Document:

Exhibit 10.9

Exhibit 10.9

FIRSTENERGY CORP.

CHANGE IN CONTROL SEVERANCE PLAN

FirstEnergy Corp., an Ohio corporation (the “Company”), adopts this FirstEnergy Corp.
Change in Control Severance Plan (“the Plan”), effective as of January 1, 2011 (the
“Effective Date”).

ARTICLE ONE

GENERAL PROVISIONS

1.1 Name. The Plan shall be named the FirstEnergy Corp. Change in Control Severance
Plan.

1.2 Purpose. This Plan provides certain designated employees of the Company or any
Affiliate or Subsidiary with severance benefits in the event of a Termination of Employment
following a Change in Control under conditions specified in this Plan.

1.3 Employee Welfare Benefit Plan. This Plan is an “employee welfare benefit plan,”
as defined in Section 3(1) of ERISA and is intended only to cover participants who are members of a
“select group of management or highly compensated employees” within the meaning of Sections 201(2),
301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA. This Plan shall be construed and administered in
such a manner, and benefits shall be limited by the Administrator in his, her or its discretion,
such that, where applicable, this Plan shall not be an “employee pension benefit plan” under
Section 3(2) of ERISA. The Plan operates on the basis of the calendar year and has been assigned
plan number 555.

ARTICLE TWO

DEFINITIONS

In this document, each term shall have the meaning set forth below, unless the context clearly
indicates otherwise. Other terms may be defined within the Plan:

“Administrator” or “Administrative Committee” means the person or entity
designated to administer the Plan in Article Eight.

“Affiliate” means, as of any date, any corporation or business organization
that would be treated as a single employer with the Company under Section 414(b) or (c) of
the Code.

“Appeals Committee” means the Compensation Committee prior to a Change in Control
and, after a Change in Control, the committee designated in Section 9.4 of the Plan.

 

 

 

“Base Compensation” means the annual salary (determined in a reasonable manner by
the Administrator), as applicable, of a Participant on the date of his or her Termination of
Employment. Base Compensation shall not be reduced by elective reductions in
compensation pursuant to Sections 125, 132(f), 401(k) of the Code and similar provisions of
the Code or any elective deferrals of Base Compensation into the EDCP or any other
nonqualified deferred compensation plan, but shall be exclusive of any separation pay,
bonuses, incentive pay, special awards, fringe benefits, stock options and other stock-based
compensation.

“Board” means the Board of Directors of the Company.

“Cause” means that, prior to any Termination of Employment, a Participant shall
have:

	 	(i)	 	committed and been convicted of a criminal violation
involving fraud, embezzlement or theft in connection with his or her duties
or in the course of his or her employment with the Company, an Affiliate or
any Subsidiary;

	 	(ii)	 	committed intentional wrongful damage to property of the
Company, an Affiliate or any Subsidiary;

	 	(iii)	 	committed intentional wrongful disclosure of secret
processes or confidential information of the Company, an Affiliate or any
Subsidiary;

	 	(iv)	 	committed intentional wrongful competition with Company, an
Affiliate or any Subsidiary as set forth in Article Seven below; or

	 	(v)	 	committed gross negligence in the performance of his or her
material duties to the Company, an Affiliate or any Subsidiary;

and any such act or omission shall have been demonstrably and materially harmful to the
Company, an Affiliate or any Subsidiary. For purposes of this Plan, no act or failure to
act on the Participant’s part shall be deemed “intentional” if it was due primarily to an
error in judgment or negligence, but shall be deemed “intentional” only if done or omitted
to be done by the Participant not in good faith and without reasonable belief that his or
her action or omission was in the best interest of the Company. Notwithstanding the
foregoing, a Participant shall not be deemed to have been terminated for “Cause” hereunder
unless and until there shall have been delivered to the Participant a copy of a resolution
duly adopted by the affirmative vote of not less than three quarters (3/4) of the Board then
in office at a meeting of the Board called and held for such purpose, after reasonable
notice to the Participant and an opportunity for him or her, together with his or her
counsel (if he or she chooses to have counsel present at such meeting), to be heard before
the Board, finding that, in the good faith opinion of the Board, the Participant had
committed an act constituting “Cause” as herein defined and specifying the particulars
thereof in detail. Nothing herein will limit the Participant’s (or his or her
beneficiaries’) right to contest the validity or propriety of any such determination.

 

2

 

“Change in Control” means

	 	(a)	 	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 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 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”), if, following such Reorganization, the
conditions described in paragraph (c) herein are satisfied;

	 	(b)	 	Individuals who, as of the Effective Date, 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 Effective Date 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

 

	 	(c)	 	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:

	 	(i)	 	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;

	 	(ii)	 	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

	 	(iii)	 	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

	 	(d)	 	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.

 

4

 

For purposes of this “Change in Control” definition:

	 	(1)	 	“Director” means a member of the Board.

	 
	 	(2)	 	“Effective Date” means January 1, 2011.

	 	(3)	 	“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time, or any successor thereto.

	 	(4)	 	“Person” shall have the meaning ascribed to
such term in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d) and 14(d) thereof, including a “group” as defined in
Section 13(d) thereof.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and
regulations and pronouncements promulgated thereunder. Whenever a reference is made to a
specific Code Section or implementing regulation, the reference shall be deemed to include
any successor or renumbered Code Section or regulation having the same or a similar purpose.

“Company” means FirstEnergy Corp., an Ohio corporation, and any successor
corporation or business organization which succeeds to the duties and rights of FirstEnergy
Corp. under this Plan by operation of law or otherwise. FirstEnergy Corp.’s federal
taxpayer identification number is 34-1843785.

“Compensation Committee” means the Compensation Committee of the Board.

“Disability” means a disability as defined in the FirstEnergy Corp. Master
Pension Plan or successor qualified pension plan under the pertinent provisions of the plan
that apply to a Participant, except that, for purposes of this definition, the Participant
need not have completed ten (10) years of service with the Company. As of the Effective
Date, a “disability” under the FirstEnergy Corp. Master Pension Plan is defined as
qualification for benefits under a participating employer’s long-term disability plan or, if
not a participant under a participating employer’s long-term disability plan or if denied
benefits under such plan, permanently and totally disabled from any and all gainful
employment in the opinion of a participating employer physician.

“EDCP” means the FirstEnergy Corp. Executive Deferred Compensation Plan.

“Employee” means any person who is a full-time, regular employee (as determined
by the Company regardless of whether a court, agency or other governmental authority makes a
different determination) of the Company or any Affiliate or Subsidiary. The word “Employee”
shall not include any person who renders service to the Company
solely as a director, temporary employee, seasonal or leased worker or independent
contractor.

 

5

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and regulations and pronouncements promulgated thereunder. Whenever a
reference is made to a specific ERISA Section or implementing regulation, the reference
shall be deemed to include any successor or renumbered ERISA Section or regulation having
the same or a similar purpose.

“Good Reason” means the initial occurrence, without the Participant’s consent, of
one or more of the following events:

	 	(1)	 	a material diminution in the Participant’s Base Compensation;

	 	(2)	 	a material diminution in the Participant’s authority, duties or responsibilities;

	 	(3)	 	a material diminution in the authority, duties or responsibilities of
the supervisor to whom the Participant is required to report, including a
requirement that the Participant report to a corporate officer or employee instead
of reporting directly to the Board if the Participant reported to the Board
directly immediately before a Change in Control;

	 
	 	(4)	 	a material diminution in the budget over which the Participant retains authority;

	 	(5)	 	a material change in the geographic location at which the Participant
must perform services and, for purposes of this paragraph (5), any reassignment
which results in your current residence to your new reporting location being at
least fifty (50) miles farther than your current residence to your previous
reporting location is considered material; and

	 	(6)	 	any other action or inaction that constitutes a material breach by the
Company of any employment agreement under which the Participant provides services;

provided, however, that “Good Reason” shall not be deemed to exist unless:

	 	(A)	 	the Participant has provided notice to the Company of the
existence of one or more of the conditions listed in (1) through (6) above
within 90 days after the initial occurrence of such condition or conditions;
and

	 	(B)	 	such condition or conditions have not been cured by the
Company within 30 days after receipt of such notice.

“Parachute Payment” means the meaning given to such term in Section 280G(b)(2)(a)(i)
of the Code.

“Parachute Payment Limit” means three (3) times the base amount, as defined by
Section 280G(b)(3) of the Code.

 

6

 

“Participant” means any Employee of the Company, Affiliate or any Subsidiary who has
been designated by the Compensation Committee as a participant in this Plan and has been
designated as eligible to receive either a Tier I Benefit or a Tier II Benefit. As of the
Effective Date, the Participants, and the benefit tiers, are set forth on Exhibit A
attached hereto.

“Potential Change in Control” means when:

	 	(a)	 	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 13D 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:

	 	(1)	 	more than twenty percent (20%) of any class of
equity security of the Company entitled to vote as a single class in
the election or removal from office of directors, or

	 	(2)	 	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;

	 	(b)	 	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;

	 	(c)	 	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) to the Company pursuant to Rule 14d-3
under the Exchange Act;

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

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

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

	 	(g)	 	The Board adopts a resolution indicating that, for purposes of
this Plan, a Potential Change in Control has occurred.

 

7

 

Notwithstanding the foregoing, a “Potential Change in Control” shall not include an
event described in (a) through (f), 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
determine 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 (a) through (g) above.

For purposes of this “Potential Change in Control” definition:

	 	(1)	 	“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time, or any successor thereto.

	 	(2)	 	“Person” shall have the meaning ascribed to
such term in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d) and 14(d) thereof, including a “group” as defined in
Section 13(d) thereof.

“Release and Waiver of Claims” means a written release and waiver by a Participant,
to the fullest extent allowable under applicable law and in form reasonably acceptable to
the Company, an example of which is attached hereto as Exhibit D, of all claims,
demands, suits, actions, causes of action, damages and rights against the Company and its
Affiliates whatsoever which he or she may have had on account of his or her Termination of
Employment, including, without limitation, claims of discrimination, including on the basis
of sex, race, age, national origin, religion, or handicapped status, and any and all claims,
demands and causes of action for severance or other termination pay. Such Release and
Waiver of Claims shall not, however, apply to the obligations of the Company arising under
this Plan, any indemnification agreement between a Participant and the Company, any
retirement plans, any stock option, restricted stock or unit, performance share or other
equity award agreements, COBRA continuation coverage or rights of indemnification a
Participant may have under the Company’s articles of incorporation or code of regulations or
comparable charter document or by statute.

“SERP” means the FirstEnergy Corp. Supplemental Executive Retirement Plan.

“Specified Employee” means any Employee who is a “specified employee,” as defined in
Section 409A of the Code on the date of his or her Termination of Employment.

“Subsidiary” means a corporation, company or other entity (a) more than 50 percent
of whose outstanding shares or securities (representing the right to vote for the election
of directors or other managing authority) are, or (b) which does not have outstanding shares
or securities (as may be the case in a partnership, joint venture or unincorporated
association), but more than 50 percent of whose ownership interest representing the right
generally to make decisions for such other entity is, now or hereafter, owned or controlled,
directly or indirectly, by the Company.

 

8

 

“Termination of Employment” means a separation from service within the meaning of
Section 409A of the Code of the Participant from the Company and all of its Affiliates, for
any reason, including without limitation, quit, discharge, retirement, leave of absence
(including military leave, sick leave, or other bona fide leave of absence such as temporary
employment by the government if the period of such leave exceeds the greater of six months,
or the period for which the Participant’s right to reemployment is provided either by
statute or by contract) or permanent decrease in service to a level that is no more than
twenty percent (20%) of its prior level. For this purpose, whether a Termination of
Employment has occurred is determined based on whether it is reasonably anticipated that no
further services will be performed by a Participant after a certain date or that the level
of bona fide services a Participant will perform after such date (whether as an employee or
as an independent contractor) would permanently decrease to no more than twenty percent
(20%) of the average level of bona fide services performed (whether as an employee or an
independent contractor) over the immediately preceding 36-month period (or the full period
of services if the Participant has been providing services for less than 36 months).

“Tier I Benefit” means the severance benefit described in Section 6.1(a).

“Tier II Benefit” means the severance benefit described in Section 6.1(b).

ARTICLE THREE

ELIGIBILITY AND PARTICIPATION

3.1 Eligibility. To be eligible to be a Participant in the Plan, the Compensation
Committee must designate (a) the Employee as a Participant, (b) the participation commencement date
and (c) the level of benefit to which the Participant is entitled (either a Tier I Benefit or a
Tier II Benefit).

3.2 Participation. Once the Compensation Committee designates the Employee as a
Participant, the Employee shall commence participation in the Plan as of the date specified by the
Compensation Committee.

3.3 Term.

	 	(a)	 	Subject to Section 3.3(c), the term of this Plan shall commence
immediately as of January 1, 2011, or, if later, upon a Participant’s
participation commencement date, and continue until December 31, 2013. Once a
Participant commences participation in this Plan, this Plan shall supersede in
its entirety the terms of any prior change in control severance program or
agreement applicable to Participants of a like or similar nature. Such former
agreements will then be considered null and void as of the
date on which term of the Plan commences, as described in the preceding
sentence.

 

9

 

	 	(b)	 	Subject to Subsection 3.3(c) below, the Plan shall be reviewed
annually commencing in 2012 by the Board at a regular meeting held between
September 1 and December 31 of each year. At such annual review, the Board
shall consider whether or not to extend the term of the Plan for an additional
year. Unless the Board affirmatively votes not to extend the Plan at such
annual review, the term of the Plan shall be extended for a period of one (1)
year from the previous termination date. In the event the Board so votes not
to extend the Plan, the termination date of the Plan shall not be extended and
shall remain the same termination date as in effect.

	 	(c)	 	Sections 3.3(a) and (b) notwithstanding, upon a Potential
Change in Control, the Plan shall be automatically extended commencing on the
date of such Potential Change in Control through a period of twenty-four (24)
full calendar months following the date of the consummation of a Change in
Control resulting from such Potential Change in Control. At the end of such
twenty-four (24) month period, the Plan shall terminate; provided, however,
that any unpaid, but then due and owing, amounts as of such date will be paid
in accordance with the terms of the Plan in effect as of the date of expiration
of the term. If the Potential Change in Control is abandoned, terminated, or
withdrawn, it shall then cease to be deemed that a Potential Change in Control
has occurred and, provided that the Board has not taken affirmative action not
to extend the Plan, the term of the Plan will revert back to, and be extended
per, the period described in Sections 3.3(a) or (b) above.

ARTICLE FOUR

FUNDING AND VESTING

4.1 Source of Payments. This Plan is unfunded. The benefits are paid directly from
the Company’s general assets. A former Employee entitled to benefits under this Plan shall be a
general creditor of the Company and shall have no rights to benefits under this Plan greater than
those of such creditors.

ARTICLE FIVE

ENTITLEMENT TO BENEFITS

5.1 Entitlement to Benefits due to Involuntary Termination or Termination for Good
Reason. A Participant is entitled to severance benefits pursuant to this Plan, as set forth
in Article Six, only if a Change in Control occurs and, at any time during the
twenty-four (24) month period following the Change in Control, the Participant incurs: (a) an
involuntary Termination of Employment for any reason other than for Cause; or (b) a voluntary
Termination of Employment for Good Reason within thirty (30) days following an event that
constitutes Good Reason.

 

10

 

5.2 Disability; Death. If a Participant’s Termination of Employment with the
Company results from the Participant’s Disability or death, the Participant shall not be entitled
to severance benefits under this Plan, regardless of the occurrence of a Change in Control. The
Participant or his or her designated beneficiary, in the case of death, shall receive all accrued
or vested benefits of any kind to which the Participant is, or would otherwise have been,
entitled through the date the Participant’s employment with the Company is terminated, and the
Company shall thereupon have no further obligation to the Participant under this Plan.

5.3 Termination for Cause; Without Good Reason. If prior to or subsequent to a
Change in Control, a Participant’s employment is terminated by the Company for Cause or by the
Participant without Good Reason, the Company shall pay the Participant’s full Base Compensation
through the effective date of the Termination of Employment at the rate in effect at the time
Notice of Termination is given, and the Participant shall also receive all accrued or vested
benefits of any kind to which he or she is, or would otherwise have been, entitled through the
effective date of the Termination of Employment, and the Company shall thereupon have no further
obligation to the Participant under this Plan.

5.4 Notice of Termination. Any termination by the Company for Cause, or by a
Participant for Good Reason, shall be communicated by Notice of Termination to the other party,
as applicable, given in accordance with Section 12.11 hereof. For purposes of this Plan, a
“Notice of Termination” means a written notice which (a) indicates the specific termination
provision in this Plan relied upon, and (b) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for Termination of Employment under
the provision so indicated.

ARTICLE SIX

SEVERANCE BENEFITS

6.1 Severance Benefits. If a Participant becomes entitled to severance benefits under
this Plan pursuant to Section 5.1, then:

	 	(a)	 	a Participant entitled to the Tier I Benefit shall be paid or
provided the benefits set forth on, and in accordance with, Exhibit B
attached hereto; and

	 	(b)	 	a Participant entitled to the Tier II Benefit shall be paid or
provided the benefits set forth on, and in accordance with, Exhibit C
attached hereto.

Notwithstanding any other provision of Section 6.1 or this Plan, the Company shall have no
obligation to make the payments or provide the benefits set forth on Exhibit B or
Exhibit C or provide any other separation benefits hereunder unless (i) the Participant
executes and delivers to
the Company a Release and Waiver of Claims and (ii) the Participant refrains from revoking,
rescinding or otherwise repudiating such Release and Waiver of Claims for all applicable periods
during which the Participant may revoke it.

 

11

 

6.2 Parachute Payments.

(a) If payments and benefits to or for the benefit of a Participant, whether pursuant to this
Plan or otherwise, would result in total Parachute Payments to the Participant with a value equal
to or greater than one hundred percent (100%) of the Parachute Payment Limit, the amount payable to
the Participant, shall be reduced so that the value of all Parachute Payments to the Participant,
whether or not made pursuant to this Plan, is equal to the Parachute Payment Limit minus One Dollar
($1.00), accomplished by first reducing any amounts payable pursuant to this Plan, and then
reducing other amounts of compensation to the extent necessary; provided that, no such
reduction shall be taken if, after reduction for any applicable federal excise tax imposed on the
Participant by Section 4999 of the Code, as well as any federal, state and local income tax imposed
on the Participant with respect to the total Parachute Payments, the total Parachute Payments
accruing to the Participant would be more than the amount of the total Parachute Payments after (a)
taking the reduction described in the first clause of this sentence, and (b) further reducing such
payments by any federal, state and local income taxes imposed on the Participant with respect to
the total Parachute Payments. The Company agrees to undertake such reasonable efforts as it may
determine in its sole discretion to prevent any payment or benefit under this Plan (or any portion
thereof) from constituting an “excess parachute payment,” as defined under Section 280G(b)(1) of
the Code.

(b) All determinations required to be made under Subsection (a) shall be made in good faith
by the Company which shall provide detailed supporting calculations to the Participant within
thirty (30) business days after the date of the Participant’s Termination of Employment, if
applicable, or such earlier time as is requested by the Company. Any determination by the Company
shall be binding upon the Company and the Participant. 

6.3 Legal Fees and Expenses. For a period of five (5) years following a Participant’s
Termination of Employment and subject to and contingent upon the occurrence of a Change in Control,
the Company agrees to pay promptly as incurred, to the full extent permitted by law, all legal fees
and expenses which the Participant may reasonably thereafter incur as a result of any contest,
litigation or arbitration (regardless of the outcome thereof) by the Company, the Participant or
others of the validity or enforceability of, or liability under, any provision of this Plan, the
EDCP, or the SERP in the event of a Change in Control (including any contest by the Participant
about the amount of any payment pursuant to this Plan, the EDCP or the SERP) but excluding any
action taken by the Company or its Affiliates, including any of their successors in interest, to
enforce the restrictive covenants in Article Seven.

6.4 Payment Obligations. Other than as set forth in the EDCP or the SERP, upon a
Change in Control the Company’s obligations to pay the severance benefits or make any other
payments described in this Article Six shall not be affected by any set-off, counterclaim,
recoupment, defense or other right which the Company or any of its Affiliates or Subsidiaries may
have against a Participant or anyone else. Nothing in this Plan entitles a Participant to
participation or continued participation in the EDCP, the SERP or this Plan or any other plan,
program or arrangement of the Company unless participation is specifically designated under,
and in accordance with, the applicable plan, program or arrangement.

 

12

 

ARTICLE SEVEN

NONCOMPETITION & NONDISPARAGEMENT PROVISIONS

7.1 Non-Competition. If, subsequent to a Change in Control of the Company, a
Participant incurs a Termination of Employment under circumstances described in Section 5.1 of
the Plan, then for a period of twenty-four (24) months after such Termination of Employment, the
Participant shall not on his or her own account without the consent of the Company, or as a
shareholder, employee, officer, director, consultant or otherwise, engage directly or indirectly
in any business or enterprise which is in competition with the Company, an Affiliate or any
Subsidiary in a market located in any state or states in which, on the date of the Participant’s
Termination of Employment, the Company sells, has sold or reasonably intends to sell to
Customers. For all purposes of this Plan, the words “competition with the Company, an Affiliate
or any Subsidiary” shall mean:

(a) Directly participating or engaging, on the behalf of other parties, in the purchase or
sale of products, supplies or services of the kind, nature or description of those sold by the
Company, an Affiliate or any Subsidiary;

(b) Soliciting, diverting, taking away or attempting to take away any of the Customers with
respect to their purchase or sale, or potential purchase or sale, of the products, supplies or
services of the kind, nature or description of those sold or reasonably intended to be sold by the
Company, an Affiliate or any Subsidiary or the business or patronage of any such Customers with
respect to their purchase or sale, or potential purchase or sale, of the products, supplies or
services of the kind, nature or description of those sold or reasonably intended to be sold by the
Company, an Affiliate or any Subsidiary;;

(c) Soliciting, enticing, luring, employing or endeavoring to employ any employees of the
Company, an Affiliate or any Subsidiary;

(d) Divulging to others or using for a Participant’s own benefit any confidential information
obtained during the course of a Participant’s employment with the Company, an Affiliate or any
Subsidiary relative to sales, services, processes, methods, machines, manufacturers, compositions,
ideas, improvements, patents, trademarks, or inventions belonging to or relating to the affairs of
the Company, an Affiliate or any Subsidiary;

(e) Divulging to others or using to a Participant’s own benefit any trade secrets belonging to
the Company, an Affiliate or any Subsidiary obtained during the course of the Participant’s
employment or that the Participant became aware of as a consequence of his or her employment.

 

13

 

The term “Customer” shall mean any person, firm, association, corporation or other entity
to which the Company, an Affiliate or any Subsidiary sells, has sold or reasonably intends to sell
the products, supplies or services of the Company, an Affiliate or any Subsidiary within the
twenty-four (24) month period immediately preceding the date of the Participant’s Termination of
Employment.

However, nothing herein contained shall prevent a Participant from purchasing and holding for
investment less than 5% of the shares of any corporation the shares of which are regularly traded
either on a national securities exchange or in the over-the-counter market, and notwithstanding any
provision hereof, a Participant may disclose to any and all persons, without limitation of any
kind, the tax treatment and any facts that may be relevant to the tax structure of the transactions
contemplated by this Plan, other than any information for which nondisclosure is reasonably
necessary in order to comply with applicable federal or state securities laws, and except that,
with respect to any document or other information that in either case contains information
concerning the tax treatment or tax structure of such transactions as well as other information,
this paragraph shall apply only to such portions of the document or similar item that is relevant
to an understanding of such tax treatment or tax structure.

7.2 Non-Disparagement. The Participants and the Company agree that neither party
shall disparage the other nor shall either party communicate to any person and/or entity in a
manner that is disrespectful, demeaning, and/or insulting toward the other party.

ARTICLE EIGHT

ADMINISTRATION

8.1 Appointment of Administrator. This Plan shall be administered by an
Administrative Committee consisting of three (3) or more members who are appointed by the Chief
Executive Officer of the Company. Members of the Administrative Committee may be Participants in
this Plan. However, no member of the Administrative Committee may participate in a review of his or
her own claim under Article Nine. The Administrative Committee is the “Administrator” and 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 Administrative
Committee as to any question involving the general administration and interpretation of the Plan
shall be final, conclusive, and binding except as otherwise provided in Article Nine. A majority
vote of the Administrative Committee members shall control any decision. Without limiting the
generality of the foregoing, the Administrative 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;

 

14

 

(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.

Upon and after the occurrence of a Change in Control, the “Administrative Committee” shall be
at least three (3) individuals selected by the individual who, immediately prior to the Change in
Control, was the Company’s Chief Executive Officer or, if not so identified, the Company’s highest
ranking officer (the “Ex-CEO”); provided, however, the Administrative Committee, as constituted
immediately prior to a Change in Control, shall continue to act as the Administrative Committee for
this Plan until the date on which any other individual selected by the Ex-CEO accept the
responsibilities as members of the Administrative Committee under this Plan. Upon and after a
Change in Control, the Administrative Committee shall have all discretionary authorities and powers
granted the Administrative Committee under this Plan including the discretionary power to determine
all questions arising in connection with the administration of the Plan and the interpretation of
the Plan except benefit entitlement determinations upon appeal. Upon and after the occurrence of a
Change in Control, the Company shall: (1) pay all reasonable administrative expenses and fees of
the Administrator; (2) indemnify the Administrator against any costs, expenses and liabilities
including, without limitation, attorney’s fees and expenses arising in connection with the
performance of the Administrator hereunder, except with respect to matters resulting from the gross
negligence or willful misconduct of the Administrator or its employees or agents; and (3) supply
full and timely information to the Administrator on all matters relating to the Plan, the
Participants and their Beneficiaries, the Participants’ actual or potential severance benefits, the
date and circumstances of the Disability, death or the Termination of Employment of the
Participants, and such other pertinent information as the Administrative Committee may reasonably
require. Upon and after a Change in Control, a member of the Administrative Committee may only be
removed (and a replacement may only be appointed) by the Ex-CEO.

8.2 Agents. In the administration of this Plan, the Administrative 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.

8.3 Indemnity of Committees. The Company shall indemnify and hold harmless the
members of the Administrative Committee, the Appeals 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.

 

15

 

ARTICLE NINE

CLAIMS PROCEDURES

9.1 Claim. Any person claiming a benefit (“Claimant”) under the Plan shall present
the request in writing to the Administrative Committee.

9.2 Initial Claim Review. In the case of a claim made by a Participant under the
Plan, the Administrative Committee will make a benefit determination within ninety (90) days of its
receipt of an application for benefits. This period may be extended up to an additional ninety (90)
days, if the Administrative Committee provides the Claimant with a written notice of the extension
within the initial ninety (90)-day period. The extension notice will explain the reason for the
extension and the date by which the Administrative Committee expects a decision will be made.

The Administrative Committee will notify the Claimant in writing, delivered in person or
mailed by first-class mail to the Claimant’s last known address, if any part of a claim for
benefits under the Plan has been denied. The notice of a denial of any claim will include:

(a) the specific reason for the denial;

(b) reference to specific provisions of the Plan upon which the denial is based;

(c) a description of any internal rule, guidelines, protocol or similar criterion relied on in
making the denial (or a statement that such internal criterion will be provided free of charge upon
request);

(d) a description of any additional material or information deemed necessary by the
Administrative Committee for the Claimant to perfect the claim, and an explanation of why such
material or information is necessary; and

(e) an explanation of the claims review procedure under the Plan.

If the notice described above is not furnished and if the claim has not been granted within
the time specified above for payment of the claim, the claim will be deemed denied and will be
subject to review as set forth in Section 9.3.

9.3 Review of Claim. If a claim for benefits is denied, in whole or in part, the
Claimant may request to have the claim reviewed. The Claimant will have sixty (60) days in which to
request a review of a claim. The request must be in writing and delivered to the Compensation
Committee. If no such review is requested, the initial decision of the Administrative Committee
will be considered final and binding.

 

16

 

The request for review must specify the reason the Claimant believes the denial should be
reversed. He or she may submit additional written comments, documents, records, and other
information relating to and in support of the claim. All information submitted will be reviewed
whether or not it was available for the initial review. The Claimant may request reasonable
access to and copies of, all documents, records, and other information relevant to the Claimant’s
claim for benefits. A member of the Compensation Committee may not participate in the review of his
or her own claim. In addition, if the Claimant requests a review, a member who is a subordinate of
the original decision maker shall not participate in the review of the claim.

Upon receipt of a request for review, the Compensation Committee may schedule a hearing within
thirty (30) days of its receipt of such request, subject to availability of the Claimant and the
availability of the Compensation Committee, at a time and place convenient for all parties at which
time the Claimant may appear before the person or committee designated by the Compensation
Committee to hear appeals for a full and fair review of the Administrative Committee’s initial
decision. The Claimant may indicate in writing at the time the Compensation Committee attempts to
schedule the hearing, that he or she wishes to waive the right to a hearing. If the Claimant does
not waive his or her right to a hearing, he or she must notify the Compensation Committee in
writing, at least fifteen (15) days in advance of the date established for such hearing, of his or
her intention to appear at the appointed time and place. The Claimant must also specify any persons
who will accompany him or her to the hearing, or such other persons will not be admitted to the
hearing. If written notice is not timely provided, the hearing will be automatically canceled. The
Claimant or the Claimant’s duly authorized representative may review all pertinent documents
relating to the claim in preparation for the hearing and may submit issues, documents, affidavits,
arguments, and comments in writing prior to or during the hearing.

The Compensation Committee will notify the Claimant of its decision following its review. The
Compensation Committee will render its final decision within sixty (60) days of receipt of an
appeal. If the Compensation Committee determines that an extension of the time for processing the
claim is needed, it will notify the Claimant of the reasons for the extension and the date by which
the Compensation Committee expects a decision will be made. The extended date may not exceed one
hundred twenty (120) days after the date of the filing of the appeal

If after the review the claim continues to be denied, the Claimant will be provided a notice
of the denial of the appeal which will contain the following information:

(a) The specific reasons for the denial of the appeal;

(b) A reference to the specific provisions of the Plan on which the denial was based;

(c) A statement that the Claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to the
claim for benefits;

(d) A statement disclosing any internal rule, guidelines, protocol or similar criterion relied
on in making the denial (or a statement that such information would be provided free of charge upon
request); and

(e) A statement describing the Claimant’s right to bring a civil suit under Federal law and a
statement concerning other voluntary alternative dispute resolutions options.

 

17

 

9.4 Review of Claims on and after a Change in Control. Upon and after the occurrence
of a Change in Control, the Compensation Committee, as constituted immediately prior to a Change in
Control, shall continue to be the Appeals Committee that decides appeals of any denied claims. In
the event any member of the Appeals Committee resigns or is unable to perform the duties of a
member of the Appeals Committee, successors to such members shall be selected by the Ex-CEO. Upon
and after a Change in Control, the Appeals Committee shall have all discretionary authorities and
powers granted the Compensation Committee under this Plan to review denied claims as provided in
Section 9.3. A member of the Appeals Committee may not participate in the review of his or her own
claim and may not participate in the review a claim if he or she is a subordinate of the original
decision maker. Upon and after the occurrence of a Change in Control, the Company shall: (1) pay
all reasonable administrative expenses and fees of the Appeals Committee; (2) indemnify the Appeals
Committee against any costs, expenses and liabilities including, without limitation, attorney’s
fees and expenses arising in connection with the performance of the Appeals Committee hereunder,
except with respect to matters resulting from the gross negligence or willful misconduct of the
Appeals Committee or its employees or agents; and (3) supply full and timely information to the
Appeals Committee on all matters relating to the Plan, the Participants and their Beneficiaries,
the Participants’ actual or potential severance benefits, the date and circumstances of the
Disability, death or Termination of Employment of the Participants, and such other pertinent
information as the Appeals Committee may reasonably require. Upon and after a Change in Control, a
member of the Appeals Committee may only be removed (and a replacement may only be appointed) by
the Ex-CEO.

ARTICLE TEN

AMENDMENT AND TERMINATION

10.1 Procedure for Amendment or Termination. During the term of the Plan, as set
forth in Section 3.3, this Plan may be amended only by an instrument in writing signed by the
Company, provided that at least fifty-one percent (51%) of all Participants have consented to the
amendment. Any provision hereof may be waived only by an instrument in writing signed by the
Company and any affected Participant against whom or which enforcement of such waiver is sought.
The failure of the Company or any Participant at any time to require the performance by the other
of any provision hereof shall in no way affect the full right to require such performance at any
time thereafter, nor shall the waiver by either the Company or a Participant of a breach of any
provision of this Plan be taken or held to be a waiver of any succeeding breach of such provision
or a waiver of the provision itself or a waiver of any other provision of this Plan. Except as
provided in this Section 10.1 above, in no event may this Plan be modified, amended or terminated
by any person or entity upon a Potential Change in Control through a period of twenty-four (24)
full calendar months following the date of the consummation of a Change in Control.

10.2 Power to Terminate. Unless earlier terminated by an amendment to the Plan as set
forth above in Section 10.1, this Plan shall automatically terminate upon the expiration of the
term of the Plan and such term is not extended as set forth in Section 3.3. above.

10.3 Result of Termination. If the employment of a Participant terminates, whether
involuntarily or otherwise, after the effective date of the Plan termination, he or she shall not
be eligible to receive any severance benefits under this Plan.

 

18

 

ARTICLE ELEVEN

STATEMENT OF ERISA RIGHTS

As a Participant in the Plan, each Participant is entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (“ERISA”). See Exhibit E
attached to this Plan for a statement of such rights.

ARTICLE TWELVE

MISCELLANEOUS

12.1 No Implied Benefits. Nothing herein contained shall be construed as giving to
any Employee or any other person any legal or equitable right against the Company or any Affiliate
or Subsidiary except by reason of the express provisions of this Plan.

12.2 Withholding. The Company may withhold from any amounts payable under this
Agreement such Federal, state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

12.3 Successor. This Plan shall be binding upon and inure to the benefit of any
successors of the Company. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Plan in the same manner and to
the same extent that the Company would be required to perform it if no such succession had taken
place. As used in this Plan, “Company” shall mean the Company as herein before defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to perform this Plan
by operation of law, or otherwise. Failure of the Company to obtain such agreement prior to the
effectiveness of such succession shall be a breach of this Plan and shall entitle a Participant
severance benefits from the Company in the same amount and on the same terms a Participant would be
entitled hereunder, but only to the extent that a Participant incurs a Termination of Employment
under Section 5.1 of this Plan after a Change in Control.

This Plan shall inure to the benefit of and be enforceable by the Participant’s personal or
legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees. If a Participant should die while any amounts would still be payable to the Participant
hereunder if he or she had continued to live, all such amounts, unless otherwise provided herein,
shall be paid to such beneficiary or beneficiaries as the Participant shall have designated by
written notice delivered to the Company prior to his or her death or, failing such written notice,
to his or her estate.

12.4 Entire Agreement. This Plan contains the entire understanding of the Company and
the Participants with respect to the subject matter hereof and, upon the Effective Date, supercedes
all other agreements of like or similar nature.

 

19

 

12.5 Right of Discharge Reserved. Neither the establishment of the Plan nor anything
herein contained shall be construed to confer upon any persons the right to be continued in the
employ of the Company or any Affiliate or Subsidiary or to be employed in any particular position
therewith nor shall it in any way affect the right of the Company or any Affiliate or Subsidiary to
control its Employees and to terminate the service of any Employee at any time, for any reason and
with or without notice.

12.6 Satisfaction of Claims. Subject to the claims review procedures of Section 9.3,
any payment to any Participant, or to his or her legal representative in accordance with the
provisions of this Plan shall to the extent thereof be in full satisfaction of all claims hereunder
against the Administrator and the Company or any Affiliate or Subsidiary.

12.7 Validity The invalidity or unenforceability of any provision or provisions of
this Plan shall not affect the validity or enforceability of any other provision of this Plan,
which shall remain in full force and effect, nor shall the invalidity or unenforceability of a
portion of any provision of this Plan affect the validity or enforceability of the balance of such
provision. If any provision of this Plan, or portion thereof is so broad, in scope or duration, as
to be unenforceable, such provision or portion thereof shall be interpreted to be only so broad as
is enforceable

12.8 Severability. In the event that any provision of the Plan is determined by any
judicial, quasi-judicial or administrative body to be void or unenforceable for any reason, all
other provisions of the Plan shall remain in full force and effect as if such void or unenforceable
provision had never been a part of the Plan.

12.9 Construction. The Plan shall be construed in accordance with, and governed by,
ERISA in a manner which will assure compliance of the Plan’s operation therewith and, to the extent
applicable, the laws of the State of Ohio without respect to conflict of law provisions thereof.

12.10 No Assignment. Except as provided in Section 12.3, the interest of a
Participant or his or her beneficiary may not be sold, transferred, assigned, or encumbered in any
manner, either voluntarily or involuntarily, and any attempt to so anticipate, alienate, sell,
transfer, assign, pledge, encumber, or charge the same shall be null and void; neither shall the
benefits hereunder be liable for or subject to the debts, contracts, liabilities, engagements, or
torts of any person to whom such benefits or funds are payable, nor shall they be subject to
garnishment, attachment, or other legal or equitable process.

 

20

 

12.11 Notices. In the event that the Administrator or any committee under the Plan
shall be required under the Plan to notify any Participant of any occurrence or action taken under
the Plan, such notice requirement shall be satisfied by mailing to the Participant a written notice
of such occurrence or action addressed to the Participant at the last address on file with the
Company, or by delivering such written notice to the Participant at such address. Any
correspondence with the Company or Administrator shall be to:

	 	 	 
	 

	 	Administrator, CIC Severance Plan
	 

	 	FirstEnergy Corp.
	 

	 	76 South Main Street
	 

	 	Akron, Ohio 44308

12.12 Titles and Headings. The titles and headings are for reference only. In the
event of a conflict between a title or heading and the content of a Section, the content of the
Section shall control.

12.13 Construction. The use of neuter, masculine and feminine pronouns shall be
deemed to include the others. The use of the singular shall be deemed to include the plural, and
vice versa. The word “including” and its variants shall be construed as “including, without
limitation,” unless the Plan expressly states otherwise.

12.14 Section 409A of the Code.

(a) If a Participant is a Specified Employee, as determined under the Company’s policy for
determining specified employees on the date of his or her Termination of Employment, all payments,
benefits, or reimbursements provided under this Plan that would otherwise be paid or provided
during the first six (6) months following such Termination of Employment (other than payments,
benefits, or reimbursements that are treated as separation pay under Section 1.409A-1(b)(9)(v) of
the Treasury Regulations or short-term deferrals) shall be accumulated through and paid or provided
(together with interest at the applicable federal rate under Section 7872(f)(2)(A) of Code, in
effect on the date of the Termination of Employment) on the first business day following the six
(6) month anniversary of such Termination of Employment. Notwithstanding the foregoing, payments
delayed pursuant to this Section 12.15(a) shall commence on the Participant’s death prior to the
end of the six (6) month period.

(b) Any reimbursement of expenses or in-kind benefits provided under this Plan (other than
reimbursements or in-kind benefits that are treated as separation pay under Section
1.409A-1(b)(9)(v) of the Treasury Regulations), shall be subject to the following additional rules:
(i) any reimbursement of eligible expenses shall be paid as they are incurred (but not prior to the
end of the six-month delay period set forth in Section 12.15(a)); provided that the Participant
first provides documentation thereof in reasonable detail not later than sixty (60) days following
the end of the calendar year in which the eligible expenses were incurred: (ii) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year shall
not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided,
during any other calendar year; and (iii) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit.

 

21

 

(c) It is intended that the payments and benefits provided under this Plan shall either be
exempt from application of, or comply with, the requirements of Section 409A of the Code. This
Plan shall be construed, administered, and governed in a manner that effects such intent, and the
Company shall not take any action that would be inconsistent with such intent. Without limiting the
foregoing, the payments and benefits provided under this Plan
may not be deferred, accelerated, extended, paid out, or modified in a manner that would
result in the imposition of an additional tax under Section 409A of the Code upon the Participant.
Although the Company shall use its best efforts to avoid the imposition of taxation, interest and
penalties under Section 409A of the Code, the tax treatment of the benefits provided under this
Plan is not warranted or guaranteed. Neither the Company, its Affiliates or Subsidiaries nor their
respective boards of directors shall be held liable for any taxes, interest, penalties, or other
monetary amounts owed by a Participant or other taxpayers as a result of the Plan. If a
Participant is required to execute, submit and not revoke a release of claims against the Company
in order to receive the payment of benefits hereunder as a result of the terms of this Plan and the
period in which to execute, submit and not revoke the release begins in a first taxable year and
ends in a second taxable year, any payment to which the Participant would be entitled hereunder
will be paid in the second taxable year, but no later than the end of the payment period specified
in the Plan.

12.15 Nonduplication of Benefits. In no event will a Participant receive benefits
under both this Plan and another severance plan, severance program or severance arrangement of
the Company following a Change in Control. In the event of a Change in Control, this Plan will
provide the sole severance benefits for any Participant subject to the conditions set forth in
this Plan. Notwithstanding the foregoing, this Section 12.15 shall not preclude any enhanced
benefits based on severance under a qualified retirement plan of the Company, an Affiliate or any
Subsidiary.

12.16 Remedies. The Participants and the Company acknowledge and agree that the
restrictive covenants contained in Article Seven are of a special nature and that any breach,
violation or evasion by a Participant of the terms of Article Seven will result in immediate and
irreparable injury and continuing damage to the Company and its business, for which there is no
adequate remedy at law, and will cause damage to the Company in amounts difficult to ascertain.
Accordingly, the Company, its Affiliates and Subsidiaries and their successors and assigns, shall
be entitled to temporary and permanent injunctive relief and to such further relief, including
damages, as is proper under the circumstances.

If any portion of Article Seven shall be found by a court of competent jurisdiction to be
invalid or unenforceable, such court may exercise its discretion in reforming such provisions to
the end that a Participant shall be subject to non-disclosure, non-competition, non-solicitation or
non-disparagement covenants that are reasonable under the circumstances and enforceable by the
Company. In the event that any other provision or term of this Plant is found to be void or
unenforceable to any extent for any reason, it is the agreed upon intent of the parties hereto that
all remaining provisions or terms of the Plan shall remain in full force and effect to the maximum
extent permitted and that the Agreement shall be enforceable as if such void or unenforceable
provision or term had never been a part hereof.

 

22

 

IN WITNESS WHEREOF, FirstEnergy Corp., by its duly authorized officer, has executed this
instrument as of this 28th day of April, 2011.

	 	 	 	 	 
	 	FIRSTENERGY CORP.

 	 
	 	By:  	/s/ Anthony J. Alexander
 	 
	 	 	Anthony J. Alexander, 	 
	 	 	President and Chief Executive

Officer of FirstEnergy Corp. 	 
	 

 

23

 

Exhibit A

Participants

Participants as of January 1, 2011:

Tier I Benefit Participants:

Tier II Benefit Participants:

Participants as of January 1, 2012:

Tier I Benefit Participants:

Tier II Benefit Participants:

 

24

 

Exhibit B

Tier I Benefit

If a Participant becomes entitled to severance benefits under this Plan pursuant to Section
5.1, then a Participant entitled to the Tier I Benefit shall be paid or provided the benefits set
forth, and in accordance with, the following:

(a) The Company shall pay to the Participant as soon as possible but not later than ninety
(90) days following the Termination of Employment a lump sum severance benefit, payable in cash, in
the amounts determined as provided below:

(1) The Participant’s full Base Compensation through the date of the Participant’s
Termination of Employment at the rate in effect at the time Notice of Termination is given.

(2) In lieu of further salary payments to the Participant for periods subsequent to his
or her Termination of Employment and, in part, as consideration for the non-competition
agreement set forth in Article Seven of the Plan, an amount equal to 2.99 multiplied by the
sum of (the “Sum”): (i) the Participant’s annual Base Compensation at the rate in effect as
of the date of the Termination of Employment (or, if higher, at the rate in effect as of the
time of the Change in Control) plus (ii) the target annual
Short-Term Incentive Program (“STIP”) amount in effect for the Participant under the
FirstEnergy Corp. 2007 Incentive Compensation Plan or any successor incentive compensation
plan (“ICP”) in the year during which the Termination of Employment occurs whether or not
fully paid. Subject to later valuation at the time of a Change in Control, the
consideration for the non-competition agreement set forth in Section 7.1 of the Agreement is
an amount equal to at least 1.00 times the Sum.

(b) For purposes of the STIP and notwithstanding the terms of the STIP to the contrary, upon
such Termination of Employment, and not later than ninety (90) days following the Termination of
Employment, Executive shall be entitled to the target amount of any STIP which shall be paid in a
lump sum payment.

(c) For purposes of FirstEnergy stock options issued pursuant to the FirstEnergy Executive and
Director Incentive Compensation Plan, the ICP or any successor plan, all outstanding options will
follow the terms of the option agreement(s).

(d) For purposes of the Company’s group health and life insurance plans:

(1) If, on the date of the Participant’s Termination of Employment, the addition of
three (3) years to the Participant’s age would make the Participant eligible to qualify
for retiree health or life insurance coverage under the Company’s then-in-effect group
health or life insurance plans, then the Participant shall be considered as having
retired for purposes of retiree health or life insurance coverage under such plan or
plans for which the addition of three (3) years to the Participant’s age would make the
Participant so eligible and for purposes of such coverage he or she shall be
credited with three (3) additional years of age and service. The Participant shall
be responsible for paying the normal retiree share of the applicable premiums for
retiree coverage under the group health and life insurance plans.

 

25

 

(2) If the Participant is not entitled to retiree health or life insurance
coverage under Subsection (d)(1), then the Participant shall be entitled to continue
to participate, on the same terms and conditions as active employee participants, in
such plan or plans for which the Participant is not so entitled to retiree coverage
for a period of three (3) years after the date of the Participant’s Termination of
Employment. During such continuation period, the Participant shall be responsible
for paying the normal employee share of the applicable premiums for coverage under
the health and life insurance plans.

(3) The Company shall have the right to modify, amend or discontinue the
Company’s group health and life insurance plans following the date of any
Participant’s Termination of Employment and any Participant’s continued
participation therein, and the continued participation of any other person therein
under Subsection (g) below, shall be subject to such modification, amendment or
discontinuation if such modification, amendment or discontinuation applies generally
to the then-current participants in such plan.

(4) If the Company is not permitted to provide continuing coverage under the
terms of the Company’s group health and life insurance plans and related trusts,
then the Company may purchase health and/or life insurance for the Participant for
the period specified in Subsection (d)(1) or (d)(2), as applicable, with coverage
comparable to the applicable coverage under the Company’s group health or life
insurance plan, as applicable, then in effect, as the same may have been modified
amended or discontinued in accordance with the terms and provisions of the
applicable plan under this Subsection (d).

(5) The health benefit continuation provided under this Subsection (d) shall
satisfy the Company’s obligations to provide, and any rights that the Participant
may have to, COBRA coverage continuation under the health care continuation
requirements under the federal Consolidated Omnibus Budget Reconciliation Act, as
amended, Part VI of Subtitle B of Title I of ERISA and Section 4980B(f) of the Code,
or any successor provisions thereto.

(e) As further provided in the EDCP, the Participant shall be credited with three (3)
additional years of age and service. Notwithstanding anything in this Plan or the EDCP to the
contrary, the additional age and service credits provided hereunder shall not accelerate the payout
under such plans if such acceleration would violate the rules under Section 409A of the Code.

 

26

 

(f) If, on the date of the Participant’s Termination of Employment the Participant is a
participant in the SERP, and as further provided in the SERP, the Participant shall be credited
with three (3) additional years of age and service, and his or her accrued benefit, if any, shall
be fully vested. Notwithstanding anything in this Plan or the SERP to the contrary, the
additional age and service credits provided hereunder shall not accelerate the payout under such
plans if such acceleration would violate the rules under Section 409A of the Code.

(g) In the event that because of their relationship to the Participant, members of the
Participant’s family or other individuals are covered by any plan, program, or arrangement
described in Subsection (d) above immediately prior to the date of the Participant’s Termination of
Employment, the provisions set forth in Subsection (d) shall apply equally to require the continued
coverage of such persons; provided, however, that if under the terms of any such plan, program or
arrangement, any such person would have ceased to be eligible for coverage other than because of
the Participant’s Termination of Employment during the period in which the Company is obligated to
continue coverage for the Participant, nothing set forth herein shall obligate the Company to
continue to provide coverage which would have ceased even if the Participant had remained an
employee of the Company.

(h) The severance benefits described in Subsections (a), (b), (c), (d), (e), (f), and (g)
above shall be payable in addition to, and not in lieu of, all other accrued or vested or earned
but deferred compensation, rights, options or other benefits which may be owed to the Participant
following his or her Termination of Employment (and are not contingent on any Change in Control
preceding such Termination of Employment), including but not limited to, accrued and/or banked
vacation, amounts or benefits payable, if any, under any bonus or other compensation plans, stock
option plan, stock ownership plan, stock purchase plan, life insurance plan, health plan,
disability plan or similar plan.

 

27

 

Exhibit C

Tier II Benefit

If a Participant becomes entitled to severance benefits under this Plan pursuant to Section
5.1, then a Participant entitled to the Tier II Benefit shall be paid or provided the benefits set
forth, and in accordance with, the following:

(a) The Company shall pay to the Participant as soon as possible but not later than ninety
(90) days following the Termination of Employment a lump sum severance benefit, payable in cash, in
the amounts determined as provided below:

(1) The Participant’s full Base Compensation through the date of the Participant’s
Termination of Employment at the rate in effect at the time Notice of Termination is given.

(2) In lieu of further salary payments to the Participant for periods subsequent to his
or her Termination of Employment and, in part, as consideration for the non-competition
agreement set forth in Article Seven of the Plan, an amount equal to 2.00 multiplied by the
sum of (the “Sum”): (i) the Participant’s annual Base Compensation at the rate in effect as
of the date of the Termination of Employment (or, if higher, at the rate in effect as of the
time of the Change in Control) plus (ii) the target annual
Short-Term Incentive Program (“STIP”) amount in effect for the Participant under the FirstEnergy
Corp. 2007 Incentive Compensation Plan or any successor incentive compensation plan (“ICP”)
in the year during which the Termination of Employment occurs whether or not fully paid.
Subject to later valuation at the time of a Change in Control, the consideration for the
non-competition agreement set forth in Section 7.1 of the Agreement is an amount equal to at
least 0.50 times the Sum.

(b) For purposes of the STIP and notwithstanding the terms of the STIP to the contrary, upon
such Termination of Employment, and not later than ninety (90) days following the Termination of
Employment, Executive shall be entitled to the target amount of any STIP which shall be paid in a
lump sum payment.

(c) For purposes of FirstEnergy stock options issued pursuant to the FirstEnergy Executive and
Director Incentive Compensation Plan, the ICP or any successor plan, all outstanding options will
follow the terms of the option agreement(s).

(d) For purposes of the Company’s group health and life insurance plans:

(1) If, on the date of the Participant’s Termination of Employment, the addition of
two (2) years to the Participant’s age would make the Participant eligible to qualify
for retiree health or life insurance coverage under the Company’s then-in-effect group
health or life insurance plans, then the Participant shall be considered as having
retired for purposes of retiree health or life insurance coverage under such plan or
plans for which the addition of two (2) years to the Participant’s age would make the
Participant so eligible and for purposes of such coverage he or she shall be
credited with two (2) additional years of age and service. The Participant shall
be responsible for paying the normal retiree share of the applicable premiums for
retiree coverage under the group health and life insurance plans.

 

28

 

(2) If the Participant is not entitled to retiree health or life insurance coverage
under Subsection (d)(1), then the Participant shall be entitled to continue to
participate, on the same terms and conditions as active employee participants, in such
plan or plans for which the Participant is not so entitled to retiree coverage for a
period of two (2) years after the date of the Participant’s Termination of Employment.
During such continuation period, the Participant shall be responsible for paying the
normal employee share of the applicable premiums for coverage under the health and life
insurance plans.

(3) The Company shall have the right to modify, amend or discontinue the Company’s
group health and life insurance plans following the date of any Participant’s
Termination of Employment and any Participant’s continued participation therein, and the
continued participation of any other person therein under Subsection (g) below, shall be
subject to such modification, amendment or discontinuation if such modification,
amendment or discontinuation applies generally to the then-current participants in such
plan.

(4) If the Company is not permitted to provide continuing coverage under the terms
of the Company’s group health and life insurance plans and related trusts, then the
Company may purchase health and/or life insurance for the Participant for the period
specified in Subsection (d)(1) or (d)(2), as applicable, with coverage comparable to the
applicable coverage under the Company’s group health or life insurance plan, as
applicable, then in effect, as the same may have been modified amended or discontinued
in accordance with the terms and provisions of the applicable plan under this Subsection
(d).

(5) The health benefit continuation provided under this Subsection (d) shall
satisfy the Company’s obligations to provide, and any rights that the Participant may
have to, COBRA coverage continuation under the health care continuation requirements
under the federal Consolidated Omnibus Budget Reconciliation Act, as amended, Part VI of
Subtitle B of Title I of ERISA and Section 4980B(f) of the Code, or any successor
provisions thereto.

(e) As further provided in the EDCP, the Participant shall be credited with two (2) additional
years of age and service. Notwithstanding anything in this Agreement or the EDCP to the contrary,
the additional age and service credits provided hereunder shall not accelerate the payout under
such plans if such acceleration would violate the rules under Section 409A of the Code.

 

29

 

(f) If, on the date of the Participant’s Termination of Employment the Participant is a
participant in the SERP, and as further provided in the SERP, the Participant shall be credited
with two (2) additional years of age and service, and his or her accrued benefit, if any, shall be
fully vested. Notwithstanding anything in this Agreement or the SERP to the
contrary, the additional age and service credits provided hereunder shall not accelerate the
payout under such plans if such acceleration would violate the rules under Section 409A of the
Code.

(g) In the event that because of their relationship to the Participant, members of the
Participant’s family or other individuals are covered by any plan, program, or arrangement
described in Subsection (d) above immediately prior to the date of the Participant’s Termination of
Employment, the provisions set forth in Subsection (d) shall apply equally to require the continued
coverage of such persons; provided, however, that if under the terms of any such plan, program or
arrangement, any such person would have ceased to be eligible for coverage other than because of
the Participant’s Termination of Employment during the period in which the Company is obligated to
continue coverage for the Participant, nothing set forth herein shall obligate the Company to
continue to provide coverage which would have ceased even if the Participant had remained an
employee of the Company.

(h) The severance benefits described in Subsections (a), (b), (c), (d), (e), (f), and (g)
above shall be payable in addition to, and not in lieu of, all other accrued or vested or earned
but deferred compensation, rights, options or other benefits which may be owed to the Participant
following his or her Termination of Employment (and are not contingent on any Change in Control
preceding such Termination of Employment), including but not limited to, accrued and/or banked
vacation, amounts or benefits payable, if any, under any bonus or other compensation plans, stock
option plan, stock ownership plan, stock purchase plan, life insurance plan, health plan,
disability plan or similar plan.

 

30

 

Exhibit D

Release and Waiver of Claims

(attached)

 

31

 

Exhibit E

Statement of ERISA Rights

As a Participant in the Plan, you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974 (“ERISA”). ERISA provides that all Plan
participants shall be entitled to:

Receive Information About Your Plan and Benefits

	 	•	 	Examine, without charge, at the Administrator’s office or local Human Resources office,
all documents governing the plan, and a copy of the latest annual report filed with the
Department of Labor (if it is required that such a report be filed) and the Plan
description;

	 	•	 	Obtain copies of documents governing the operation of the Plan, and the latest annual
report (if it is required that such a report be filed) and updated summary plan description
or other Plan information upon written request to the Administrator. The Administrator may
make a reasonable charge for the copies; and

Prudent Actions by Plan Fiduciaries

	 	•	 	In addition to creating rights for plan participants ERISA imposes duties upon the
people who are responsible for the operation of the employee benefit plan. The people who
operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in
the interest of you and other Plan participants and beneficiaries. No one — the Company or
any other person — may discriminate against you in any way to prevent you from obtaining
severance benefits or exercising your rights under ERISA;

Enforce Your Rights

	 	•	 	If your claim for a severance benefit is denied or ignored, in whole or in part, you
have a right to know why this was done, to obtain copies of documents relating to the
decision without charge, and to appeal any denial, all within certain time schedules.

	 	•	 	Under ERISA, there are steps you can take to enforce your rights. For instance, if you
request a copy of Plan documents or the latest annual report from the Plan, if any, and do
not receive them within 30 days, you may file suit in a Federal court. In such a case, the
court may require the Plan Administrator to provide the materials and pay you up to $110 a
day until you receive the materials, unless the materials were not sent because of reasons
beyond the control of the Administrator. If you have a claim for benefits which is denied
or ignored, in whole or in part, you may file suit in a state or Federal court. If it
should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated
against for asserting your rights, you may seek assistance from the U.S. Department of
Labor, or you may file suit in a Federal court. The court will decide who should pay court
costs and legal fees. If you are successful, the court may order the person you have sued
to pay these costs and fees. If you lose, the court may order you to pay these costs and
fees, for example, if it finds your claim is frivolous.

Assistance with Your Questions

	 	•	 	If you have any questions about your Plan, you should contact the Administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Administrator, you should contact the nearest
office of the Employee Benefits Security Administration, U.S. Department of Labor, listed
in your telephone directory or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee Benefits
Security Administration.

 

32Exhibit 10.10

Exhibit 10.10

February 25, 2011

Dear Gary:

I wanted to confirm, in writing, our discussion that the terms of your employment agreement
(“Agreement”) dated February 26, 2008, which include the terms of an extension entered into on
January 29, 2010, will be further extended until December 31, 2011. This extension shall fully
incorporate the terms of your original Agreement, as modified May 17, 2010, and shall be effective
as of the date set forth above. Either party, for any reason, upon written notice given at least 60
days in advance, may terminate this extension, however, such termination would only apply to this
extension and your Agreement, as modified on May 17, 2010, shall survive.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Anthony J. Alexander
 	 
	 	Anthony J. Alexander 	 
	 	President and Chief Executive Officer

FirstEnergy Corp. 	 
	 

	 	 	 	 	 
	So Agreed:

	 	/s/ Gary R. Leidich	 	 
	 

	 	 

Gary R. Leidich
	 	 
	 

	 	Executive Vice President and President, FE Generation	 	 

	 	 	 	 	 
	Date:

	 	February 25, 2011

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]