Document:

EX-10.43

 

EXHIBIT 10.43

FirstEnergy Corp.

Executive and Directors Incentive Compensation Plan

Restricted Stock Agreement

	 	 	 
	

	 	Award No.: 25
	 
	 	 
	

	 	Number of Shares Awarded:    shares
	 
	 	 
	

	 	Date of Grant: August 20, 2004

This Restricted Stock Agreement (“Agreement”) is entered into as of August 20,
2004 between FirstEnergy Corp. (“FE”) and    (“Recipient”).

AWARD

On February 17, 1998, The Board of Directors (“Directors”) of FE adopted the FE
Executive and Director Incentive Compensation Plan (“Plan”), which was approved
by the common stock shareholders on April 30, 1998, and became effective May 1,
1998. As of the date of this Agreement, per the terms of the Plan, FE grants
to the Recipient the above number of restricted shares of FE Common Stock
(“Restricted Shares”) per the terms and conditions of Article 8 of the Plan.

GENERAL TERMS

This Agreement is subject to the following terms and conditions as outlined in
the Plan:

Restricted Period

	1.	 	Restricted Shares shall not be sold, transferred, pledged, or assigned,
until the earliest of:

	a)	 	August 20, 2007;
	 
	b)	 	The date of the Recipient’s death;
	 
	c)	 	The date that the Recipient’s employment is terminated due to
Disability (as defined under Section 8.10 of the Plan); or
	 
	d)	 	The date that a Change in Control occurs.

The period from the date of this Agreement until the earliest of the above
dates is referred to as the “Restricted Period.”

Registration and Certificate Legend

1

 

FE shall register a certificate(s) in the name of the Recipient for the number
of Restricted Shares specified above. Each certificate will bear the following
legend until the time that Recipient’s employment terminates:

	 	 	“The sale or transfer of the shares of stock represented
by this certificate, whether voluntary, involuntary, or by
operation of law, is subject to certain restrictions on
transfer set forth in the Executive and Director Incentive
Compensation Plan of the FirstEnergy Corp., in the rules
and administrative procedures adopted pursuant to such
Plan, and in a Restricted Stock Agreement dated August 20,
2004. A copy of the Plan, such rules and procedures, and
such Restricted Stock Agreement may be obtained from the
Corporate Secretary of FirstEnergy Corp.”

Forfeiture

Recipient shall forfeit the Restricted Shares upon the occurrence of any of the
following events at any time before the expiration of the Restricted Period:

	•	 	Termination of employment with FE or its subsidiaries for any reason
other than death, Disability, involuntary termination under conditions
in which the Recipient qualifies for and elects benefits under the FE
Severance Benefits Plan, or unless the restrictions are waived or
modified in the sole discretion of the Committee.
	 
	•	 	Any attempt to sell, transfer, pledge, or assign the Restricted Shares
in violation of the above.

Under the occurrence of any of the above before the expiration of the
Restricted Period, the Restricted Shares shall be forfeited to FE and the
Recipient’s interest in the Restricted Shares, including the right to vote and
receive dividends, shall terminate immediately.

Voting and Dividend Rights

Subject to the above restrictions, the Recipient shall be entitled to all other
rights of ownership, including, but not limited to, the right to vote the
Restricted Shares and to receive dividends. Dividends payable during the
Restricted Period will be automatically reinvested in restricted shares that
are subject to the same restrictions above.

Expiration of Restricted Period

Should Recipient’s employment with FE continue after expiration of the
Restricted Period, Recipient will not be permitted to sell, transfer, pledge,
or assign the Restricted Shares or any shares received as (or through the
reinvestment of) dividends upon or adjustments to those shares (collective, the
“Transfer Restricted Securities”) until such time as Recipient’s employment
with FE and its subsidiaries terminates. Any attempt to sell transfer, pledge,
or assign any such transfer on its books or teat any purported transferee of
the Transfer Restricted Securities as the owner of such shares for any purpose.
The Committee may, however, in its sole discretion waive the foregoing
transfer restrictions in whole or in part, and, in addition, the Recipient will
be permitted to tender Restricted Shares to FE under Section 16.2 of the Plan
to the minimum amount necessary to satisfy tax withholding obligations
associated with the Restricted Shares.

2

 

Recipient agrees that FE may maintain custody of the certificate or
certificates evidencing the Transfer Restricted Securities until the expiration
of Recipient’s employment with FE and its subsidiaries in order to enforce the
restrictions provided in this Agreement. Upon the termination of Recipient’s
employment with FE and its subsidiaries for any reason after (or
contemporaneous with) termination of the Restricted Period, Recipient shall be
entitled to have the legend removed from the certificate or certificates. FE’s
obligation to remove the legend is subject to Recipient making the necessary
arrangements with FE to satisfy any withholding obligations.

Effect on the Employment Relationship

Nothing in this Agreement guarantees employment with FE, nor does it confer any
special rights or privileges to the Recipient as to the terms of employment.

Adjustments

In the event of any merger, reorganization, consolidation, recapitalization,
separation, liquidation, stock dividend, stock split, combination,
distribution, or other change in corporate structure of FE affecting the Common
Stock, the Committee will adjust the number and class of securities in this
restricted stock grant in a manner determined appropriate to prevent dilution
or diminution of the stock grant under this Agreement.

Administration

	1.	 	The administration of this Agreement and the Plan will be performed in
accordance with Article 3 of the Plan. All determinations and decisions
made by the Committee, the Board, or any delegate of the Committee as to
the provisions of the Plan shall be final, conclusive, and binding on all
persons.
	 
	2.	 	The terms of this Agreement are governed at all times by the official
text of the Plan and in no way alter or modify the Plan.
	 
	3.	 	If a term is capitalized but not defined in this Agreement, it has the
meaning given to it in the Plan.
	 
	4.	 	To the extent a conflict exists between the terms of this Agreement and
the provisions of the Plan, the provisions of the Plan shall govern.
	 
	5.	 	This Agreement is governed by the laws of the State of Ohio without
giving effect to the principles of the conflicts of laws.

	 	 	 
	

	 	FirstEnergy Corp.
	 
	 	 
	

	 	By                                                          

          Corporate Secretary

3

 

     I acknowledge receipt of this Restricted Stock Agreement and I accept and
agree with the terms and conditions stated above.

                                                                            

(Signature of Recipient)          

                                                         

           (Date)

(This is ____’s 1st
Restricted Stock Grant)

8/18/04

4EX-10.44

 

EXHIBIT 10.44

FIRSTENERGY CORP.

EXECUTIVE BONUS PLAN

Effective November 3, 2004

 

 

TABLE OF CONTENTS

	 	 	 
	 	 	PAGE

	ARTICLE I  — PURPOSE
	 	1
	ARTICLE II  — DEFINITIONS
	 	1
	2.1 Act.
	 	1
	2.2 Beneficiary.
	 	1
	2.3 Board of Directors.
	 	1
	2.4 CEO.
	 	1
	2.5 Committee.
	 	1
	2.6 Company.
	 	1
	2.7 Compensation.
	 	1
	2.8 Compensation Committee.
	 	1
	2.9 Date of Employment.
	 	1
	2.10 Effective Date.
	 	1
	2.11 Employee.
	 	2
	2.12 Employer.
	 	2
	2.13 ESLP.
	 	2
	2.14 Participant.
	 	2
	2.15 Plan.
	 	2
	2.16 Policy.
	 	2
	ARTICLE III  — ELIGIBILITY AND PARTICIPATION
	 	2
	3.1 Eligibility of Employees Subject to Act at Date of Employment.
	 	2
	3.2 Eligibility of Employees Subject to Act upon Promotion.
	 	2
	3.3 Eligibility of CEO.
	 	2
	3.4 Participation.
	 	2
	3.5 Termination of Participation.
	 	2
	ARTICLE IV  — BENEFIT
	 	2
	4.1 Policy.
	 	2
	4.2 Policies in ESLP.
	 	3
	4.3 Payment of Premiums.
	 	3
	4.4 Income to Participant.
	 	3
	4.5 Gross-Up Due to Taxable Income.
	 	3
	4.6 No Benefit to Company or Employer.
	 	3
	ARTICLE V  — OWNERSHIP RIGHTS AND DUTIES UNDER THE POLICY
	 	4
	5.1 Policy Ownership.
	 	4
	5.2 Surrender, Withdrawal, Loan, Assignment, Change in Ownership.
	 	4
	ARTICLE VI  — AMENDMENT OR TERMINATION OF THE PLAN
	 	4
	ARTICLE VII  — CLAIMS PROCEDURES
	 	4
	7.1 Claims Procedure.
	 	4

(i)

 

	 	 	 
	 	 	PAGE

	7.2 Legal Action.
	 	5
	ARTICLE VIII  — GENERAL PROVISIONS
	 	5
	8.1 Committee; Duties.
	 	5
	8.2 Agents.
	 	5
	8.3 Indemnity of Committees.
	 	5
	8.4 Funding Policy.
	 	6
	8.5 Insurance Company Not a Party to This Plan.
	 	6
	8.6 Discharge of Company, Employers and Committee.
	 	6
	8.7 Non-alienation.
	 	6
	8.8 Entire Plan.
	 	6
	8.9 Validity.
	 	6
	8.10 Not a Contract of Employment.
	 	6
	8.11 Successors.
	 	6
	8.12 Governing Law.
	 	6

(ii)

 

FIRSTENERGY CORP.

EXECUTIVE BONUS PLAN

     This Executive Bonus Plan is established by the Company for the benefit of
certain highly compensated or management employees of the Employers effective
November 3, 2004.

ARTICLE I — PURPOSE

     This Plan is established for the purpose of providing for the purchase of
personal life insurance for a Participant who is deemed to be a member of a
select group of highly compensated and/or management employees of an Employer.
This Plan is part of an integrated executive compensation program that is
intended to attract, retain, and motivate certain key executives who are in a
position to make significant contributions to the operation and profitability
of the Employers for the benefit of stockholders and customers.

     ARTICLE II  — DEFINITIONS

     2.1 Act. “Act” means the Sarbanes-Oxley Act of 2002, as amended.
—

     2.2 Beneficiary. “Beneficiary” means the person, persons, or entity
(including, without limitation, any trustee) last designated by a Participant
to receive the benefits specified hereunder in the event of the Participant’s
death.

     2.3 Board of Directors. “Board of Directors” means the board of directors for
the Company.

     2.4 CEO. “CEO” means the Chief Executive Officer of FirstEnergy Corp.

     2.5 Committee. “Committee” means the FirstEnergy Corp. Employee Benefits,
Claims and Appeals Committee.

     2.6 Company. “Company” means FirstEnergy Corp., an Ohio corporation.

     2.7 Compensation. “Compensation” means the Participant’s annual base salary.

     2.8 Compensation Committee. “Compensation Committee” means the compensation
committee of the Board of Directors.

     2.9 Date of Employment. “Date of Employment” means the date on which an
Employee first performs services for an Employer as a common law employee.

     2.10 Effective Date. “Effective Date” means November 3, 2004.

     2.11 Employee. “Employee” means an individual who is performing services for
an Employer as a common law employee.

     2.12 Employer. “Employer” means the Company and any affiliated or subsidiary
entity that is permitted by the Board of Directors to participate in this Plan.

     2.13 ESLP. “ESLP” means the Executive Supplemental Life Insurance Plan.

PAGE 1

 

     2.14 Participant. “Participant” means an Employee who is eligible and elects
to participate in this Plan pursuant to Article III herein.

     2.15 Plan. “Plan” means the FirstEnergy Corp. Executive Bonus Plan.

     2.16 Policy. “Policy” means the life insurance policy on the life of the
Participant, selected by the Company and purchased and maintained pursuant to
the terms of this Plan.

ARTICLE III — ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility of Employees Subject to Act at Date of Employment. Employees
of an Employer who are subject to the provisions of Section 402 of the Act at
their Date of Employment or on the date of enactment of the Act and who are
designated as eligible by the CEO may participate in the Plan as of January 1
following the Employee’s Date of Employment or such other date designated by
the CEO.

     3.2 Eligibility of Employees Subject to Act upon Promotion. Employees who, due
to a promotion, become subject to Section 402 of the Act, and who are
designated as eligible by the CEO may participate in the Plan on the date of
such promotion or such other date designated by the CEO.

     3.3 Eligibility of CEO. Notwithstanding Sections 3.1 and 3.2, the CEO may
participate in this Plan only if he or she is designated as eligible by the
Compensation Committee. The CEO may commence participation on the date
designated by the Compensation Committee.

     3.4 Participation. An Employee, including the CEO, becomes a Participant in
the Plan when he or she elects to participate. An employee who applies for a
Policy or who agrees to the release of interests by the Company or any other
Employer as provided in Section 4.2 is deemed to have elected to participate in
the Plan.

     3.5 Termination of Participation. The CEO may terminate the participation of
any Participant at any time for any reason. The Compensation Committee may
terminate the participation of the CEO at any time for any reason.
Participation for each Participant shall terminate on the date the Participant
ceases to be an Employee.

ARTICLE IV  — BENEFIT

     4.1 Policy.

	(a)	 	Upon satisfaction of the eligibility requirements
of Article III, an Employee shall be provided application
forms for a Policy. The Employee shall provide all
information and submit to all examinations requested by the
life insurance company in the application form and process.
	 
	(b)	 	The Policy shall insure the Participant’s life
and shall provide a death benefit as provided in this Section.
	 
	(c)	 	The Policy for a Participant whose Date of
Employment is after the Effective Date shall have a death
benefit equal to the Participant’s Compensation as of his or
her Date of Employment.
	 
	(d)	 	The Policy for a Participant who was a
participant in the ESLP shall have a death benefit equal to
his or her Compensation determined as of September 1, 2002.
	 
	(e)	 	The Policy for a Participant whose Date of
Employment was prior to the Effective Date and who did not
participate in the ESLP shall have a death benefit equal to
the

PAGE 2

 

	 	 	Participant’s Compensation as of the later of his or her
Date of Employment or September 1, 2002.
	 
	(f)	 	The death benefit shall not be effective until
the issuance date of the Policy.
	 
	(g)	 	In the event that a Policy is rated or an
insurance company declines to provide the coverage in
accordance with the application made by the Company, the CEO
may (i) terminate the participation of a Participant in the
Plan and the Participant shall be treated as if he or she was
never a Participant in the Plan, or (ii) take such action or
combination of actions as the CEO deems appropriate and agreed
to by the Participant including, but not limited to,
requesting the issuance of a policy with a smaller death
benefit or providing for an annual premium amount that is less
than the amount provided by Section 4.3.
	 
	(h)	 	The CEO, in his or her discretion and at any
time, may increase the death benefit under any Policy insuring
the life of any Participant except the CEO has no discretion
or authority to increase the death benefit under any Policy
insuring his or her life. The Compensation Committee, in its
discretion and at any time, may increase the death benefit
under any Policy insuring the life of the CEO.

     4.2 Policies in ESLP.
In the event a Participant is insured under a life insurance policy pursuant to
the ESLP, the Company may select such policy as the Policy to provide the death
benefit under Section 4.1.

     4.3 Payment of Premiums. Provided the Participant is employed by an Employer
on the initial effective date of a Policy or on the anniversary date of an
issued Policy, the Participant’s Employer shall pay to the insurance company on
behalf of a Participant, an annual premium for such policy year that is the
annual premium amount projected to keep the Policy in force until age
ninety-five (95) if the Participant does not use tobacco products and to age
eighty (80) if the Participant uses tobacco products, assuming the insurance
carrier’s current crediting rate and mortality charges for that Policy. Such
projected amount shall be based on current financial assumptions determined by
the Company including current interest rates or investment earnings or loses,
mortality costs or other factors that affect the projected death benefit of the
Policy.

     4.4 Income to Participant.

	(a)	 	The annual premium paid by an Employer on behalf
of a Participant shall be reported as income for federal,
state, and local tax purposes to the Participant in the year
in which the premium is paid.
	 
	(b)	 	If the Company selects an ESLP Policy as provided
in Section 4.2 and if the Company and all other Employers that
have an interest or benefit right in the Policy release all or
a portion of their respective interests and benefit rights and
such release results in taxable income to the Participant,
such taxable income shall be reported as income for federal,
state, and local tax purposes to the Participant as required
by applicable law.

     4.5 Gross-Up Due to Taxable Income. The Participant’s Employer may, in
its sole discretion, increase the Participant’s compensation in an amount as
determined by the Employer to provide additional compensation to the
Participant to pay some or all of the income taxes on the taxable income
referred to in Section 4.4 above.

     4.6 No Benefit to Company or Employer. Neither the Company nor any Employer
shall have any interest in any benefits under any Policy and shall have no
right to collect any portion of the death benefit or cash value of the Policy
at any time.

PAGE 3

 

ARTICLE V — OWNERSHIP RIGHTS AND DUTIES UNDER THE POLICY

     5.1 Policy Ownership. The Participant shall own the Policy and neither the
Company nor any Employer shall have any ownership of or interest in the Policy.

     5.2 Surrender, Withdrawal, Loan, Assignment, Change in Ownership. The
Participant shall agree while employed by any Employer, the Participant shall
not:

	(a)	 	Surrender the Policy;
	 
	(b)	 	Withdraw or obtain a loan from the Policy;
	 
	(c)	 	Assign the Policy as collateral for security;
	 
	(d)	 	Change the ownership of the Policy by
endorsement, assignment, or modification unless such new owner
is a trust established by the Participant for estate planning
purposes;
	 
	(e)	 	Change the insured; or
	 
	(f)	 	Request settlement of the policy proceeds.

     The Participant shall execute an endorsement on the Policy or similar
written agreement submitted to the issuer of the Policy that prohibits his or
her exercise of any ownership rights that are restricted by this Section 5.2.
If a Participant is not employed by any Employer, the endorsement or similar
agreement may be removed from the Policy and the Company and all applicable
Employers shall execute all appropriate documents that they must execute to
permit such removal.

ARTICLE VI — AMENDMENT OR TERMINATION OF THE PLAN

     The Board of Directors or the Compensation Committee may amend or
terminate this Plan at any time. Upon termination of the Plan, the Participant
shall no longer be subject to the restriction set forth in Section 5.2 of the
Plan, and Employer shall not pay premiums on behalf of any Participant under
Section 4.3 of the Plan.

ARTICLE VII  — CLAIMS PROCEDURES

     7.1 Claims Procedure.

	(a)	 	Any person claiming a benefit, requesting an
interpretation or ruling under this Plan, or requesting
information under this Plan shall present the request in
writing to his or her Employer, which shall respond in writing
within a reasonable period of time, but not later than ninety
(90) days after receipt of the request.
	 
	(b)	 	Denial of Claim. If the claim or request is
denied, the written notice of denial shall state:

	(i)	 	The reason for denial, with specific
reference to the provisions in the Plan on which the
denial is based;
	 
	(ii)	 	A description of any additional
material or information required and an explanation of
why it is necessary; and
	 
	(iii)	 	An explanation of the Plan’s claims
review procedure.

PAGE 4

 

	(c)	 	Review of Claim. Any person whose claim or
request is denied may request a review by notice given to the
Committee within sixty (60) days following receipt of
notification of the adverse determination. The claim or
request shall be reviewed by the Committee which may, but
shall not be required to, grant the claimant a hearing. On
review, the claimant may have representation, examine
pertinent documents, and submit issues and comments in
writing.
	 
	(d)	 	Final Decision. The decision on review shall
normally be made within sixty (60) days. If an extension of
time is required for a hearing or other special circumstances,
the claimant shall be notified within such sixty (60) day
period of an extension which shall not be for more than an
additional sixty (60) days. The Committee’s decision shall be
delivered in
	 
	 	 	writing to claimant and shall state the reason and the
relevant provisions in the Plan for the decision. All
decisions on review shall be final and bind all parties
concerned.

     7.2 Legal Action. A claimant must exhaust the review procedures of
Section 7.1 prior to the commencement of any actions at law, in equity,
pursuant to arbitration or otherwise. No legal action may be commenced against
this Plan, the Company, any Employer or the Committee more than 180 days after
the Committee’s final decision has been rendered with respect to all or any
portion of the claim.

ARTICLE VIII — GENERAL PROVISIONS

     8.1 Committee; Duties. The Committee shall be the Named Fiduciary until
removal by the CEO and the successor named by the CEO accepts such appointment.
As Named Fiduciary, the Committee shall administer the Plan and shall have the
power and the duty to take all action and to make all decisions necessary or
proper to carry out the Plan. The determination of the Committee as to any
question involving the general administration and interpretation of the Plan
shall be final, conclusive, and binding. A majority vote of the Committee
members shall control any decision. Any discretionary actions to be taken under
the Plan by the Committee with respect to the classification of Employees,
contributions or benefits shall be uniform in nature and applicable to all
persons similarly situated. Without limiting the generality of the foregoing,
the Committee shall have the following discretionary authority, powers and
duties:

	(a)	 	To require any person to furnish such information
as it may request for the purpose of the proper administration
of the Plan as a condition to receiving any benefit under the
Plan;
	 
	(b)	 	To make and enforce such rules and regulations
and prescribe the use of such forms as it deems necessary for
the efficient administration of the Plan;
	 
	(c)	 	To interpret the Plan and to resolve ambiguities,
inconsistencies and omissions;
	 
	(d)	 	To decide all questions concerning the Plan and
any questions concerning the eligibility of any Employee to
participate in the Plan; and
	 
	(e)	 	To determine the amount of benefits which will be
payable to any person in accordance with the provisions of the
Plan.

     8.2 Agents. In the administration of this Plan, the Committee may, from time
to time, employ agents and delegate to them such administrative duties as it
sees fit, and may from time to time consult with counsel, who may be counsel to
the Company or any Employer.

     8.3 Indemnity of Committees. The Company and each other Employer shall
indemnify and hold harmless the members of the Committee and the Compensation
Committee against any and all claims, loss, damage, expense or liability
arising from any action or failure to act with respect to this Plan, except in
the case of intentional misconduct.

PAGE 5

 

     8.4 Funding Policy. The funding policy for this Plan shall be to make premium
payments as provided in Section 4.2.

     8.5 Insurance Company Not a Party to This Plan.
Insurer shall be fully discharged from its obligations under the Policy by
payment of the Policy death benefit to the Beneficiary named in the Policy,
subject to the terms and conditions of the Policy. In no event shall Insurer be
considered a party to this Plan, or any modification or amendment hereof.

     8.6 Discharge of Company, Employers and Committee. The Company, each Employer
and the Committee shall be fully discharged and all of its obligations under
this Plan shall be satisfied upon payment of the premiums required under
Section 4.3 and the cancellation of its rights under the endorsement required
by Section 5.2 after the date the Participant is not employed by any Employer.

     8.7 Non-alienation. No participant or other person shall have any right or
power, by draft, assignment or otherwise, to mortgage, pledge or otherwise
encumber in advance any payment under the Plan, and any attempt to do so shall
be absolutely void.

     8.8 Entire Plan. This written document is the final and exclusive statement
of the terms of the Plan, and any claim of right or entitlement under the Plan
shall be determined in accordance with its provisions. In the event the
Participant executes an agreement in accordance with Section 4.1(g), however,
any claim of right or entitlement under the Plan shall be determined in
accordance with the provisions of the agreement and the provisions of the Plan
to the extent they are not inconsistent with the agreement.

     8.9 Validity. If any provision of this Plan is held illegal, invalid or
unenforceable, the remaining provisions shall nonetheless be enforceable
according to their terms. Further, in the event that any provision is held to
be overbroad as written, such provision shall be deemed amended to narrow its
application to the extent necessary to make the provision enforceable according
to law and enforced as amended.

     8.10 Not a Contract of Employment. The terms and conditions of the Plan shall
not be deemed to constitute a contract of employment between any Employer and
an Employee, and an Employee (or his beneficiary) shall have no rights against
the Company or any Employer except as may be otherwise provided specifically
herein. Moreover, nothing in the Plan shall be deemed to give an Employee the
right to be retained in the service of any Employer or to interfere with the
right of his or her Employer to discipline or discharge him or her at any time.

     8.11 Successors. The provisions of this Plan shall bind and inure to the
benefit of all Employers as their interest and liabilities may be determined by
the Company and their successors and assigns, and to each Participant and his
heirs, successors, personal representatives and assigns.

     8.12 Governing Law. The provisions of this Plan shall be construed and
interpreted according to the laws of the State of Ohio, except as preempted by
federal law.

PAGE 6

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