Document:

Unassociated Document

    EXHIBIT
      10.5 

     

                                               April
      7,
      2006

    

    Mr.
      Douglas S. Elliott

    Executive
      Vice
      President

    Metropolitan
      Edison
      Company

    2800
      Pottsville
      Pike

    Reading,
      PA
      19640-0001

    

    Pennsylvania
      Electric Company

    5404
      Evans Rd.

    Erie,
      PA
      16509

    

    The
      Waverly Electric Power and Light Company

    707
      Main St.

    Towanda,
      PA
      18848

     

    
      
        
          
            	
                    RE: 

                  	
                    Notice
                      of Termination Tolling
                      Agreement

                  
	 	
                    Restated
                      Partial Requirements Agreement, dated January 1, 2003, by and
                      among,
                      Metropolitan Edison Company, Pennsylvania Electric Company,
                      The Waverly
                      Electric Power and Light Company and FirstEnergy Solutions
                      Corp., as
                      amended by a First Amendment to Restated Requirements Agreement,
                      dated
                      August 29, 2003 and by a Second Amendment to Restated Requirements
                      Agreement, dated June 8, 2004 (“Partial Requirements
                      Agreement”)

                  

          

        

      

    

    

    Dear
      Mr.
      Elliott:

    

          Please
      be advised
      that FirstEnergy Solutions Corp. (“Solutions”) hereby gives notice,
      in
      accordance with the Tolling Agreement dated November 1, 2005 that
      amended

    the
      Restated Partial Requirements Agreement (“Partial Requirements Agreement”),
      to Metropolitan
      Edison
      Company, Pennsylvania Electric Company and The Waverly Electric Power and Light
      Company (“Buyers”) that Solutions has elected to terminate the Partial
      Requirements Agreement effective midnight December 31, 2006. In accordance
      with
      the November 1, 2005 Tolling Agreement, this notice is being provided at least
      sixty (60) days in advance of the effective date of termination.

    

    This
      termination is
      necessary because the Partial Requirements Agreement is not economically
      sustainable from Solutions’ perspective. Market prices for generation services
      have and continue to be far above the price being charged to Buyers. In
      addition, the load following product being supplied is very different than
      the
      product originally contemplated under the Partial Requirements Agreement.

    

    Notwithstanding
      the
      above, in exchange for Solutions not exercising its right to terminate the
      Partial Requirements Agreement effective midnight December 31, 2006, the parties
      agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	1.  	
              The
                termination provisions of Paragraph 6 of the Partial Requirements
                Agreement, as tolled by the November 1, 2005 Tolling Agreement, shall
                be
                tolled for a period of one (1) year from December 31, 2006,
                provided:

            

    

    
      	a.  	
              Solutions
                shall be permitted to terminate the Partial Requirements Agreement
                at any
                time during the term of this Tolling Agreement with sixty (60) days
                written notice; 

            

    

    
      	b.  	
              Buyers
                shall
                procure through arrangements other than the Partial Requirements
                Agreement
                beginning December 1, 2006 and ending December 31, 2007, approximately
                33%
                of the amounts of capacity, energy, ancillary services and other
                services
                necessary to satisfy their Provider of Last Resort obligations for
                which
                Committed Resources (as defined in the Partial Requirements Agreement)
                have not been obtained; and

            

    

    
      	c.  	
              Solutions
                has
                no obligation under the Partial Requirements Agreement to supply
                additional quantities of capacity and energy in the event that a
                supplier
                of Committed Resources defaults on its supply
                agreement.

            

    

    

    
      	2.  	
              Solutions
                will
                not act as agent for Buyers in procuring capacity and energy under
                section
                1(b), above. 

            

    

    

    
      	3.  	
              The
                pricing
                provision of Paragraph 5 of the Partial Requirements Agreement shall
                remain unchanged provided Buyers comply with the provisions of this
                Tolling Agreement and any applicable provision of the Partial Requirements
                Agreement. 

            

    

    

    In
      the event that Solutions elects not to terminate the Partial Requirements
      Agreement effective midnight December 31, 2007, similar tolling agreements
      effective after December 31, 2007 will be considered by Solutions only if Buyers
      procure, through arrangements other than the Partial Requirements Agreement,
      additional amounts of approximately 64% in 2008, 83% in 2009 and 95% in 2010
      of
      the capacity, energy, ancillary services and other services necessary to satisfy
      their Provider of Last Resort obligations for which Committed Resources (as
      defined in the Partial Requirements Agreement) have not been obtained from
      the
      market. 

    

    This
      Tolling
      Agreement supercedes any conflicting provision of the Partial Requirements
      Agreement. The execution of this Tolling Agreement does not constitute an
      admission or acknowledgment of any fact, conclusion of law, or liability by
      any
      party to this Tolling Agreement.

    

    This
      Tolling
      Agreement may be executed in counterparts and is effective as of the date of
      execution without the requirement of filing with or endorsement by any federal
      or state court or agency. The undersigned representatives certify that they
      are
      fully authorized to enter into and to bind such party to the terms and
      conditions of this Tolling Agreement. 

    

    Please
      indicate your
      agreement with this Tolling Agreement by signing below.      

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

        
          	
                  Sincerely,

                
	 
	 
	 
	 
	
                  Guy
                    L.
                    Pipitone

                
	
                  President

                
	
                  FirstEnergy
                    Solutions Corp.

                

        

      

      

         

    

    Accepted
      and agreed to by:

    

    Metropolitan
      Edison
      Company

    Pennsylvania
      Electric Company

    The
      Waverly Electric Power and Light Company

    

    

    
      	
              By:

            	 
	 	
              Douglas
                S.
                Elliott

            
	 	
              Executive
                Vice
                President

            
	 	 
	 	
              This
                __ day of
                April, 2006Unassociated Document

                                                                                                     EXHIBIT
    10.6
    FirstEnergy
      Corp.

    Executive
      and Directors Incentive Compensation Plan

    Restricted
      Stock Agreement

    

    Award
      No.:
41

    

    Number
      of Shares
      Awarded:
      _____
      shares

    

    Date
      of Grant:
February
      27,
      2006

    

    This
      Restricted
      Stock Agreement (“Agreement”) is entered into as of February 27, 2006 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)  	
              April
                30, 2011
                at the Board’s discretion or automatically on April 30, 2013;
                

            

    

    
      	b)  	
              The
                date of
                the Recipient’s death;

            

    

    
      	c)  	
              The
                date that
                the Recipient’s employment is terminated due to Disability;
                or

            

    

    
      	d)  	
              The
                date that
                Recipient’s employment is terminated following a Change in Control,
                provided that such termination occurs under the conditions specified
                in
                either Section 5(a) or 5(b) of Recipient’s Special Severance Agreement
                dated March 5, 2004 and provided further that such termination was
                not at
                Recipient’s discretion pursuant to Section 5(c) of Recipient’s Special
                Severance Agreement, dated March 5,
                2004.

            

    

    

    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

    

    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 the restrictions lapse:

    
“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 February 27, 2006. A copy of the Plan, such rules and procedures, and
      such
      Restricted Stock Agreement may be obtained from the Corporate Secretary of
      FirstEnergy Corp.”

     

     

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

    Share
      Value
      Protection Rights

    

    
      	
              1.

            	
              If
                Recipient’s
                employment with the Company or its immediate successor as a result
                of a
                Change in Control is terminated under the conditions specified in
                either
                Section 5(a) or 5(b) of Recipient’s Special Severance Agreement dated
                March 5, 2004 and is not terminated at Recipient’s discretion pursuant to
                Section 5(c) of such Special Severance Agreement, Recipient shall
                be
                entitled to a lump sum cash payment within ten (10) days after such
                termination of employment determined by subtracting (a) from (b)
                and
                multiplying such difference, if any, by (c)
                where:

            

    

    

    (a)
      equals the Fair Market Value of a Share on the date of such termination of
      employment;

    (b)
      equals the
      greater of (i) or (ii), where:

    (i)
      is the Fair
      Market Value of a Share on February 27, 2006; and

    (ii)
      is the Fair
      Market Value of a Share on the date of the Change in Control; and

    (c)
      equals ______
      Shares.

    

    
      	 	
              If
                the Fair
                Market Value of a Share determined under (a) above is equal to or
                greater
                than the amount determined under (b) above, no payment shall be made
                under
                this Paragraph 1 . 

            

    

    

    
      	
              2.

            	
              If
                Recipient’s
                employment with the Company or its immediate successor continues
                after a
                Change in Control without termination until the date that the Restricted
                Shares cease to be restricted in accordance with paragraphs a), b)
                or c)
                of Section 1 of the Restricted Period set forth in the Restricted
                Stock
                Agreement between the Company and the Recipient dated February 27,
                2006,
                Recipient or his beneficiary shall be entitled to a lump sum cash
                payment
                within ten (10) days after such date that the Restricted Shares cease
                to
                be restricted in accordance with such paragraphs determined by subtracting
                (a) from (b) and multiplying such difference, if any, by (c)
                where:

            

    

    

    (a)
      equals the Fair
      Market Value of a Share on the date such restrictions lapse;

    (b)
      equals the
      greater of (i) or (ii), where:

    (i)
      is the Fair
      Market Value of a Share on February 27, 2006; and

    (ii)
      is the Fair
      Market Value of a Share on the date of the Change in Control; and

    (c)
      equals ______
      Shares.

    

    If
      the Fair Market Value of a Share determined under (a) above is equal to or
      greater than the amount determined under (b) above, no payment shall be made
      under this Paragraph 2 .

    

    
      	
              3.

            	
              An
                adjustment
                may be made to the above calculations as determined by the Committee,
                in
                its sole discretion, to prevent dilution or enlargement in a manner
                as
                authorized under this Restricted Stock Agreement and Section 4.3
                of the
                Plan in connection with any events of the type provided for in said
                Section 4.3.

            

    

    

    
      	
              4.

            	
              Notwithstanding
                anything to the contrary in this Section relating to Share Value
                Protection Rights, Recipient shall be entitled to the Restricted
                Shares
                upon satisfaction of the other sections of this Agreement even if
                there is
                no cash payment made under this Section relating to Share Value Protection
                Rights.

            

    

    

    
      
        

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Forfeiture
      

    

    The
      Recipient shall forfeit all of the Restricted Stock and any right to dividends
      on the Restricted Stock upon the occurrence of any the following events before
      the expiration of the Period of Restriction:

    

    
      	·     
               	
              Termination
                of
                employment with the Company or its subsidiaries for any reason, including
                a termination of employment at Recipient’s discretion pursuant to Section
                5 (c) of Recipient’s Special Severance Agreement dated March 5, 2004.
                Notwithstanding the foregoing, no forfeiture shall occur if termination
                of
                employment with the Company is due to death, Disability (as defined
                under
                the then established rules of the Company or any of its subsidiaries,
                as
                the case may be) or is pursuant to either Section 5(a) or (b) of
                Recipient’s Special Severance Agreement dated March 5,
                2004.

            

    

    

    
      	·     	
               Any
                attempt to sell, transfer, pledge, or assign the Restricted Shares
                in
                violation of the above.

            

    

    

    Upon
      the occurrence
      of any of the above before the expiration of the Period of Restriction, the
      Restricted Stock shall be forfeited by the Recipient to the Company and the
      Recipient’s interest in the Restricted Stock and dividends earned on the
      Restricted Stock shall terminate immediately in accordance with the foregoing,
      unless such forfeiture is waived in the sole discretion of the
      Committee.

    

    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, until
      such time as the Recipient’s employment with FE and its subsidiaries terminates,
      the Recipient will not be permitted to sell, transfer, pledge, or assign
      (collectively, “Transfer”) the Restricted Shares issued under this Agreement or
      any shares received as (or through the reinvestment of) dividends upon or
      adjustments to those shares (collective, the “Transfer Restricted Securities”)
      to the extent prohibited in this paragraph. If the Recipient is subject to
      the
      employee share ownership guidelines established by the Committee, then the
      Recipient may not Transfer any Transfer Restricted Securities to the extent
      that
      the Recipient’s aggregate ownership of FE stock immediately before and after the
      Transfer does not meet or exceed the ownership level that applies to the
      Recipient under those share ownership guidelines. In addition, if the Recipient
      is subject to the employee share ownership guidelines established by the
      Committee, in no case may the Recipient Transfer any Transfer Restricted
      Securities to the extent that the Transfer, when aggregated with all of
      Recipient’s other Transfers, would cause the Recipient to cease to own directly
      at least one-half of the Transfer Restricted Securities. Any attempt to Transfer
      any Transfer Restricted Securities in violation of the foregoing will be void,
      and FE shall not record such transfer on its books or treat 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. In addition, the Recipient
      will be permitted to tender Restricted Shares to FE under Section 16.2 of the
      Plan in the amount necessary to satisfy tax withholding obligations associated
      with the Restricted Shares and those shares tendered to FE will not be
      considered to be Transfer Restricted Securities.

    

    
      
         

        

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    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, provided that the Recipient has made 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 
	 	 
	 	 

    

     

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

     

    
      	 	 	 
	 	 
	
              ________________

                         
                Date: 

            	
            	
              
(Signature
              of
              Recipient)
	 	 
	 	 

    

     

    2/27/06

     

     

    
      
        
        

      

      
        4

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