Document:

Exhibit

Exhibit 10.9

SECOND AMENDMENT TO FIRSTENERGY NUCLEAR OPERATING COMPANY
2016 KEY EMPLOYEE RETENTION PLAN

This Amendment to the FirstEnergy Nuclear Operating Company 2016 Key Employee Retention Plan is adopted and effective as of December 1, 2017.
WHEREAS, FirstEnergy Nuclear Operating Company (the “Company”) adopted the 2016 Key Employee Retention Plan (the “Plan”), effective as of December 1, 2016, which provides eligible participants with a “KERP Payment” if they remain employed with the Company until November 30, 2018 subject to certain terms and conditions set forth in the Plan; and
WHEREAS, Company amended the Plan effective March 31, 2017; and
WHEREAS, Company wishes to again amend the Plan effective December 1, 2017 so that the KERP Payment for any KERP agreement (“KERP”) issued on or after December 1, 2017 shall be determined by multiplying the percentage set forth on Schedule A by the Participant’s salary as of when the KERP is issued, and will be prorated;
NOW, THEREFORE, the Plan is hereby amended as follows:
		
	1.
	Section 4 (e) of the Plan is amended by deleting its current language and replacing it with the following:

		
	e.
	“KERP Payment” shall mean, in the case of any Participant, the amount set forth on Schedule A. Said amount will be determined by multiplying the percentage set forth on Schedule A by the Participant’s salary as of December 1, 2016. The amount for any KERP issued on or after December 1, 2017 for a newly Eligible Participant shall be determined by multiplying the percentage set forth on Schedule A by the Participant’s salary at the time the KERP is issued, but will be prorated by a percentage where the numerator is the number of months in which the Eligible Participant worked the majority of the month, from the date that the KERP was issued, through and including November, 2018, and the denominator is twenty-four (24). The amount for any KERP issued on or after December 1, 2017 for someone who is already an Eligible Participant, but is issued a new KERP due to a change in position such that the Company determines the amount should be modified, shall equal a prorated amount of their prior KERP and a prorated amount of the newly issued KERP, which will be calculated by multiplying the amount of their salary for their new position, by the percentage set forth on Schedule A.      

		
	2.
	Schedule A of the Plan shall be amended by deleting the Plan’s current Schedule A and replacing it with the Schedule A attached hereto. Any additional Eligible Participants or increase in KERP amounts to an Eligible Participant shall be paid from the discretionary fund established in Section 8 (d) of the Plan.

	
	
	FIRSTENERGY NUCLEAR OPERATING COMPANY

	 

	 

	/s/ Samuel L. Belcher

	BY:  Samuel L. Belcher

	TITLE: President and Chief Nuclear Officer

	 

	 

	 

	FIRSTENERGY SERVICE COMPANY

	 

	 

	/s/ Charles E. Jones

	BY:       Charles E. Jones

	TITLE: President and Chief Executive Officer, FirstEnergy Corp.Exhibit

Exhibit 10.10

[Form of FirstEnergy Nuclear Operating Company Retention Agreement]
FirstEnergy Nuclear Operating Company RETENTION AGREEMENT

THIS AGREEMENT, made effective this ___ day of ____, _______ is by and between FirstEnergy Nuclear Operating Company (“Company”) and _________ “Employee”).

WHEREAS, the Company desires to provide an incentive to retain you because of your    critical skill set;

WHEREAS, Employee desires to remain in the employ of the Company in anticipation and consideration of the benefits offered herein;

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, as well as other good and valuable consideration, and agreeing to be legally bound hereby, the parties agree that Employee shall be a Participant in FirstEnergy Nuclear Operating Company 2016 Key Employee Retention Plan (the “Plan” or “KERP”), a copy of which the Employee acknowledges receipt of, and shall be entitled to benefits thereunder as follows:

1.     Subject to the terms and conditions specified in the Plan, the Company agrees to pay Employee a retention bonus which shall be calculated by multiplying Employee’s base salary on December 1, 2016 by ___%, and shall be rounded up to the nearest $100.  Your retention bonus is $_______.  If the Plan is terminated prior to November 30, 2018 (“Early Termination Date”), then the full retention bonus shall be paid to Employee. The retention bonus amount will be reduced by applicable taxes and paid to Employee as soon as practicable, but no later than 75 days after the date the Employee earns the right to such payment. In return and in consideration of payment of the retention bonus, Employee must remain in the employ of the Company in the employee’s current, similar or higher level position until at least through the earlier of the Early Termination Date or November 30, 2018. 
    
2.    If Employee is: (i) involuntarily terminated by the Company for cause, or (ii) voluntarily terminates prior to November 30, 2018 or the Early Termination Date, such Employee’s retention bonus shall be forfeited.  For any other terminations (i.e., death, disability, involuntary termination by the Company without cause such as a termination due to the completion of a wind down process or a sale), Employee will be paid his or her full retention bonus no later than the 15th day of the second month in the year following the date of the Employee’s termination.
   
3.    If, at any time prior to the earlier of November 30, 2018 or the Early Termination Date, Company transfers Employee to a different position within the Company or with an affiliate of FirstEnergy Corp., then the retention bonus shall be paid as set forth in Paragraph 1 as if earned on November 30, 2018.  If Employee transfers to another position without Company permission, his or her retention bonus will be forfeited. 
   
4.    This Agreement does not constitute a promise or guarantee of employment, and may not be so interpreted.  The Company retains the right to discharge Employee in accordance with Human Resources Letter 201, or for cause as defined in the Plan. Furthermore, Employee acknowledges that he or she is subject to all of Company’s policies and procedures; and further agrees to utilize his or her best efforts and maintain an acceptable level of performance, the determination of such shall be within the sole discretion of the Company.

5.    General Provisions.    This Agreement may not be assigned by Employee without the prior written consent of the Company.  This Agreement shall be governed under the laws of the State of Ohio and the parties submit to the jurisdiction thereof, and any action brought thereon shall be brought in the Common Pleas Court of Summit County, Ohio or in Federal District Court in the Northern District of Ohio. If a court were to determine this or any other provision of this agreement to be unenforceable, then the remaining terms shall remain in full force and effect.   This Agreement and the terms of the KERP (which shall supersede any conflicting terms in this Agreement) contains the entire agreement of the parties and may not be amended except by a writing signed by both parties.  Additionally, the terms of this Agreement are strictly confidential.  A breech of this confidentiality by Employee forfeits payment of the amount outlined in Paragraph 1.

6.    General Release.  In consideration for the retention bonus outlined in Paragraph 1, prior to receipt of retention bonus, Employee agrees to execute for himself/herself, his or her heirs, executors, administrators, agents, assigns, a release to fully discharge Company or FirstEnergy Corp. from any and all claims.  The release shall be in a form as determined by the Company. Failure to execute such a release will result in the forfeiture of his or her retention bonus.

WHEREFORE, the parties have executed this Agreement effective on the date first set forth above.

	
					
	 
	 
	 
	 
	 

	Leadership Name
	 
	Signature
	 
	Date

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	Employee
	 
	Signature
	 
	DateExhibit

Exhibit 10.11

FIRSTENERGY NUCLEAR OPERATING COMPANY REPLACEMENT 
2017 LONG-TERM INCENTIVE PROGRAM (LTIP) 
 
 
For employees of FirstEnergy Nuclear Operating Company and its subsidiaries (“FENOC” or “Company”), this FirstEnergy Solutions Corp. Replacement 2017 Long-Term Incentive Program (“LTIP”) supersedes and replaces their participation in the FirstEnergy Corp. 2015 Incentive Compensation Plan, (“FE ICP”) which was effective May 19, 2015. While no additional grants will be made to FENOC employees under the FE ICP, any awards previously issued under the FE ICP and/or the FirstEnergy Corp. 2007 Incentive Compensation Plan shall continue in full force and effect. 
 
PURPOSE OF PROGRAMS 
 
The LTIP provides cash incentive awards to employees of FENOC whose contributions support the successful achievement of Financial and Operational Key Performance Indicators (“KPIs”) of FENOC. 
 
ELIGIBILITY 
 
The FENOC Board of Directors may, from time to time, select FENOC non-represented full-time employees to participate in the LTIP. Upon the recommendation of the FENOC Board of Directors, the FirstEnergy Board of Directors will review and make the final selection regarding participation for anyone who is a Section 16 Insider.  
 
To be eligible, newly hired employees must be on the payroll prior to February 15th of the applicable performance period. Employees transferring to the Company from another FirstEnergy Corp. affiliate may be eligible for a full award or a pro-rated award as determined by the FENOC Board of Directors. 
 
Eligible employees who voluntarily resign during the performance period (other than retirement under the provisions of the FirstEnergy Corp. Master Pension Plan – “Pension Plan”) or are discharged for cause at any time during a plan year forfeit payment due under their LTIP award. An eligible employee who accepts a position with another affiliate of FirstEnergy Corp. prior to receipt of any payment under the LTIP, shall forfeit their entire award hereunder, but shall be issued a new award for the applicable Performance Period under either the FirstEnergy Corp. 2015 Incentive Compensation Plan or the FirstEnergy Solutions Corp. Replacement 2017 Long-Term Incentive Program.  An eligible employee who accepts a position with another affiliate of FirstEnergy Corp. after receipt of any payment, shall forfeit any further payment hereunder, but shall be considered for a pro-rated award for the applicable Performance Period under either the FirstEnergy Corp. 2015 Incentive Compensation Plan or the FirstEnergy Solutions Corp. Replacement 2017 Long-Term Incentive Program.    
 
PERFORMANCE PERIOD  
 
The performance period for the LTIP will be January 1, 2017 through December 31, 2017, unless otherwise determined by the FENOC Board of Directors. 
 
KEY PERFORMANCE INDICATORS (KPIs) 
 
There are two categories of the 2017 KPI performance measures used in the LTIP: a) the safety and business unit KPI goals (“Operational KPI Goals”) and b) the FENOC and business unit KPI goals related to financial metrics (“Financial KPI Goals”). The KPI Goals are intended to drive the Company’s financial success and the nature, number, weighting and targeted achievement levels of the KPIs are at the discretion of the FENOC Board of Directors, with the approval of the FirstEnergy Compensation Committee (“Committee”).  

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For the 2017 performance period, payment of LTIP awards is contingent upon FENOC’s level of achievement compared against pre-determined performance goals based on the following KPIs: 
 
  
	
	
	Financial – FES, Fossil and Nuclear O&M and Capital Spend

	Safety  - FES, Fossil & FENOC OSHA incident rate

	Nuclear Unit Capability Factor

 
 
LTIP INCENTIVE CALCULATION 
 
The incentive target opportunity is determined by multiplying the employee’s base salary (effective as of March 1 of the plan year, as identified in SAP) by one-third1 (1/3) of his/her LTIP target percentage(s). LTIP awards will be determined based on the achievement of the underlying KPIs. Each KPI will have a Threshold, Target and Stretch target opportunity with points associated with each level of achievement.  Threshold is determined as 50% of the target opportunity, and stretch is determined as 200% of the target opportunity. Awards are then calculated based on applied KPI weightings as previously approved by the Committee. The total number of points accumulated for the underlying KPI’s will determine the percentage by which the employee’s incentive target opportunity is multiplied to obtain the amount of award, as set forth in the illustrations in Appendix A .  
 
The base salary used in the calculation does not include any other forms of income received during the calendar year (e.g., any types of bonuses, incentive compensation (including the Short-Term Incentive Program, pay adders, licenses or bonuses associated with a license, overtime paid, etc.).   
 
LTIP PAYMENTS 
 
LTIP awards for a given performance period will be paid in cash as follows: 
		
	•
	50% of the award earned for results for the first and second quarter of the performance period will be calculated and paid no later than the last day in August. 

		
	•
	50% of the award earned for the results for the third quarter of the performance period will be calculated and paid on or about December 1st.  

In March 2018, the results will be recalculated for the entire performance period and the participant will be paid the difference in what was paid in the quarterly payments during the course of the plan year and the award amount recalculated in March 2018. If the participant was provided quarterly payments in excess of the award amount for the entire performance period, then any overpayment shall be deducted from the participant’s FENOC Short Term Incentive Plan (“STIP”) award. Any overpayment in excess of the amount of the participant’s STIP award shall be forgiven.  
 

1 Multiplying an employee’s LTIP target percentage(s) by one-third is to take into account the outstanding awards previously issued to the employee under the FE ICP, and to adjust for the change from a three-year cycle to a oneyear cycle. 

Page 2 

SEPARATION OF EMPLOYMENT  
 
Prorated LTIP awards will be paid to eligible employees who have separated employment during the program year due to retirement in accordance with the provisions of the Pension Plan, disability, death, the sale of a facility in which the employee has accepted a job offer from the purchasing entity or under conditions for which the employee qualifies and elects benefits under the FirstEnergy Severance or Executive Severance Benefits Plan, or any replacement for either plan.  Awards will also be paid to eligible employees who have worked during the performance period (assuming they meet all of the eligibility rules) and separated on or after January 1, 2018. Any quarterly payment which has not yet been paid to the participant upon their separation of employment will be held until March 2018 where it will be subject to the recalculation for the entire performance period.  A participant will be required to repay any overpayment as a result of the recalculation.   
 
TRANSFER TO A NON-ELIGIBLE POSITION  
 
An employee transferring from a plan-eligible position to a position that is not plan eligible, will receive a  prorated payout based on full months worked in the performance year.  The employee’s base salary in effect on March 1 of the plan year will be used to calculate the award. Any quarterly payment which has not yet been paid to the participant upon their transfer to a non-eligible position will be held until March 2018 where it will be subject to the recalculation for the entire performance period.  A participant will be required to repay any overpayment as a result of the recalculation.   
 
ADJUSTMENTS TO LTIP AWARDS 
 
FENOC Board of Directors, together with the Committee, retain the discretion to adjust the LTIP payouts downward regardless of the Company’s actual performance against the Company Financial and Operational KPIs, either on a formula or discretionary basis or a combination of the two, as the FENOC Board of Directors and Committee determine in their joint discretion. 
 
PROGRAM PARAMETERS 
 
The program does not constitute a contract between the Company and any employee nor should anything contained in the program be deemed to give any employee any right to be retained in the employ of the Company or to interfere with the right of the Company to discharge any employee at any time and to treat the employee without regard to the effect which such treatment might have upon the employee as a participant in the program. 
 
All awards paid under this program shall at all times constitute general unsecured liabilities of the Company, payable out of its own general assets.  In no event shall the Company be obliged to reserve any funds or assets to secure the payment of such amounts and nothing contained in the program shall confer upon the participant the right, title or interest in any assets of the Company.  The program is not a covered program under the Employee Retirement Income Security Act of 1974 (ERISA); no contributions are required by employees under this program. 
 
DISCRETIONARY ACTION 
 
If the Company files for bankruptcy, any discretionary action or decision which would be made by the Committee or jointly by the Committee and the FENOC Board of Directors hereunder will, after any such bankruptcy filing, be made solely by the FENOC Board of Directors. 
 
PROGRAM QUESTIONS 

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The program is administered by the FENOC Board of Directors. 
 
Questions regarding the LTIP should be directed to the Executive Compensation Team of the Corporate Human Resources Department.  
 
Questions related to Operational / Departmental KPIs should be directed to the employee’s local management or their local Human Resources representative. 
 
PROGRAM MODIFICATION OR TERMINATION 
 
The program may be amended or terminated at any time by the FENOC Board of Directors and the Committee during the program year.  If it is determined that significant unusual events occurred that impacted FENOC’s financial metrics but do not truly reflect its achieved operating results, then the FENOC Board of Directors with the approval of the Committee may, at its discretion during the program year, decrease the amount of any award determined by this program or determine that no awards will be paid. 
      

Page 4 

APPENDIX A 
 
	
					
	Annual Targets for the FES-Fossil and FENOC R-LTIP 
2017 Index 

	                      

	Index Score
	FES Fossil and 
Nuclear O&M and 
Capital Spend ($M) 
	Nuclear Unit 
Capability Factor (UCF) 
	FES, Fossil & 
FENOC OSHA 

	Threshold
	0.50
	1,124
	89.30
	0.44

	  
  
  
  
  
  
  
  
  
	0.55
	1,119
	89.35
	0.43

	0.60
	1,113
	89.40
	0.41

	0.65
	1,108
	89.45
	0.40

	0.70
	1,103
	89.50
	0.39

	0.75
	1,098
	89.55
	0.38

	0.80
	1,092
	89.60
	0.36

	0.85
	1,087
	89.65
	0.35

	0.90
	1,082
	89.70
	0.34

	0.95
	1,076
	89.75
	0.32

	Target
	1.00
	1,071
	89.80
	0.31

	  
  
  
  
  
  
  
  
  
	1.05
	1,066
	89.85
	0.29

	1.10
	1,060
	89.90
	0.27

	1.15
	1,055
	89.95
	0.26

	1.20
	1,049
	90.00
	0.24

	1.25
	1,044
	90.05
	0.22

	1.30
	1,039
	90.10
	0.20

	1.35
	1,033
	90.15
	0.18

	1.40
	1,028
	90.20
	0.17

	1.45
	1,022
	90.25
	0.15

	Stretch
	1.50
	1,017
	90.30
	0.13

	                      

	Total Points Earned
	 
	Meets Target

	            
	Payout:

	            
	Points
	Payout

	 
	 
	4.50
	200%

	 
	4.05
	200%

	 
	2.70
	150%

	 
	2.25
	100%

	 
	1.80
	50%

	 
	0.00
	0%

 

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