UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549
            ________________________________________
                           FORM 8-K

                          CURRENT REPORT

                  Pursuant to Section 13 or 15(d)
               of the Securities Exchange Act of 1934
               ________________________________________

Date of Report (Date of earliest event reported): May 11, 2007

                  UNION NATIONAL FINANCIAL CORPORATION
               ________________________________________
         (Exact name of registrant as specified in its charter)


       Pennsylvania              0-19214            23-2415179
___________________________   _______________   _______________
(State or other jurisdiction (Commission File   (IRS Employer
  of incorporation)           Number)         Identification No.)

570 Lausch Lane, Lancaster, Pennsylvania            17601
________________________________________          _________
(Address of principal executive offices)          (Zip Code)

                           (717) 653-1441
              ________________________________________
          (Registrant's telephone number, including area code)

   Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General
Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the
     Securities Act (17 CFR 230.425)
[ ]  Soliciting material pursuant to Rule 14a-12 under the
     Exchange Act (17 CFR 240.14a-12)
[ ]  Pre-commencement communications pursuant to Rule 14d-2(b)
     under the Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c)
     under the Exchange Act (17 CFR 240.13e-4(c))
<PAGE>

                   CURRENT REPORT ON FORM 8-K

    Item 1.01  Entry into a Material Definitive Agreement
    _________  ____________________________________________

    Effective May 11, 2007, Union National Financial Corporation
(the "Corporation") and Union National Community Bank entered
into a Complete Settlement Agreement and General Release (the
"Agreement") with Clement M. Hoober dated May 4, 2007.  The
Agreement relates to the termination of Mr. Hoober's employment.
Mr. Hoober served as Chief Financial Officer of the Corporation
until March 29, 2007.  For a brief description of the material
terms and conditions of the Agreement, please refer to Item 5.02
which is incorporated herein by reference, and to the copy of the
Agreement filed herewith as Exhibit 99.1 and incorporated herein
by reference.

Item 5.02    Departure of Directors or Certain Officers,
_________    _____________________________________________
             Election of Directors; Appointment of Certain
             ______________________________________________
             Officers; Compensatory Arrangements of Certain
             _______________________________________________
             Officers
             _________

    Effective May 11, 2007, Union National Financial Corporation
(the "Corporation") and Union National Community Bank entered
into a Complete Settlement Agreement and General Release (the
"Agreement") with Clement M. Hoober dated May 4, 2007.  The
Agreement relates to the termination of Mr. Hoober's employment.
Mr. Hoober served as Chief Financial Officer of the Corporation
until March 29, 2007.

    The material terms of the Agreement are summarized as
follows:

1.  The Corporation shall pay Mr. Hoober (a) salary through March
    31, 2007, (b) 38 weeks of severance pay, minus appropriate
    withholdings and/or deductions, (c) COBRA payments until he
    either is no longer qualified for COBRA or December 22, 2007,
    (d) $3,000 for transition expenses, and (e) $1,500 toward
    legal fees.
2.  The Corporation shall not contest Mr. Hoober's application
    for unemployment compensation and return all remaining
    seminar materials to Mr. Hoober.

3.  The Corporation acknowledges that there are no restrictions
    on Mr. Hoober's subsequent employment.

4.  In consideration of the above, Mr. Hoober releases the
    Corporation from any an all liabilities based on his
    employment or termination.
5.  The Corporation shall indemnify Mr. Hoober to the extent
    permitted by insurance coverage for any action, suit or
    proceeding resulting from his employment.

<PAGE>

6.  Mr. Hoober agrees not to disclose any confidential
    information of the Corporation and return any confidential
    documents and information to the Corporation.

7.  Both parties agree to cooperate to avoid disparagement of
    either party.

    For further information, please refer to the copy of the
Agreement filed herewith as Exhibit 99.1 and incorporated herein
by reference.

<PAGE>

ITEM 9.01     Financial Statements and Exhibits
_________     _________________________________

 (a)   Financial Statements and Exhibits
       None.

 (b)   Pro Forma Financial Information
       None.

 (c)   Shell Company Transactions
       None.

 (d)   Exhibits.

Exhibit Number               Description
______________   ____________________________________
99.1             Complete Settlement Agreement and General
                 Release between Clement M. Hoober and Union
                 National Financial Corporation, Union National
                 Community Bank dated May 4, 2007 and effective
                 as of May 11, 2007.

<PAGE>

SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this Current Report on Form
8-K to be signed on its behalf by the undersigned, thereunto duly
authorized.
                                       UNION NATIONAL FINANCIAL
                                       CORPORATION
                                       (Registrant)


Dated: May 11, 2007                    /s/ Mark D. Gainer
                                       __________________________
                                       Mark D. Gainer
                                       Chairman, Chief Executive
                                       Officer, and President
<PAGE>

Exhibit Number      Description
______________   _________________________________________
99.1             Complete Settlement Agreement and General
                 Release between Clement M. Hoober and Union
                 National Financial Corporation, Union National
                 Community Bank dated May 4, 2007 and effective
                 as of May 11, 2007.

<PAGE>

                  COMPLETE SETTLEMENT AGREEMENT
                  _____________________________
                      AND GENERAL RELEASE
                      ___________________

                        READ IT CAREFULLY


    NOTICE TO CLEMENT M. HOOBER:

    This is a very important legal document, and you should
    carefully review and understand the terms and effect of this
    document before signing it.  By signing this Complete
    Settlement Agreement and General Release ("Agreement"), you
    are agreeing to completely release UNION NATIONAL FINANCIAL
    CORPORATION, UNION NATIONAL COMMUNITY BANK and their
    subsidiaries, affiliates, directors and officers.  Therefore,
    you should consult with an attorney before signing this
    Agreement.  You have twenty one (21) days from the day of
    receipt of this document to consider the Agreement. The
    twenty one (21) days will begin to run on the day after
    receipt.  If you choose to sign the Agreement, you will have
    an additional seven (7) days following the date of your
    signature to revoke the Agreement, and the Agreement shall
    not become effective or enforceable until the revocation
    period has expired.

    This Complete Settlement Agreement and General Release
("Agreement") by and between Clement M. Hoober ("Executive") and
Union National Financial Corporation and Union National Community
Bank ("Bank") and each of their subsidiaries and affiliates
(collectively "Corporation") is made this 4th day of May, 2007.
In this Agreement, the "Corporation" shall at all times include
any and all related entities, corporations, subsidiaries, and
affiliates.

                              1
<PAGE>

    In consideration of the foregoing preambles, the mutual
covenants and agreements set forth below and other valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, intending to be legally bound hereby, the parties
hereto agree as follows:

    1.  Termination of Employment; Payments to Executive

        a.  Termination of employment with Corporation shall be
effective March 29, 2007.  Executive confirms his termination of
service with Corporation and all of its subsidiaries, affiliates,
joint ventures, partnerships, or any other business enterprises,
as well as from any office or position with any trade group or
any charitable organization which he or she holds on behalf of
the Corporation.  Executive hereby confirms his resignation from
any and all of the Corporation's, its subsidiaries' and
affiliates' Boards of Directors.

        b.  In consideration of Executive complying with the
terms of this Agreement and provided that Executive continuously
and at all times complies with all of his or her obligations
pursuant to this Agreement, Corporation shall pay Executive the
following severance package:

            i.  Corporation shall pay an amount equal to
Executive's salary through March 31, 2007, minus all appropriate
withholdings and/or deductions on the first regularly scheduled
pay date following the termination of Executive's employment;

           ii.  Corporation shall provide Executive with
thirty-eight (38) weeks of severance, minus all appropriate
withholdings and/or deductions payable in accordance with the
customary payroll practices of Corporation

                                2

<PAGE>

commencing on the first payroll date, if administratively
feasible, after the expiration of the Revocation Period as
defined in Section 10;

          iii.  Corporation shall pay for Executive's COBRA
payments until the earlier of 1) Executive no longer qualifies
for COBRA or 2) December 22, 2007;

           iv.  Corporation shall pay Executive an amount equal
to his unused accrued PTO, minus all appropriate withholdings
and/or deductions;

            v.  Corporation shall pay Executive an amount equal
to $3,000 for outplacement services and other incidental costs
related to job placement;

           vi.  Corporation shall pay $1,500 toward Mr. Hoober's
legal fees in connection with the review of this Agreement;

          vii.  Corporation will not contest any application for
unemployment compensation;

         viii.  Corporation will give Mr. Hoober the seminar
material remaining in his previous office; and

           ix.  Corporation acknowledges that there are no
restrictions on Mr. Hoober's subsequent employment.

        c. Executive acknowledges that he will receive additional
information regarding his COBRA benefits via first class mail.
He also acknowledges that should he have any additional questions
regarding his COBRA benefits, he is to contact Patti Martin via
email, first class mail or telephone.   He


                               3
<PAGE>

further acknowledges that after March 29, 2007, because of
federal banking regulations, he is not permitted in any areas of
the Bank which are not open to the general public.

        d.  Executive acknowledges and agrees that the benefits
to be provided to Executive by Corporation pursuant to this
Paragraph are, in significant and substantial part, in addition
to those benefits to which he is already or would otherwise be
entitled.

    2.  Costs, Including Attorneys' Fees.  Executive understands
and agrees that Corporation shall not be liable to Executive
and/or any present or former attorney for any costs, expenses, or
attorneys' fees of any kind or amount.  Furthermore, Executive
expressly agrees that he is not to be considered to be the
"prevailing" or "successful" party within the meaning of any
statute, rule, or other law.

    3.  Release by Executive.  In consideration of the payments
and severance benefits set forth in this Agreement which
consideration and severance benefits Executive was not otherwise
entitled to receive, and intending to be legally bound,
Executive, and all other persons or entities claiming with, by,
or through him, hereby releases and forever discharges
Corporation, and its predecessors, successors, affiliates,
subsidiaries, parents, partners and all of their present and past
shareholders, directors, officers, agents, employees and
attorneys, and all other persons or entities who could be said to
be jointly or severally liable with them, (individually and
collectively "the Releasees") from any and all liabilities,
claims, actions, causes of action, rights, judgments,
obligations, demands, or suits presently asserted or not
asserted, accrued or unaccrued, known or unknown, that Executive
had, now has, or may have or could claim


                              4
<PAGE>

to have against the Releasees, from the beginning of time to the
date of execution of this Agreement, including, but not limited
to all claims and rights in any way arising from or based upon
Executive's employment with Corporation, or which relate in any
way to the termination of Executive's employment with
Corporation, and also including Title VII of Civil Rights Act of
1964, the Americans with Disabilities Act of 1990, the
Rehabilitation Act of 1973,  the Pennsylvania Human Relations
Act, the Federal Age Discrimination in Employment Act, the
Federal Older Workers Benefit Protection Act, the Family and
Medical Leave Act, any Whistleblower provision of any statute or
law, the Employee Retirement Income Security Act of 1974, and any
other statute, regulation, or law or amendments thereto.

        Executive further agrees that the payments and benefits
described in this Agreement shall be in full satisfaction of any
and all claims for payments or benefits, whether express or
implied, that Executive may have against the Releasees arising
out of his employment relationship or his service as an
executive, officer, employee, and director of the Corporation and
the termination thereof, including the Executive Incentive
Retirement Agreement and Group Term Replacement Plan.

     4. Indemnification by Corporation.  To the extent that the
Corporation has officers' and directors' liability insurance
coverage covering the acts of Executive, Corporation shall,
subject to the exclusions and limitations set forth therein,
indemnify and hold harmless Executive if he is made a party, is
threatened to be made a party to, or otherwise receives any other
legal process in any action, suit, or proceeding by reason of the
fact that he was a director, officer, or employee of the
Corporation or any of its subsidiaries.  Executive shall be
indemnified and held harmless to the fullest extent

                           5
<PAGE>


permitted or authorized under the officer's and director's
liability insurance policy, provided that such indemnification
does not violate the Corporation's articles of incorporation,
bylaws, the laws of the Commonwealth of Pennsylvania, or banking
laws and regulations.

     5. No Admission of Wrongdoing.  Executive agrees that this
Agreement is not to be construed as a finding or admission of
wrongdoing or liability or illegal or unethical conduct by any
party.  Nothing in this Agreement shall constitute precedent or
evidence in any investigation, proceeding, or trial, with the
exception that this Agreement shall be admissible evidence in any
proceeding to enforce its terms or secure a remedy for breach of
its terms.

     6. Application for Employment.  Executive agrees that he
will not seek employment from any of the Releasees, and he hereby
releases the Releasees from any and all liability on account of
any denial by them of employment.

     7. Confidential Information.

        a.  Executive agrees that he will not communicate the
terms and conditions of this Agreement or the negotiations
preceding it to any persons other than his or her spouse,
attorneys and tax advisors.

        b.  Executive hereby acknowledges that as a result of his
employment, he has had access to, obtained, or developed certain
confidential, nonpublic, and/or legally privileged information,
which includes, but is not limited to: information relating to
Corporation's past, present or future business activities; trade
secrets; financial information; technical systems; new product
development; acquisition prospects and strategies; compliance
matters; information contained in

                              6
<PAGE>

personnel files and medical files; the business operations; the
internal structure of Corporation; the names of and any and all
information, including personal consumer information requiring
protection under federal financial privacy laws, respecting the
past, present and prospective customers or clients of
Corporation; target customers or markets; past, present or future
research done by Corporation respecting the business or
operations of Corporation; financial information; vendor or
provider contracting arrangements; funding sources, services;
systems; methods of operation; sales and marketing information;
methods; procedures; referral sources, referral source
information, or referral lists; revenues; costs; expenses;
operating data; reimbursements; contracts; contract forms;
arrangements; plans; prospects; correspondence; memoranda and
office records; electronic and data processing files and records;
identities, addresses, telephone numbers, electronic mail
addresses, or other methods of contacting persons who might use
or currently use the services of or who have been customers of
Corporation ("Information").  All such Information, marketing
methods, supplies, files (closed or pending), literature,
policies and procedure manuals, as well as any information
regarding any and all aspects of Corporation, or being used by
Corporation, are the sole and confidential property of
Corporation  and shall be treated as confidential.  Executive
agrees to hold inviolate, not to disclose, and to keep secret all
such Information and will not for any reason or purpose use,
permit to be used, or disclose to any party any Information.

        c.  If he has not already done so, immediately upon
execution of this Agreement, Executive agrees to return to
Corporation, and not keep a copy of, all

                             7
<PAGE>

confidential information including, but not limited to: written
information, files (including electronic files), materials,
lists, or other financial information, documents, and other
materials or records or writings of any type, including copies
thereof, made, used or obtained by Executive in connection with
his or her relationship with Corporation.

       8. Cooperation and Non-Disparagement.  Executive agrees
that he will not disparage or make derogatory comments about the
Corporation, its subsidiaries and affiliates, Corporation's
present and former officers, directors, employees, agents, or
attorneys, or their business practices.  Corporation agrees that
it will take reasonable steps to ensure that its officers and
directors do not disparage or make derogatory comments about
Executive.

       Executive further agrees that he will not attend the
Annual Shareholders meeting.  Executive further agrees that he
will not attend any shareholders meeting and shall not grant a
proxy to any person other than the Corporation or its management
to attend the meeting.

       9.  Injunctive Relief.  Corporation and Executive agree
that any breach of the agreements and representations set forth
in paragraphs 7 and 8 will cause the Releasees and Executive
irreparable harm, that such injury cannot be remedied adequately
by the recovery of monetary damages, that upon such a breach any
or all of the Releasees or Executive shall be entitled, in
addition to and not in lieu of any and all other remedies, to
injunctive or other equitable relief without the posting of any
bond or undertaking and that such injunctive and/or equitable
relief will not work a hardship on the Executive or

                               8

<PAGE>

Corporation.  Executive further agrees that in any and/or all
such circumstances, all of his obligations under this Agreement
will remain in full force and effect.

      10.  Acceptance Period.

           The following notice is included in this Agreement as
required by the Older Workers Benefit Protection Act:

          You have up to twenty-one (21) days from the date of
     receipt of this release to accept the terms of this release,
     although you may accept it at any time within those
     twenty-one (21) days.  You are advised to consult with an
     attorney regarding this release.

The twenty-one (21) day period will begin to run on the day after
Executive receives this Agreement.  It will then run for a full
twenty-one (21) calendar days and expire at the end of the
twenty-first day (the "Acceptance Period").  In order to accept
this Agreement, Executive must sign his or her name and date his
signature at the end of this letter and return it to Corporation,
c/o Mark D. Gainer, Chairman, President, and Chief Executive
Officer, Union National Financial Corporation, 570 Lausch Lane,
Lancaster, Pennsylvania 17601.  If the twenty-first day of the
Acceptance Period falls on a Saturday, a Sunday, or a legal
holiday, the Corporation's receipt of his acceptance by the close
of business on the next business day immediately following such
Saturday, Sunday or legal holiday will be sufficient to effect a
timely acceptance of this Agreement.

    11.  Revocation Period.  Executive has the right to revoke
this Agreement at any time within seven (7) days from the date
Executive signs and delivers this Agreement to the Corporation
(the "Revocation Period"), and this Agreement will not become
effective and enforceable until the Revocation Period has
expired.  (NOTE:  The Revocation Period will begin on the day
after the day on which Executive has signed this

                              9

<PAGE>

Agreement and delivered it to the Corporation and, as indicated
by the date Executive affixes to his signature at the end of this
Agreement.  It will then run for seven calendar days and expire
at the end of the seventh day.)  In order to revoke this
Agreement, Executive must notify the Corporation in writing of
his or her decision to revoke the Agreement.  Executive must
ensure that the Corporation (via  Mr. Gainer, at the address
indicated in Paragraph 10 above) receives his or her  written
notice of revocation at his office in Lancaster, Pennsylvania
within the aforementioned Revocation Period.  If the seventh day
of the Revocation Period falls on a Saturday, a Sunday, or a
legal holiday, the Corporation's receipt of his notice of
revocation by the close of business on the next business day
immediately following such Saturday, Sunday or legal holiday will
be sufficient to effect a timely revocation of this Agreement.
Provided that the Revocation Period expires without his having
revoked this Agreement, this Agreement shall take effect on the
next day following the Revocation Period, and such next day shall
constitute the Effective Date hereof.

    12.  Corporation Not Executive's Advisor.  Corporation makes
no representation or warranty, express or implied, to Executive
regarding the treatment of this Agreement or any payments
Executive may receive by virtue of or in connection with any
provision of this Agreement, under state, federal, or local laws
pertaining to income or other taxation, nor does Corporation
provide to Executive any advice regarding the financial,
investment, or legal desirability of his entering into this
Agreement or making any elections or granting any releases
referred to herein; and Executive acknowledges that it is and has
been his sole and entire responsibility to explore any such
aspects of this Agreement with attorneys and/or other advisors of
his
                                 10

<PAGE>

own selection, in connection with both his decision to enter into
this Agreement and any decisions or elections which Executive may
subsequently make in relation to any of the subject matter of
this Agreement.  Corporation makes no representation as to the
applicability of Internal Revenue Code Section 409A to the
payments under this Agreement or the Employment Agreement.

     13.  Agreement Freely and Voluntarily Entered Into.
Executive warrants and represents that he has signed this
Agreement after review and consultation with legal counsel of his
choice and that he understands this Agreement and signs it
freely, knowingly and voluntarily, without any legal reservation
and fully intending to be legally bound hereby.

     14.  Representations to Corporation.  In connection with his
entering into this Agreement, and as an inducement for
Corporation to enter into this Agreement, Executive hereby
represents the following matters to Corporation:

          a.  That Executive has carefully read and fully
understands all of the provisions of this Agreement which sets
forth the entire agreement between Executive and Corporation, and
that Executive has not relied upon any representations or
statements, written or oral, not set forth in this document;

          b.  That Executive has had such time as Executive
deemed necessary to review, consider, and deliberate as to the
terms of this Agreement; and

          c.  That Exhibit A hereto sets forth in reasonable
detail any instances known to Executive in which the Corporation
is or may be, was or may have been, in violation either of any
statute or regulation, applicable to the Corporation.

                               11


<PAGE>
     15.  Severability.  Should any provision(s) of this
Agreement be determined, in a proceeding to enforce or interpret
this Agreement, to be invalid or unenforceable, then, provided
that the provision(s) deemed to be invalid or unenforceable do
not constitute all or substantially all of the undertakings by
either Executive or Corporation, the remainder of this Agreement
shall continue in full force and effect.

     16.  Notices.  Any notice, request, claim, demand, document,
or other communication hereunder to any party shall be effective
upon receipt (or refusal of receipt) and shall be in writing and
delivered personally or sent by telex, telecopy, or certified or
registered mail, postage prepaid, as follows:

      A.  If to Corporation:
          Mark D. Gainer
          Chairman, President, and Chief Executive Officer
          Union National Financial Corporation
          570 Lausch Lane
          Lancaster, Pennsylvania 17601

      B.  If to Executive:
          Clement M. Hoober
          ______________________________
          3871 Sterling Way
          _______________________[address]
          Columbia PA, 17512
          _______________________[address]

       Or to any other address as any party shall have specified
for itself by notice in writing to the other party.

      17.  Choice of Law.  This Agreement shall be governed by,
construed under and enforced pursuant to the laws of the
Commonwealth of Pennsylvania.

      18.  Complete Written Settlement.  This Agreement expresses
a full and complete settlement of all disputes between Executive
and the Releasees.  Executive agrees that there are absolutely no
agreements or reservations relating to termination of Executive's
employment and Executive's release of the Releasees that are not
clearly

                               12


<PAGE>
expressed in writing herein.  This Agreement may not be modified
except in writing signed by all parties hereto.  Executive
further agrees that the payments and benefits described herein
are all he and/or his counsel are ever to receive with regard to
Executive's termination of employment and execution of this
Release, and that the execution hereof is with the full knowledge
that this Agreement covers all possible claims.

      19.  Binding on Successors and Assigns.  This Agreement
shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, successors and assigns.


                           13
<PAGE>


      20.  Counterparts.  This Agreement may be executed in
multiple counterparts, and shall be fully valid, legally binding
and enforceable whether executed in a single document or in such
counterparts.

      IN WITNESS WHEREOF, the parties have executed this Complete
Settlement Agreement and General Release on the date first
written above.

WITNESS                         Executive

/s/ Patti Martin                /s/ Clement M. Hoober      5/4/07
_______________________         _________________________________
Patti Martin                    Clement M. Hoober

ATTEST:                         UNION NATIONAL FINANCIAL
                               CORPORATION
/s/ Donna Stoudt                     /s/ Mark D. Gainer    5/4/07
_______________________________ By:_____________________________


ATTEST:                         UNION NATIONAL COMMUNITY
                               BANK
/s/ Donna Stoudt                    /s/ Mark D. Gainer     5/4/07
_______________________________ By:______________________________

                               14
<PAGE>

                           EXHIBIT A

       Any instances known to Executive in which the Corporation
is or may be, was or may have been, in violation either of any
statute or regulation, applicable to the Corporation:

       Executive is only aware of those comments and criticisms
that are set forth in results in examination and other
correspondence with applicable bank regulatory agencies.
                                 /s/ Clement M. Hoober

                              15
<PAGE>
[{"type": "8-K", "sequence": "1", "filename": "eghkclem.txt", "description": "SETTLEMENT AGREEMENT/COMPLETE RELEASE", "secsgml_size_bytes": 30133}]
{"company-data": {"conformed-name": "UNION NATIONAL FINANCIAL CORP / PA", "cik": "0000874482", "assigned-sic": "6021", "irs-number": "232415179", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19214", "film-number": "07856168"}, "business-address": {"street1": "101 E MAIN ST", "street2": "P O BOX 567", "city": "MOUNT JOY", "state": "PA", "zip": "17552", "phone": "7174922222"}, "mail-address": {"street1": "101 EAST MAIN ST", "street2": "P O BOX 567", "city": "MOUNT JOY", "state": "PA", "zip": "17552-0567"}}
UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549
            ________________________________________
                           FORM 8-K

                          CURRENT REPORT

                  Pursuant to Section 13 or 15(d)
               of the Securities Exchange Act of 1934
               ________________________________________

Date of Report (Date of earliest event reported): May 11, 2007

                  UNION NATIONAL FINANCIAL CORPORATION
               ________________________________________
         (Exact name of registrant as specified in its charter)

       Pennsylvania              0-19214            23-2415179
___________________________   _______________   _______________
(State or other jurisdiction (Commission File   (IRS Employer
  of incorporation)           Number)         Identification No.)

570 Lausch Lane, Lancaster, Pennsylvania            17601
________________________________________          _________
(Address of principal executive offices)          (Zip Code)

                           (717) 653-1441
              ________________________________________
          (Registrant's telephone number, including area code)

   Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General
Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the
     Securities Act (17 CFR 230.425)
[ ]  Soliciting material pursuant to Rule 14a-12 under the
     Exchange Act (17 CFR 240.14a-12)
[ ]  Pre-commencement communications pursuant to Rule 14d-2(b)
     under the Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c)
     under the Exchange Act (17 CFR 240.13e-4(c))
CURRENT REPORT ON FORM 8-K

    Item 1.01  Entry into a Material Definitive Agreement
    _________  ____________________________________________

    Effective May 11, 2007, Union National Financial Corporation
(the "Corporation") and Union National Community Bank entered
into a Complete Settlement Agreement and General Release (the
"Agreement") with Clement M. Hoober dated May 4, 2007.  The
Agreement relates to the termination of Mr. Hoober's employment.
Mr. Hoober served as Chief Financial Officer of the Corporation
until March 29, 2007.  For a brief description of the material
terms and conditions of the Agreement, please refer to Item 5.02
which is incorporated herein by reference, and to the copy of the
Agreement filed herewith as Exhibit 99.1 and incorporated herein
by reference.

Item 5.02    Departure of Directors or Certain Officers,
_________    _____________________________________________
             Election of Directors; Appointment of Certain
             ______________________________________________
             Officers; Compensatory Arrangements of Certain
             _______________________________________________
             Officers
             _________

    Effective May 11, 2007, Union National Financial Corporation
(the "Corporation") and Union National Community Bank entered
into a Complete Settlement Agreement and General Release (the
"Agreement") with Clement M. Hoober dated May 4, 2007.  The
Agreement relates to the termination of Mr. Hoober's employment.
Mr. Hoober served as Chief Financial Officer of the Corporation
until March 29, 2007.

    The material terms of the Agreement are summarized as
follows:

1.  The Corporation shall pay Mr. Hoober (a) salary through March
    31, 2007, (b) 38 weeks of severance pay, minus appropriate
    withholdings and/or deductions, (c) COBRA payments until he
    either is no longer qualified for COBRA or December 22, 2007,
    (d) $3,000 for transition expenses, and (e) $1,500 toward
    legal fees.
2.  The Corporation shall not contest Mr. Hoober's application
    for unemployment compensation and return all remaining
    seminar materials to Mr. Hoober.

3.  The Corporation acknowledges that there are no restrictions
    on Mr. Hoober's subsequent employment.

4.  In consideration of the above, Mr. Hoober releases the
    Corporation from any an all liabilities based on his
    employment or termination.
5.  The Corporation shall indemnify Mr. Hoober to the extent
    permitted by insurance coverage for any action, suit or
    proceeding resulting from his employment.
6.  Mr. Hoober agrees not to disclose any confidential
    information of the Corporation and return any confidential
    documents and information to the Corporation.

7.  Both parties agree to cooperate to avoid disparagement of
    either party.

    For further information, please refer to the copy of the
Agreement filed herewith as Exhibit 99.1 and incorporated herein
by reference.
ITEM 9.01     Financial Statements and Exhibits
_________     _________________________________

 (a)   Financial Statements and Exhibits
       None.

 (b)   Pro Forma Financial Information
       None.

 (c)   Shell Company Transactions
       None.

 (d)   Exhibits.

Exhibit Number               Description
______________   ____________________________________
99.1             Complete Settlement Agreement and General
                 Release between Clement M. Hoober and Union
                 National Financial Corporation, Union National
                 Community Bank dated May 4, 2007 and effective
                 as of May 11, 2007.
SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this Current Report on Form
8-K to be signed on its behalf by the undersigned, thereunto duly
authorized.
                                       UNION NATIONAL FINANCIAL
                                       CORPORATION
                                       (Registrant)

Dated: May 11, 2007                    /s/ Mark D. Gainer
                                       __________________________
                                       Mark D. Gainer
                                       Chairman, Chief Executive
                                       Officer, and President
Exhibit Number      Description
______________   _________________________________________
99.1             Complete Settlement Agreement and General
                 Release between Clement M. Hoober and Union
                 National Financial Corporation, Union National
                 Community Bank dated May 4, 2007 and effective
                 as of May 11, 2007.
COMPLETE SETTLEMENT AGREEMENT
                  _____________________________
                      AND GENERAL RELEASE
                      ___________________

                        READ IT CAREFULLY

    NOTICE TO CLEMENT M. HOOBER:

    This is a very important legal document, and you should
    carefully review and understand the terms and effect of this
    document before signing it.  By signing this Complete
    Settlement Agreement and General Release ("Agreement"), you
    are agreeing to completely release UNION NATIONAL FINANCIAL
    CORPORATION, UNION NATIONAL COMMUNITY BANK and their
    subsidiaries, affiliates, directors and officers.  Therefore,
    you should consult with an attorney before signing this
    Agreement.  You have twenty one (21) days from the day of
    receipt of this document to consider the Agreement. The
    twenty one (21) days will begin to run on the day after
    receipt.  If you choose to sign the Agreement, you will have
    an additional seven (7) days following the date of your
    signature to revoke the Agreement, and the Agreement shall
    not become effective or enforceable until the revocation
    period has expired.

    This Complete Settlement Agreement and General Release
("Agreement") by and between Clement M. Hoober ("Executive") and
Union National Financial Corporation and Union National Community
Bank ("Bank") and each of their subsidiaries and affiliates
(collectively "Corporation") is made this 4th day of May, 2007.
In this Agreement, the "Corporation" shall at all times include
any and all related entities, corporations, subsidiaries, and
affiliates.

                              1
In consideration of the foregoing preambles, the mutual
covenants and agreements set forth below and other valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, intending to be legally bound hereby, the parties
hereto agree as follows:

    1.  Termination of Employment; Payments to Executive

        a.  Termination of employment with Corporation shall be
effective March 29, 2007.  Executive confirms his termination of
service with Corporation and all of its subsidiaries, affiliates,
joint ventures, partnerships, or any other business enterprises,
as well as from any office or position with any trade group or
any charitable organization which he or she holds on behalf of
the Corporation.  Executive hereby confirms his resignation from
any and all of the Corporation's, its subsidiaries' and
affiliates' Boards of Directors.

        b.  In consideration of Executive complying with the
terms of this Agreement and provided that Executive continuously
and at all times complies with all of his or her obligations
pursuant to this Agreement, Corporation shall pay Executive the
following severance package:

            i.  Corporation shall pay an amount equal to
Executive's salary through March 31, 2007, minus all appropriate
withholdings and/or deductions on the first regularly scheduled
pay date following the termination of Executive's employment;

           ii.  Corporation shall provide Executive with
thirty-eight (38) weeks of severance, minus all appropriate
withholdings and/or deductions payable in accordance with the
customary payroll practices of Corporation

                                2
commencing on the first payroll date, if administratively
feasible, after the expiration of the Revocation Period as
defined in Section 10;

          iii.  Corporation shall pay for Executive's COBRA
payments until the earlier of 1) Executive no longer qualifies
for COBRA or 2) December 22, 2007;

           iv.  Corporation shall pay Executive an amount equal
to his unused accrued PTO, minus all appropriate withholdings
and/or deductions;

            v.  Corporation shall pay Executive an amount equal
to $3,000 for outplacement services and other incidental costs
related to job placement;

           vi.  Corporation shall pay $1,500 toward Mr. Hoober's
legal fees in connection with the review of this Agreement;

          vii.  Corporation will not contest any application for
unemployment compensation;

         viii.  Corporation will give Mr. Hoober the seminar
material remaining in his previous office; and

           ix.  Corporation acknowledges that there are no
restrictions on Mr. Hoober's subsequent employment.

        c. Executive acknowledges that he will receive additional
information regarding his COBRA benefits via first class mail.
He also acknowledges that should he have any additional questions
regarding his COBRA benefits, he is to contact Patti Martin via
email, first class mail or telephone.   He

                               3
further acknowledges that after March 29, 2007, because of
federal banking regulations, he is not permitted in any areas of
the Bank which are not open to the general public.

        d.  Executive acknowledges and agrees that the benefits
to be provided to Executive by Corporation pursuant to this
Paragraph are, in significant and substantial part, in addition
to those benefits to which he is already or would otherwise be
entitled.

    2.  Costs, Including Attorneys' Fees.  Executive understands
and agrees that Corporation shall not be liable to Executive
and/or any present or former attorney for any costs, expenses, or
attorneys' fees of any kind or amount.  Furthermore, Executive
expressly agrees that he is not to be considered to be the
"prevailing" or "successful" party within the meaning of any
statute, rule, or other law.

    3.  Release by Executive.  In consideration of the payments
and severance benefits set forth in this Agreement which
consideration and severance benefits Executive was not otherwise
entitled to receive, and intending to be legally bound,
Executive, and all other persons or entities claiming with, by,
or through him, hereby releases and forever discharges
Corporation, and its predecessors, successors, affiliates,
subsidiaries, parents, partners and all of their present and past
shareholders, directors, officers, agents, employees and
attorneys, and all other persons or entities who could be said to
be jointly or severally liable with them, (individually and
collectively "the Releasees") from any and all liabilities,
claims, actions, causes of action, rights, judgments,
obligations, demands, or suits presently asserted or not
asserted, accrued or unaccrued, known or unknown, that Executive
had, now has, or may have or could claim

                              4
to have against the Releasees, from the beginning of time to the
date of execution of this Agreement, including, but not limited
to all claims and rights in any way arising from or based upon
Executive's employment with Corporation, or which relate in any
way to the termination of Executive's employment with
Corporation, and also including Title VII of Civil Rights Act of
1964, the Americans with Disabilities Act of 1990, the
Rehabilitation Act of 1973,  the Pennsylvania Human Relations
Act, the Federal Age Discrimination in Employment Act, the
Federal Older Workers Benefit Protection Act, the Family and
Medical Leave Act, any Whistleblower provision of any statute or
law, the Employee Retirement Income Security Act of 1974, and any
other statute, regulation, or law or amendments thereto.

        Executive further agrees that the payments and benefits
described in this Agreement shall be in full satisfaction of any
and all claims for payments or benefits, whether express or
implied, that Executive may have against the Releasees arising
out of his employment relationship or his service as an
executive, officer, employee, and director of the Corporation and
the termination thereof, including the Executive Incentive
Retirement Agreement and Group Term Replacement Plan.

     4. Indemnification by Corporation.  To the extent that the
Corporation has officers' and directors' liability insurance
coverage covering the acts of Executive, Corporation shall,
subject to the exclusions and limitations set forth therein,
indemnify and hold harmless Executive if he is made a party, is
threatened to be made a party to, or otherwise receives any other
legal process in any action, suit, or proceeding by reason of the
fact that he was a director, officer, or employee of the
Corporation or any of its subsidiaries.  Executive shall be
indemnified and held harmless to the fullest extent

                           5
permitted or authorized under the officer's and director's
liability insurance policy, provided that such indemnification
does not violate the Corporation's articles of incorporation,
bylaws, the laws of the Commonwealth of Pennsylvania, or banking
laws and regulations.

     5. No Admission of Wrongdoing.  Executive agrees that this
Agreement is not to be construed as a finding or admission of
wrongdoing or liability or illegal or unethical conduct by any
party.  Nothing in this Agreement shall constitute precedent or
evidence in any investigation, proceeding, or trial, with the
exception that this Agreement shall be admissible evidence in any
proceeding to enforce its terms or secure a remedy for breach of
its terms.

     6. Application for Employment.  Executive agrees that he
will not seek employment from any of the Releasees, and he hereby
releases the Releasees from any and all liability on account of
any denial by them of employment.

     7. Confidential Information.

        a.  Executive agrees that he will not communicate the
terms and conditions of this Agreement or the negotiations
preceding it to any persons other than his or her spouse,
attorneys and tax advisors.

        b.  Executive hereby acknowledges that as a result of his
employment, he has had access to, obtained, or developed certain
confidential, nonpublic, and/or legally privileged information,
which includes, but is not limited to: information relating to
Corporation's past, present or future business activities; trade
secrets; financial information; technical systems; new product
development; acquisition prospects and strategies; compliance
matters; information contained in

                              6
personnel files and medical files; the business operations; the
internal structure of Corporation; the names of and any and all
information, including personal consumer information requiring
protection under federal financial privacy laws, respecting the
past, present and prospective customers or clients of
Corporation; target customers or markets; past, present or future
research done by Corporation respecting the business or
operations of Corporation; financial information; vendor or
provider contracting arrangements; funding sources, services;
systems; methods of operation; sales and marketing information;
methods; procedures; referral sources, referral source
information, or referral lists; revenues; costs; expenses;
operating data; reimbursements; contracts; contract forms;
arrangements; plans; prospects; correspondence; memoranda and
office records; electronic and data processing files and records;
identities, addresses, telephone numbers, electronic mail
addresses, or other methods of contacting persons who might use
or currently use the services of or who have been customers of
Corporation ("Information").  All such Information, marketing
methods, supplies, files (closed or pending), literature,
policies and procedure manuals, as well as any information
regarding any and all aspects of Corporation, or being used by
Corporation, are the sole and confidential property of
Corporation  and shall be treated as confidential.  Executive
agrees to hold inviolate, not to disclose, and to keep secret all
such Information and will not for any reason or purpose use,
permit to be used, or disclose to any party any Information.

        c.  If he has not already done so, immediately upon
execution of this Agreement, Executive agrees to return to
Corporation, and not keep a copy of, all

                             7
confidential information including, but not limited to: written
information, files (including electronic files), materials,
lists, or other financial information, documents, and other
materials or records or writings of any type, including copies
thereof, made, used or obtained by Executive in connection with
his or her relationship with Corporation.

       8. Cooperation and Non-Disparagement.  Executive agrees
that he will not disparage or make derogatory comments about the
Corporation, its subsidiaries and affiliates, Corporation's
present and former officers, directors, employees, agents, or
attorneys, or their business practices.  Corporation agrees that
it will take reasonable steps to ensure that its officers and
directors do not disparage or make derogatory comments about
Executive.

       Executive further agrees that he will not attend the
Annual Shareholders meeting.  Executive further agrees that he
will not attend any shareholders meeting and shall not grant a
proxy to any person other than the Corporation or its management
to attend the meeting.

       9.  Injunctive Relief.  Corporation and Executive agree
that any breach of the agreements and representations set forth
in paragraphs 7 and 8 will cause the Releasees and Executive
irreparable harm, that such injury cannot be remedied adequately
by the recovery of monetary damages, that upon such a breach any
or all of the Releasees or Executive shall be entitled, in
addition to and not in lieu of any and all other remedies, to
injunctive or other equitable relief without the posting of any
bond or undertaking and that such injunctive and/or equitable
relief will not work a hardship on the Executive or

                               8
Corporation.  Executive further agrees that in any and/or all
such circumstances, all of his obligations under this Agreement
will remain in full force and effect.

      10.  Acceptance Period.

           The following notice is included in this Agreement as
required by the Older Workers Benefit Protection Act:

          You have up to twenty-one (21) days from the date of
     receipt of this release to accept the terms of this release,
     although you may accept it at any time within those
     twenty-one (21) days.  You are advised to consult with an
     attorney regarding this release.

The twenty-one (21) day period will begin to run on the day after
Executive receives this Agreement.  It will then run for a full
twenty-one (21) calendar days and expire at the end of the
twenty-first day (the "Acceptance Period").  In order to accept
this Agreement, Executive must sign his or her name and date his
signature at the end of this letter and return it to Corporation,
c/o Mark D. Gainer, Chairman, President, and Chief Executive
Officer, Union National Financial Corporation, 570 Lausch Lane,
Lancaster, Pennsylvania 17601.  If the twenty-first day of the
Acceptance Period falls on a Saturday, a Sunday, or a legal
holiday, the Corporation's receipt of his acceptance by the close
of business on the next business day immediately following such
Saturday, Sunday or legal holiday will be sufficient to effect a
timely acceptance of this Agreement.

    11.  Revocation Period.  Executive has the right to revoke
this Agreement at any time within seven (7) days from the date
Executive signs and delivers this Agreement to the Corporation
(the "Revocation Period"), and this Agreement will not become
effective and enforceable until the Revocation Period has
expired.  (NOTE:  The Revocation Period will begin on the day
after the day on which Executive has signed this

                              9
Agreement and delivered it to the Corporation and, as indicated
by the date Executive affixes to his signature at the end of this
Agreement.  It will then run for seven calendar days and expire
at the end of the seventh day.)  In order to revoke this
Agreement, Executive must notify the Corporation in writing of
his or her decision to revoke the Agreement.  Executive must
ensure that the Corporation (via  Mr. Gainer, at the address
indicated in Paragraph 10 above) receives his or her  written
notice of revocation at his office in Lancaster, Pennsylvania
within the aforementioned Revocation Period.  If the seventh day
of the Revocation Period falls on a Saturday, a Sunday, or a
legal holiday, the Corporation's receipt of his notice of
revocation by the close of business on the next business day
immediately following such Saturday, Sunday or legal holiday will
be sufficient to effect a timely revocation of this Agreement.
Provided that the Revocation Period expires without his having
revoked this Agreement, this Agreement shall take effect on the
next day following the Revocation Period, and such next day shall
constitute the Effective Date hereof.

    12.  Corporation Not Executive's Advisor.  Corporation makes
no representation or warranty, express or implied, to Executive
regarding the treatment of this Agreement or any payments
Executive may receive by virtue of or in connection with any
provision of this Agreement, under state, federal, or local laws
pertaining to income or other taxation, nor does Corporation
provide to Executive any advice regarding the financial,
investment, or legal desirability of his entering into this
Agreement or making any elections or granting any releases
referred to herein; and Executive acknowledges that it is and has
been his sole and entire responsibility to explore any such
aspects of this Agreement with attorneys and/or other advisors of
his
                                 10
own selection, in connection with both his decision to enter into
this Agreement and any decisions or elections which Executive may
subsequently make in relation to any of the subject matter of
this Agreement.  Corporation makes no representation as to the
applicability of Internal Revenue Code Section 409A to the
payments under this Agreement or the Employment Agreement.

     13.  Agreement Freely and Voluntarily Entered Into.
Executive warrants and represents that he has signed this
Agreement after review and consultation with legal counsel of his
choice and that he understands this Agreement and signs it
freely, knowingly and voluntarily, without any legal reservation
and fully intending to be legally bound hereby.

     14.  Representations to Corporation.  In connection with his
entering into this Agreement, and as an inducement for
Corporation to enter into this Agreement, Executive hereby
represents the following matters to Corporation:

          a.  That Executive has carefully read and fully
understands all of the provisions of this Agreement which sets
forth the entire agreement between Executive and Corporation, and
that Executive has not relied upon any representations or
statements, written or oral, not set forth in this document;

          b.  That Executive has had such time as Executive
deemed necessary to review, consider, and deliberate as to the
terms of this Agreement; and

          c.  That Exhibit A hereto sets forth in reasonable
detail any instances known to Executive in which the Corporation
is or may be, was or may have been, in violation either of any
statute or regulation, applicable to the Corporation.

                               11
15.  Severability.  Should any provision(s) of this
Agreement be determined, in a proceeding to enforce or interpret
this Agreement, to be invalid or unenforceable, then, provided
that the provision(s) deemed to be invalid or unenforceable do
not constitute all or substantially all of the undertakings by
either Executive or Corporation, the remainder of this Agreement
shall continue in full force and effect.

     16.  Notices.  Any notice, request, claim, demand, document,
or other communication hereunder to any party shall be effective
upon receipt (or refusal of receipt) and shall be in writing and
delivered personally or sent by telex, telecopy, or certified or
registered mail, postage prepaid, as follows:

      A.  If to Corporation:
          Mark D. Gainer
          Chairman, President, and Chief Executive Officer
          Union National Financial Corporation
          570 Lausch Lane
          Lancaster, Pennsylvania 17601

      B.  If to Executive:
          Clement M. Hoober
          ______________________________
          3871 Sterling Way
          _______________________[address]
          Columbia PA, 17512
          _______________________[address]

       Or to any other address as any party shall have specified
for itself by notice in writing to the other party.

      17.  Choice of Law.  This Agreement shall be governed by,
construed under and enforced pursuant to the laws of the
Commonwealth of Pennsylvania.

      18.  Complete Written Settlement.  This Agreement expresses
a full and complete settlement of all disputes between Executive
and the Releasees.  Executive agrees that there are absolutely no
agreements or reservations relating to termination of Executive's
employment and Executive's release of the Releasees that are not
clearly

                               12
expressed in writing herein.  This Agreement may not be modified
except in writing signed by all parties hereto.  Executive
further agrees that the payments and benefits described herein
are all he and/or his counsel are ever to receive with regard to
Executive's termination of employment and execution of this
Release, and that the execution hereof is with the full knowledge
that this Agreement covers all possible claims.

      19.  Binding on Successors and Assigns.  This Agreement
shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, successors and assigns.

                           13
20.  Counterparts.  This Agreement may be executed in
multiple counterparts, and shall be fully valid, legally binding
and enforceable whether executed in a single document or in such
counterparts.

      IN WITNESS WHEREOF, the parties have executed this Complete
Settlement Agreement and General Release on the date first
written above.

WITNESS                         Executive

/s/ Patti Martin                /s/ Clement M. Hoober      5/4/07
_______________________         _________________________________
Patti Martin                    Clement M. Hoober

ATTEST:                         UNION NATIONAL FINANCIAL
                               CORPORATION
/s/ Donna Stoudt                     /s/ Mark D. Gainer    5/4/07
_______________________________ By:_____________________________

ATTEST:                         UNION NATIONAL COMMUNITY
                               BANK
/s/ Donna Stoudt                    /s/ Mark D. Gainer     5/4/07
_______________________________ By:______________________________

                               14
EXHIBIT A

       Any instances known to Executive in which the Corporation
is or may be, was or may have been, in violation either of any
statute or regulation, applicable to the Corporation:

       Executive is only aware of those comments and criticisms
that are set forth in results in examination and other
correspondence with applicable bank regulatory agencies.
                                 /s/ Clement M. Hoober

                              15