EXHIBIT 10.1

**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 Robert F. Koslow (hereinafter referred to throughout this Agreement as "Employee"),  residing at 2209 N. Mercer Street, New Castle, PA  16101, 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 September 30, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| 2.          | In accordance with EMPLOYEE'S      resignation and separation from employment, FCFC agrees to the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       | A.**Separation        Pay:** 78 weeks of salary continuation. Salary continuation to be        based upon current weekly pay of $2,841.64.  Total salary continuation        to be $221,647.68.  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.

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B.**Group Health        Insurance:**78 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 and all such claims, whether known  or unknown, suspected or unsuspected, 

 

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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,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 |
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|      | h.   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.

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.

 

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11.  Not withstanding  anything to the contrary contained in this Agreement, FCFC agrees that its obligations  to indemnify and defend Employee with respect to the Ambrosia Coal matter shall  continue.  Employee agrees to cooperate with FCFC in its efforts to obtain  reimbursement from its insurance carrier and from its counsel for the amount  paid in settlement of this case.

12.  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.  

13.  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. 

14.  **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.**

15.  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                          Robert F. Koslow

 

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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. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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