
      (whether oral or written) except that set forth in the Memorandum or
      clarified by any documents or answers to questions furnished to me by the
      Company. In addition, I have had an opportunity to discuss my investment
      in the Shares with representatives of the
  Company.

              

      

      

      
        	
                5.  

              	
                I
      am acquiring the Shares for my own account solely for investment purposes
      and not with a view toward resale, offer for sale, or for sale in
      connection with the distribution or transfer thereof.  I am not
      submitting this Subscription Agreement for purposes of subdivision or
      fractionalization thereof.  I have no contract nor do I
      contemplate entering into a contract, undertaking, pledge, arrangement or
      plan with any other person to sell, hypothecate, pledge, donate or
      otherwise transfer to any such person any portion of the Subscription
      Agreement or the Shares that may be issued by the Company in reliance upon
      the representations and warranties contained in the Subscription
      Agreement.

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      
        	
                6.  

              	
                I
      represent that, if the subscriber is a corporation, partnership, trust or
      other entity, the entity was not formed for the specific purpose of
      acquiring the Shares.

              

      

      

      
        	
                7.  

              	
                I
      am over 18 years of age, am a resident of the United States and maintain
      my principal residence at the address indicated
  herein.

              

      

      

      
        	
                8.  

              	
                I
      have adequate financial resources and can meet all current and foreseeable
      needs and can afford the entire loss of my investment in the
      Shares.  I have no present need for liquidity of this investment
      or receipt of dividends or
distributions.

              

      

      

      
        	
                9.  

              	
                I
      agree not to sell or otherwise dispose of my Shares unless the Shares
      either have been registered under the Securities Act of 1933, as amended
      (the “1933 Act”) and applicable state securities laws, or, in the opinion
      of counsel acceptable to the Company, an exemption from the registration
      requirements of the 1933 Act and state securities laws is
      available.

              

      

      

      
        	
                10.  

              	
                I
      agree that the following legend shall be placed on the certificate
      evidencing ownership of the Shares to be issued to me, and I agree to
      abide by the terms described
therein:

              

      

      

      “THESE
SECURITIES HAVE BEEN SOLD PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
SECTION 4(2) OF THE SECURITIES ACT OF 1933, AS AMENDED (“1933
ACT”),  AND RULE 506 OF SEC REGULATION D AND ARE DEEMED TO BE
‘RESTRICTED SECURITIES’ AND SUBJECT TO THE HOLDING PROVISIONS OF SEC RULE
144.  THESE SECURITIES CANNOT BE TRANSFERRED ABSENT A REGISTRATION
STATEMENT FOR THE SECURITIES HAVING BEEN DECLARED EFFECTIVE UNDER SECTION 5 OF
THE 1933 ACT OR RECEIPT BY THE ISSUER OF AN OPINION OF COUNSEL THAT AN EXEMPTION
FROM REGISTRATION IS AVAILABLE FOR THE TRANSFER.”

      

      
        	
                11.  

              	
                If
      this Agreement is executed on behalf of a corporation, partnership, trust
      or other entity, I represent that I have been duly authorized to execute
      this Subscription Agreement and all other instruments in connection with
      the purchase of the Shares and my signature is binding upon such
      corporation, partnership, trust or other entity.  The Company
      retains the right to request the production of an appropriate certificate
      for said authorization.

              

      

      

      

      [Remainder
of Page Intentionally Left Blank]

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Subscriber
Acknowledgements

       

      
        	
                1.  

              	
                I
      acknowledge that the Shares have not been registered under the 1933 Act or
      any state securities laws and the Offering has not been approved or
      disapproved by the SEC or any state securities commission nor has the SEC
      or any state securities commission passed on the merits, adequacy or
      accuracy of this offering.  I further acknowledge that neither
      the SEC nor any state securities commission has made any finding or
      determination as to the fairness of the
  offering.

              

      

      

      
        	
                2.  

              	
                I
      acknowledge that the Shares are not deposits of Union National Community
      Bank and are not insured by the Federal Deposit Insurance Corporation or
      any other government agency and are subject to investment risk, including
      the possible loss of my entire
investment.

              

      

      

      
        	
                3.  

              	
                I
      acknowledge that the Shares are being offered in reliance upon an
      exemption from registration under the 1933 Act and, as a result, are
      subject to specific restrictions on resale and transfer imposed by federal
      law.

              

      

      

      
        	
                4.  

              	
                I
      understand that purchase of the Shares involves risks as more particularly
      described in the “Risk Factors” section of the Memorandum.  At
      the present time, I can afford the entire loss of my
      investment.

              

      

      

      
        	
                5.  

              	
                I
      understand that the Memorandum or documents referenced in the Memorandum
      contain forward-looking statements and information relating to the Company
      based on the beliefs of, and certain assumptions made by, the Company’s
      management.  I recognize that future events are subject to
      various risks and uncertainties relating to operations, results of
      operations and growth of the Company.  If one or more of these
      risks materialize or should any or all of the underlying assumptions prove
      to be incorrect, I understand that the actual results or outcomes may vary
      materially from those described in the Memorandum as “anticipated,
      believed, estimated, expected, or
intended.”

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      STOCK
SUBSCRIPTION AGREEMENT

      UNION
NATIONAL FINANCIAL CORPORATION

      5%
Non-Cumulative Non-Voting Convertible

      Perpetual
Preferred Stock, Series A

      Signature
Page

      

      IN WITNESS WHEREOF
THIS  __________________________ DAY
OF __________________________, 2009, the Undersigned subscribes to purchase
the shares identified in this Subscription Agreement for the Total Purchase
Price in the following manner (choose one):

       

       

      
        
          	Individually	r	Corporation	r

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	 
      	 
      	 
      
	 	 	 	 
	      
                                      Tenants
      by the entireties

                                      (each
      must sign)

                                    	r	Accepted
      and Executed by:	 
      
	 	 	 	 
	 
      	 
      	 
      	 
      
	      
                                      Joint
      tenants with right
      of survivorship

                                      (each
      must sign)

                                    	r	(Authorized
      Signature)	 
      
	 	 	 	 
	 
      	 
      	 
        	 
      
	      
                                      Tenants
      in common

                                      (each
      must sign)

                                    	r	(Print
      Name and Title)	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 	 
      
	In
      Partnership	r	(Address,
      City, State, Zip)	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	  
      	 
      
	As
      custodian, trustee or agent for:	r	      
                                      (EIN
      Number)

                                    	 
      
	 
      	 
      	 
      	 
      
	 	 	 	 
	  
      	 
      	 
      	 
      
	(Print
      Name)	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	   
      	 
      	 
      	 
      
	      
                                      (SSN
      or EIN)

                                    	 
      	 
      	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      Subscribed to
by:

      
        	
              	 	 	 
	  
      	 
      	  
      	 
      
	(Signature
      of Subscriber)	 
      	(Signature
      of Co-Subscriber)	 
      
	 
      	 
      	 
      	 
      
	   
      	 
      	  
      	 
      
	      
                (Printed
      Name of Subscriber)

              	 
      	(Printed
      Name of Co-Subscriber)	 
      

      
        
          	
                	 	 	 
	  
      	 
      	 
        	 
      
	(SSN
      or EIN of Subscriber)	 
      	(SSN
      or EIN of Co-Subscriber)	 
      
	 
      	 
      	 
      	 
      
	   
      	 
      	  
      	 
      
	      
                  (Title,
      if applicable)

                	 
      	(Address,
      City, State, Zip)	 
      

      

      
        
          
            	
                  	 	 	 
	  
      	 
      	  
      	 
      
	(Street
      Address)	 
      	      
                    (EIN
      Number)

                  	 
      
	 
      	 
      	 
      	 
      
	   
      	 
      	 
      	 
      
	      
                    (City,
      State and Zip Code)

                  	 
      	 
      	 
      

          

           

          
            	 
      	 
      	 
      	 
      
	      
                          
                      (Telephone
      Number)

                    

                  	 
      	 
      	 
      

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 
      	 
      	Accepted
      by Union National Financial Corporation	 
	 	 	 	 	 
	      
                                                      
                                                   

                                                

                                              	 
      	By:	 
      	 
	 	 	 	 
	 	 	 
      	 
	 	 	(Print
      Name and Title)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]