EXHIBIT 10.2

**SEPARATION AGREEMENT AND GENERAL RELEASE**

     BY  AND BETWEEN **FIRST COMMONWEALTH FINANCIAL CORPORATION**and its subsidiaries,  divisions, successors and assigns, and the employees, officers, directors and  agents thereof (collectively referred to throughout this Agreement as "FCFC")  and David S. Dahlmann (hereinafter referred to throughout this Agreement as  "Employee"), residing at RD # 6, Box 87A, Greensburg, PA 15601 agree  that:

**      WHEREAS,** EMPLOYEE has been employed with FCFC;

**      WHEREAS,** the parties have mutually agreed upon the terms and conditions  of the separation as set forth in this Agreement; and

**      WHEREAS,** the parties desire to set forth their agreement in writing;

**      NOW, THEREFORE,** the parties hereto, each in consideration of the  actions and promises of the other, enter into this Separation Agreement and  General Release ("Agreement"), and intend to be legally bound by its  terms, which are as follows.

1.       EMPLOYEE'S employment is terminated with FCFC December 31, 2002.

2.       In accordance with EMPLOYEE'S resignation and separation from employment,  FCFC agrees to the following:

|            | A.         **Separation Pay:**    Sixty-five (65) weeks        of salary continuation. Salary continuation to be based upon current weekly        pay of $6,240.39.  Total salary continuation to be $405,625.35.         FCFC reserves the option to either make a lump sum payment of the separation        pay or make payment each pay period throughout the separation period.         In either instance, payroll deductions will be made.

B.  **Group        Health Insurance:  **Sixty-five (65) weeks of group health.         Group health care benefits that are in effect upon the date that the Agreement        documents were given to the Employee will continue in effect for the term        specified with the full monthly premium paid by FCFC. The Employee may        elect to remove dependents from his/her coverage; however, as of the date        that the Agreement documents were delivered to the Employee no change        in group health coverage is permitted unless a qualified family status        change occurs.  If the Employee has waived his/her coverage as of        the date of the notification he/she will receive no benefits under this        section, unless a qualified family status change occurs prior to the last        active day of employment.

**            If the Employee obtains other health care benefits prior to the expiration        of his/her separation period, Employee must notify FCFC immediately. Upon        notification, the health care coverage will be terminated and the Employee        will receive fifty (50) percent of the monthly premium paid by FCFC for        the duration of the separation period.  The Employee will be given        the option for COBRA rights after cessation of group health coverage.** |
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|            | If the Employee either        does not want or need the continuation of his/her healthcare benefits        through the term of the separation period, the Employee will receive fifty        (50) percent of what it costs FCFC to provide health care benefits to        Employee on a monthly basis for the duration of the separation period.        The Employee will be given the option for COBRA rights after the cessation        of group health coverage or the opting out of the group health plan. 

C. **Benefits Generally        Available to Displaced Employees:**  In addition to the consideration        described in paragraphs 2(A) and 2(B) above, the Employee will also remain        eligible for any other benefits or compensation to which similarly situated        Employees of FCFC are eligible. These other benefits include, by way of        illustration and not limitation, eligibility to exercise rights under        the federal Consolidated Omnibus Budget Reconciliation Act ("COBRA")        to elect to continue existing group health insurance coverage, if any,        in effect at the termination of any such coverage continued pursuant to        paragraph 2 (B); as well as entitlement to vested benefits, if any, under        the FCFC ESOP, FCFC ISOP, and the FCFC 401(k) Retirement Savings Plan,        in which the Employee participated prior to his/her final date of employment        in accordance with the terms of the particular plan. The Employee's election        to accept or reject this Agreement will not affect these other benefits        except as required by plan documents. However, separation payments are        not considered qualified earnings for 401(k) and ESOP contributions. The        Employee may not contribute any percentage of the separation payment into        FCFC's 401(k) Plan nor will payment of the separation amount generate        any employer contributions to the 401(k) and ESOP Plans.

The Employee        may continue to participate in voluntary benefit plans pursuant to the        plan documents at the conclusion of the Employee's active employment.        Life, A.D.&D. and Long-Term Disability insurance conversion privileges        will be offered at the conclusion of the Employee's active employment.        The Employee will be responsible for premium payments.  

D. **Vacation        Pay:** Unused vacation days for 2002 will be paid to the Employee        per FCFC policy and procedures.

E. **Unemployment        Compensation:** The Employee will be permitted to apply for Unemployment        Compensation benefits to the manner and extent permitted by law. |
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3.   IN CONSIDERATION  for the agreements and payments set forth above, Employee agrees and hereby  releases FCFC, its general and limited partners, subsidiaries, employees, administrators,  officers, directors, shareholders, affiliates, agents, successors and assigns  from any and all claims, counterclaims, rights, demands, costs, damages, losses,  liabilities, causes of actions, including any claims for attorneys' fees and  court costs that Employee may have or claim to have against FCFC, its general  and limited partners, subsidiaries, employees, administrators, trustees of the  401(k) plan and pension plan, officers, directors, shareholders, affiliates,  agents, successors and assigns as a result of his/her employment by, association  with and separation from FCFC.  Such release shall include, but not be  limited to, claims for any compensation, bonus, commissions, salaries, pensions,  vacation payments or any payments of any kind, apart from those set forth above.  This Release shall include a release from any

 

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and all such claims,  whether known or unknown, suspected or unsuspected, foreseen or unforeseen,  real or imagined, actual or potential through the date of this Agreement.   Employee agrees to pay for any legal fees, costs or damages incurred by FCFC  as a result of any breach of his/her promises as contained in this Agreement.

4.   Employee  knowingly and voluntarily releases and forever discharges FCFC of and from any  and all claims, known and unknown, suspected or unsuspected, foreseen or unforeseen,  real or imagined, actual or potential, which Employee, his/her heirs, executors,  administrators, successors, and assigns (referred to collectively throughout  this Agreement as "Employee") have or may have against FCFC **at  any time prior to the date of execution of this Agreement and General Release,**including, but not limited to, any alleged violation of:  The National  Labor Relations Act, as amended;  Title VII of the Civil Rights Act of  1964, as amended; The Civil Rights Act of 1991;  Sections 1981 through  1988 of Title 42 of the United States Code, as amended;  The Employee Retirement  Income Security Act of 1974, as amended;  The Immigration Reform and Control  Act, as amended;  The Americans with Disabilities Act of 1990, as amended;    The Age Discrimination in Employment Act of 1967, as amended;  The Older  Workers Benefit Protection Act;  The Fair Labor Standards Act, as amended;   The Occupational Safety and Health Act, as amended;  The Family and Medical  Leave Act;  The Pennsylvania Human Relations Act, as amended;  The  Pennsylvania Wage Payment and Collection Law, as amended; The Pennsylvania Minimum  Wage Act, as amended;  The Pennsylvania Equal Pay Law, as amended; The  Pennsylvania Workers' Compensation Act;  any other federal, state or local  civil or human rights law or any other local, state or federal law, regulation  or ordinance; any public policy, contract, tort or common law; or any allegation  for costs, fees, or other expenses including attorneys' fees incurred in this  matter.

5.   With respect  to any and all claims that Employee could potentially allege under the Age Discrimination  in Employment Act, 29 U.S.C. Section 629 etseq., he/she hereby agrees  and acknowledges the following:

|            | a.   That        the terms of this Agreement constitute a release and waiver of any and        all claims he/she may have under the Age Discrimination in Employment        Act, 29 U.S.C. Section 629, through the date of this Release; andb.   That        he/she has carefully read and reviewed the terms of this Agreement with        his/her legal counsel and fully understands the terms of the Agreement,        including that it will release and waive any claim he/she may have under        the Age Discrimination and Employment Act;c.   That        this Agreement affects only those rights and claims under the Age Discrimination        and Employment Act that accrued to him/her through the date of this Agreement,        but not any claim which may arise after the date of this Agreement;d.   That        his/her waiver and release of claims under the Age Discrimination in Employment        Act are given specifically and in consideration for the promises and benefits        set forth in the Agreement referred to above;e.   That        he/she is hereby advised in writing to consult with his/her attorney prior        to executing this Agreement, and that he/she acknowledges that he/she        has done so prior to signing this Agreement;f.   That        he/she acknowledges that he/she has been given a **minimum of twenty-one        (21) and no more than twenty-five (25) days** within which to consider        the terms of this Agreement and any claims he/she may have under the Age        Discrimination in Employment Act; and, |
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|            | g.   That        he/she understands and acknowledges that he/she has a period of **seven        (7) days** following his/her execution of this Agreement to revoke this        Agreement with respect to any claims that he/she may have under the Age        Discrimination in Employment Act, and that the Agreement shall not be        enforceable under the Age Discrimination in Employment Act during this        seven (7) day period with the understanding that any such revocation will        release FCFC from any and all obligations it may have under any agreement        existing between Employee and FCFC.  Any revocation within this period        must be submitted, in writing, to **Thaddeus Clements**of FIRST COMMONWEALTH        FINANCIAL CORPORATION and state "I hereby revoke my acceptance of        our Agreement and General Release." The revocation must be personally        delivered to **Thaddeus Clements**or his designee, or mailed to **Thaddeus        Clements, FIRST COMMONWEALTH FINANCIAL CORPORATION, P.O. BOX 400, INDIANA,        PA 15701- 0400**and be postmarked within seven (7) days of execution        of this Separation Agreement and General Release.  If Employee does        not advise **Thaddeus Clements,**in writing that he/she revokes this        Agreement within seven (7) days of his/her execution of it, he/she understands        that this Agreement shall be forever effective and enforceable. If the        last day of the revocation period is a Saturday, Sunday or legal holiday        in Pennsylvania, then the revocation period shall not expire until the        next following day which is not a Saturday, Sunday or legal holiday. |
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6.   Employee  recognizes and acknowledges FCFC's interest in preventing other employees from  misconstruing this Agreement as a precedent setting event creating an entitlement  for them and, therefore, agrees that he/she shall keep the fact and terms of  this Agreement and the negotiations leading to this Agreement completely confidential,  unless required by law or Court order to do otherwise.  The parties agree  that this confidentiality provision is essential to the Agreement and that any  breach of this provision by Employee constitutes a material breach of this Agreement.   

7.   Employee  agrees that he/she will not make any disparaging statements to any current or  former employee of FCFC, its clients, customers, contractors, vendors, or to  the media or to any other person, about FCFC, its parent corporations, affiliates,  limited and general partners, subsidiaries, and related companies, whether employees,  officers, directors, shareholders, representatives or agents thereof.   A disparaging statement is any communication, oral or written, which would cause  or tend to cause humiliation or embarrassment or to cause a recipient to question  the business condition, integrity, product and service, quality, confidence  or good character of any of these persons or entities.  Employee agrees  that this non‐disparaging provision is essential to the Separation Agreement  and General Release, and that any breach of this provision constitutes a material  breach of this Separation Agreement and General Release.

8.   **Employee  Cooperation.**     Employee agrees to cooperate with  FCFC upon reasonable notice and at reasonable times, in the prosecution and  defense of litigation and in related investigations and preparations of any  claims or actions now in existence or that may be threatened or brought in the  future relating to events or occurrences that transpired while he/she was employed  by FCFC.

9.   Employee  shall not apply for or accept employment now or in the future with FCFC or with  any entity owned or operated by FCFC.

 

 

 

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10.   Employee  agrees that neither this Agreement nor the furnishing of the consideration for  this Agreement shall be deemed or construed at any time for any purpose as an  admission by FCFC of any liability or unlawful conduct of any kind.

11.   This Agreement  may not be modified, altered or changed except upon express written consent  of both parties wherein specific reference is made to this Agreement.   

12.   This Agreement  shall be governed by the substantive laws of the Commonwealth of Pennsylvania,  and any action to enforce this Agreement shall be brought in the courts of the  Commonwealth of Pennsylvania.  Should any provision of this Agreement be  declared illegal or unenforceable by any court of competent jurisdiction and  cannot be modified to be enforceable, excluding the general release language,  such provision shall immediately become null and void, leaving the remainder  of this Agreement in full force and effect. 

13.   **Voluntary  and Knowing Execution of Agreement: **Employee can read and write  and acknowledges that he/she executed this Agreement and agreed to all of its  terms freely, voluntarily, knowingly and in accordance with the advice and recommendations  of his/her counsel. Employee further acknowledges and represents that he/she  is under no physical or mental disability or impairment that would prevent or  impair (a) his/her ability to understand this Agreement or its effects: or (b)  his/her ability to enter into this Agreement knowingly or voluntarily. 

**To this end, having  elected to execute this Separation Agreement and General Release, to fulfill  the promises set forth herein, and to receive thereby the sums and benefits  set forth in Paragraph two herein, Employee freely, knowingly, and voluntarily  and after due consideration, enters into this Separation Agreement and General  Release intending to waive, settle and release all claims he/she has or might  have against Employer.**

14.   This  Agreement sets forth the entire agreement between the parties hereto, and fully  supersedes any prior agreements or understandings between the parties. Employee  acknowledges that he/she has not relied on any representation, promises, or  agreements of any kind made to him/her in connection with his/her decision to  sign this Agreement except for those set forth in this Agreement.

      IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this  Separation Agreement and General Release as of the date set forth below:

 

 

 

 

_______________________           ________________________________________

Date                          David S. Dahlmann

 

 

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**Signed and sworn before  me**

**this ________day of**

**_____________, 2002**

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**Notary Public**

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**                           FIRST COMMONWEALTH FINANCIAL CORPORATION**

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______________________      By:     ________________________________________

Date                                 Thaddeus Clements, Sr. V. P. 

 

 

 

 

# **ADDENDUM**

- Section 2.A. Separation Pay: Salary distribution    is requested as follows: The first 52 weeks    of salary continuation at $3,727.17 per week and the remaining 13 weeks of    salary at $16,293.28 per week.
- Section 2.D. Vacation Pay: Unused vacation    days for 2002 to be paid in the first pay period of 2003.
- Miscellaneous-SERP: Distribution will    not be required to be made prior to January 1, 2005. However, the employee    will have the option to receive distributions prior to January 1, 2005. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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