Document:

Exhibit 10.7

Exhibit 10.7

Amendment No. 1 to

FirstEnergy Corp. Deferred Compensation Plan for Outside Directors

WHEREAS, FirstEnergy Corp. (the “Company”) amended and restated the FirstEnergy Corp. Deferred
Compensation Plan for Outside Directors effective December 31, 2010 (the “Plan”); and

WHEREAS, Section 9.1 of the Plan generally provides that, prior to a Special Circumstance (as
defined in the Plan) and subject to certain conditions, the Plan may be amended from time to time
by the Board of Directors of the Company (the “Board”); and

WHEREAS, the Board now desires to amend the Plan to make certain changes to the definitions of
“Change in Control” and “Potential Change in Control” and related terms in the Plan;

NOW, THEREFORE, in accordance with Section 9.1 of the Plan, the Plan is amended, effective as
of January 1, 2012 except as otherwise provided below, as follows:

1. Section 1.5(h) is hereby amended by the deletion of said Section 1.5(h) in its entirety and
the substitution in lieu thereof of a new Section 1.5(h) to read as follows:

“(h) ‘Change in Control’ means:

(x) for amounts deferred or accrued under the Plan before January 1, 2012:

(1) The acquisition by any Person (as defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, as amended from time to time, and any successor
thereto (the ‘Exchange Act’)and as used in Sections 13(d) and 14(d) thereof,
including a ‘group’ as defined in Section 13(d) thereof) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty
percent (50%) or more (twenty five percent (25%) if such Person proposes any
individual for election to the Board or any member of the Board is a representative
of such Person) of either (i) the then outstanding shares of common stock of the
Company (the ‘Outstanding Company Common Stock’) or (ii) the combined voting power
of the then outstanding voting securities of the Company entitled to vote generally
in the election of Directors (the

 

 

 

‘Outstanding Company Voting Securities’); provided, however, that the following acquisitions shall
not constitute a Change in Control: (i) any acquisition directly from the Company
(excluding an acquisition by virtue of the exercise of a conversion privilege); (ii)
any acquisition by the Company; (iii) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; or (iv) any acquisition by any corporation pursuant to a
reorganization, merger or consolidation (collectively a ‘Reorganization’ for
purposes of this Subsection (h)(x)) if, following such Reorganization the conditions
described in clauses (i), (ii), and (iii) of paragraph (3) of this Subsection (h)(x)
are satisfied; or

(2) Individuals who, as of the date hereof, constitute the Board (the
‘Incumbent Board’) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or
threatened election contest (within the meaning of solicitations subject to as such
terms are used in Rule 14a-12(c) of Regulation 14A promulgated under the Exchange
Act or any such successor rule) or other actual or threatened solicitation of
proxies or consent by or on behalf of a Person other than the Board; or

(3) Consummation of a Reorganization, merger, or consolidation or sale or other
disposition of all or substantially all of the assets of the Company, in each case,
unless, following such Reorganization (i) more than seventy-five percent (75%) of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such Reorganization, merger or consolidation or acquiring such assets
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Reorganization, merger, consolidation or sale or other
disposition of assets in substantially the same proportions as their ownership,
immediately prior to such Reorganization of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding
the Company, any holding company formed by the Company to become the parent of the
Company, any employee benefit plan (or related trust) of the Company or such
corporation resulting from such Reorganization and any Person beneficially owning,
immediately prior to such Reorganization directly or indirectly, twenty-five percent
(25%) or more of, respectively, the Outstanding Company Common Stock, or Outstanding
Company Voting Securities, as the case may be) beneficially owns, directly or
indirectly, twenty-five percent (25%) or more of, respectively, the then outstanding
 shares of
common stock of the corporation resulting from such Reorganization or the
combined voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors and (iii) at least a
majority of the members of the board of directors of the corporation resulting from
such Reorganization were members of the Incumbent Board at the time of the execution
of the initial agreement providing for such Reorganization; or

 

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(4) Approval by the shareholders of the Company of (i) a complete liquidation
or dissolution of the Company. A Change in Control may occur only with respect to
the Company. A change in ownership of common stock of an Affiliate or subsidiary,
change in membership of a board of directors of an Affiliate or subsidiary, the sale
of assets of an Affiliate or subsidiary, or any other event described in this
Subsection (h)(x) that occurs only with respect to an Affiliate or subsidiary does
not constitute a Change in Control; and

(y) for amounts deferred or accrued (i.e., earned) under the Plan on or after January
1, 2012:

(1) An acquisition by any Person, directly or indirectly, of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
immediately after which such Person has beneficial ownership of twenty-five percent
(25%) or more of either: (i) the Outstanding Company Common Stock, or (ii) the
Outstanding Company Voting Securities; provided, however, that the following
acquisitions of beneficial ownership of Outstanding Company Common Stock or
Outstanding Company Voting Securities shall not constitute a Change in Control:

(i) Any acquisition directly from the Company (excluding an acquisition
by virtue of the exercise of a conversion privilege, unless the security
being so converted was itself acquired directly from the Company);

(ii) Any acquisition by the Company;

(iii) Any acquisition by an employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company; or

(iv) Any acquisition pursuant to a reorganization, merger, or
consolidation involving the Company or any direct or indirect wholly-owned
subsidiary of the Company, whether or not the Company is the surviving
corporation in such transaction (any of the foregoing, a ‘Reorganization’
for purposes of this Subsection (h)(y)), if, following such Reorganization,
the conditions described in paragraph (3) below are satisfied;

(2) Individuals who, as of January 1, 2012, constitute the Board (the
‘Incumbent Board’) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a Director subsequent to
January 1, 2012 whose election, or nomination for election by the Company’s
shareholders, is approved by a vote of at least a majority of the Directors then
comprising the Incumbent Board shall be considered as a member of the Incumbent
Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (within the meaning of
solicitations subject to Rule 14a-12(c) of Regulation 14A promulgated under the
Exchange Act or any successor rule) or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board;

 

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(3) Consummation of a (A) Reorganization or (B) sale or disposition of all or
substantially all of the assets of the Company in one transaction or a series of
related transactions (determined on a consolidated basis), other than in connection
with a sale-leaseback or other arrangement resulting in the continued utilization of
such assets by the Company (such a sale or disposition, a ‘Major Asset
Disposition’), unless in each case following such Reorganization or Major Asset
Disposition (either, a ‘Major Corporate Event’) each of the following conditions is
met:

(a) The Outstanding Company Voting Securities immediately prior to such
Major Corporate Event represent (either by remaining outstanding or by
converting into or being exchanged for voting securities of the surviving
corporation) at least sixty percent (60%) of the combined voting power of
the surviving corporation (including a corporation which, as a result of
such Major Corporate Event, owns the Company or all or substantially all of
the assets of the Company) outstanding immediately after such Major
Corporate Event;

(b) No Person (excluding the Company, any employee benefit plan (or
related trust) of the Company or the resulting or acquiring corporation
resulting from such Major Corporate Event, and any Person beneficially
owning, immediately prior to such Major Corporate Event, directly or
indirectly, twenty-five percent (25%) or more of the Outstanding Company
Common Stock or Outstanding Company Voting Securities, as the case may be)
beneficially owns, directly or indirectly, immediately after consummation of
such Major Corporate Event, twenty-five percent (25%) or more of,
respectively, the then-outstanding shares of common stock of the resulting
or acquiring corporation in such Major Corporate Event, or the combined
voting power of the then-outstanding voting securities of such resulting or
acquiring corporation that are entitled to vote generally in the election of
directors; and

(c) At least a majority of the members of the board of directors of the
corporation resulting from such Major Corporate Event were members of the
Incumbent Board at the time of the execution of the initial agreement
providing for such Major Corporate Event; or

(4) Approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

However, in no event will a Change in Control be deemed to have occurred, with respect
to a Participant, if the Participant is part of a purchasing group which consummates the
Change in Control transaction. The Participant shall be deemed ‘part of a purchasing group’
for purposes of the preceding sentence if the Participant is an equity participant or has
agreed to become an equity participant in the purchasing company or group (excluding passive
ownership of less than five percent (5%) of the voting securities of the purchasing company
or ownership of equity participation in the purchasing company or group which is otherwise
not deemed to be
significant, as determined prior to the Change in Control by a majority of the
nonemployee continuing members of the Board of Directors).

 

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2. Section 1.5(x) is hereby amended by the deletion of said Section 1.5(x) in its entirety and
the substitution in lieu thereof of a new Section 1.5(x) to read as follows:

“(x) ‘Potential Change in Control’ means any of the following:

(1) Any Person other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company, delivers to the Company a statement containing the
information required by Schedule 13 D under the Exchange Act, or any amendment to any such
statement (or the Company becomes aware that any such statement or amendment has been filed
with the Securities and Exchange Commission pursuant to applicable Rules under the Exchange
Act), that shows that such Person has acquired, directly or indirectly, the beneficial
ownership of (i) more than twenty percent (20%) of any class of equity security of the
Company entitled to vote as single class in the election or removal from office of
directors, or (ii) more than twenty percent (20%) of the voting power of any group of
classes of equity securities of the Company entitled to vote as a single class in the
election or removal from office of directors;

(2) The Company becomes aware that preliminary or definitive copies of a proxy
statement and information statement or other information have been filed with the Securities
and Exchange Commission pursuant to Rule 14a-6, Rule 14c-5, or Rule 14f-1 under the Exchange
Act relating to a Potential Change in Control of the Company;

(3) Any Person delivers a Tender Offer Statement relating to Voting Securities of the
Company (or the Company becomes aware that any such statement has been filed with the
Securities and Exchange Commission pursuant to applicable Rules under the Exchange Act);

(4) Any Person (other than the Company) publicly announces an intention to take actions
which if consummated would constitute a Change in Control;

(5) The Company enters into an agreement, the consummation of which would result in the
occurrence of a Change in Control;

(6) The Board approves a proposal, which if consummated, would constitute a Change in
Control; or

(7) The Board adopts a resolution to the effect that, for purposes of this Plan, a
Potential Change in Control has occurred.

 

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Notwithstanding the foregoing, a Potential Change in Control shall not include an event
described in paragraphs (1) through (6) above, if a number of directors (who were serving on
the Board immediately prior to such event and who continue to serve on the Board) equal to a
majority of the members of the Board as constituted prior to such event
determines that the event shall not constitute a Potential Change in Control and
furnish written notice to the CEO of such determination.

If a Potential Change in Control is abandoned, terminated or withdrawn for any reason
except for the occurrence of a Change in Control, it shall then cease to be deemed that a
Potential Change in Control has occurred as a result of any event described in paragraphs
(1) through (7) above, or that a Special Circumstance has occurred by reason of such
Potential Change in Control.”

IN WITNESS WHEREOF, pursuant to the delegation of authority made to an authorized officer of
FirstEnergy Corp. on February 25, 2011, by the Board of Directors of FirstEnergy Corp., to approve
the changes to the FirstEnergy Corp. Deferred Compensation Plan for Outside Directors which are
reflected in Amendment No. 1 to FirstEnergy Corp. Deferred Compensation Plan for Outside
Directors, this Amendment No. 1 is hereby executed this 28th day of April, 2011, effective as of
the date set forth above.

	 	 	 	 	 
	 	FIRSTENERGY CORP.

 	 
	 	By:  	/s/ Anthony J. Alexander
 	 
	 	 	Anthony J. Alexander, 	 
	 	 	President and Chief Executive 
Officer
of FirstEnergy Corp. 	 

 

6Exhibit 10.8

Exhibit 10.8

Amendment No. 1 to

FirstEnergy Corp. Supplemental Executive Retirement Plan

(Effective September 29, 1985, Amended and Restated as of January 1, 2005 and

Further Amended December 31, 2010)

WHEREAS, FirstEnergy Corp. (the “Company”) amended and restated the FirstEnergy Corp.
Supplemental Executive Retirement Plan effective December 31, 2010 (the “Plan”); and

WHEREAS, Section 8.2 of the Plan provides that the Plan may be amended, subject to certain
conditions, at any time by action of the Board of Directors of the Company (the “Board”) or
Compensation Committee of the Board (the “Compensation Committee”) or by a writing executed on
behalf of the Board or the Compensation Committee by the Company’s duly elected officers; and

WHEREAS, the Board desires to amend the Plan, effective January 1, 2012, to change the
definition of “Change in Control” and related terms in the Plan for amounts accrued under the Plan
on or after January 1, 2012;

NOW, THEREFORE, in accordance with Section 8.2 of the Plan, the Plan is amended, effective as
of January 1, 2012, as follows:

1. Appendix B is hereby amended by the deletion of said Appendix B in its entirety and the
substitution in lieu thereof of a new Appendix B to read as follows:

“APPENDIX B

Change in Control

‘Change in Control’ means:

(x) for amounts accrued under the Plan before January 1, 2012:

(1) An acquisition by any Person (as defined in Section 3(a)(9) of the Securities
Exchange Act of 1934, as amended from time to time, and any successor
thereto (the ‘Exchange Act’) and as used in Sections 13(d) and 14(d) thereof, including
a ‘group’ as defined in Section 13(d) thereof) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) (twenty-five
percent (25%) if such Person proposes any individual for election to the Board of Directors
or any member of the Board is the representative of such Person) or more of either (i) the
then outstanding shares of common stock of the Company (‘Outstanding Company Common Stock’),
or (ii) the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (‘Outstanding Company Voting
Securities’); provided, however, that the following acquisitions will not constitute a
Change in Control:

(a) Any acquisition directly from the Company (excluding an acquisition by
virtue of the exercise of a conversion privilege);

 

 

 

(b) Any acquisition by the Company;

(c) Any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; or

(d) Any acquisition by any corporation pursuant to a reorganization, merger, or
consolidation (collectively, a ‘reorganization’ as used in this Subsection (x) of
this Appendix B) if, following such reorganization, merger, or consolidation, the
conditions described in clauses 3(a), 3(b) and 3(c) of Subsection (x) of this
Appendix B are satisfied.

(2) Individuals who, as of the date hereof, constitute the Board (the ‘Incumbent
Board’) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s shareholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(3) Consummation of a reorganization, merger, or consolidation or sale or other
disposition of all or substantially all of the assets of the Company, in each case, unless,
following such reorganization, merger, or consolidation or sale or other disposition of
assets:

(a) More than seventy-five percent (75%) of, respectively, the then outstanding
 shares of common stock of the corporation resulting from such reorganization,
merger, consolidation, or acquiring such assets and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially owned,
directly or indirectly, by all or substantially all of the individuals and entities
who were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
reorganization, merger, consolidation, or sale or other disposition of assets in
substantially the same proportions as their ownership, immediately prior to such
reorganization, merger, consolidation, or sale or other disposition of assets, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be;

 

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(b) No Person (excluding the Company, any employee benefit plan (or related
trust) of the Company or such corporation resulting from such reorganization,
merger, consolidation, or sale or other disposition of assets, and any Person
beneficially owning, immediately prior to such reorganization, merger,
consolidation, or sale or other disposition of assets, directly or indirectly,
twenty-five percent (25%) or more of the Outstanding Company Common Stock or
Outstanding Voting Securities, as the case may be) beneficially owns, directly or
indirectly, twenty-five percent (25%) or more of, respectively, the then outstanding
 shares of common stock of the corporation resulting from such reorganization,
merger, or consolidation or acquiring such assets or the combined voting power of
the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors; and

(c) At least a majority of the members of the Board of Directors of the
corporation resulting from such reorganization, merger, or consolidation or
acquiring such assets were members of the Incumbent Board at the time of the
execution of the initial agreement providing for such reorganization, merger,
consolidation or sale or other disposition of assets; or

(4) Approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

However, in no event will a Change in Control be deemed to have occurred, with respect
to a Participant, if the Participant is part of a purchasing group which consummates the
Change in Control transaction. The Participant will be deemed ‘part of a purchasing group’
for purposes of the preceding sentence if the Participant is an equity participant or has
agreed to become an equity participant in the purchasing company or group (excluding passive
ownership of less than five percent (5%) of the voting securities of the purchasing company
or ownership of equity participation in the purchasing company or group which is otherwise
not deemed to be significant, as determined prior to the Change in Control by a majority of
the nonemployee continuing members of the Board of Directors); and

 

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(y) for amounts accrued (i.e., earned) under the Plan on or after January 1, 2012:

(1) An acquisition by any Person, directly or indirectly, of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) immediately after
which such Person has beneficial ownership of twenty-five percent (25%) or more of either:
(i) Outstanding Company Common Stock, or (ii) the Outstanding Company Voting Securities;
provided, however, that the following acquisitions of beneficial ownership of Outstanding
Company Common Stock or Outstanding Company Voting Securities shall not constitute a Change
in Control:

(a) Any acquisition directly from the Company (excluding an acquisition by
virtue of the exercise of a conversion privilege, unless the security being so
converted was itself acquired directly from the Company);

(b) Any acquisition by the Company;

(c) Any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; or

(d) Any acquisition pursuant to a reorganization, merger, or consolidation
involving the Company or any direct or indirect wholly-owned subsidiary of the
Company, whether or not the Company is the surviving corporation in such transaction
(any of the foregoing, a ‘Reorganization’ for purposes of this Subsection (y)), if,
following such Reorganization, the conditions described in subsection (3) below are
satisfied;

(2) Individuals who, as of January 1, 2012, constitute the Board (the ‘Incumbent
Board’) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a Director subsequent to January 1, 2012 whose
election, or nomination for election by the Company’s shareholders, is approved by a vote of
at least a majority of the Directors then comprising the Incumbent Board shall be considered
as a member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or threatened
election contest (within the meaning of solicitations subject to Rule 14a-12(c) of
Regulation 14A promulgated under the Exchange Act or any successor rule) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board;

(3) Consummation of a (A) Reorganization or (B) sale or disposition of all or
substantially all of the assets of the Company in one transaction or a series of related
transactions (determined on a consolidated basis), other than in connection with a
sale-leaseback or other arrangement resulting in the continued utilization of such assets by
the Company (a ‘Major Asset Disposition’), unless in each case following such Reorganization
or Major Asset Disposition (either, a ‘Major Corporate Event’) each of the following
conditions is met:

(a) The Outstanding Company Voting Securities immediately prior to such Major
Corporate Event represent (either by remaining outstanding or by
converting into or being exchanged for voting securities of the surviving
corporation) at least sixty percent (60%) of the combined voting power of the
surviving corporation (including a corporation which, as a result of such Major
Corporate Event, owns the Company or all or substantially all of the assets of the
Company) outstanding immediately after such Major Corporate Event;

 

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(b) No Person (excluding the Company, any employee benefit plan (or related
trust) of the Company or the resulting or acquiring corporation resulting from such
Major Corporate Event, and any Person beneficially owning, immediately prior to such
Major Corporate Event, directly or indirectly, twenty-five percent (25%) or more of
the Outstanding Company Common Stock or Outstanding Company Voting Securities, as
the case may be) beneficially owns, directly or indirectly, immediately after
consummation of such Major Corporate Event, twenty-five percent (25%) or more of,
respectively, the then-outstanding shares of common stock of the resulting or
acquiring corporation in such Major Corporate Event, or the combined voting power of
the then-outstanding voting securities of such resulting or acquiring corporation
that are entitled to vote generally in the election of directors; and

(c) At least a majority of the members of the board of directors of the
corporation resulting from such Major Corporate Event were members of the Incumbent
Board at the time of the execution of the initial agreement providing for such Major
Corporate Event; or

(4) Approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

However, in no event will a Change in Control be deemed to have occurred, with respect
to a Participant, if the Participant is part of a purchasing group which consummates the
Change in Control transaction. The Participant shall be deemed ‘part of a purchasing group’
for purposes of the preceding sentence if the Participant is an equity participant or has
agreed to become an equity participant in the purchasing company or group (excluding passive
ownership of less than five percent (5%) of the voting securities of the purchasing company
or ownership of equity participation in the purchasing company or group which is otherwise
not deemed to be significant, as determined prior to the Change in Control by a majority of
the nonemployee continuing members of the Board).”

[Signature Page Follows]

 

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IN WITNESS WHEREOF, pursuant to the delegation of authority made to an authorized officer of
FirstEnergy Corp. on February 25, 2011, by the Board of Directors of FirstEnergy Corp., to approve
the changes to the FirstEnergy Corp. Supplemental Executive Retirement Plan which are reflected in
Amendment No. 1 to FirstEnergy Corp. Supplemental Executive Retirement Plan, this Amendment No. 1
is hereby executed this 28th day of April, 2011, effective as of the date set forth
above.

	 	 	 	 	 
	 	FIRSTENERGY CORP.

 	 
	 	By:  	/s/ Anthony J. Alexander
 	 
	 	 	Anthony J. Alexander, 	 
	 	 	President and Chief Executive 
Officer
of FirstEnergy Corp. 	 

 

6

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