Document:

EX-10.47_EmploymentAgreementMcKeen

MANAGEMENT EMPLOYMENT AGREEMENT
This Agreement is entered into between Kyle C. McKeen (“Manager”) and Alon USA GP, LLC, a Delaware corporation (“Employer” or “Company”) as of  May 1, 2008, who, in return for the mutual promises set forth herein, agree as follows:
1.    Position/Term.  (a)    The term of the Manager’s employment hereunder shall be deemed to have commenced as of May 1, 2008 (the “Commencement Date”).
(b)    Throughout the term of this Agreement, Manager shall serve in the capacity and with the title of President and Chief Executive Officer of Alon USA Interests, LLC, a subsidiary of Employer (“Alon Interests”).  Manager acknowledges that the Company will use its commercially reasonable efforts to consummate an initial public offering of Alon Interests (the “IPO”) and that prior to completion of the IPO, Employer shall assign this agreement to Alon Interests.  Upon such assignment, Alon Interests shall thereafter be the “Employer” under this Agreement and all references to “Employer” or the “Company” shall be deemed to refer to Alon Interests. Manager acknowledges, however, that this Agreement is not conditioned upon completion of the IPO and that, should such IPO not be consummated, this Agreement shall continue to be in full force and effect.
Manager shall devote his full time and best effort to the successful functioning of the business of Employer and shall faithfully and industriously perform all duties pertaining to his position, including such additional duties as may be assigned from time to time, to the best of Manager’s ability, experience and talent.  Manager shall be subject at all times during the term hereof to the direction and control of Employer in respect of the work to be done. 
(c)    Manager’s employment hereunder shall be for an initial term of five years.  Thereafter, the term shall renew automatically each year for a term of one year, unless either party provides the other with written notice at least 30 days prior to the expiration of the term.
2.    Compensation.   (a)       Manager’s salary (“Base Compensation”) shall be $300,000 per year, payable bi-weekly (unless the payroll practice of the Company changes to monthly or semi-monthly) in arrears and subject to change only with the mutual written consent of Employer and Manager.  It is the intent of the Company to develop guidelines for annual merit increases for salaries of all salaried employees/management, including Manager.
(b)    Manager shall be entitled to participate in the annual cash bonus plan to be developed for Alon Interests prior to the IPO, which will be subject to modification from time to time as set forth therein.  Until such time as this Agreement has been assigned to Alon Interests, Manager shall be entitled to participate in the Alon USA Annual Cash Bonus Plan.  For purposes of determining the Manager's Target Bonus Amount under such plans, the Manager shall participate up to an amount equal to one hundred percent (100%) of base compensation.
(c)    For a period of one year following consummation of the IPO, Manager shall have the opportunity to buy shares of Alon Interests common stock in an amount of up to 1% of the total outstanding shares of Alon Interests at the IPO price.  After the end of each of the first three full calendar years following the IPO, Manager shall be eligible for a grant of restricted shares of Alon Interests common stock up to a number of shares equal to the number of shares purchased by Manager pursuant to the foregoing sentence.  The actual number of restricted shares to be granted 

will be determined by the performance of Alon Interests in the preceding calendar year as compared to pre-determined performance goals to be established by the Compensation Committee of Alon USA Energy, Inc.  Such grants shall be made under an incentive compensation plan to be adopted by the shareholders of Alon Interest prior to the IPO.  Each restricted share issued to Manager under the foregoing grants shall be issued at no cost to Manager and shall vest upon the completion of the initial term of this Agreement.  Notwithstanding the preceding sentence, if at any time during the initial term of this Agreement, Alon USA Energy, Inc. shall cease to own, directly or indirectly, at least fifty percent (50.0%) of the outstanding shares of common stock of Alon Interests, and thereafter Manager ceases to be an employee of Alon Interests or any other subsidiary of Alon USA Energy, Inc. for any reason, all of the restricted shares then held by Manager shall immediately vest without further restriction. 
3.    Fringe Benefits; Reimbursement of Expenses.  Employer shall make available, or cause to be made available to Manager, throughout the period of his employment hereunder, such benefits, including any disability, hospitalization, medical benefits, life insurance, pension plan or other benefits or policy, as may be put into effect from time to time by Employer generally for other Management members at the level of Management. The Company expressly reserves the right to modify such benefits at any time.  Such benefits shall initially be provided through participation in the policies and plans of Alon USA GP, LLC and Manager shall be credited with prior years of service with Alon USA GP, LLC for purposes of such policies and plans, including the pension plan.  At such time as this Agreement is assigned to Alon Interests, such benefits shall be provided by Alon Interests on substantially the same terms as provided by Alon USA GP, LLC and Manager shall no longer be entitled to participate in any plans or policies of Alon USA GP, LLC.  
Manager will be reimbursed for all reasonable out-of-pocket business, business entertainment and travel expenses paid by the Manager, in accordance with and subject to applicable Company expense incurrence and reimbursement policies.
The Company shall also provide Manager relocation benefits pursuant to the Alon USA Employee Relocation Policy, a summary of which has been provided to Manager.
4.    Vacation.  The number of vacation days to which Manager shall be entitled each year shall be based on the years of service of the Manager for Employer as follows – 20 days up to 20 years, 25 days after 20 years and 30 days after 30 years. Unless otherwise agreed, vacation may not be carried over into a new calendar year.
5.    Compliance With Employer Policies.  Manager shall comply with and abide by all employment policies and directives of Employer.  Employer may, in its sole discretion, change, modify or adopt new policies and directives affecting Manager’s employment.  In the event of any conflict between the terms of this Agreement and Employer’s employment policies and directives, the terms of this Agreement will be controlling.
6.    Restrictive Covenant.  (a)    In consideration of the confidential information of Employer provided to Manager and the other benefits provided to Manager pursuant to this Agreement, Manager agrees that during the term of Manager’s employment with Employer and for a period of one year following any termination of Manager's employment, (the "Non-Compete Period"), Manager will not, without the prior written consent of Employer, directly or indirectly, either as an individual or as an employee, officer, director, shareholder, partner, sole proprietor, 

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independent contractor, consultant or in any other capacity conduct any business, or assist any person in conducting any business, that is in competition with the business of Employer or its Affiliates (as defined below).  
(b)    In addition to any other covenants or agreements to which Manager may be subject, during the Non-Compete Period, Manager will not, directly or indirectly, either as an individual or as an employee, officer, director, shareholder, partner, sole proprietor, independent contractor, consultant or in any other capacity whatsoever approach or solicit any customer or vendor of Employer for the purpose of causing, directly or indirectly, any such customer or vendor to cease doing business with Employer or its Affiliates.
For the purposes of this Agreement, the "business of Employer or its Affiliates" means the business of wholesale marketing and distribution of petroleum products  and/or the operation of retail convenience stores in the Territory.  The term "Affiliates" means all subsidiaries of Employer and each person or entity that controls, is controlled by, or is under common control with Employer. The “Territory” means the states of Texas, Oklahoma, New Mexico, Arizona and California.   It is understood and agreed that the scope of each of the covenants contained in this Section 6 is reasonable as to time, area, and persons and is necessary to protect the legitimate business interest of Employer.  It is further agreed that such covenants will be regarded as divisible and will be operative as to time, area and persons to the extent that they may be so operative.  The terms of this Section 6 shall not apply to the ownership by Manager of less than 5% of a class of equity securities of an entity, which securities are publicly traded on the New York Stock Exchange, the American Stock Exchange, or the National Market System of the National Association of Securities Dealers Automated Quotation System.  The provisions of this Section 6 will survive any termination or expiration of this Agreement.
7.    Confidentiality.  (a)   Manager recognizes that during the course of employment, Manager will be exposed to information or ideas of a confidential or proprietary nature which pertain to Employer’s business, financial, legal, marketing, administrative, personnel, technical or other functions or which constitute trade secrets (including, but not limited to, specifications, designs, plans, drawings, software, data, prototypes, the identity of sources and markets, marketing information and strategies; business and financial plans and strategies, methods of doing business; data processing and management information and technical systems, programs and practices; customers and users and their needs, sales history; and financial strength), and such information of third parties which has been provided to Employer in confidence (“Confidential Information”).  All such information is deemed “confidential” or “proprietary” whether or not it is so marked, provided that it is maintained as confidential by the Company.  Information will not be considered to be Confidential Information to the extent that it is generally available to the public.  Nothing in this Section 7 will prohibit the use or disclosure by Manager of knowledge that is in general use in the industry or general business knowledge.
(b)    Manager shall hold Confidential Information in confidence, use it only in connection with the performance of duties on behalf of Employer, and restrict its disclosure to those directors, employees or independent contractors of Employer having a need to know.
(c)    Manager shall not disclose, copy or use Confidential Information for the benefit of anyone other than Employer without Employer’s prior written consent.

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(d)    Manager shall, upon Employer's request or Manager's termination of employment, return to Employer any and all written documents containing Confidential Information in Manager’s possession, custody or control.
8.    Non-Interference with Employment Relationships.  During Manager’s employment with Employer, and for a period of one (1) year thereafter, Manager shall not, without Employer’s prior written consent, directly or indirectly:  (a) induce or attempt to induce any employee to leave the Employer’s employ; or (b) interfere with or disrupt the Employer’s relationship with any of its employees or independent contractors.
9.    Copyright, Inventions, Patents.  Employer shall have all right, title and interest to all features (including, but not limited to, graphic designs, copyrights, trademarks and patents) created during the course of or resulting from Manager’s employment with Employer.  Manager hereby assigns to Employer all copyright ownership and rights to any work developed by Manager and reduced to practice for or on behalf of Employer or which relate to Employer’s business during the course of the employment relationship.  At Employer’s expense, Manager shall do all other things including, but not limited to, the giving of evidence in suits and proceedings, and the furnishing and/or assigning of all documentation and other materials relative to Employer’s intellectual property rights, necessary or appropriate for Employer to obtain, maintain, and assert its rights in such work.
10.    Termination of Employment.  (a)    Employer may terminate Manager’s employment hereunder at any time for Cause.  For purposes hereof, Cause shall mean:  (i) conviction of a felony or a misdemeanor where imprisonment is imposed for more than 30 days; (ii) commission of any act of theft, fraud, dishonesty, or falsification of any employment or Employer records; (iii) improper disclosure of Confidential Information; (iv) any intentional action by the Manager having a material detrimental effect on the Company's reputation or business; (v) any material breach of this Agreement, which breach is not cured within ten (10) business days following receipt by Manager of written notice of such breach; (vi) unlawful appropriation of a corporate opportunity; or (vii) intentional misconduct in connection with the performance of any of Manager’s duties, including, without limitation, misappropriation of funds or property of the Company, securing or attempting to secure to the detriment of the Company any profit in connection with any transaction entered into on behalf of the Company, any material misrepresentation to the Company, or any knowing violation of law or regulations to which the Company is subject.  Upon termination of Manager’s employment with the Company for Cause, the Company shall be under no further obligation to Manager, except to pay all earned but unpaid Base Compensation and all accrued benefits and vacation to the date of termination (and to the extent required by law).
(b)    Employer may terminate Manager’s employment hereunder without Cause, or Manager may terminate his employment hereunder for Good Reason, upon not less than thirty (30) days prior written notice.  In the event of any such termination, Manager shall be entitled to receive his Base Compensation through the termination date and any annual bonus entitlement, prorated for the number of months of employment for the fiscal year in question, all accrued benefits and vacation to the date of termination  (and to the extent required by law), plus an amount of severance payment equal to one year's Base Compensation as in effect immediately before any notice of termination.  “Good Reason” means (i) without the Manager’s prior written consent, the Employer reduces Manager’s Base Compensation or the percentage of Manager’s Base Compensation established as Manager’s maximum target bonus percentage for purposes of 

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Employer’s annual cash bonus plan., (ii) any material breach of this Agreement, which breach is not cured within ten (10) business days following receipt by Employer of written notice of such breach; and (iii) the delivery by Employer of notice pursuant to Section 1 (c) of this Agreement that it does not wish this Agreement to automatically renew for any subsequent year.
(c)    Manager may terminate the employment relationship hereunder with not less than thirty (30) days prior written notice. Upon any such termination of Manager’s employment, other than for Good Reason, the Company shall be under no further obligation to Manager, except to pay all earned but unpaid Base Compensation and all accrued benefits and vacation to the date of termination (and to the extent required by law).
(d)    The provisions of Sections 6, 7, 8 and 9 of this Agreement will continue in effect notwithstanding any termination of Manager's employment.
11.    Mediation and Arbitration.  (a)    Employer and Manager hereby state their mutual desire for any dispute concerning a legally cognizable claim arising out of this Agreement or in connection with the employment of Manager by Employer, including, but not limited to, claims of breach of contract, fraud, unlawful termination, discrimination, harassment, workers’ compensation retaliation, defamation, tortious infliction of emotional distress, unfair competition, and conversion (“Legal Dispute”), to be resolved amicably, if possible, and without the need for litigation.
(b)    Based on this mutual desire, in the event a Legal Dispute arises, the parties shall utilize the following protocol:
(i)    The parties shall first submit the Legal Dispute to mediation under the auspices of the American Arbitration Association (“AAA”) and pursuant to the mediation rules and procedures promulgated by the AAA.
(ii)    In the event mediation is unsuccessful in fully resolving the Legal Dispute, binding arbitration shall be the method of final resolution of the Legal Dispute.  The parties expressly waive their rights to bring action against one another in a court of law, except as expressly provided in subsection (d).  The parties hereto acknowledge that failure to comply with this provision shall entitle the non-breaching party not only to damages, but also to injunctive relief to enjoin the actions of the breaching party.  Any Legal Dispute submitted to Arbitration shall be under the auspices of the AAA and pursuant to the “National Rules for the Resolution of Employment Disputes,” or any similar identified rules promulgated at such time the Legal Dispute is submitted for resolution.  All mediation and arbitration hearings shall take place in Dallas, Texas [Los Angeles, California].
(c)    Notice of submission of any Legal Dispute to mediation shall be provided no later than three hundred sixty-five (365) calendar days following the date the submitting party became aware of the conduct constituting the alleged claims.  Failure to do so shall result in the irrevocable waiver of the claim made in the Legal Dispute.
(d)    Notwithstanding that mediation and arbitration are established as the exclusive procedures for resolution of any Legal Dispute, (i) either party may apply to an appropriate judicial or administrative forum for injunctive relief and (ii) claims by Employer arising in connection with paragraphs 6, 7, 8 or 9  may be brought in any court of competent jurisdiction.

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(e)    Each party acknowledges that a remedy at law for any breach or attempted breach of paragraphs 6, 7, 8 or 9 of this Agreement will be inadequate, agrees that Employer will be entitled to specific performance and injunctive and other equitable relief in case of any breach or attempted breach, and agrees not to use as a defense that any party has an adequate remedy at law.  This Agreement shall be enforceable in a court of equity, or other tribunal with jurisdiction, by a decree of specific performance, and appropriate injunctive relief may be applied for and granted in connection herewith.  Such remedy shall not be exclusive and shall be in addition to any other remedies now or hereafter existing at law or in equity, by statute or otherwise.  Except as provided in subsection (c) no delay or omission in exercising any right or remedy set forth in this Agreement shall operate as a waiver thereof or of any other right or remedy and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or remedy.
12.    Assignment.  This Agreement shall not be assignable by either party except as provided in Section 1(b).  Notwithstanding the foregoing, upon any sale or transfer of all or substantially all of its business by Employer, Employer may assign this Agreement to its successor; and any failure to make such an assignment will be considered to constitute the termination of Manager’s employment without cause effective upon the closing of the referenced transaction.
13.    No Inducement, Agreement Voluntary.  Manager represents that (a) he has not been pressured, misled, or induced to enter into this Agreement based upon any representation by Employer or its agents not contained herein, (b) he has entered into this Agreement voluntarily, after having the opportunity to consult with representatives of his own choosing and that (c) his agreement is freely given.
14.    Interpretation.  Any paragraph, phrase or other provision of this Agreement that is determined by a court, arbitrator or arbitration panel of competent jurisdiction to be unreasonable or in conflict with any applicable statute or rule, shall be deemed, if possible, to be modified or altered so that it is not unreasonable or in conflict or, if that is not possible, then it shall be deemed omitted from this Agreement.  The invalidity of any portion of this Agreement shall not affect the validity of the remaining portions.
15.    Prior Agreements Superseded; Amendments.  This Agreement revokes and supersedes all prior agreements, written and oral, and represents the entire agreement between the parties in relation to the employment of the Manager by the Company after the Commencement Date and shall not be subject to modification or amendment by any oral representation, or any written statement by either party, except for a dated writing signed by the Manager and the Employer.  Notwithstanding the foregoing, each of Manager and Employer hereby agree to the terms and conditions set forth in the attached Addendum to Management Employment Agreement and further agree that the provisions of such Addendum supersede and replace in their entirety any conflicting provision set forth in this Agreement.
16.    Notices.  All notices, demands and requests of any kind to be delivered in connection with this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered or if sent by nationally-recognized overnight courier or by registered or certified mail, return receipt requested and postage prepaid, addressed as follows:

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(a)    if to the Company, to:
Alon USA GP, LLC
7616 LBJ Freeway, Suite 300
Dallas, TX  75251
Telecopy number: (972) 367-3724
    
(b)    if to Manager, to the address of Manager set forth on the signature page hereto;

or to such other address as the party to whom notice is to be given may have furnished to the other in writing in accordance with the provisions of this Section 16.  Any such notice or communication shall be deemed to have been received: (i) in the case of personal delivery, on the date of such delivery; (ii) in the case of nationally-recognized overnight courier, on the next business day after the date sent; and (iii) if by registered or certified mail, on the third business day following the date postmarked.

17.    Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas without giving effect to principles of conflicts of law.

MANAGER:                        EMPLOYER:
            
[Name]                        ALON USA GP, LLC
                            

By:                
                                   Name:                
Title:                

Address for notices:
                
                
                

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ADDENDUM TO 
MANAGEMENT EMPLOYMENT AGREEMENT
Terms not defined in this ADDENDUM will have the meaning set forth in the Employment Agreement described below.
WHEREAS, the Company and Manager entered into that certain Manager Employment Agreement dated as of May 1, 2008 (the “Agreement”) and have agreed to modify the terms the Agreement pursuant to this Addendum to assure that any payments under the Agreement that (i) constitute a deferral of compensation within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), comply with the requirements of Section 409A to avoid the imposition of excise taxes and (ii) qualify for an exemption from deferred compensation treatment under Section 409A of the Code satisfy the requirements of such exemption.
1.    To the extent that a payment becomes due to Manager under Section 10 of the Agreement by reason of Manager’s termination of employment, (i) the term “termination of employment” will have the same meaning as “separation from service” under Section 409A of the Code and (ii) except as provided in Section 2, all such payments will be made in a single lump sum no later than 60 days after the date on which Manager terminates employment.
2.    If the Company makes a good faith determination that a payment under the Agreement (i) constitutes a deferral of compensation for purposes of Section 409A, (ii) is made to Manager by reason of his separation from service and (iii) at the time such payment would otherwise be made Manager is a “specified employee” as hereinafter defined, the payment will be delayed until the first day of the seventh month following the date of such termination of employment and will bear interest at the prime rate of interest as published in the Wall Street Journal on the first business day following the date of Manager’s termination of employment.  For purposes of this Section 2, a specified employee is an officer of Alon USA Energy, Inc. or one of its subsidiaries with annual compensation in excess of $150,000 (as adjusted for years after 2008), provided that only the 50 highest paid officers of Alon USA Energy, Inc. and its subsidiaries may constitute “specified employees” for any 12-month period.  An individual who is identified as a one of the 50 highest paid officers during any portion of a calendar year will be a specified employee for purposes of the Agreement during the 12-month period beginning on April 1 of the following calendar year.
3.    To the extent that any payment made under the Agreement constitutes a deferral of compensation subject to Section 409A of the Code, the time of such payment may not be accelerated except to the extent permitted by Section 409A.  Where Section 409A of the Code permits a payment or benefit that constitutes a deferral of compensation to be accelerated, the payment or benefit may be accelerated in the sole discretion of the Company.
4.    Any expense reimbursements required to be made under the Agreement will be for expenses incurred by Manager during the term of the Agreement, and such reimbursements will be made not later than December 31st of the year following the year in which Manager incurs the expense; provided, that in no event will the amount of expenses eligible for payment or reimbursement in one calendar year affect the amount of expenses to be paid or reimbursed in 

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any other calendar year.  Manager’s right to expense reimbursement will not be subject to liquidation or exchange for another benefit.
5.    Notwithstanding any provision of the Agreement to the contrary, in light of the uncertainty with respect to the proper application of Section 409A, the Company reserves the right to make amendments to the Agreement as the Company deems necessary or desirable solely to avoid the imposition of taxes or penalties under Section 409A.
6.    The provisions of this Addendum supersede and replace in their entirety any conflicting provision set forth in the Agreement.

9FHLB Pit ex10.5 10K 2012

Federal Home Loan Bank of Pittsburgh

Supplemental Executive Retirement Plan
Amended and Restated Effective June 26, 2007
Revised December 19, 2008, December 18, 2009, and 
October 26, 2012

    

Table of Contents

Article                                                Page

Preamble                                        1

I.    Definitions                                        2

II.    Participation and Vesting                                4

III.    Amount and Payment of Supplemental Benefits                    5

IV.    Administration of the Plan                                10

V.    General Provisions                                    12

Preamble

The Federal Home Loan Bank of Pittsburgh (the "Bank") participates in the Financial Institutions Retirement Fund ("Retirement Fund"), a defined benefit retirement plan qualified under the Internal Revenue Code (the "Code") for employees of the Federal Home Loan Bank of Pittsburgh.  The Retirement Fund provides benefits to employees based upon age at retirement, years of service and preceding years' salary based on the Participant's hire date with the Bank.

However, as a result of the limitations imposed upon the aggregate amount of benefits that a Participant may receive from the Retirement Fund under Section 415 and other sections of the Code, such limitations causing a reduction in the benefits otherwise provided to certain of the Bank's executives, the Bank has adopted this nonqualified, unfunded Supplemental Executive Retirement Plan ("Plan").  The purpose of this Plan is to allow certain executives whose benefits under the Retirement Fund would otherwise be significantly restricted by the terms of the Retirement Fund itself or the Code to receive benefits under the Plan in order to make up the benefits lost under the Retirement Fund.

Article I
  Definitions

		
	1.1
	"Board" or "Board of Directors" means the Board of Directors of the Federal Home Loan Bank of Pittsburgh.

		
	1.2
	"FIRF Beneficiary" means the person or persons designated by a Retiree under the provisions of the Retirement Fund to receive his/her benefits in the event of his/her death prior to receipt of all benefits thereunder.

		
	1.3
	"SERP Beneficiary" means the person or persons designated by a Participant under the provisions of this SERP to receive his/her benefits in the event of his/her death prior to receipt of all benefits hereunder.  If no person is designated by a Participant or the designated person or persons do not survive the Participant, the Participant's SERP Beneficiary shall be his/her estate.  

		
	1.4
	"Compensation" means the: a) annual base salary plus b) incentive compensation.  Provided that as to any incentive compensation award under  an incentive plan adopted by the Bank  and in effect from time to time, the amount  of each Participant's  incentive award that shall be included shall not exceed the following (expressed as a percentage of Participant's base salary): 1) President and CEO-50%; 2) other executive committee members-37.50%; and 3) other Participants-30%.  

		
	1.5
	"Effective Date" means January 1, 1991.

1.6    "Governance, Public Policy, and Human Resources Committee" means the Governance Committee of the   
             Board of Directors including any successor Board Committee as shall be designated by the Board from time
              to time as having responsibility for Bank compensation and benefits programs.  

		
	1.7
	"Participant" means an executive or other key employee who has been recommended by the Bank President, and confirmed by the Board, as eligible to participate in the Plan.

		
	1.8
	"Plan Administrator" means such officer(s) or manager of the Bank who has been appointed by the Governance Committee to administer the Plan as set forth in Section 4.2 of the Plan.  The Human Resources Director (and any successor) shall serve as the Plan Administrator unless the Board shall appoint another Bank officer(s) or manager.

		
	1.9
	"Retiree" means a Participant who has retired under the terms of the Retirement Fund on a normal retirement benefit, an early retirement benefit, or a total and permanent incapacity benefit.

		
	1.10
	"Supplemental Thrift Plan" means the Federal Home Loan Bank of Pittsburgh Supplemental Thrift Plan.

1.11       "Supplemental Benefits" means the benefits under this Plan.

1.12    “Separation from Service” means the Participant's death, retirement, the time at which the Participant's
 services performed for the Bank are permanently reduced to no more than 20 percent of the average level
 of services performed by the Participant over the preceding 36-month period, or other termination of
 employment all as set forth in applicable definitions under 26 C.F.R. 1.409A-1(h) and related and
 successor regulations as may be in effect from time to time.  

Article II
Participation and Vesting

		
	2.1
	Participation.  An executive or other key employee shall become eligible for Plan participation on the later of the first day of the calendar month coincident with or next following the date his/her participation is approved by the Board or the Effective Date.  Once selected as a Participant, a Participant shall continue as 

a Participant until the Board determines otherwise.  No Participant shall have the right to continue as a Participant in the Plan.  Upon designation as a Participant, the Participant will be given a copy of the Plan.

		
	2.2
	Termination of Participation.  A Participant's eligibility for Supplemental Benefits under the Plan, if any, shall terminate if his/her employment with the Bank terminates, unless, at that time the Participant is entitled to a vested benefit from the Retirement Fund.  A Participant's Supplemental Benefits under this Plan may be subject to Forfeiture for Cause, at any time, as defined in Section 5.6.

		
	2.3
	Vesting of Supplemental Benefits.  Supplemental Benefits in this Plan shall vest when benefits vest under the Retirement Fund subject to the Forfeiture for Cause as defined in Section 5.6.

Article III
Amount and Payment of Supplemental Benefits

		
	3.1
	Obligation to Pay the Supplemental Benefits - Events Which Trigger Payment.  The Supplemental Benefits under this Plan shall be payable by the Bank only with respect to Participants who die or terminate employment with the Bank with vested benefits from the Retirement Fund.  Consistent with Section 5.2, such Supplemental Benefits shall be payable only from the general assets of the Bank.

		
	3.2
	Amount of Supplemental Benefits.  Except in the case of Participant's death while in active service, the value, if any, of the Supplemental Benefits shall be equal to the excess of (a) over (b), where:

(a)    is the value of the benefit that would be payable (in a lump sum) as calculated by the Retirement Fund (for services to the Bank) to, or on account of the Participant in the Retirement Fund, if the provisions of the Retirement Fund were administered:

(i)    without regard to the limitations imposed by Section 401(a)(17) and Section 415 of the Internal Revenue Code;

(ii)    with benefit service calculated from date of hire with the Bank;

(iii)    with restoration of Compensation reduced as a result of the Participant's deferral of such Compensation under the terms of the Supplemental Thrift Plan; and

(iv)    using the Compensation definition in this Plan.

(b)    is the value of the benefit as calculated by the Retirement Fund in a lump sum (for services to the Bank), payable to or on account of the Participant in the Retirement Fund.   

3.3    Amounts Vested as of 12/31/04 - Form of Payment of Supplemental Benefits.  A Participant
 must file a written payment election with the Plan Administrator indicating the form of payment of
 Supplemental Benefits under this Plan; provided, however, that any election made within one year
 of the first day (January 1) of the calendar year in which the Participant would become eligible to receive payment of Supplemental Benefits under this Plan shall not be effective, and the election in effect immediately prior to the election(s) made within such one-year period shall be deemed to be the election of the Participant.  It is expressly agreed that, except in the case of a Participant's death in active service or as otherwise provided in this Plan, initial payment of Supplemental Benefits due to a Participant under this Plan shall begin within 90 days following the date of Participant's Separation from Service, as defined above.  The manner in which such Supplemental Benefits are paid to a Participant shall be in accordance with the Participant's payment election then in effect.  If the Participant has elected a single lump sum payment, such payment shall be made within 90 days of Participant's Separation from Service.  If the Participant has elected a form of payment other than a single lump sum payment, the initial installment shall be paid within 90 days of Participant's Separation from Service and each remaining annual payment shall be made no later than March 31 

of each succeeding year.  The available forms of payment of the Supplemental Benefits payable hereunder shall be as follows:

(a)    a life annuity over the life of the Participant; 

(b)    a 100 percent joint and survivor annuity over the life of the Participant and Participant's spouse; 

(c)    a 50 percent joint and survivor annuity over the life of the Participant and the Participant's spouse;

(d)    a revised retirement allowance during life with some other benefit payable upon the Participant's
 death, where either a dollar amount or percentage of the retirement allowance and death benefit respectively are specified in the payment election; 

		
	(e)
	a single lump sum payment; or

		
	(f)
	a partial lump sum payment equal to 25 percent, 50 percent or 75 percent of the total benefit and an annual allowance for the remainder of the benefit which must commence at the time of the partial lump sum payment.

If a Participant fails for any reason to have a valid and effective written payment election hereunder, Supplemental Benefits under this Plan shall be paid within 90 days of the later of the first day of the month in which the Participant has a Separation from Service or attains age 65 and shall be paid in the form of a single lump sum payment.  

At any time when a Participant who is a party to a split dollar life insurance agreement with the Bank (an “SDA”) has an advance cash surrender value election in force under the SDA, such Participant shall, regardless of any other payment election made under this Plan, be deemed to have elected a single lump sum payment under this Plan.  A Participant who is a party to an SDA and wishes to make a payment election under this Plan other than a lump sum payment may do so only if he/she revokes any advance cash surrender value election in force under the SDA.

3.4     Amounts Not Vested as of 12/31/04 - Form and Timing of Payment of Supplemental Benefits.  A
 Participant must file a written payment election with the Plan Administrator indicating the form of payment
 of Supplemental Benefits under this Plan; provided, however, that any election made within one year of the
 first day (January 1) of the calendar year in which the Participant would become eligible to receive
 payment of Supplemental Benefits under this Plan shall not be effective, and the election in effect
 immediately prior to the election(s) made within such one-year period shall be deemed to be the election of
 the Participant.  Notwithstanding the foregoing, no change in a payment election may be made which
 impermissibly accelerates any payment, including any revocation of a prior election.  Any change in the
 form of annuity or other installment payment election, from a partial or full lump sum election to an
 installment or annuity payment election or from an installment or annuity election to a form of lump sum
 election (“Revised Election”) will become effective on the first January 1 which is twelve months after the
 date of the election.  

In addition, with respect to any such Revised Election (excluding a change in the form of an annuity payment election from one form of annuity payment to another annuity form that is “actuarially equivalent” to the prior elected annuity form as determined by the Bank in accordance with applicable law and regulations) the payment of the Participant's Supplemental Benefits to be paid to the Participant must be deferred by at least five years after the date on which such payment would have been made.  For this purpose, a series of installment or annuity payments shall be treated as the entitlement to a single payment on the date of the first payment.  Initial payment of Supplemental Benefits due to a Participant under this Plan shall begin within 90 days following the date of Participant's Separation from Service with the Bank.  

The manner in which such Supplemental Benefits are paid to a Participant shall be in accordance with Participant's payment election then in effect.  If the Participant has elected a single lump sum payment, such payment shall be made within 90 days of Participant's Separation from Service.  If the Participant has elected another form of payment, the initial installment shall be paid within 90 days of Participant's Separation from Service and each remaining annual payment shall be made no later than March 31 of each succeeding year.  

The available forms of payment of the Supplemental Benefits payable hereunder shall be as follows:

		
	(a)
	a life annuity over the life of the Participant; 

		
	(b)
	a 100 percent joint and survivor annuity over the life of the Participant and Participant's spouse; 

		
	(c)
	a 50 percent joint and survivor annuity over the life of the Participant and the Participant's spouse;

1.11 a revised retirement allowance during life with some other benefit payable upon the Participant's death, where either a dollar amount or percentage of the retirement allowance and death benefit, respectively, are specified in the payment election; 

(d)    a single lump sum payment; or

(e)a partial lump sum payment equal to 25 percent, 50 percent or 75 percent of the total benefit and an annual allowance for the remainder of the benefit which must commence at the time of the partial lump sum payment.  

If a Participant fails for any reason to have a valid and effective written payment election hereunder, Supplemental Benefits under this Plan shall be paid within 90 days of the later of the first of the month in which the Participant has a Separation from Service or attains age 65 and shall be paid in the form of a single lump sum payment.  

Effective as of January 1, 2005, at any time when a Participant who is a party to an SDA has an advance cash surrender value election in force under the SDA, such Participant shall, regardless of any other payment election made under this Plan, be deemed to have elected a single lump sum payment under this Plan.  A Participant who is a party to an SDA and wishes to make a payment election under this Plan other than a lump sum payment may do so only if he/she revokes any advance cash surrender value election in force under the SDA and, whether or not such an election has been made under the SDA, irrevocably waives the right to make such an election in the future.  In addition, any such election under this Plan which is a Revised Election, shall be subject to the restrictions on Revised Elections set forth above in this Section 3.4.

		
	3.5
	Amounts Not Vested as of 12/31/04 - Revision of Existing Payment Election Prior to 12/31/07.  The Plan is hereby amended to permit each Participant, on or before December 31, 2007, to amend his/her current payment election as in effect on June 25, 2007, covering amounts not vested as of December 31, 2004.  Such a revised payment election shall be referred to as a “Transition Election.”  Provided that such Transition Election does not result in a payment in 2007, such Transition Election shall become effective upon receipt by the Plan Administrator and shall not be subject to the terms of Section 3.4.  Any Transition Election shall be subject to the requirements of I.R.S. Notice 2006-79.  

Additional Transition Election Prior to 12/31/08:  Effective January 1, 2008, the Plan is hereby amended to permit each Participant, on or before December 31, 2008, to amend his/her current payment election with respect to amounts not vested as of December 31, 2004.  Such a revised payment election shall be referred to as the 2008 Transition Election.  Provided that such Transition Election does not result in a payment in 2008, such 2008 Transition Election shall become effective upon receipt by the Plan Administrator and shall not be subject to the terms of Section 3.4.  Any Transition Election shall be subject to the requirements 

of I.R.S. Notice 2006-79, as modified by IRS Notice 2007-86.

		
	3.6
	Death Benefit.  In the event of the death of a Participant while in active service, but prior to becoming a Retiree, the death benefit will equal the excess of (a) over (b) where:  

(a)    is the death benefit (as calculated by the Retirement Fund) that would otherwise be payable to the FIRF Beneficiary under the Retirement Fund, if the provisions of the Retirement Fund were (i) administered without regard to the limitations imposed by Sections 401(a)(17) and 415 of the I.R.C. and (ii) calculated from the date of hire.  For purposes of determining the benefit under this subsection (a), (i) any deferrals made by or on account of the Participant to the Supplemental Thrift Plan are to be included as Compensation and (ii) Compensation shall be defined as under this Plan. 

(b)    is the death benefit, as calculated by the Retirement Fund.

		
	3.7
	Restoration of Employment.  If a Participant is restored to employment with the Bank, ongoing payments under the Plan shall be discontinued.  Upon death or other Separation from Service with the Bank, the Participant's Supplemental Benefits under the Plan shall be recomputed in the manner of the applicable provisions of this Plan and the Retirement Fund, and shall again become payable to such Participant in accordance with the provisions of the Plan, but be reduced by the amounts already paid to the Participant under the Plan.    

Article IV
Administration of the Plan

		
	4.1
	Governance Committee.  The Board has delegated to the Governance Committee authority over, and responsibility for, the interpretation and administration of the Plan; except that, the power to determine eligibility for participation in the Plan pursuant to Section 2.1 is reserved to the Board.  The Governance Committee shall interpret and construe the Plan and have the responsibility to ensure that its provisions are carried out.  The Governance Committee shall exercise such power and responsibilities in its sole and absolute discretion.  The Governance Committee shall designate an officer(s) or manager of the Bank to act as administrator of the Plan, to perform those duties set forth below in Section 4.2.

		
	4.2
	Plan Administrator.  The Plan Administrator shall:

		
	(a)
	act as the point of contact for submission of claims for Supplemental Benefits under the Plan;

		
	(b)
	calculate the Supplemental Benefits due under the Plan or arrange for the calculation of Supplemental Benefits;

		
	(c)
	inform Participants of the terms of the Plan and respond to their questions regarding the Plan;

		
	(d)
	review and process claims for the payment of Supplemental Benefits under the Plan;

		
	(e)
	provide necessary reporting to Bank management, Participants, the Governance Committee, the Board and others, as necessary; and 

		
	(f)
	take such other action as required to perform the tasks listed hereunder or otherwise administer the terms of the Plan.  In fulfilling the responsibilities in this section, the Plan Administrator may use other Bank staff, other agents or engage contractors.

		
	4.3
	Claims Procedure.  All claims for Supplemental Benefits shall be in writing and shall be filed with the Plan Administrator.  If the Plan Administrator wholly or partially denies a Participant's or SERP Beneficiary's claim for Supplemental Benefits hereunder, the Plan Administrator shall, within 90 days after the Plan's receipt of the claim, give the claimant written notice setting forth in understandable language:

(a)    the specific reason(s) for the denial;

(b)    specific reference to pertinent Plan provisions on which the denial is based;

(c)    a description of any additional material or information which must be submitted to perfect the claim, as well as an explanation of why such material or information is necessary; and

(d)    an explanation of the Plan's review procedure.

The claimant shall have 60 days after the day on which such written notice of denial is handed or mailed to him/her, in which to apply (in person or by authorized representative), to the Governance Committee, in writing, for a full and fair review of the denial of his/her claim.  In connection with such review, the claimant (or his/her representative) shall be afforded reasonable opportunity to review pertinent documents, and may submit issues and comments in writing.

The Governance Committee shall issue its decision on review promptly and within 60 days after the Plan's receipt of the request for review, unless special circumstances require an extension to not later than 120 days after receipt of the request for review.  (Written notice of any such extension shall be furnished to the claimant before the commencement of such extension.)  The decision shall be in writing and shall be in understandable language setting forth specific reasons for the decision and specific references to pertinent Plan provisions on which the decision is based.
Article V
General Provisions

		
	5.1
	Rights to Employment.  The establishment of the Plan, and selection of an executive for inclusion as a Participant in the Plan, shall not be construed as conferring any legal rights upon any Participant or other person for the continuation of employment; nor shall it interfere with the rights of the Bank to discharge any Participant and to treat him/her without regard to the effect such treatment might have upon him/her as a Participant in the Plan.

		
	5.2
	Source of Funding - Participant as General Creditor.  The Bank shall not be required to establish any form of trust or funded account for the purpose of providing the Supplemental Benefits under this Plan.  The Bank, in its sole discretion, may choose to establish funding arrangements with respect to the Plan on such terms and conditions as the Bank deems appropriate; provided, however, that the assets of the Bank held pursuant to any such arrangement shall remain subject to the claims of the Bank's general creditors.  Any Participant who may have or claim any interest in or right to any Supplemental Benefits payable hereunder, shall rely solely upon the unsecured promise of the Bank as set forth herein, for the payment of the claim.  Nothing herein contained should be construed to give to or vest in any Participant, now or at any time in the future, any right, title, interest or claim in or to any specific asset, fund, reserve, account or property of any kind whatever owned by the Bank, or in which the Bank may have any right, title or interest, now or at any time in the future.  The Plan is not intended to be a qualified plan within the meaning of Section 401(a) of the Internal Revenue Code and the Bank shall not be required to qualify the Plan under the Internal Revenue Code.

		
	5.3
	Incapacity.  In the event that the Governance Committee shall find that a Participant is unable to care for his/her affairs because of illness or accident, the Governance Committee may direct that any Supplemental Benefits payment due him/her, unless claim shall have been made therefor by a duly appointed legal representative, be paid to his/her spouse, a child, a parent or other blood relative, or to a person with whom he/she resides, and any such payment so made shall be a complete discharge of the liabilities of the Plan therefor.

		
	5.4
	Reporting and Withholding of Taxes.  The Bank shall file Form W-2 and other applicable tax documents as required under applicable federal and state law, including, without limitation, any required annual federal 

tax filings of a Participant's accrued benefits under or payments from the Plan.  The Bank shall have the right to deduct from each Supplemental Benefits payment to be made under the Plan any required withholding taxes and shall withhold or cause to be withheld from all payments or accruals of Supplemental Benefits under the Plan (if applicable), all federal, state or local taxes required to be withheld by law.  The Participant shall be liable for the payment of all taxes on the Supplemental Benefits under the Plan that are the Participant's responsibility under the laws establishing such taxes.

		
	5.5
	Alienation of Supplemental Benefits Under the Plan.  Supplemental Benefits payable under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, whether voluntary or involuntary, including any such liability which is for alimony or other payments for the support of a spouse or former spouse, or for any other relative of the Participant, prior to actually being received by the person entitled to the Supplemental Benefits under the terms of the Plan, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void; nor shall any such distribution or payment be in any way liable for or subject to the debts, contracts, liabilities, engagements or torts of any person entitled to such distribution or payment.  If any Participant or SERP Beneficiary is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any such distribution or payment voluntarily or involuntarily, the Bank, in its discretion, may hold or cause to be held or applied such distribution or payment or any part thereof to or for the benefit of such Participant or SERP Beneficiary in such manner as the Bank shall direct.

		
	5.6
	Forfeiture for Cause.  The Supplemental Benefits otherwise payable under the Plan to a Participant may be subject to forfeiture for cause at any time.  "Cause" shall mean:

(a)    the perpetration by a Participant of a defalcation involving the Bank or any affiliate;

(b)    willful, reckless or grossly negligent conduct of a Participant entailing a substantial violation of any material provision of the laws, rules, regulations or orders of any governmental agency applicable to the Bank or an affiliate;

(c)    the repeated and deliberate failure by a Participant to comply with reasonable policies or directives of the Board; or

(d)    the breach by a Participant of a noncompetitive covenant or agreement with the Bank or affiliate.

Whether the facts in any case amount to "Cause" shall be determined by the Board of Directors.

		
	5.7
	Compliance with Laws.  The provisions of the Plan shall be construed, administered and governed under the laws of the United States including, without limitation, Internal Revenue Code Section 409A and implementing regulations and, to the extent they defer to state law, the laws of the Commonwealth of Pennsylvania.  

		
	5.8
	Construction.  Whenever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine gender in all cases where they would so apply, and whenever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply.  Titles of Articles and Sections hereof are for convenience of reference only and are not to be taken into account in construing the provisions of this Plan.  In case any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if said illegal and invalid provision had never been inserted herein.

		
	5.9
	Amendment and Termination.  The Bank specifically reserves the right, in the sole and unfettered discretion of its Board, at any time, to amend, in whole or in part, any or all of the provisions of the Plan and to terminate the Plan in whole or in part; provided, however, that no such amendment or termination 

shall reduce or eliminate the rights of a Participant accrued hereunder to the date of such amendment or termination.  Provided further, that no such termination shall result in an impermissible acceleration of any amount deferred under this Plan that would violate the provisions of Internal Revenue Code Section 409A(a)(3) or Treasury Regulation Section 1.409A-3(j) or any successor regulations.  

5.10    Binding on Successors.  The Plan shall be binding upon and inure to the benefit of the Bank and its successors and assigns.  The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank.  Nothing in the Plan shall preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization, which assumes the Plan and all obligations of the Bank hereunder.  The Bank agrees that it will make appropriate provision for the preservation of Participants' rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets.  Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of Plan obligations of the Bank, the term "Bank" shall refer to such other organization and the Plan shall continue in full force and effect.

5.11    Permissible Payment Acceleration.  In the event of an Internal Revenue Code Section 409A Plan failure that results in income inclusion to a Participant, payment of Participant's benefits under this Plan shall be accelerated; provided that, the amount of the accelerated payment shall not exceed the amount required to be included in Participant's income due to the Plan failure.

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