Document:

ex10_3.htm

    
      

      

    

    
 

    EXHIBIT
10.3

    

    

    

    

    

    

    

    

    

    

    

    

    

    FIRSTENERGY
CORP.

    

    DEFERRED
COMPENSATION PLAN

    FOR OUTSIDE
DIRECTORS

    

    

    

    

    

    

    

    

    

    

    

    

    Effective December
31, 1997

    

    Amended and Restated
January 1, 2005

    
      
        
          {00100414.DOC;8}DOC\286RL

        

         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      
        	 
    	 
    	 
    	 
    	
                Page

              
	 
    	 
    	 
    
	
                ARTICLE 1 –
      GENERAL

              	 
    	
                1

              
	 
    	
                1.1

              	
                Preamble

              	 
    	
                1

              
	 
    	
                1.2

              	
                Purpose

              	 
    	
                1

              
	 
    	
                1.3

              	
                Payment
      Method

              	 
    	
                1

              
	 
    	
                1.4

              	
                Status under
      Laws

              	 
    	
                1

              
	 
    	
                1.5

              	
                Definitions

              	 
    	
                2

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 2 –
      DEFERRALS

              	 
    	
                7

              
	 
    	
                2.1

              	
                Written
      Election to Defer Fees

              	 
    	
                7

              
	 
    	
                2.2

              	
                Election Upon
      Becoming a Director

              	 
    	
                7

              
	 
    	
                2.3

              	
                Election
      Irrevocable

              	 
    	
                7

              
	 
    	
                2.4

              	
                Transfers from
      Other Plans

              	 
    	
                7

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 3 –
      ACCOUNTS AND INVESTMENT FUNDS

              	
                8

              
	 
    	
                3.1

              	
                Deferred Fee
      Account

              	 
    	
                8

              
	 
    	
                3.2

              	
                Transfer
      Account

              	 
    	
                8

              
	 
    	
                3.3

              	
                Other Accounts
      and Subaccounts

              	 
    	
                9

              
	 
    	
                3.4

              	
                Investment
      Funds

              	 
    	
                9

              
	 
    	
                3.5

              	
                Credits to
      Investment Funds

              	 
    	
                9

              
	 
    	
                3.6

              	
                Reporting

              	 
    	
                10

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 4 –
      PAYMENT TO DIRECTOR

              	 
    	
                15

              
	 
    	
                4.1

              	
                Distribution
      Election – Separation from Service

              	
                11

              
	 
    	
                4.2

              	
                Accelerated
      Distribution

              	 
    	
                12

              
	 
    	
                4.3

              	
                Withdrawal

              	 
    	
                12

              
	 
    	
                4.4

              	
                Financial
      Hardship Distributions

              	 
    	
                13

              
	 
    	
                4.5

              	
                Special
      Circumstance

              	 
    	
                14

              
	 
    	
                4.6

              	
                Small
      Accounts

              	 
    	
                14

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 5 –
      BENEFICIARY

              	 
    	
                15

              
	 
    	
                5.1

              	
                Beneficiary
      Designation

              	 
    	
                15

              
	 
    	
                5.2

              	
                Distribution
      Election

              	 
    	
                15

              
	 
    	
                5.3

              	
                Change of
      Beneficiary

              	 
    	
                15

              
	 
    	
                5.4

              	
                Payment of
      Benefit upon Death

              	 
    	
                15

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 6 –
      ASSIGNMENT

              	 
    	
                16

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 7 –
      ADMINISTRATION

              	
                16

              
	 
    	
                7.1

              	
                Administrator

              	 
    	
                16

              
	 
    	
                7.2

              	
                Powers of
      Administrator

              	 
    	
                17

              
	 
    	
                7.3

              	
                Delegation

              	 
    	
                17

              

      

    

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        	 
    	 
    	 
    	 
    	
                Page

              
	 
    	 
    	 
    
	
                ARTICLE 8 –
      CLAIMS

              	 
    	
                17

              
	 
    	
                8.1

              	
                Claim

              	 
    	
                17

              
	 
    	
                8.2

              	
                Initial Claim
      Review

              	 
    	
                17

              
	 
    	
                8.3

              	
                Review of
      Claim

              	 
    	
                18

              
	 
    	
                8.4

              	
                Review of
      Claims on and after a Change in Control

              	
                20

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 9 –
      AMENDMENT, TERMINATION AND PARTICIPATION

              	
                20

              
	 
    	
                9.1

              	
                Amendment by
      Board

              	 
    	
                20

              
	 
    	
                9.2

              	
                Termination by
      the Company

              	 
    	
                21

              
	 
    	
                9.3

              	
                Automatic
      Cessation of Bonus Credit and Dividends

              	
                21

              
	 
    	
                9.4

              	
                Distribution
      of Benefits on Plan Termination

              	
                21

              
	 
    	
                9.5

              	
                Participation
      by Affiliates

              	 
    	
                22

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 10 –
      UNFUNDED PLAN

              	
                23

              
	 
    	
                10.1

              	
                Bookkeeping
      Entries

              	 
    	
                23

              
	 
    	
                10.2

              	
                Trusts,
      Insurance Contracts or Other Investment

              	
                23

              
	 
    	 
    	 
    	 
    	 
    
	
                ARTICLE 11 –
      MISCELLANEOUS

              	 
    	
                23

              
	 
    	
                11.1

              	
                Severability

              	
                23

              
	 
    	
                11.2

              	
                Liability for
      Benefits

              	 
    	
                23

              
	 
    	
                11.3

              	
                Applicable
      Law

              	 
    	
                24

              
	 
    	
                11.4

              	
                Not a
      Contract

              	 
    	
                24

              
	 
    	
                11.5

              	
                Successors

              	 
    	
                24

              
	 
    	
                11.6

              	
                Distribution
      under Terms of the Trust or in the Event of Taxation

              	
                24

              
	 
    	
                11.7

              	
                Insurance

              	 
    	
                25

              
	 
    	
                11.8

              	
                Legal
      Representation

              	 
    	
                25

              
	 
    	
                11.9

              	
                Code Section
      409A

              	 
    	
                26

              
	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    
	
                ATTACHMENT
      2.4-A

              	 
    	
                27

              
	 
    	 
    	 
    	 
    	 
    
	
                ATTACHMENT
      2.4-B

              	 
    	
                28

              
	 
    	 
    	 
    	 
    	 
    
	
                ATTACHMENT
      2.4-C

              	 
    	
                29

              

      

    

    

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    FIRSTENERGY
CORP.

    

    DEFERRED
COMPENSATION PLAN

    FOR OUTSIDE
DIRECTORS

    

    

     

    
 

    ARTICLE 1
 — GENERAL

     

    

    1.1   Preamble

     

    The FirstEnergy Corp. Deferred Compensation
Plan for Outside Directors (the “Plan”) was initially established on December
31, 1997 as the FirstEnergy Corp. Deferred Compensation Plan for Directors. The
Ohio Edison Company Deferred Compensation Plan for Directors was merged into the
Plan effective as of December 31, 1997 and the Centerior Energy Corporation
Deferred Compensation Plan for Directors was merged into the Plan effective as
of January 1, 2000. The Plan was restated as of  November 7, 2001.
This restatement of the Plan is effective as of January 1, 2005 in order to
comply with Code Section 409A and supersedes all prior versions of this Plan and
all prior arrangements and understandings regarding the deferral of fees by
Directors.

    

    1.2  Purpose

     

    The purpose of this Plan is to provide a
benefit to Directors by giving them the opportunity to defer certain fees in
accordance with the provisions of the Plan. The Plan is also intended to advance
the interests of the Company and its Affiliates by providing a benefit which
attracts and retains the services of qualified persons who are not employees of
the Company or its Affiliates to serve as Directors.

    

    1.3  Payment
Method

     

    Payment of an equity retainer is in the form of
Company common stock, which can be deferred into a Deferred Stock Fund. Cash
retainers, meeting fees, chairperson fees, and any additional annual cash
retainer paid to a non-employee Chairman of the Board, will be paid in cash, but
can be paid in stock or deferred into a Deferred Fee Account based on an annual
election made by the Director.

    

    1.4   Status under
Laws

     

    The Plan does not provide benefits to employees
of the Company or any Affiliate and, accordingly, is not subject to the
provisions of the Employee Retirement Income Security Act of 1974. The Plan
shall be unfunded for purposes of the Code and is not intended to qualify under
Code Section 401(a).

     

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        1

        
          

        

      

      
         

      

    

    1.5   Definitions

     

    As used in the Plan, the following terms shall
have the following meanings:

    

    (a) “Accounts” means bookkeeping accounts
maintained on behalf of each Participant and includes a Participant’s Deferred
Fee Account, Transfer Account and such other accounts as may be established in
accordance with the directions of the Committee.

     

    (b) “Administrator” means the Committee or such
other person or persons appointed in accordance with Section 7.1.

     

    (c) “Affiliate” means a member of the affiliated
group of corporations as defined in Code Section 414(b) and (c) except that in
applying Code Section 1563 “50 percent” shall be substituted for “80 percent”
that includes the Company. An Affiliate may elect to participate in this Plan in
accordance with Section 9.5 and such election may
be approved by the Company.

     

    (d) “Appeals Committee” means the committee
appointed to review claims denied by the Administrator and to have such other
discretionary powers and duties as provided by Section 8.3.

     

    (e) “Beneficiary” means one or more persons, trust,
estates or other entities, designated in accordance with Article 5, that are entitled to receive benefits under
this Plan upon the death of a Participant. A Beneficiary is a general unsecured
creditor of the Company or of the Affiliate which maintains the Accounts and
provides any benefits under this Plan.

     

    (f) “Board” means the board of directors of the
Company.

     

    (g) “Bonus Credit” means an amount credited to a
Participant’s Account as provided in Section 3.5(b)(1).

     

    (h) “Change in Control” means any of the
following:

     

      (1) The acquisition by any Person (as such term is
used in Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the
“Exchange Act”), as amended) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more (twenty
five percent (25%) if such Person proposes any individual for election to the
Board or any member of the Board is a representative of such Person) of either
(i) the then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
Directors (the “Outstanding Company Voting Securities”); provided, however, that
the following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company (excluding an acquisition by virtue of the
exercise of a conversion privilege); (ii) any acquisition by the Company; (iii)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; or (iv)
any acquisition by any corporation pursuant to a reorganization, merger or
consolidation (collectively “Reorganization”) if, following such Reorganization
the conditions described in clauses (i), (ii), and (iii) of paragraph (3) of
this Subsection (h) are satisfied; or

     

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        2

        
          

        

      

      
         

      

    

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

     

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

     

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

     

    (i) “Code” means the Internal Revenue Code of 1986,
as amended and any regulations or other guidance promulgated
thereunder.

     

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    (j) “Committee” means the Compensation Committee of
the Board.

     

    (k) “Company” means FirstEnergy Corp., an Ohio
corporation.

     

    (l) “Corporate Secretary” means the Corporate
Secretary of FirstEnergy Corp.

     

    (m) “Default” means a failure by the Company or
Affiliate to contribute to the Trust, within thirty (30) days of receipt of
written notice from its trustee, any of the following amounts:

     

      (1) The full amount of any insufficiency in assets
of the Trust or any subtrust of the Trust that is required to pay any Plan
benefit payable by the trustee pursuant to directions by the Administrator or
disputed by the Administrator after a Special Circumstance and determined by the
trustee to be payable; or

     

      (2) Any contribution which is then required to be
made by the Company or Affiliate to the Trust or any subtrust of the
Trust.

     

    If, after the occurrence of a Default, the
Company or Affiliate at any time cures such Default by contributing to the Trust
all amounts which are then required under paragraphs (1) and (2) above, it shall
then cease to be deemed that a Default has occurred or that a Special
Circumstance has occurred by reason of such Default.

    

    (n) “Deferred Fee Account” means a bookkeeping
account established by the Company or an Affiliate which maintains record of
deferred Director’s Fees including expenses and earnings, gains and losses. All
amounts credited to a Director’s Deferred Fee Account shall constitute a
general, unsecured liability of the Company or of the Affiliate for which the
Director serves when Director’s Fees are deferred.

     

    (o) “Deferred Stock Fund” means an Investment Fund
which is deemed to be invested in FirstEnergy Corp. common stock.

     

    (p) “Director” means a member of the Board, a
member of the board of directors of any Affiliate and any individual designated
as a Director by the Committee incident to a merger of or acquisition by the
Company of an Affiliate. A Director may not be an employee of the Company or any
Affiliate.

     

    (q) “Director’s Fees” means the equity retainer
fees, cash retainer fees, meeting fees, chairperson fees, and any additional
annual cash retainer for a non-employee Chairman of the Board, payable for
services as a Director whether payable in cash or in equity
instruments.

     

    (r) “Disability” means a period of disability
during which the Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected
to last for a continuous period of not less than twelve (12) months. A
Participant shall not be considered to be Disabled unless he or she furnishes
proof of the existence of Disability in the form and manner as required by the
Administrator.

     

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    (s) “Financial Hardship” means a severe financial
hardship to the Participant resulting from a sudden and unexpected illness or
accident of the Participant, the Participant’s spouse, or of a Participant’s
dependent (as defined in Code Section 152 without regard to sections 152(b)(1),
(b)(2) and (d)(1)(B)), loss of the Participant’s property due to casualty, or
other extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. Financial Hardship shall be
determined by the Administrator on the basis of information supplied by the
Participant to the Administrator.

     

    (t) “Investment Fund” means an investment fund in
which Accounts may be deemed to be invested. An Investment Fund may be any
open-ended fund, closed-end fund, a fund which is deemed to be invested in a
particular stock or other investment, or a fund which credits a fixed or
variable interest rate determined by the Committee.

     

    (u) “Participant” means a Director or former
Director who is owed a benefit under this Plan. A Participant is a general
unsecured creditor of the Company or of the Affiliate which maintains the
Accounts and provides any benefits under this Plan.

     

    (v) “Plan” means the FirstEnergy Corp. Deferred
Compensation Plan for Outside Directors.

     

    (w) “Plan Year” means the period beginning on each
January 1 and ending on the following December 31.

     

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

     

      (1) Any Person (as defined in Section 13(d)(3) of
the Exchange Act) other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company, delivers to the Company a
statement containing the information required by Schedule 13 D under the
Exchange Act, or any amendment to any such statement (or the Company becomes
aware that any such statement or amendment has been filed with the Securities
and Exchange Commission pursuant to applicable Rules under the Exchange Act),
that shows that such Person has acquired, directly or indirectly, the beneficial
ownership of (i) more than twenty percent (20%) of any class of equity security
of the Company entitled to vote as single class in the election or removal from
office of directors, or (ii) more than twenty percent (20%) of the voting power
of any group of classes of equity securities of the Company entitled to vote as
a single class in the election or removal from office of directors;

     

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

     

      (3) Any Person delivers to the Company pursuant to
Rule 14d-3 under the Exchange Act 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);

     

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        5

        
          

        

      

      
         

      

    

    

     

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

     

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

     

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

     

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

     

    Notwithstanding the foregoing, a Potential
Change in Control shall not be deemed to occur as a result of any event
described in paragraphs (1) through (6) above, if a number of directors (who
were serving on the Board immediately prior to such event and who continue to
serve on the Board) equal to a majority of the members of the Board as
constituted prior to such event determines that the event shall not constitute a
Potential Change in Control.

    

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

    

    A Potential Change in Control may occur only
with respect to the Company. A change in ownership of common stock of an
Affiliate or subsidiary, change in membership of a board of directors of an
Affiliate or subsidiary, the sale of assets of an Affiliate or subsidiary, or
any other event described in this Subsection (x) that occurs only with respect
to an Affiliate or subsidiary does not constitute a Change in
Control.

    

    (y) “Retirement” means (i) with respect to amounts
that were vested and accrued as of December 31, 2004 including earnings, gains
and losses credited thereon after that date, a Separation from Service on or
after the attainment of age sixty-nine (69), and (ii) with respect to amounts
that accrue and vest after December 31, 2004 including earnings, gains and
losses credited thereon after that date, a Separation from Service on or after
the attainment of age fifty-five (55).

     

    (z) “Separation” means (i) with respect to amounts
that were accrued and vested as of December 31, 2004 including earnings, gains
and losses credited thereon after that date, a Separation from Service prior to
age sixty-nine (69); and (ii) with respect to amounts that accrue and vest after
December 31, 2004 including earnings, gains and losses credited thereon after
that date, a Separation from Service prior to age fifty-five (55).

     

    (aa) “Separation from Service” means the expiration
of all contracts under which the Director performs services for the Company and
any Affiliate where expiration constitutes a good faith and complete termination
of the contractual relationship.

     

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        6

        
          

        

      

      
         

      

    

    (bb) “Special Circumstance” means a Change in
Control, a Potential Change in Control, or a Default.

     

    (cc) “Transfer Account” means a bookkeeping account
established by the Company or an Affiliate which maintains record of deferred
Directors’ Fees transferred from another plan including expenses and earnings.
All amounts credited to a Directors’ Transfer Account shall constitute a
general, unsecured liability of the Company or of the Affiliate for which the
Director serves.

     

    (dd) “Trust” means the FirstEnergy Corp. Trust for
Outside Directors.

     

    (ee) “Year of Service” means a period of time
commencing on a date during a calendar year and ending on the day immediately
preceding such date in the subsequent calendar year throughout which an
individual serves as a Director. A Year of Service shall commence for specified
purposes such as vesting of the Bonus Credit under Section 3.5(b)(2) on the date as set forth in the
Plan.

     

    

    ARTICLE
2  — DEFERRALS

     

    

    2.1   Written Election to
Defer Fees

     

    A Director may elect, by notice to the Company,
either in writing or through electronic means approved by the Committee, given
on or before December 31, to defer receipt of all or any specified part of his
or her Director’s Fees earned for services performed during the calendar year
next following his or her election to defer.

    

    2.2   Election Upon
Becoming a Director

     

    Any person who becomes a Director and who was
not a Director on the preceding December 31 may elect, by notice to the Company,
either in writing or through electronic means approved by the Committee, given
within thirty (30) days after becoming a Director, to defer receipt of all or
any specified part of his or her Director’s Fees earned for services performed
subsequent to such election and for the balance of that calendar
year.

    

    2.3   Election
Irrevocable

     

    An election to defer Director’s Fees shall be
irrevocable as of December 31 preceding the Plan Year for which an election is
made or, in the event of an election made upon becoming a Director pursuant to
Section 2.2, as of the thirtieth (30th) day
after become a Director.

    

    2.4  Transfers from Other
Plans

     

    If permitted by the Committee and the
provisions of this Plan, a Director may transfer his or her benefits from
another nonqualified plan to this Plan as provided in this
Section.

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        7

        
          

        

      

      
         

      

    

    (a) An individual who was a member of a board of
directors of a corporation which is merged into the Company, who was not an
employee of such corporation, who is not an employee of the Company or any
Affiliate, and who is either selected to serve as a member of the Board or
designated as a Director with respect to the Company for purposes of this Plan
by the Committee may elect to transfer his or her benefit under a nonqualified
plan sponsored by the corporation merged into the Company. Any account balance
transferred shall be credited to a Transfer Account established and maintained
under this Plan and shall be a liability of the Company. Any other benefit
transferred shall be identified in Attachment 2.4.

     

    (b) An individual who was a member of a board of
directors of a corporation which is merged into an Affiliate or which is
acquired and becomes an Affiliate, who was not an employee of such corporation,
who is not an employee of the Company or any Affiliate and who is either a
member of the board of directors of an Affiliate after such merger or
acquisition or designated as a Director with respect to an Affiliate for
purposes of this Plan by the Committee may elect to transfer his or her benefit
under a nonqualified plan sponsored by the corporation merged into an Affiliate
or acquired by the Company. Any account balance transferred shall be credited to
a Transfer Account established and maintained under this Plan and shall be a
liability of the Affiliate into which the corporation is merged or which the
corporation becomes. Any other benefit transferred shall be identified in
Attachment 2.4.

     

    (c) Any balance transferred shall become payable
under the terms and conditions of this Plan; provided however, that the
Director’s beneficiary elections made under the plan from which the benefit is
transferred shall continue to be effective under this Plan unless such
designation is amended or changed under the terms of this Plan.

     

    (d) Provisions regarding such transfers and terms
of participation in this Plan by the Director for whom a benefit is transferred
shall be established by the Committee and shall be set forth in Attachment 2.4
of this Plan.

     

    

    ARTICLE 3 — ACCOUNTS
AND INVESTMENT FUNDS

     

    

    3.1   Deferred Fee
Account

     

    Any Director’s Fees earned and deferred while
serving as a member of the Board shall be credited by the Company to the
Participant’s Deferred Fee Account established and maintained by the Company as
of the date the Director’s Fees would otherwise be payable. Any Director’s Fees
earned while serving as a member of the board of directors of an Affiliate shall
be credited by the Affiliate to the Participant’s Deferred Fee Account
established and maintained by such Affiliate as of the date the Director’s Fees
would otherwise be payable.

    

    3.2  Transfer
Account

     

    Any account balances transferred to this Plan
pursuant to Section 2.4 shall be credited to the
Participant’s Transfer Account established and maintained by the Company or the
applicable Affiliate.

    
      
        
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    3.3   Other Accounts and
Subaccounts

     

    The Committee may establish such other Accounts
and subaccounts as it may deem necessary for the administration of the Plan
including subaccounts where the Participant has specified different methods of
payment, or where necessary to maintain the vested portion of a Participant’s
Account. Such Accounts and subaccounts shall be credited in accordance with
procedures adopted by the Committee.

    

    3.4   Investment
Funds

     

    A Participant’s Accounts shall be adjusted for
gains and losses as if the Accounts held assets and such assets were invested in
one or more Investment Funds selected by the Committee. The Investment Funds in
which a Participant is deemed to be invested shall be determined in accordance
with Section 3.5. The Committee shall have sole
discretion in the selection, number and types of Investment Funds for this Plan
and may change or eliminate Investment Funds from time to time in its sole
discretion except that no change may be made that would constitute a material
modification to the Plan under Code Section 409A.

    

    3.5   Credits to
Investment Funds

     

    The Committee shall credit Director’s Fees
deferred under this Plan and transferred from another plan to Investment Funds
in accordance with this Section unless other rules for transferred amounts are
set forth in Attachment 2.4.

    

    (a) Rules and Limitations Regarding Deferrals and
Transfers:

     

      (1) Equity Retainer Fees and Transfers
Distributable only in Stock. Equity retainer fees that are deferred under this
Plan and any account balance transferred directly to this Plan from another plan
in accordance with Section 2.4 where such account
balance may only be distributed in stock from the other plan upon an event
permitting distribution and such stock has been or is to be exchanged for
Company common stock under a plan of merger with the Company shall be credited
to the Deferred Stock Fund.

     

      (2) All Other Deferred Director’s Fees and
Transfers. Unless and until another procedure is established by the Committee
for designation of Investment Funds, a Participant may direct that all deferred
Director’s Fees and transfers except those Director’s Fees and transfers
identified in Section 3.5(a)(1) shall be deemed to
be invested in any one or more of the Investment Funds selected by the
Committee. In the event a Participant does not direct the Investment Funds in
which his or her Accounts are deemed to be invested, the deferrals and transfers
shall be deemed to be invested in an Investment Fund that reflects the
investment performance of a money market fund selected by the
Committee.

     

    
      
        
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    (b) Rules and Limitations Regarding Bonus
Credit:

     

      (1) Bonus Credit.  At the time Director’s
Fees are initially deferred under this Plan and credited for investment into the
Deferred Stock Fund, such Director’s Fees except equity retainer fees shall be
increased by a Bonus Credit equal to twenty percent (20%) of such Director’s
Fees credited to the Deferred Stock Fund. Any account balance transferred to
this Plan from another plan in accordance with Section 2.4 that may be credited
to the Deferred Stock Fund shall not be increased by the Bonus
Credit.

     

      (2) Vesting of Bonus Credit.  A
Participant shall be fully vested in his or her Bonus Credit and all associated
earnings, gains and losses if he or she has three (3) Years of Service from the
date the Bonus Credit is credited to the Participant’s Account. In addition, a
Participant shall be fully vested in his or her Bonus Credit and all associated
earnings, gains and losses if he or she has a Separation from Service due to
death, Retirement, or Disability. Furthermore, a Participant shall be fully
vested in the Bonus Credit and all associated earnings, gains and losses upon a
Special Circumstance or where such Participant has a Separation due to
ineligibility to stand for reelection due to circumstances unrelated to the
Participant’s performance as a Director.

     

      (3) Forfeiture of Bonus Credit.  If a
Participant incurs a Separation for any reason other than the events set forth
in paragraph (2) above, takes an accelerated
distribution under Section 4.2 or withdraws a portion of his Deferred Stock Fund
under Section 4.3, any unvested Bonus Credit attributable to Director’s Fees to
be distributed shall be forfeited.

     

    (c) Rules and Limitations Regarding Transfers Among
Investment Funds:

     

      (1) Deferred Stock Fund.  No amount
credited to the Deferred Stock Fund may be transferred and credited to any other
Investment Fund, and no amount credited to an Investment Fund other than the
Deferred Stock Fund may be transferred and credited to the Deferred Stock
Fund.

     

      (2) All Other Investment Funds.  Any
amount credited to an Investment Fund other than the Deferred Stock Fund may be
transferred and credited to any other Investment Fund except the Deferred Stock
Fund at the direction of the Participant. Any such direction from a Participant
will become effective as of the date it is received by the
Committee.

     

    (d) Investment Fund Performance.  The
earnings, gains and losses of each Investment Fund shall be determined by the
Committee, in its reasonable discretion, based on the performance of the
Investment Funds themselves. The balance of a Participant’s Accounts shall be
credited or debited on a daily basis based on the performance of each Investment
Fund in which a Participants’ Accounts are deemed to be invested, such
performance and the crediting of such performance being determined by the
Committee in its sole discretion.

     

    
      
        
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    (e) Committee Procedures.  The Committee
may establish such rules and procedures as it determines to be appropriate for
the crediting of deferrals and transfers to Investment Funds, for transfers
among Investment Funds and for crediting earnings, gains and losses of an
Investment Fund.

     

    3.6   Reporting

     

    The Company shall provide a statement to each
Director who has any amount credited to his or her Accounts at least
annually.

    

     

    ARTICLE 4 —
PAYMENT TO DIRECTOR

     

    

    4.1   Distribution
Election—Separation from Service

     

    A Participant’s Accounts shall be distributed
upon a Separation from Service in accordance with the Plan and Participants’
elections on file with the Committee. A Participant’s Accounts allocated to
Investment Funds other than the Deferred Stock Fund shall be paid to the
Participant in cash, and the Participant’s Deferred Stock Fund shall be paid in
the form of Company common stock.

    

    (a) Time of Election.  At the time a
Participant makes his or her deferral election pursuant to either Section 2.1 or 2.2 herein, such
Participant shall also make an election as to the time of distribution and form
of payment of benefits by the Plan with respect to that year’s
deferrals.

     

    Notwithstanding the above, distribution
elections made with respect to deferrals made between January 1, 2005 and
December 31, 2007 may be changed no later than December 31, 2007 in accordance
with IRS Notice 2006-79 and Code Section 409A.

    

    (b) Form of Payment.  A Participant may
elect to receive benefits under this Plan in a lump sum or in substantially
equal annual installments over a period not to exceed ten (10) years. In the
absence of an election, such Participant’s Accounts shall be distributed in a
lump sum payment in the calendar year next following the Participant’s
Separation, Retirement, death or Disability but not later than January 31 of
such calendar year.

     

    (c) Time of Payment.  A Participant may
elect to receive benefits under this Plan in the later of:

     

      (1) the taxable year of the Participant next
following the year in which the Participant has a Separation from Service;
or

     

    
      
        
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      (2) the taxable year of the Participant specified
by the Participant, but not later than the taxable year next following the year
the Participant attains age seventy-two (72).

     

      (3) 

     

    Payments under subsection (c)(1) and (2)
shall be made no later than January 31 of the taxable year elected by the
Participant.

     

    (d) Amendment of Grandfathered Distribution
Election.  Solely with respect to Accounts that are accrued and vested
as of December 31, 2004 and deemed earnings, gains and losses credited thereon
after that date, a Participant may change the form and/or time of payment of his
or her Account by filing a new superseding election with the Company at any time
prior to the 120 day period ending on the day prior to the day on which the
Participant is entitled to distribution under this Plan. If a Participant
requests any change in the date of the distribution of his Deferred Stock Fund,
the request must be approved by the Committee.

     

    (e) Amendment of Other Distribution Elections.
Solely with respect to Account balances that accrue and/or vest after December
31, 2004 including deemed earnings, gains and losses credited thereon after that
date, a Participant may change his or her elections regarding the time and/or
form of benefit payment provided:

     

      (1) Such election is submitted to the Committee in
writing at least twelve (12) months prior to the date any amount is to be
distributed from the Plan;

     

      (2) Such election shall not take effect until
twelve (12) months after it is submitted to the Committee in writing;
and

     

      (3) The payment of any benefits under this Plan
shall not commence until at least five (5) years from the date such payment
would otherwise have been made.

     

    (f) Distribution Election of Transfer
Amounts.  Any elections made with respect to benefits transferred from
another nonqualified plan shall be paid and distributed in accordance with the
elections made by the Participant under such plan and such election shall
continue to be in effect under this Plan unless the Participant submits new
elections to the Committee under the provisions and procedures of this Plan. If
such Transfer Amount is subject to the provisions of Code Section 409A, the
elections in effect on the date of transfer shall be irrevocable.

     

    (g) Unvested Bonus Credit. As of January 1, 2005,
the unvested portion of the Bonus Credit shall be segregated from vested Bonus
Credit amounts and distribution of such vested Bonus Credit shall be made
according to the distribution election in effect with respect to the
Participant’s Deferred Stock Fund that was accrued and vested on December 31,
2004. This election may be changed in accordance with subsection (e)
above.

     

    
      
        
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    4.2   Accelerated
Distribution

     

    Solely with respect to Account balances that
were accrued and vested as of December 31, 2004 and deemed earnings, gains and
losses credited thereon after that date, a Participant may at any time request
an accelerated distribution of his or her Accounts, subject to a ten percent
(10%) penalty and, if applicable, forfeiture of the Bonus Credit and associated
deemed earnings described above if the Bonus Credit is not fully vested as
provided by Section 3.5(b)(2). The ten percent (10%) penalty is imposed after
any forfeiture of the Bonus Credit and associated deemed earnings. Such a
request must be made in writing, in a form and manner specified by the
Administrator. If the request is approved by the Administrator, the Company will
distribute to the Participant the entire balance of his or her Accounts minus
any forfeitures and minus the ten percent (10%) penalty as a lump sum within
ninety (90) days after the end of the month in which the Administrator receives
the request. Such distribution shall completely discharge the Company and the
applicable Affiliate from all liability with respect to the Participant’s
Accounts. When a Participant elects to receive a distribution pursuant to this
Section, such Participant shall not be permitted to elect to defer in the Plan
Year following the year in which the Participant receives such
distribution.

    

    4.3    Withdrawal

     

    (a) Solely with respect to Account balances that
were accrued and vested as of December 31, 2004 and deemed earnings, gains and
losses credited thereon after that date, a Participant who has deferred
Director’s Fees under this Plan for five (5) full years may request to withdraw
a portion of the amounts credited to his or her Accounts subject to forfeiture
of the Bonus Credit and associated deemed earnings and losses as provided by
Section 3.5(b)(3). The requisite full years of
deferral to request a withdrawal need not be consecutive but may be
intermittent. Amounts credited to the Deferred Stock Fund will be distributed
only after amounts credited to all other Investment Funds are distributed. Such
request must be made in writing in a form and manner specified by the
Administrator and must specify the amount to be withdrawn and the future date or
dates to be paid. The date(s) must be no earlier than the first of a month in
the second calendar year following the calendar year in which the request was
made. The request will be irrevocable after December 31 of the calendar year in
which it is made unless, prior to payment, the Participant separates from the
Board or the board of directors of an Affiliate, or a Special Circumstance
occurs. In these instances, the request will become null and void and the
Account Balance will be paid as elected by the Participant pursuant to Section
4.2 or as provided in Section 4.5. If the request is approved by the Administrator,
the Company will distribute to the Director the balance of his or her Accounts
except the portion credited to the Deferred Stock Fund as a lump sum within
ninety (90) days after the end of the month in which the Administrator receives
the request and will distribute to the Director the balance of his or Accounts
credited to the Deferred Stock Fund minus any forfeitures in Company common
stock in an administratively reasonable period of time.

     

    
      
        
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    (b) Solely with respect to Account balances that
accrue and/or vest after December 31, 2004 including deemed earnings, gains
and losses credited thereon after that date, a Participant may, at the time such
Participant makes a deferral election pursuant to Sections 2.1 or 2.2, elect to
withdraw all or a portion of such deferred Director’s Fees plus deemed earnings,
gains and losses and vested Bonus Credit on a specified date provided such date
is no earlier than the second January 1 following the Plan Year to which
the deferral election applies. A Participant may elect to withdraw amounts
allocated to Investment Funds other than the Deferred Stock Fund, amounts
allocated to the Deferred Stock Fund, or all Investment Funds. The Account
balance for a Plan Year that is allocated to the Investment Funds other than the
Deferred Stock Fund shall be distributed prior to a distribution from the
Deferred Stock Fund. Distributions pursuant to this Subsection (b) shall be made
in a single lump sum within ninety (90) days after the date selected by the
Participant. In the event a Participant receives a distribution from the
Deferred Stock Fund and the associated Bonus Credit is not yet vested, such
Bonus Credit shall be forfeited as of the date the Deferred Stock Fund is
distributed to the Participant.

     

    4.4    Financial Hardship
Distributions

     

    Notwithstanding any other provision of the Plan
and solely with respect to Account balances that accrue and/or vest after
December 31, 2004 including deemed earnings, gains and losses credited thereon
after that date, payment from the Participant’s Account may be made to the
Participant, in the sole discretion of the Administrator, by reason of Financial
Hardship. Such payment shall not exceed the amount necessary to satisfy such
emergency plus amounts necessary to pay taxes reasonably anticipated as a result
of the distribution after taking into account the extent to which such hardship
is or may be relieved through reimbursement or compensation by insurance or
otherwise or by liquidation of the Participant’s assets, to the extent such
liquidation would not itself cause severe financial hardship. If such a
distribution is made, the Participant’s deferral elections for the Plan Year in
which the distribution is made shall be void and such Participant shall not be
eligible to defer Director’s Fees until the next Plan Year. Payment shall be
made in a single lump sum within thirty (30) days after the date the Financial
Hardship is approved by the Administrator. Distributions shall be made first
from the Investment Funds other than the Deferred Stock Fund and then from the
Deferred Stock Fund, excluding the Bonus Credit.

    

    4.5   Special
Circumstance

     

    Solely with respect to deferrals that were
accrued and vested as of December 31, 2004 and deemed earnings, gains and losses
credited thereon after that date, in the instance of a Special Circumstance, all
balances in Investment Funds other than the Deferred Stock Fund shall be paid
out immediately in cash as a lump sum and the balance of the Deferred Stock Fund
shall be distributed in Company common stock in an administratively reasonable
period of time. A Participant may elect to receive distribution from this Plan
in a distribution payment otherwise permitted by this Plan if such election is
made more than 120 days prior to the Special Circumstance.

    
      
        
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    Solely with respect to Account balances that
accrue and/or vest after December 31, 2004 and deemed earnings, gains and losses
credited thereon after that date, in the event of a Change in Control that would
also qualify as a change in control event under Code Section 409A(a)(2)(A)(v),
all balances in Investment Funds shall be paid out pursuant to the Participants’
elections not more than ninety (90) days after the Change in Control. This
paragraph shall only apply if all other plans, programs and arrangements
sponsored by the Company or its Affiliates that must be aggregated pursuant to
Code Section 409A are terminated and liquidated within twelve (12) months of the
Change in Control.

    

    4.6   Small
Accounts

     

    Notwithstanding anything herein to the
contrary, if, on the date of the Participant’s Separation, Retirement, death or
Disability, such Participant’s Account balance with respect to amounts that
accrue and/or vest after December 31, 2004 including deemed earnings, gains and
losses credited thereon after that date (plus any amounts that are aggregated
with this Plan under Code Section 409A) are worth less that the then-current
Code Section 402(g)(1)(B) limit, such Accounts shall be paid in a lump sum in
the next following calendar year, but not later than January 31 of such calendar
year, regardless of any elections the Participant may have
made.

    
      
        
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    ARTICLE 5 —
BENEFICIARY

     

    

    5.1   Beneficiary
Designation

     

    Each Participant shall have the right, at any
time, to designate his or her Beneficiary(ies) to receive any benefits payable
under the Plan upon his or her death. A Participant shall designate his or her
Beneficiary by completing and signing a Beneficiary designation form and
returning it to the Committee.

    

    5.2   Distribution
Election

     

    The Participant shall designate, in his or her
initial deferral election made after becoming a Director, the time and the
manner of payment to the Beneficiary, which may be either (a) in a lump sum as
soon as practicable after the date of death, but not later than ninety (90) days
after Participant’s date of death; (b) in a lump sum in the calendar year
following the date of the Participant’s death but not later than January 31 of
such calendar year; or (c) in one or more annual payments the last of which may
occur no later than January 1 of the fifth year following the year in which the
death occurred. In the absence of an election, benefits shall be paid to the
Beneficiary pursuant to (a) above. Such election may be changed by a Participant
at any time and will become effective twelve (12) months after the date it is
received by the Committee.

    

    Amounts credited to the Deferred Stock Fund
shall be distributed in Company common stock. In the event the Participant
designates distribution in the form of two or more annual payments, a pro rata
portion shall be distributed from each Investment Fund in which the
Participant’s Accounts are credited.

    

    5.3   Change of
Beneficiary

     

    A Participant shall have the right to file a
new Beneficiary designation form. Upon acceptance of a new Beneficiary
designation form, all Beneficiary designations previously filed shall be
cancelled as of the date of the new Beneficiary designation form.

     

    5.4   Payment of Benefit
upon Death

     

    Upon the death of a Participant prior to the
distribution of the entire balance credited to the Participant’s Accounts,
benefits shall be paid to the Beneficiary or Beneficiaries designated by the
Participant in writing filed with the Administrator. In the event that a
Participant fails to designate a Beneficiary or, if all designated Beneficiaries
predecease the Participant or die prior to complete distribution of the
Participant’s benefits, then the Participant’s benefits under this Plan shall be
distributed to his or her surviving spouse. If the Participant has no surviving
spouse, the benefits remaining under the Plan to be paid shall be paid to the
executor or personal representative of the Participant’s
estate.

    
      
        
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    ARTICLE 6 —
ASSIGNMENT

     

    

    Except to the extent that a Participant may
designate a Beneficiary to receive any payment to be made following his or her
death and except by will or the laws of descent and distribution, no rights or
benefits under this Plan shall be assignable or transferable, or subject to
encumbrance or charge of any nature.

    

    

    ARTICLE 7 —
ADMINISTRATION

     

    

    7.1   Administrator

     

    Unless another Administrator is selected by the
Board or until a Change in Control, this Plan shall be administered by the
Committee. Except as otherwise provided by action of the Board or the terms of
the Plan: (a) a majority of the members of the Committee shall constitute a
quorum for the transaction of business, and (b) all resolutions or other actions
taken by the Committee at a meeting shall be by the vote of the majority of the
Committee members present, or, without a meeting, by an instrument in writing
signed by all members of the Committee. A Committee member may not vote on any
matter which directly affects only his or her benefit under the
Plan.

    

    Upon and after the occurrence of a Change in
Control, however, the “Administrator” shall be at least three (3) independent
third parties selected by the individual who, immediately prior to such event,
was the Company’s Chief Executive Officer or, if not so identified, the
Company’s highest ranking officer (the “Ex-CEO”); provided, however, the
Committee, as constituted immediately prior to a Change in Control, shall
continue to act as the Administrator for this Plan until the date on which the
independent third parties selected by the Ex-CEO accept the responsibilities as
the Administrator of this Plan. Upon and after a Change in Control, the
Administrator shall have all discretionary authorities and powers granted to the
Administrator under this Plan including the discretionary authority 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 must:
(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 Account balances of the Participants,
the date and circumstances of the Retirement, Disability, death or Separation
from Service of the Participants, and such other pertinent information as the
Administrator may reasonably require. Upon and after a Change in Control, a
person serving as a member of the committee acting as Administrator may only be
removed (and a replacement may only be appointed) by the
Ex-CEO.

    
      
        
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    7.2   Powers of
Administrator

     

    The Administrator shall have the full
discretion and authority to administer the Plan including the discretion and
authority to construe, interpret, and apply this Plan, and to render
nondiscriminatory rulings or determinations. All questions regarding the Plan,
as well as any dispute over accounting or administrative procedures or
interpretation of the Plan, shall be resolved at the sole discretion of the
Administrator. Constructions, interpretations, and decisions of the
Administrator shall be conclusive and binding on all persons. The Administrator
shall also have the discretion and authority to make, amend, interpret, and
enforce all appropriate rules and regulations for the administration of this
Plan. Any individual serving on a committee acting as Administrator who is a
Participant shall not vote or act on any matter relating solely to himself or
herself. When making a determination or calculation, the Administrator shall be
entitled to rely on information furnished by a Participant or the
Company.

    

    7.3    Delegation

     

    The Committee may delegate all or any duties,
discretions and responsibilities under this Plan to the Corporate
Secretary.

    

    

    ARTICLE 8 —
CLAIMS

     

    

    8.1   Claim

     

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

    

    8.2    Initial Claim
Review

     

    In the case of a claims regarding Disability,
the Administrator will make a benefit determination within forty-five (45) days
of its receipt of an application for benefits. This period may be extended up to
an additional thirty (30) days, if the Administrator provides the Claimant with
a written notice of the extension within the initial forty-five (45)-day period.
The extension notice will explain the reason for the extension and the date by
which the Administrator expects a decision will be made. The Administrator may
obtain a second thirty (30)-day extension by providing you written notice of
such second extension within the thirty (30)-day extension. The second extension
notice must include an explanation of the special circumstances necessitating
the second extension and the date by which the Administrator’s decision will be
made. If the extension is necessary because additional information is needed to
decide the claim, the extension notice will describe the required information.
The Claimant will have forty-five (45) days after receiving the extension notice
to provide the required information.

    
      
        
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    In the case of all other claims, the
Administrator 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 Administrator 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 Administrator expects a decision will be made.

    

    The Administrator 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 Administrator 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 8.3.

    

    8.3   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 one hundred eighty (180) days in which to request a review of a claim
regarding Disability, and will have sixty (60) days in which to request a review
of all other claims. The request must be in writing and delivered to the Appeals
Committee. If no such review is requested, the initial decision of the Appeals
Committee will be considered final and binding.

    
      
        
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    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
Appeals Committee may not participate in the review of his or her own claim. In
addition, if the Claimant requests a review, a member of the Committee who is a
subordinate of the original decision maker shall not participate in the review
of the claim. The review will not defer to the initial adverse determination. If
the denial was based in whole or in part on a medical judgment, the Appeals
Committee will consult with an appropriate health care professional who was not
consulted in the initial determination of his or her claim and who is not the
subordinate of someone consulted in the initial determination. Names of the
health care professionals will be available on request.

    

    Upon receipt of a request for review, the
Appeals 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 Appeals 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
Appeals Committee to hear appeals for a full and fair review of the
Administrator’s initial decision. The Claimant may indicate in writing at the
time the Appeals 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 Appeals 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 Appeals Committee will notify the Claimant
of its decision following the reviews. In the case of a claim regarding
Disability, the Appeals Committee will render its final decision within
forty-five (45) days of receipt of an appeal or such shorter period as may be
required by law. If the Appeals 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 Appeals Committee expects a
decision will by made. The extended date may not exceed ninety (90) days after
the date of the filing of the appeal.

    

    In the case of all other claims, the Appeals
Committee will render its final decision within sixty (60) days of receipt of an
appeal. If the Appeals 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 Appeals 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

    
      
        
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    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.

     

    8.4   Review of Claims on
and after a Change in Control.

     

    Upon and after the
occurrence of a Change in Control, the Appeals Committee, as constituted
immediately prior to a Change in Control, shall continue to act as the Appeals
Committee. The Appeals Committee shall have responsibility and the discretionary
authority to review 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 Appeals Committee under this Plan including
the discretionary authority to determine all questions arising in connection
with the review of a denied claim as provided in this Section. Upon and after
the occurrence of a Change in Control, the Company must: (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 Account balances of the Participants, the date and
circumstances of the Retirement, Disability, death, Separation or Separation
from Service 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.

    

    
      
        
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    ARTICLE 9 —
AMENDMENT, TERMINATION AND PARTICIPATION

     

    

    9.1   Amendment by
Board

     

    Prior to a Special Circumstance and solely with
respect to amounts deferred and vested as of December 31, 2004 and earnings,
gains and losses credited thereon after that date, the Board may from time to
time, amend, suspend, terminate or reinstate any or all of the provisions of
this Plan, retroactive or otherwise, except that no amendment, suspension,
termination or reinstatement shall adversely affect the Accounts or benefits
under this Plan of any Participant as they existed immediately before the
amendment, suspension, termination, merger or reinstatement or the manner of
payments, unless the Participant shall have consented in writing. In addition,
no amendment, suspension, termination or reinstatement shall be made that would
constitute a material modification of the Plan under Code Section 409A after
October 2, 2004.

    

    Prior to a Special Circumstance and solely with
respect to amounts that accrue and/or vest after December 31, 2004 and earnings,
gains and losses credited thereon after that date, the Board may from time to
time amend, suspend, or reinstate any or all of the provisions of this Plan,
retroactive or otherwise, provided such amendment, suspension or reinstatement
does not violate Code Section 409A nor adversely affect the Accounts or benefits
under this Plan of any Participant as they existed immediately before the
amendment, suspension or reinstatement or the manner of payments, unless the
Participant shall have consented in writing.

    

    9.2   Termination by the
Company

     

    Prior to a Special Circumstance, the Board may
at any time terminate this Plan and/or transfer its liabilities under this Plan
to a similar plan it may establish. Upon the termination of this Plan, amounts
credited to the Accounts of Participants and benefits transferred shall continue
to be payable to those Participants in accordance with the terms of this Plan
except as provided in Section 9.4 herein. Upon termination of this Plan, if the
Board should transfer its liabilities to another plan, such transfer of
liabilities shall not adversely affect the Accounts or benefits of any
Participant as they existed immediately prior to a transfer authorized by the
Board or the manner of payments, unless the Participant shall have consented in
writing. In addition, any transfer of liabilities of this Plan shall not affect
the liability of the Company or any Affiliate responsible to pay the benefit
represented by the Account Balance.

    

    9.3   Automatic Cessation
of Bonus Credit and Dividends

     

    Unless the Plan is terminated by the Company
prior to the following, the crediting of the 20% Bonus Credit and dividend
equivalent features of this Plan with respect to Company common stock will
automatically cease on May 17, 2014 or earlier if the maximum share reserve of
500,000 shares of Company common stock is reached, unless shareholders reapprove
these features the earlier of the prior date or prior to the depletion of the
maximum share reserve.

    
      
        
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    9.4   Distribution of
Benefits on Plan Termination

     

    In the event the Board elects to terminate the
Plan as provided under Section 9.2:

    

    (a) With respect to Accounts that accrued and
vested as of December 31, 2004 and notwithstanding any other provisions of the
Plan, if the Plan is terminated, no subsequent Director’s fees may be deferred
under this Plan as of the January 1 next following the date of termination. Upon
termination, if the liabilities of this Plan are not transferred to another
plan, the Director’s Accounts shall continue to be credited with deemed earnings
as provided in Section 3.4, and the entire balance in the Account Balance shall
become payable to the Participant in accordance with the provisions of this Plan
and deferral elections regarding the time and form of payment in effect at the
date of termination.

     

    (b) Solely with respect to Account balances that
accrue and/or vest after December 31, 2004, including deemed earnings,
gains and losses credited thereon after that date, no right to the payment of
benefits shall arise as a result of a Plan Termination;

     

    (c) The Board may, in its discretion, provide by
amendment to the Plan a right to the payment of all such Account balances as a
result of the liquidation and termination of the Plan where:

     

      (1) The termination and liquidation does not occur
proximate to a downturn in the financial health of the Company and the
participating Affiliates;

     

      (2) The Plan and all arrangements required to be
aggregated with the Plan under Code Section 409A are terminated and
liquidated;

     

      (3) no payments, other than those that would be
payable under the terms of the Plan and the aggregated arrangements if the
termination and liquidation had not occurred, are made within twelve (12) months
of the date the Company takes all necessary action to irrevocably terminate and
liquidate the Plan;

     

      (4) All payments are made within twenty-four (24)
months of the date the Company takes all necessary action to irrevocably
terminate and liquidate the Plan; and

     

      (5) The Company and the Affiliates do not adopt a
new arrangement that would be aggregated with any terminated arrangement under
Code Section 409A, at any time within three (3) years following the date the
Company takes all necessary action to irrevocably terminate and liquidate the
Plan.

     

    (d) Similarly, the Company may, in its discretion,
provide by amendment to liquidate and terminate the Plan where the termination
and liquidation occurs within twelve (12) months of a corporate dissolution
taxed under Code Section 331, or with the approval of a bankruptcy court
pursuant to 11 United States Code Section 503(b)(1)(A), provided that all
amounts deferred under the Plan are included in the Participants’ gross incomes
in the latest of the following years (or, if earlier, the taxable year in which
the amount is actually or constructively received):

     

    
      
        
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      (1) The calendar year in which the termination
occurs;

     

      (2) The calendar year in which the amount is no
longer subject to a substantial risk of forfeiture; or

     

      (3) The first calendar year in which the payment is
administratively practicable.

        

    9.5   Participation by
Affiliates

     

    Affiliates may participate in this Plan as
provided in this Section.

    

    (a) An Affiliate may adopt this Plan with the
consent of the Company. The Affiliate shall be liable for the payment of any
benefit of a Participant whose benefits under the Plan relate to Director’s Fees
deferred while serving on the board of directors of the Affiliate or which are
transferred to this Plan by the Participant. Neither the Company nor any other
Affiliate shall have any liability for such benefits.

     

    (b) Each Affiliate, by adopting the Plan, appoints
the Company as its agent and fully empowers the Company to act on behalf of all
Affiliates as it may deem appropriate in maintaining or terminating the Plan.
The adoption by the Company of any amendment to the Plan or the termination of
all or any part of the Plan will constitute and represent, without further
action on the part of any Affiliate, the approval, adoption, ratification or
confirmation by each Affiliate of any such amendment or termination and each
Affiliate shall be bound by such amendment or termination.

     

    (c) An Affiliate may cease participation in the
Plan only upon approval by the Company and only in accordance with such terms
and conditions that may be required by the Company.

    

    

    ARTICLE 10 —
UNFUNDED PLAN

     

    

    10.1        Bookkeeping
Entries

     

    The Accounts maintained for purposes of this
Plan shall constitute bookkeeping records of the Company or the applicable
Affiliate and shall not constitute any allocation of any assets of the Company
or Affiliate or be deemed to create any trust or special deposit with respect to
any of the assets of the Company or any Affiliate. Neither the Company nor any
Affiliate shall be under any obligation to any Participant to acquire, segregate
or reserve any funds or other assets for purposes relating to this Plan. No
Participant shall have any rights whatsoever in or with respect to any funds or
other assets owned or held by the Company or any Affiliate. The rights of an
Participant under this Plan are solely those of a general creditor of the
Company or any Affiliate to the extent of the amount credited to his or her
Accounts with the Company or the applicable Affiliate and this Plan is a mere
promise to pay benefits to the Participants.

    
      
        
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    10.2        Trusts, Insurance
Contracts or Other Investment

     

    The Company or the Affiliates may, in their
respective discretion, establish one or more trusts, purchase one or more
insurance contracts or otherwise invest or segregate funds for purposes relating
to this Plan, but the assets of such trusts, rights and assets of such insurance
contracts or otherwise invested or held in segregated funds shall at all times
remain subject to the claims of the general creditors of the Company and any
Affiliate as provided in such trust or contract except to the extent and at the
time any payment is made to an Participant under this Plan.

    

    

    ARTICLE 11—
MISCELLANEOUS

     

    

    11.1        Severability

     

    The invalidity or unenforceability of any
particular provision of this Plan shall not affect any other provision, and the
Plan shall be construed in all respects as if invalid or unenforceable
provisions were omitted.

    

    11.2        Liability for
Benefits

     

    Except as otherwise agreed in writing,
liability for the payment of a Participant’s benefit under this Plan shall be
borne solely by the Company or the participating Affiliate for which the
Participant served as a Director during the accrual or increase in the benefit.
No liability for the payment of any benefit shall be incurred by reason of Plan
sponsorship or participation except for benefits incurred by the Company for its
Directors and for benefits incurred by an Affiliate for its Directors. Nothing
in this Section shall be interpreted as prohibiting the Company or any
participating Affiliate from expressly agreeing in writing to the assumption of
liability or the guarantee of payment of any benefit under this
Plan.

    

    11.3        Applicable
Law

     

    This Plan shall be construed and governed in
accordance with the laws of the State of Ohio without giving effect to
principles of conflicts of laws.

    

    11.4       
Not a
Contract

     

    The terms and conditions of this Plan shall not
be deemed to constitute a contract for services between the Company or any
Affiliate and the Participant. A Director is retained on an “at will”
relationship that can be terminated at any time for any reason, or no reason,
with or without cause, and with or without notice, unless expressly provided in
a written agreement. Nothing in this Plan shall be deemed to give a Participant
the right to be retained as a Director of the Company and any
Affiliate.

    
      
        
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    11.5       
Successors

     

    The provisions of this Plan shall bind and
inure to the benefit of the successors and assigns of the Company and each
Affiliate.

    

    11.6        Distribution under
Terms of the Trust or in the Event of Taxation

     

    (a) If the Trust terminates in accordance with its
terms and benefits accrued and vested as of December 31, 2004 are distributed
from the Trust to a Participant in accordance therewith, the Participant’s
benefits accrued and vested as of December 31, 2004 and deemed earnings, gains
and losses thereon credited after that date under this Plan shall be reduced to
the extent of such distributions.

     

    (b) If, for any reason, all or any portion of a
Participant’s benefits attributable to deferrals accrued and vested as of
December 31, 2004 and earnings, gains and losses thereon credited after that
date under this Plan becomes taxable to the Participant prior to receipt, a
Participant may petition the Committee before a Special Circumstance, or the
trustee of the Trust after a Special Circumstance, for a distribution of that
portion of his or her benefit that has become taxable. Upon the grant of such a
petition, which grant shall not be unreasonably withheld (and, after a Special
Circumstance, shall be granted), the Company or applicable Affiliate shall
distribute to the Participant immediately available funds in an amount equal to
the taxable portion of his or her benefit. If the petition is granted, the tax
liability distribution shall be made within ninety (90) days of the date when
the Participant’s petition is granted. Such a distribution shall affect and
reduce the benefits to be paid under this Plan.

     

    (c) If this Plan fails to meet the requirements of
Code Section 409A and causes any amounts deferred and/or which became vested
after December 31, 2004 to be included in a Participant’s income prior to
distribution, the Participant shall be paid the amount required to be included
in income as a result of the failure to comply with Code Section 409A and the
Participant’s benefits under this Plan shall be reduced to the extent of such
distributions.

     

    11.7        
Insurance

     

    The Company and the Affiliates, on their own
behalf or on behalf of the trustee of the Trust, and, in their sole discretion,
may apply for and procure insurance on the life of the Participant, in such
amounts and in such forms as the Trust may choose. The Company, the Affiliates
or the trustee of the Trust, as the case may be, shall be the sole owner and
beneficiary of any such insurance. The Participant shall have no interest
whatsoever in any such policy or policies, and at the request of the Company or
an Affiliate shall submit to medical examinations and supply such information
and execute such documents as may be required by the insurance company or
companies to whom the Company or Affiliate have applied for
insurance.

    
      
        
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    11.8        Legal
Representation

     

    The Company and each Affiliate is aware that
upon the occurrence of a Change in Control, the Board or the board of directors
of an Affiliate (which might then be composed of new members) or a shareholder
of the Company or an Affiliate, or of any successor corporation might then cause
or attempt to cause the Company, an Affiliate or successor to refuse to comply
with its obligations under the Plan and might cause or attempt to cause the
Company or an Affiliate to institute, or may institute, litigation seeking to
deny Participants the benefits intended under the Plan. In these circumstances,
the purpose of the Plan could be frustrated. Accordingly, if, following a Change
in Control, it should appear to any Participant that the Company, an Affiliate
or any successor corporation has failed to comply with any of its obligations
under the Plan or, if the Company, an Affiliate or any other person takes any
action to declare the Plan void or unenforceable or institutes any litigation or
other legal action designed to deny, diminish or to recover from any Participant
the benefits intended to be provided, then the Company and the applicable
Affiliate irrevocably authorize such Participant to retain legal counsel of his
or her choice at the expense of the Company and the Affiliate (which shall be
jointly and severally liable) to represent such Participant in connection with
the initiation or defense of any litigation or other legal action, whether by or
against the Company, an Affiliate or any director, officer, shareholder or other
person affiliated with the Company, an Affiliate or any successor thereto in any
jurisdiction. The Company and the Affiliate shall pay all attorney fees and all
expenses and costs that are incurred by the Participant during the twenty-year
period commencing on the date of the Change in Control and that relate to the
collection of benefits under this Plan or to defending against the recovery of
any benefits paid by this Plan. If the Participant elects to pay such fees,
expenses and costs, then the Company and the Affiliate shall reimburse the
Participant. The reimbursement of an eligible fee, expense or cost shall be made
on or before the last day of the Participant’s taxable year following the
taxable year in which the expense was incurred. The amount paid or reimbursed
during a Participant’s taxable year shall not affect the payments made in any
other taxable year of the Participant. The right to payment or reimbursement of
such legal fees, expenses and costs is not subject to liquidation or exchange
for another benefit.

    

    11.9       
Code
Section 409A

     

    Notwithstanding anything to the contrary in the
provisions of this Plan regarding the benefits payable hereunder and the time
and form thereof, this Plan is intended to meet any applicable requirements of
Code Section 409A and this Plan shall be construed and administered in
accordance with Section 409A of the Code, Department of Treasury regulations and
other interpretive guidance issued thereunder, including without limitation any
such regulations or other guidance that may be issued after the Effective Date.
In the event that the Company determines that any provision of this Plan or the
operation thereof may violate Section 409A of the Code and related Department of
Treasury guidance, the Company may in its sole discretion adopt such amendments
to this Plan and appropriate policies and procedures, including amendments and
policies with retroactive effect, or take such other actions, as the Company
determines necessary or appropriate to comply with the requirements of Section
409A of the Code.

    
      
        
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    ATTACHMENT
2.4-A

    

    

    

    Ohio Edison Company
Deferred Compensation Plan for Directors

    

    Merger of Plans.  Effective as of
December 31, 1997, the Ohio Edison Deferred Compensation Plan for Directors
(“Ohio Edison Plan”) was merged into this Plan.

    

    Definition of Director.  The
individuals who made deferral elections under the Ohio Edison Plan shall be
considered “Directors” for purposes of this Plan even if they have not served on
the Board or any board of directors of any Affiliate.

    

    Prior Elections to Defer.  Any
election to defer director’s fees made under the Ohio Edison Plan prior to
December 31, 1997 shall, to the extent such deferred fees and any earnings and
losses credited to such deferred fees have not been paid to the Director or to
his or her Beneficiary prior to such date, be treated as having been made under
this Plan and shall be subject to all of the rights and limitations imposed on
elections made under this Plan.

    

    Transfer of Account Balance.  With
respect to any Director who had a balance in his or her account under the Ohio
Edison Plan immediately prior to December 31, 1997, the balance of such account
shall be transferred to a Transfer Account under this Plan as of December 31,
1997 and shall be administered in accordance with this Plan. Such Directors
shall be permitted to designate how such transferred account balances shall be
deemed invested as permitted under this Plan.

    

    Liability for Payment.  All
liabilities of the Ohio Edison Plan shall be paid by the Company.

    

    Transfer of Liabilities and Payment of
Accounts.  If any account under the Ohio Edison Plan is in pay status
or is otherwise payable to an Participant as of such date, it shall continue to
be payable to that person under the same terms and conditions as were provided
under the Ohio Edison Plan. The balance of any account under the Ohio Edison
Plan shall become payable under the terms and conditions of this Plan; provided,
however, that the Director’s deferral elections, commencement date elections,
and beneficiary elections made under the Ohio Edison Plan shall continue to be
effective under this Plan unless amended or changed by the Director under the
terms of this Plan.

    

    Crediting of Service.  All service as
a director of the Ohio Edison Company or any affiliate of Ohio Edison Company
shall count as Years of Service under this Plan.

    

    

    
      
        
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    ATTACHMENT
2.4-B

    

    

    

    Centerior Energy
Corporation Deferred Compensation Plan for Directors

    

    Merger of Plans.  Effective as of
January 1, 2000, the Centerior Energy Corporation Deferred Compensation Plan for
Directors (the “Centerior Plan”) was merged into this Plan.

    

    Definition of Director.  The
individuals who made deferral elections under the Centerior Plan shall be
considered “Directors” for purposes of this Plan even if they have not served on
the Board or any board of directors of any Affiliate.

    

    Prior Elections to Defer.  Any
election to defer director’s fees made under the Centerior Plan prior to January
1, 2000 shall, to the extent such deferred fees and any earnings and losses
credited to such deferred fees have not been paid to the Director or to his or
her Beneficiary prior to such date, be treated as having been made under this
Plan and shall be subject to all of the rights and limitations imposed on
elections made under this Plan.

    

    Transfer of Account Balance.  With
respect to any Director who had a balance in his or her account under the
Centerior Plan immediately prior to January 1, 2000, the balance of such account
shall be transferred to a Transfer Account under this Plan as of January 1, 2000
and shall be administered in accordance with this Plan.  Such
Directors shall be permitted to designate how such transferred account balances
shall be deemed invested as permitted under this Plan.

    

    Liability for Payment.  All
liabilities of the Centerior Plan shall be paid by the Company.

    

    Transfer of Liabilities and Payment of
Accounts.  If any account under the Centerior Plan is in pay status or
is otherwise payable to an Participant as of such date, it shall continue to be
payable to that person under the same terms and conditions as were provided
under the Centerior Plan. The balance of any account under the Centerior Plan
shall become payable under the terms and conditions of this Plan; provided,
however, that the Director’s deferral elections, commencement date elections,
and beneficiary elections made under the Centerior Plan shall continue to be
effective under this Plan unless amended or changed by the Director under the
terms of this Plan.

    

    Crediting of Service.  All service as
a director of Centerior Energy Corporation or any affiliate of Centerior Energy
Corporation shall count as Years of Service under this Plan.

    

    
      
        
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    ATTACHMENT
2.4-C

    

    

    

    Deferred
Remuneration Plan for Outside Directors of GPU, Inc.

    

    And

    

    Deferred Stock Unit
Plan for Outside Directors of GPU, Inc.

    

    And

    

    Deferred
Remuneration Plan for Outside Directors of

    Jersey Central Power
& Light

    

    Transfers from GPU Plans.  Any
individual who participated in the Deferred Remuneration Plan for Outside
Directors of GPU, Inc., Deferred Stock Unit Plan for Outside Directors of GPU,
Inc., or the Deferred Remuneration Plan for Outside Directors of Jersey Central
Power & Light (collectively the “GPU Plans”) and who was selected as a
member of the board of directors for the Company or Jersey Central Power &
Light after November 7, 2001, may elect to transfer his or her account under
each GPU Plan to this Plan.

    

    Prior Elections.  Any election to
defer director’s fees made under any GPU Plan prior to November 7, 2001 shall,
to the extent such deferred fees and any earnings credited to such deferred fees
have not been paid to the director or to his or her beneficiary prior to such
date, be treated as having been made under this Plan and shall be subject to all
of the rights and limitations imposed on elections made under this
Plan.

    

    Transfer of Account Balance.  Any
Director who had a balance in his or her account under a GPU Plan immediately
prior to November 7, 2001 may elect to transfer such account’s balance to a
Transfer Account under this Plan as of November 7, 2001. The Committee shall
establish subaccounts within the Transfer Account to reflect and administer
Pre-Retirement and Retirement Accounts transferred from the GPU Plans. From the
date of the election, the Transfer Account shall be deemed to be invested in the
Moody’s Investment Fund. The Moody’s Investment Fund is an Investment Fund
established by the Committee pursuant to Section 3.4 of the Plan and, the balance transferred from a
GPU Plan shall be adjusted in the same manner as the balances of Accounts of all
other Participants that are deemed to be invested in the Moody’s Investment
Fund. In the event the Committee modifies the interest rate or the measurement
period, amends any feature of the Moody’s Investment Fund, or eliminates the
Moody’s Investment Fund, such modification, amendment or elimination shall apply
to all Participants including any Director that transfers his or her account
balance from a GPU Plan to this Plan. After January 1, 2002, a Director that
transfers his or her account balance from a GPU Plan may direct the Investment
Funds in which his or her Transfer Account is deemed invested as permitted by
Section 3.5.

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        30

        
          

        

      

      
         

      

    

    

    Liability for Payment.  Liabilities
of the GPU Plans transferred to the Company shall be paid by the Company. Any
liability of the GPU Plans transferred to an Affiliate shall be paid by the
Affiliate.

    

    Payment of Accounts.  An account
balance of a GPU Plan shall be transferred to this Plan as of the later of the
date of the Director’s election or November 7, 2001. If any account under a GPU
Plan is in pay status or is otherwise payable to an Participant as of such date,
it shall continue to be payable to that person under the same terms and
conditions as were provided under the applicable GPU Plan. The balance of any
account under a GPU Plan shall become payable under the terms and conditions of
this Plan; provided, however, that the Director’s deferral elections,
commencement date elections, and beneficiary elections made under the GPU Plan
shall continue to be effective under this Plan unless amended or changed under
the terms of this Plan.

    

    Crediting of Service and Years of
Deferral.  All service as a director with GPU, Inc. or any affiliate
of GPU, Inc. shall count as Years of Service under this Plan. A full year during
which a Director deferred fees under a GPU Plan shall count as a full year of
deferral under this Plan for purposes of withdrawals under Section 4.4.

    
      
        
          DEFERRED COMPENSATION PLAN FOR OUTSIDE
DIRECTORS 7/31/2007 

        

         

      

      
        31ex10_4.htm

     

    
      

      

    

    

      EXHIBIT
10.4

      

      

      

      

      FirstEnergy
Corp.

      2007
Incentive Plan

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

      Amendment and
Restatement

      Effective May 15,
2007

      

      
        
          
            {EXHIBIT
10.4.DOC;1}

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      Contents

       

      
        

         

          
            

          

        

        

      

       

       

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      	 	Page 
	 Article 1.
      Establishment, Purpose, and Duration	1
	
                                                                              Article 2.
      Definitions

                                                                            	
                                                                              1

                                                                            
	
                                                                              Article 3.
      Administration

                                                                            	
                                                                              8

                                                                            
	
                                                                              Article 4.
      Shares Subject to This Plan and Maximum Awards

                                                                            	
                                                                              9

                                                                            
	
                                                                              Article 5.
      Eligibility and Participation

                                                                            	
                                                                              12

                                                                            
	
                                                                              Article 6.
      Stock Options

                                                                            	
                                                                              12

                                                                            
	
                                                                              Article 7.
      Stock Appreciation Rights

                                                                            	
                                                                              14

                                                                            
	
                                                                              Article 8.
      Restricted Stock and Restricted Stock Units

                                                                            	
                                                                              16

                                                                            
	
                                                                              Article 9.
      Performance Shares

                                                                            	
                                                                              18

                                                                            
	
                                                                              Article 10.
      Cash-Based Awards and Other Stock-Based Awards

                                                                            	
                                                                              19

                                                                            
	
                                                                              Article 11.
      Transferability of Awards

                                                                            	
                                                                              20

                                                                            
	
                                                                              Article 12.
      Performance Measures

                                                                            	
                                                                              20

                                                                            
	
                                                                              Article 13.
      Nonemployee Director Awards

                                                                            	
                                                                              22

                                                                            
	
                                                                              Article 14.
      Dividend Equivalents

                                                                            	
                                                                              22

                                                                            
	
                                                                              Article 15.
      Beneficiary Designation

                                                                            	
                                                                              22

                                                                            
	
                                                                              Article 16.
      Rights of Participants

                                                                            	
                                                                              23

                                                                            
	
                                                                              Article 17.
      Change in Control

                                                                            	
                                                                              23

                                                                            
	
                                                                              Article 18.
      Amendment, Modification, Suspension and Termination

                                                                            	
                                                                              24

                                                                            
	
                                                                              Article 19.
      Withholding

                                                                            	
                                                                              26

                                                                            
	
                                                                              Article 20.
      Successors

                                                                            	
                                                                              26

                                                                            
	
                                                                              Article 21.
      General Provisions

                                                                            	
                                                                              26

                                                                            

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      

       

      
        
          
            {EXHIBIT
10.4.DOC;1}

          

           

        

        
           

          
            

          

        

        
           

        

      

      FirstEnergy
Corp. 2007 Incentive Plan

       

      Article
1.   Establishment, Purpose, and
Duration

       

      1.1   Establishment.
FirstEnergy Corp., an Ohio corporation (the “Company”), hereby amends and
restates in its entirety the FirstEnergy Corp. Executive and Director Incentive
Compensation Plan, renamed as the “FirstEnergy Corp. 2007 Incentive Plan” (the
“Plan”), as set forth in this document.

       

        This Plan permits the grant of
Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Shares, Cash-Based Awards
and Other Stock-Based Awards.

       

      1.2   Purpose of This Plan. The
purpose of the Plan is to promote the success of the Company and its
Subsidiaries by providing incentives to key employees and Directors that will
link their personal interests to the long-term financial success of the Company
and its Subsidiaries, and to increase shareholder value.  The Plan is
designed to provide flexibility to the Company and its Subsidiaries in their
ability to motivate, attract and retain the services of employees and Directors
whose judgment, interest, efforts and special skills will help enable the
Company to succeed.  The Plan is intended to permit the preservation
of the maximum deductibility of all Awards within the structure of Code
Section 162(m).

       

      1.3   Duration of This
Plan. This amended and restated Plan shall become effective upon
shareholder approval (the “Effective Date”).  After this Plan is
terminated, no Awards may be granted but Awards previously granted shall remain
outstanding subject to this Plan’s terms and conditions.  Incentive
Stock Options cannot be granted more than ten (10) years after the earlier of
the date of adoption of this Plan by the Board and the Effective
Date.

       

      Article
2.   Definitions

       

      As used in this
Plan, the following capitalized terms shall have the following
meanings:

       

      2.1   “Annual Award Limit”
and “Annual Award
Limits” have the meanings set forth in Section 4.3.

       

      2.2   “Award” means,
individually or collectively, a grant of Nonqualified Stock Options,
Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted
Stock Units, Performance Shares, Cash-Based Awards, or Other Stock-Based Awards
under and subject to the terms of this Plan.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          1

          
            

          

        

        
           

        

      

      

       

      2.3   “Award Agreement”
means either: (a) a written agreement entered into by the Company and a
Participant setting forth the terms of an Award, or (b) a written or electronic
statement issued by the Company to a Participant describing the terms of an
Award, including any amendment or modification thereof.  The Committee
may provide for the use of electronic, Internet, or other non-paper Award
Agreements, and the use of electronic, Internet, or other non-paper means for
the acceptance thereof and actions thereunder by a Participant.

       

      2.4   “Beneficial Owner”
or “Beneficial
Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of
the General Rules and Regulations under the Exchange Act.

       

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

       

      2.6   “Cash-Based Award”
means an Award, denominated in cash, granted to a Participant as described in
Article 10.

       

      2.7   “Cause” shall
mean:

       

      
        	
                (a)  

              	
                the willful
      and continued failure by a Participant to substantially perform his/her
      duties (other than any such failure resulting from the Participant’s
      Disability), after a written demand for substantial performance is
      delivered to the Participant that specifically identifies the manner in
      which the Company or any of its Subsidiaries, as the case may be, believes
      that the Participant has not substantially performed his/her duties, and
      the Participant has failed to remedy the situation within ten (10)
      business days of receiving such notice;
or

              

      

       

      
        	
                (b)  

              	
                the
      Participant’s conviction for committing a felony or a crime involving an
      act of moral turpitude, dishonesty or misfeasance;
  or

              

      

       

      
        	
                (c)  

              	
                the willful
      engaging by the Participant in gross misconduct materially and
      demonstrably injurious to the Company or any of its
      Subsidiaries.  However, no act, or failure to act, on the
      Participant’s part shall be considered “willful” unless done, or omitted
      to be done, by the Participant not in good faith and without reasonable
      belief that his/her action or omission was in the best interest of the
      Company or any of its Subsidiaries;
or

              

      

       

      
        	
                (d)  

              	
                a material
      breach by a Participant of any agreement between the Participant and the
      Company.

              

      

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          2

          
            

          

        

        
           

        

      

      

       

      2.8   “Change in
Control” shall mean:

       

      
        	
                (a)  

              	
                An acquisition
      by any Person of beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) immediately after which such Person
      has beneficial ownership of fifty percent (50%) (twenty-five percent (25%)
      if such Person proposes any individual for election to the Board or any
      member of the Board is the representative of such Person) or more of
      either:  (i) the then-outstanding shares of common stock of the
      Company (the “Outstanding Company Common Stock”), or (ii) the combined
      voting power of the then-outstanding voting securities of the Company
      entitled to vote generally in the election of Directors (the “Outstanding
      Company Voting Securities”); provided, however, that the following
      acquisitions shall not constitute a Change in
  Control:

              

      

      

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

              	
                Any
      acquisition by the Company;

              

      

       

      
        	
                (iii)  

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

              

      

       

      
        	
                (iv)  

              	
                Any
      acquisition by any corporation pursuant to a reorganization, merger, or
      consolidation (collectively “Reorganization”) if, following such
      Reorganization, the conditions described in (c)(i), (c)(ii), and (c)(iii)
      of this Section 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 date of adoption 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; or

              

      

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          3

          
            

          

        

        
           

        

      

      

      
        	
                (c)  

              	
                Consummation
      of a Reorganization, or sale or other disposition of all or substantially
      all of the assets of the Company in one transaction or a series of related
      transaction, in each case, unless, following such Reorganization, or sale
      or other disposition of assets:

              

      

      

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

              	
                No Person
      (excluding the Company, any employee benefit plan (or related trust) of
      the Company or such corporation resulting from such Reorganization, or
      sale or other disposition of assets, and any Person beneficially owning,
      immediately prior to such Reorganization, or sale or other disposition of
      assets, 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, twenty-five
      percent (25%) or more of, respectively, the then-outstanding shares of
      common stock of the corporation resulting from such Reorganization or
      acquiring such assets, 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 Reorganization or acquisition of such assets were
      members of the Incumbent Board at the time of the execution of the initial
      agreement providing for such Reorganization, or sale or other disposition
      of assets; or

              

      

       

      
        	
                (d)  

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

              

      

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          4

          
            

          

        

        
           

        

      

      

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

       

      In addition, a
Change in Control may occur only with respect to the Company.  A
change in ownership of common stock of an affiliate or subsidiary, change in
membership of a board of directors of an affiliate or subsidiary, the sale of
assets of an affiliate or subsidiary, or any other event described in this
subsection that occurs only with respect to an affiliate or subsidiary does not
constitute a Change in Control.

       

      

      2.9   “Code” means the
Internal Revenue Code of 1986, as amended from time to
time.  References to Code Sections shall be deemed to include
references to any applicable regulations thereunder and any successor provision
with the same or similar purpose.

       

      2.10   “Committee” means
the Compensation Committee of the Board or a subcommittee thereof, or any other
committee designated by the Board to administer this Plan.  The
Committee members shall be appointed from time to time by, and shall serve at
the discretion of, the Board.  If the Committee does not exist or
cannot function for any reason, the Board may take any action under the Plan
that would otherwise be the responsibility of the Committee.

       

      2.11   “Company” means
FirstEnergy Corp., an Ohio corporation, and any successor thereto as provided in
Article 20.

       

      2.12   “Covered Employee”
means any Employee who is or may become a “covered employee,” as defined in Code
Section 162(m), and who is designated, as an individual Employee or as a member
of a class of Employees, by the Committee.

       

      2.13   “Director” means a
member of the Board.

       

      2.14   “Disability”
means, as of any date, a Participant’s qualification for, and receipt of,
benefits under the Company’s then-existing long-term disability plan or
program.

       

      2.15   “Effective Date”
has the meaning set forth in Section 1.3.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          5

          
            

          

        

        
           

        

      

      

       

      2.16   “Employee” means
any individual performing services for the Company, or a Subsidiary and
designated as an employee of the Company, or its Subsidiaries on the payroll
records thereof.  An Employee shall not include any individual during
any period he or she is classified or treated by the Company or Subsidiary as an
independent contractor, a consultant or an employee of an employment,
consulting, or temporary agency or any entity other than the Company or a
Subsidiary, without regard to whether such individual is subsequently determined
to have been, or is subsequently retroactively reclassified as, a common law
employee of the Company or Subsidiary during such period by a court, agency or
otherwise.

       

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

       

      2.18   “Exercise Price”
means the price at which a Share may be purchased by a Participant pursuant to
an Option or the price established at the time of grant of an SAR pursuant to
Article 7 which is used to determine the amount of any payment due upon exercise
of the Option or SAR, as the case may be.

       

      2.19   “Fair Market
Value” or “FMV”
means an amount, unless the Committee determines otherwise, with respect
to publicly traded Shares equal to the average of the high and low sales prices
of the common stock as reported on the composite tape of the New York Stock
Exchange for the date in which the determination of the fair market value is
made or, if there are no sales of common stock on that date, then on the next
preceding date on which there were sales of common stock.  If Shares
are not publicly traded, Fair Market Value shall be determined by the Committee
in such manner as it deems appropriate.  The Committee may determine
Fair Market Value on other reasonable bases including a price based on the
opening, closing, actual, high, low or average selling prices of a Share
reported on the New York Stock Exchange or other established stock exchange (or
exchanges) on the applicable date, the preceding trading day, the next
succeeding trading day or an average of trading days, as determined by the
Committee in its sole discretion.  Such definition(s) of FMV shall be
specified in each Award Agreement and may differ depending on whether FMV is in
reference to the grant, exercise, vesting, settlement or payout of an
Award.  Notwithstanding anything in this Plan to the contrary, “Fair
Market Value” shall be determined in a manner consistent with exemption from,
and avoidance of adverse tax consequences under, Code Section 409A and, with
respect to ISOs, also in a manner consistent with Code Section 422.

       

      2.20   “Full-Value Award”
means an Award other than in the form of an ISO, NSO or SAR, and which is
settled with Shares.

       

      2.21   “Grant Date” means
the date an Award is granted to a Participant pursuant to the Plan.

       

      2.22   “Incentive Stock Option”
or “ISO” means an
Option to purchase Shares granted under Article 6 to an Employee that is
designated as an Incentive Stock Option and that is intended to meet the
requirements of Code Section 422.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          6

          
            

          

        

        
           

        

      

      

       

      2.23   “Nonemployee Director”
means a Director who is not an Employee.

       

      2.24   “Nonemployee Director
Award” means any NSO, SAR or Full-Value Award granted, whether singly, in
combination, or in tandem, to a Participant who is a Nonemployee Director
pursuant to such applicable terms, conditions and limitations as the Board or
Committee may establish in accordance with this Plan.

       

      2.25   “Nonqualified Stock
Option” or “NSO”
means an Option that is not intended to meet the requirements of Code
Section 422, or that otherwise does not meet such
requirements.

       

      2.26   “Option” means an
Incentive Stock Option or a Nonqualified Stock Option, as described in
Article 6.

       

      2.27   “Other Stock-Based Award”
means an equity-based or equity-related Award not otherwise described in
this Plan, granted pursuant to Article 10.

       

      2.28   “Participant”
means any eligible individual as set forth in Article 5 to whom an Award is
granted.

       

      2.29   “Performance-Based
Compensation” means compensation under an Award that is intended to
satisfy the requirements of Code Section 162(m) for certain performance-based
compensation for Covered Employees.

       

      2.30   “Performance
Measures” means measures described in Article 12 upon which performance
goals are based and which are approved by the Company’s shareholders pursuant to
this Plan for Awards to qualify as Performance-Based Compensation.

       

      2.31   “Performance
Period” means the period of time during which the performance goals must
be met in order to determine the degree of payout and/or vesting with respect to
an Award.

       

      2.32   “Performance
Share” means an Award under Article 9 and subject to the terms of
this Plan, denominated in Shares, the value of which at the time it is payable
is a function of the extent to which, or whether, corresponding performance
criteria have been achieved.

       

      2.33   “Period of
Restriction” means the period when Restricted Stock or Restricted Stock
Units are subject to a substantial risk of forfeiture (based upon the passage of
time, the achievement of performance goals, or upon the occurrence or
non-occurrence of other events as determined by the Committee, in its sole
discretion), as provided in Article 8.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          7

          
            

          

        

        
           

        

      

      

       

      2.34   “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.

       

      2.35   “Plan” means this
FirstEnergy Corp. 2007 Incentive Plan, as it may be amended from time to
time.

       

      2.36   “Plan Year” means
the calendar year.

       

      2.37   “Restricted Stock”
means an Award granted to a Participant pursuant to Article 8, which is not
a Restricted Stock Unit.

       

      2.38   “Restricted Stock
Unit” means an Award granted to a Participant pursuant to Article 8,
pursuant to which no Shares are actually awarded to the Participant on the Grant
Date.

       

      2.39   “Share” means a
share of common stock of the Company, $.10 par value per share.

       

      2.40   “Stock Appreciation
Right” or “SAR”
means an Award designated as a stock appreciation right, granted pursuant to
Article 7.

       

      2.41   “Subsidiary” means
any corporation or other entity in which the Company has or obtains, directly or
indirectly, a proprietary interest of more than fifty percent (50%) by reason of
stock ownership or otherwise.

       

      Article
3.   Administration

       

      3.1   General. The
Committee shall be responsible for administering this Plan, subject to this
Article and the other provisions of this Plan.  The Committee shall
consist of such number of Nonemployee Directors as is necessary for compliance
with Code Section 162(m) and Rule 16b-4 of the Exchange Act, as and when
applicable.  The Committee may employ attorneys, consultants,
accountants, agents, and other individuals, any of whom may be an Employee, and
the Committee, the Company, and its officers, administrators and Directors shall
be entitled to rely upon the advice, opinions or valuations of any such
individuals.  All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the
Participants, the Company and all other individuals.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          8

          
            

          

        

        
           

        

      

      

       

      3.2   Authority of the
Committee. The Committee shall have full and exclusive discretionary
power to interpret the terms of this Plan and any Award Agreement or other
agreement or document ancillary or related to this Plan, to determine
eligibility for Awards and to adopt such rules, regulations, forms, instruments
and guidelines for administering this Plan as the Committee may deem necessary
or proper.  Such authority shall include selecting Award recipients,
establishing all Award terms and conditions, including the terms and conditions
set forth in Award Agreements, resolving or reconciling any ambiguity or
inconsistency of or among provisions of the Plan, any Award Agreement or related
documents, correcting any defect (including scrivener’s errors), supplying any
omission and, subject to Article 18, adopting modifications and amendments to
this Plan or any Award Agreement, including any that are necessary to comply
with, or obtain favorable treatment under, applicable laws.

       

             
Notwithstanding the foregoing, the Committee shall have no authority to adjust
upwards the amount payable to a Covered Employee with respect to a particular
Award, to take any of the foregoing actions, or to take any other action to the
extent that such action or the Committee’s ability to take such action would
cause any Award under the Plan to any Covered Employee to fail to qualify as
“performance-based compensation” within the meaning of Code
Section 162(m)(4).  Subject to Section 4.4, in no event
shall the Committee have the right to: (i) cancel outstanding Options or SARs
for the purpose of replacing or regranting such Options or SARs with an exercise
price that is less than the original exercise price of the Option or SAR, or
(ii) change the Option Price of an Option or SAR to an exercise price that is
less than the original Option or SAR Exercise Price, without first obtaining the
approval of shareholders.  Also notwithstanding the foregoing, no
action of the Committee (other than pursuant to Section 4.4) may be taken
with respect to an outstanding Award except in accordance with Section
18.3.

       

      3.3   Procedures of the
Committee.  All determinations of the Committee shall be made
by not less than a majority of its members present at the meeting (in person or
otherwise) at which a quorum is present.  A majority of the entire
Committee shall constitute a quorum for the transaction of
business.  Any action required or permitted to be taken at a meeting
of the Committee may be taken without a meeting if a unanimous written consent,
which sets forth the action, is signed (including electronic signatures) by each
member of the Committee and filed with the minutes for proceedings of the
Committee.  Service on the Committee shall constitute service as a
Director of the Company so that members of the Committee shall be entitled to
indemnification, limitation of liability and reimbursement of expenses with
respect to their services as members of the Committee to the same extent that
they are entitled under the Company’s Amended Code of Regulations and Ohio law
for their services as Directors.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          9

          
            

          

        

        
           

        

      

      

       

      3.4   Delegation. The
Committee may delegate to one or more of its members or to one or more officers
or employees of the Company and its Subsidiaries or to one or more agents or
advisors, such administrative duties or powers as it may deem advisable, and the
Committee or any individuals to whom it has delegated duties or powers as
aforesaid may employ one or more individuals to render advice with respect to
any responsibility the Committee or such individuals may have under this
Plan.  The Committee may authorize one or more officers of the Company
to do one or both of the following on the same basis as can the Committee: (a)
designate Employees (other than Covered Employees) to be recipients of Awards;
and (b) determine the size of any such Awards; provided, however, (i) the
Committee shall not delegate such responsibilities to any such officer for
Awards granted to an Employee who is considered an insider (as determined by the
Board applying Section 16 of the Exchange Act and related guidance); (ii) the
Committee action providing such authorization sets forth the total number of
Awards such officer(s) may grant; and (iii) the officer(s) shall report
periodically to the Committee regarding the nature and scope of the Awards
granted pursuant to the authority delegated.

       

      Article
4.   Shares
Subject to This Plan and Maximum Awards

       

      4.1   Number
of Shares Available for Awards.

       

      
        	
                (a)  

              	
                Subject to
      adjustment as provided in Section 4.4, the maximum number of Shares
      available for grant to Participants under this Plan (the “Share
      Authorization”) shall be:

              

      

      

      
        	
                                 (i)  

              	
                Six Million
      Five Hundred Fifty Thousand (6,550,000) Shares,
  plus

              

      

       

      
        	
                (ii)  

              	
                The number of
      Shares available for issuance under the Plan immediately prior to the
      Effective Date of this amended and restated
  Plan.

              

      

       

      
        	
                (b)  

              	
                All Shares of
      the Share Authorization may be issued pursuant to ISOs under this
      Plan.

              

      

      

      
        	
                (c)  

              	
                The maximum
      number of Shares of the Share Authorization that may be issued to
      Nonemployee Directors shall be Two Hundred Thousand (200,000)
      Shares.

              

      

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          10

          
            

          

        

        
           

        

      

      

      4.2   Share Usage.
Shares covered by an Award shall only be counted as used to the extent they are
actually issued to a Participant or beneficiary.  Any Shares related
to Awards which terminate by expiration, forfeiture, cancellation or otherwise
without the issuance of such Shares, are settled in cash in lieu of Shares, or
are exchanged with the Committee’s permission, prior to the issuance of Shares,
for Awards not involving Shares, shall be available again for grant under this
Plan.  The Shares available for issuance under this Plan may be
authorized and unissued Shares, treasury Shares or Shares obtained on the open
market.

       

      4.3   Annual Award
Limits. Unless and until the Committee determines that an Award to a
Covered Employee shall not be designed to qualify as Performance-Based
Compensation, the following limits (each an “Annual Award Limit” and,
collectively, “Annual Award Limits”), as adjusted pursuant to Sections 4.4 and
18.2, shall apply to grants of such Awards under this Plan for Plan Years
beginning on or after January 1, 2007:

       

      
        	
                (a)  

              	
                Options: The maximum
      aggregate number of Shares subject to Options granted in any one Plan Year
      to any one Participant shall be Five Hundred Thousand (500,000)
      Shares.

              

      

       

      
        	
                (b)  

              	
                SARs: The maximum number
      of Shares subject to Stock Appreciation Rights granted in any one Plan
      Year to any one Participant shall be Five Hundred Thousand (500,000)
      Shares.

              

      

       

      
        	
                (c)  

              	
                Restricted
      Stock:  The maximum aggregate grant with respect to
      Awards of Restricted Stock in any one Plan Year to any one Participant
      shall be Two Hundred Fifty Thousand (250,000)
  Shares.

              

      

       

      
        	
                (d)  

              	
                Restricted Stock
      Units:  The maximum aggregate grant with respect to
      Awards of Restricted Stock Units in any one Plan Year to any one
      Participant shall be Two Hundred Fifty Thousand (250,000)
      Shares.

              

      

       

      
        	
                (e)  

              	
                Performance Shares: The
      maximum aggregate Award of Performance Shares that any one Participant may
      receive in any one Plan Year shall be Two Hundred Fifty
      Thousand (250,000) Shares or an amount equal to the Fair Market Value of
      Two Hundred Fifty Thousand (250,000) Shares, determined as of the date of
      vesting.

              

      

       

      
        	
                (f)  

              	
                Cash-Based Awards: The
      maximum aggregate amount awarded or credited with respect to Cash-Based
      Awards to any one Participant in any one Plan Year, including the 2007
      Plan Year, may not exceed Five Million Dollars
    ($5,000,000).

              

      

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          11

          
            

          

        

        
           

        

      

      

       

      
        	
                (g)  

              	
                Other Stock-Based
      Awards: The maximum aggregate grant with respect to Other
      Stock-Based Awards pursuant to Section 10.2 in any one Plan Year to any
      one Participant shall be Two Hundred Fifty Thousand (250,000)
      Shares.

              

      

       

      4.4   Adjustments in Authorized
Shares. In the event of any corporate event or transaction (including a
change in the Shares of the Company or the capitalization of the Company) such
as a merger, consolidation, reorganization, recapitalization, separation,
partial or complete liquidation, stock dividend, stock split, reverse stock
split, split up, spin-off, or other distribution of stock or property of the
Company, combination of Shares, exchange of Shares, dividend in-kind, or other
like change in capital structure, number of outstanding Shares or distribution
(other than normal cash dividends) to shareholders of the Company, or any
similar corporate event or transaction, the Committee, in order to prevent
dilution or enlargement of Participants’ rights under this Plan, shall
substitute or adjust, as applicable, the number and kind of Shares that may be
issued under this Plan or under particular forms of Awards, the number and kind
of Shares subject to outstanding Awards, the Exercise Price applicable to
outstanding Awards, the Annual Award Limits, and other value determinations
applicable to outstanding Awards.

       

        The Committee, in its sole
discretion, may also make appropriate adjustments in the terms of any Awards
under this Plan to reflect, or related to, such changes or distributions and to
modify any other terms of outstanding Awards, including modifications of
performance goals and changes in the length of Performance Periods. Subject to
Article 18, but notwithstanding anything else herein to the contrary, without
affecting the number of Shares reserved or available hereunder, the Committee
may authorize the issuance or assumption of benefits under this Plan in
connection with any merger, consolidation, acquisition of property or stock or
reorganization upon such terms and conditions as it may deem
appropriate.

       

             
The determination of the Committee as to the foregoing adjustments and
substitutions, if any, shall be conclusive and binding on Participants and
beneficiaries under this Plan.  The adjustments and substitutions
described in this Section shall be made in compliance with:  (i) Code
Sections 422 and 424 with respect to ISOs; (ii) Treasury Department Regulation
Section 1.424-1 (and any successor) with respect to NSOs, applied as if the NSOs
were ISOs; (iii) Code Section 409A, to the extent necessary for exemption
therefrom, and to avoid adverse tax consequences thereunder; and (iv) Code
Section 162(m) with respect to Awards granted to Covered Employees that the
Committee intends be Performance-Based Compensation; unless specifically
determined otherwise by the Committee.

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          12

          
            

          

        

        
           

        

      

      

      Article
5.   Eligibility
and Participation

       

      5.1   Eligibility.
Individuals eligible to participate in this Plan include all Employees and
Directors.

       

      5.2   Actual
Participation. Subject to the provisions of this Plan, the Committee may,
from time to time, select from all eligible individuals, those individuals (or
classes or categories of individuals) to whom Awards shall be granted and shall
determine, in its sole discretion, the nature and terms of each
Award.

       

      Article
6.   Stock Options

       

      6.1   Grant of Options.
Subject to the terms of this Plan, Options may be granted to Participants in
such number, and upon such terms, and at any time and from time to time, as
shall be determined by the Committee, in its sole discretion; provided, however,
that ISOs may be granted only to eligible Employees of the Company or of any
parent or subsidiary corporation (as permitted under Code Sections 422 and 424)
and only prior to the tenth anniversary of the Effective Date.  An
Employee who is employed by a Subsidiary may only be granted Options to the
extent the Subsidiary is part of: (a) the Company’s controlled group of
corporations, or (b) a trade or business under common control; as of the Date of
Grant, each as determined under the rules of Code Section 414, but substituting
for this purpose ownership of at least fifty percent (50%) of the Subsidiary to
determine the members of the controlled group of corporations and the entities
under common control.

       

      6.2   Award Agreement.
Each Option grant shall be evidenced by an Award Agreement that shall specify
the Exercise Price, the maximum duration of the Option, the number of Shares to
which the Option pertains, the conditions upon which the Option shall become
vested and exercisable, and such other provisions as the Committee shall
determine which are not inconsistent with the terms of this Plan.  The
Award Agreement shall also specify whether the Option is intended to be an ISO
or an NSO.

       

      6.3   Exercise Price.
The Exercise Price for each grant of an Option under this Plan shall be
determined by the Committee in its sole discretion and shall be specified in the
Award Agreement; provided, however, the Exercise Price must be at least equal to
one hundred percent (100%) of the FMV of the underlying Shares on the Grant
Date. With respect to a Participant who owns, directly or indirectly, more than
ten percent (10%) of the total combined voting power of all classes of the stock
of the Company, any Subsidiary or any Affiliate, the Exercise Price of Shares
subject to an ISO shall be at least equal to one hundred ten percent (110%) of
the FMV of such Shares on the Grant Date.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          13

          
            

          

        

        
           

        

      

      

       

      6.4   Term of Options.
Each Option granted to a Participant shall expire at such time as the Committee
shall determine at the time of grant; provided, however, no Option shall be
exercisable later than the tenth (10th)
anniversary of its Date of Grant.

       

      6.5   Exercise of
Options. Options shall be exercisable at such times and be subject to
such restric­tions and conditions as the Committee shall in each instance
approve, which terms and restrictions need not be the same for each grant or for
each Participant.  The aggregate FMV of Shares with respect to which
ISOs are exercisable for the first time by a grantee during any calendar year
(under this Plan or any other plan adopted by the Company or its parent or
subsidiary) shall not exceed one hundred thousand dollars
($100,000).  If such aggregate FMV (determined with respect to each
ISO at the time of grant) exceeds such amount, such number of ISOs as have an
aggregate FMV equal to the amount in excess of such amount shall be treated as
NSOs.

       

      6.6   Payment. Options
shall be exercised by the delivery of a written notice of exercise to the
Company or an agent designated by the Company in a form specified or accepted by
the Committee, or by complying with any alternative procedures which may be
authorized by the Committee, setting forth the number of Shares with respect to
which the Option is to be exercised, accompanied by full payment for the
Shares.

       

         Payment of the Exercise Price is
a condition precedent to the issuance of the Shares as to which an Option is
exercised.  The Exercise Price shall be payable to the Company in full
by: (a) paying cash or its equivalent; (b) tendering (either by actual
delivery or attestation) previously acquired Shares having an aggregate Fair
Market Value at the time of exercise equal to the Exercise Price; (c) cashless
(broker-assisted) exercise; (d) any combination of (a), (b), and (c); or (e) any
other method or methods approved or accepted by the Committee in its sole
discretion.

       

        Subject to any governing rules or
regulations, as soon as practicable after receipt of written notification of
exercise and full payment (including satisfaction of any applicable tax
withholding), the Company shall deliver to the Participant evidence of book
entry Shares or, upon the Participant’s request, Share certificates in an
appropriate amount based upon the number of Shares purchased under the
Option(s).  Alternatively, if the relevant Award Agreement requires
payment of cash or its equivalent at that time, the Company shall pay to the
Participant the appropriate amount of cash or its equivalent.

       

      6.7   Restrictions on Share
Transferability. The Committee may impose such restrictions on any Shares
acquired pursuant to the exercise of an Option granted under this Article as it
may deem advisable including minimum holding period requirements and
restrictions under applicable federal securities laws, the rules of any stock
exchange or market upon which such Shares are then listed or traded or any
blue sky or state securities laws applicable to such Shares.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          14

          
            

          

        

        
           

        

      

      

       

      6.8   Termination of
Employment. 
If a Participant’s employment terminates because of death, any outstanding
Options the Participant may have become immediately exercisable until the
earlier of the expiration date of the Options or the first anniversary of
termination of employment.  The person or persons acquiring the
Participant’s rights under the Options pursuant to Article 15 shall be
entitled to exercise the Options.

       

              
If a Participant’s employment terminates because of Disability or retirement,
including early retirement (with retirement and early retirement defined for
purposes of this Section under the then-existing rules of the Company or any of
its Subsidiaries, as the case may be), any outstanding Options the Participant
shall continue to vest per the vesting schedule in the relevant Award Agreement;
provided, however, that if the Participant subsequently dies with unexercised
Options, vesting and exercisability will be governed by the provisions of this
section relating to termination of employment due to death.

      

              
If a Participant’s employment terminates for reasons other than death,
Disability, retirement (including early retirement) or Cause, the Participant
may exercise any vested Options he or she may have until the earlier of the date
ending 90 days after termination of employment and the date of expiration of the
term of the Options.  Otherwise, the Participant shall not have any
rights with respect to the Options in addition to those he had at termination of
employment.  Notwithstanding the foregoing, the Committee in its sole
discretion may extend the foregoing 90 day period to up to one year, but not
beyond the expiration date of the Options.

      

              
If a Participant’s employment terminates for Cause, any outstanding Options the
Participant may have will be forfeited immediately.

      

      6.9   Notification of
Disqualifying Disposition. If any Participant disposes of Shares issued
pursuant to an ISO under the circumstances described in Code Section 421(b)
(relating to certain disqualifying dispositions), the Participant shall notify
the Company of the disposition within ten (10) days thereof.

       

      6.10   No Other Feature of
Deferral. No Option granted pursuant to this Plan shall provide for any
feature for the deferral of compensation other than the deferral of recognition
of income until the later of the exercise or disposition of the Option, or the
time the stock acquired pursuant to the exercise of the Option first becomes
substantially vested.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          15

          
            

          

        

        
           

        

      

      

       

      Article
7.   Stock Appreciation
Rights

       

      7.1   Grant of SARs.
Subject to the terms of this Plan, SARs may be granted to Participants at any
time, and from time to time, as shall be determined by the Committee in its sole
discretion.  However, an Employee of a Subsidiary may only be granted
SARs to the extent the Subsidiary is: (a) part of the Company’s controlled group
of corporations, or (b) a trade or business under common control with the
Company, as of the date of grant, each determined under the rules of Code
Section 414, but substituting for this purpose ownership of at least
fifty percent (50%) of the Subsidiary to determine the members of the
controlled group of corporations and the entities under common
control.

       

        Subject to the terms of this
Plan, the Committee shall have complete discretion in determining the number of
SARs granted to each Participant and the terms and conditions pertaining to such
SARs.

       

        The Exercise Price for each SAR
shall be determined by the Committee and shall be specified in the Award
Agreement; provided, however, that the Exercise Price must be at least equal to
one hundred percent (100%) of the FMV of the underlying Shares on the Grant
Date.

       

      7.2   SARs Agreement.
Each SAR Award shall be evidenced by an Award Agreement that shall specify the
Exercise Price, the term of the SAR and such other provisions as the Committee
shall determine.

       

      7.3   Term of SARs. The
term of an SAR granted under this Plan shall be determined by the Committee, in
its sole discretion, and except as determined otherwise by the Committee and
specified in the SAR Award Agreement, no SAR shall be exercisable later than the
tenth (10th)
anniversary of its grant.

       

      7.4   Exercise of SARs.
SARs may be exercised upon the terms and conditions imposed by the Committee in
its sole discretion.

       

      7.5   Settlement of
SARs. Upon the exercise of an SAR, a Participant shall be entitled to
receive payment from the Company in an amount determined by
multiplying:

       

      
        	
                 
      

              	
                (a)

              	
                The excess of
      the Fair Market Value of a Share on the date of exercise over the Exercise
      Price; by

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The number of
      Shares with respect to which the SAR is
  exercised.

              

      

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          16

          
            

          

        

        
           

        

      

        At the discretion of the
Committee, payment upon the exercise of an SAR may be in cash, Shares or a
combination thereof, or in any other manner approved by the
Committee.  The Committee’s determination regarding the form of SAR
payout shall be set forth in the Award Agreement pertaining to the grant of the
SAR.

      

      7.6   Termination of
Employment. If a Participant’s employment terminates, the exercisability
of any outstanding SARs he or she may have will be subject to the provisions of
Section 6.8, applied as if the SARs were Options.

       

      7.7   Other
Restrictions. The Committee shall impose such other conditions and
restrictions on any Shares received upon exercise of an SAR granted pursuant to
this Plan as it may deem necessary or advisable.  These restrictions
may include a requirement that the Participant hold the Shares received upon
exercise of an SAR for a specified period of time.

       

      7.8   No Other Feature of
Deferral. No SAR granted pursuant to this Plan shall provide for any
feature for the deferral of compensation other than the deferral of recognition
of income until the exercise of the Stock Appreciation Right.

       

      Article
8.   Restricted Stock and Restricted Stock
Units

       

      8.1   Grant of Restricted Stock
or Restricted Stock Units. Subject to the terms of this Plan, the
Committee, at any time and from time to time, may grant Shares of Restricted
Stock and/or Restricted Stock Units to Participants in such amounts as the
Committee shall determine.  For informational purposes, Restricted
Stock Units are similar to Restricted Stock except that no Shares are actually
awarded to the Participant on the Grant Date.

       

      8.2   Restricted Stock or
Restricted Stock Unit Agreement. Each Restricted Stock and Restricted
Stock Unit grant shall be evidenced by an Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock or the number
of Restricted Stock Units granted and such other provisions as the Committee
shall determine.

       

      8.3   Other
Restrictions. The Committee shall impose such other conditions and/or
restrictions on any Shares of Restricted Stock or Restricted Stock Units as it
may deem advisable including requirements that Participants pay stipulated
purchase prices for each Share of Restricted Stock or each Restricted Stock
Unit, restrictions based upon the achievement of specific performance goals,
time-based restrictions on vesting following the attainment of the performance
goals, time-based restrictions and/or restrictions under applicable laws or
under the requirements of any stock exchange or market upon which such Shares
are listed or traded, or holding requirements or sale restrictions placed on the
Shares by the Company upon vesting of such Restricted Stock or Restricted Stock
Units.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          17

          
            

          

        

        
           

        

      

      

       

        To the extent deemed appropriate
by the Committee, the Company may retain the certificates representing Shares of
Restricted Stock in the Company’s possession until such time as all conditions
and/or restrictions applicable to such Shares have been satisfied or
lapse.

       

        Except as otherwise provided in
this Article, Shares of Restricted Stock covered by each Restricted Stock Award
shall become freely transferable by the Participant after all conditions and
restrictions applicable to such Shares have been satisfied or lapse (including
satisfaction of any applicable tax withholding obligations), and Restricted
Stock Units shall be paid in cash, Shares or a combination of cash and Shares as
the Committee, in its sole discretion, shall determine.  The
determination of the Committee with respect to the form of payment shall be set
forth in the relevant Award Agreement.

       

      8.4   Certificate
Legend. In addition to any legends placed on certificates pursuant to
Section 8.3, each certificate representing Shares of Restricted Stock
granted pursuant to this Plan may bear a legend such as the following or as
otherwise determined by the Committee in its sole discretion:

       

      “The sale or other
transfer of the shares of stock represented by this certificate, whether
voluntary, involuntary, or by operation or law, is subject to certain
restrictions on transfer set forth in the FirstEnergy Corp. 2007 Incentive Plan,
in the rules and administrative procedures adopted pursuant to such Plan, and in
a Restricted Stock Award Agreement dated _______________.  A copy of
the Plan, such rules and procedures, and such Restricted Stock Award Agreement
may be obtained from the Corporate Secretary of FirstEnergy Corp.”

       

      8.5   Voting Rights.
Unless otherwise determined by the Committee and set forth in a Participant’s
Award Agreement, to the extent permitted or required by law, as determined by
the Committee, Participants holding Shares of Restricted Stock granted hereunder
may be granted the right to exercise full voting rights with respect to those
Shares during the Period of Restriction.  A Participant shall have no
voting rights with respect to any Restricted Stock Units.

       

      8.6   Termination of
Employment. If a Participant’s employment with the Company or its
Subsidiaries terminates because of death or Disability during a Period of
Restriction, the Period of Restriction shall automatically
terminate.  Except as otherwise provided in Section 8.3 and the
relevant Award Agreement, the Restricted Stock shall become free of restrictions
and fully transferable and Restricted Stock Units shall become Shares issuable
free of restrictions, but in each case subject to the satisfaction of applicable
tax withholding requirements.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          18

          
            

          

        

        
           

        

      

      

       

             
If a Participant’s employment terminates due to retirement, including early
retirement (with retirement and early retirement defined for purposes of this
Section under the then-existing rules of the Company or any of its Subsidiaries,
as the case may be), the Committee in its sole discretion may waive or modify
the restrictions remaining on any or all Shares of Restricted Stock or any or
all Shares subject to Restricted Stock Units as it deems
appropriate.

       

              If
a Participant’s employment terminates due to death, Disability or retirement,
then notwithstanding the foregoing, the Committee may provide that the
Participant receives a prorated payment based on the Participant’s number of
full months of service during the Performance Period, further adjusted based on
the achievement of the performance goals.  The Committee may also
require that a Participant have a minimum number of full months of service
during the Performance Period to qualify for an Award payment.

       

             
If a Participant’s employment terminates for any reason other than death,
Disability or retirement, including early retirement, during a Period of
Restriction, any Shares of Restricted Stock or Restricted Stock Units still
subject to restrictions as of the date of such termination shall automatically
be forfeited and returned to the Company; provided, however, that in the event
termination is for a reason other than Cause, the Committee, in its sole
discretion, may waive or modify the automatic forfeiture of any or all such
Restricted Stock or Restricted Stock Units as it deems appropriate.

      

      Article
9.   Performance
Shares

       

      9.1   Grant of Performance
Shares. Subject to the terms of this Plan, the Committee, at any time and
from time to time, may grant Performance Shares to Participants in such amounts
and upon such terms as the Committee shall determine.

       

      9.2   Value of Performance
Shares. Each Performance Share shall have an initial value equal to the
Fair Market Value of a Share on the Grant Date.  The Committee shall
set performance goals in its sole discretion which, depending on the extent to
which they are met, will determine the value and number of Performance Shares
upon which payout will be based.

       

      9.3   Earning of Performance
Shares. Subject to the terms of this Plan, after the applicable
Performance Period has ended, the holder of Performance Shares shall be entitled
to receive payout based upon the value and number of Performance Shares earned
by the Participant over the Performance Period determined as a function of the
extent to which, or whether, the corresponding performance goals have been
achieved.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          19

          
            

          

        

        
           

        

      

      

       

      9.4   Form and Timing of
Payment of Performance Shares. Payment of earned Performance Shares shall
be in such form and
at such time as determined by the Committee and as evidenced in the Award
Agreement.  Subject to the terms of this Plan, the
Committee, in its sole discretion, may pay earned  Performance Shares in
the form of cash or Shares (or in a combination thereof) equal to the value of
the earned Performance Shares at the close of the applicable Performance Period,
or as soon as practicable after the end of the Performance Period. Any Shares
may be granted subject to any restrictions deemed appropriate by the
Committee.  The determination of the Committee with respect to the
form of payout shall be set forth in the relevant Award Agreement.

       

      9.5   Termination of
Employment. If a Participant’s employment terminates because of death,
Disability or retirement, including early retirement (with retirement and early
retirement defined for purposes of this Section under the then-existing rules of
the Company or any of its Subsidiaries, as the case may be), the holder of a
Performance Share shall receive a prorated payment based on the Participant’s
number of full months of service during the Performance Period, further adjusted
based on the achievement of the performance goals, as determined by the
Committee in its sole discretion.  The Committee may require that a
Participant have a minimum number of full months of service during the
Performance Period to qualify for an Award payment.  The Committee may
make such adjustments to the terms of this paragraph as it may deem advisable to
preserve deductibility under Code Section 162(m).

       

             
If a Participant’s employment terminates for any reason other than death,
Disability or retirement, including early retirement, all Performance Shares in
which he or she then had any interest shall be forfeited; provided, however,
that if termination is for a reason other than Cause, the Committee, in its sole
discretion, may waive the automatic forfeiture provisions.

       

      Article
10.   Cash-Based Awards and Other
Stock-Based Awards

       

      10.1   Grant of Cash-Based
Awards. Subject to the terms of the Plan, the Committee may, at any
time and from time to time, grant Cash-Based Awards to Participants in such
amounts and upon such terms as the Committee may determine.  The
Committee may designate Cash-Based Awards to Covered Employees as being
Performance-Based Compensation.

       

      10.2   Other Stock-Based
Awards. The Committee may grant other types of equity-based or
equity-related Awards not otherwise described in this Plan (including the grant
or offer for sale of unrestricted Shares) in such amounts and subject to such
terms and conditions as the Committee shall determine.  Such Awards
may involve the transfer of actual Shares to Participants, or payment in cash or
otherwise of amounts based on the value of Shares.  The Committee may
designate Other Stock-Based Awards to Covered Employees as being
Performance-Based Compensation.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          20

          
            

          

        

        
           

        

      

      

       

      10.3   Value of Cash-Based and
Other Stock-Based Awards. Each Cash-Based Award shall specify a payment
amount or payment range as determined by the Committee.  Each Other
Stock-Based Award shall be expressed in terms of Shares or units based on
Shares, as determined by the Committee. The Committee may establish performance
goals in its sole discretion.  If the Committee exercises its
discretion to establish performance goals, the number and/or value of Cash-Based
Awards or Other Stock-Based Awards that will be paid out to the Participant will
depend on the extent to which, or whether, the performance goals are
met.

       

      10.4   Payment of Cash-Based
Awards and Other Stock-Based Awards. Any payment with respect to a
Cash-Based Award or an Other Stock-Based Award shall be made in accordance with
the terms of the Award, in cash or Shares, as the Committee
determines.

       

      10.5   Termination of
Employment. The Committee shall determine the extent to which the
Participant shall have the right to receive Cash-Based Awards or Other
Stock-Based Awards following termination of the Participant’s employment with,
or provision of services to, the Company and Subsidiaries, as the case may
be.  Such provisions shall be determined in the sole discretion of the
Committee, such provisions may be included in an agreement entered into with
each Participant, but need not be uniform among all Awards of Cash-Based Awards
or Other
Stock-Based Awards issued pursuant to the Plan and may reflect distinctions
based on the reasons for termination.

       

      Article
11.   Transferability of
Awards

       

             
Except as otherwise provided in a Participant’s Award Agreement or otherwise
determined at any time by the Committee, no Award granted under this Plan may be
sold, transferred, pledged, assigned or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution.  In no
event may an Award be transferred for value.  Further, except as
otherwise provided in a Participant’s Award Agreement or otherwise determined at
any time by the Committee, all Awards granted to a Participant under this Plan
shall be exercisable during his or her lifetime only by the
Participant.

       

      Article
12.   Performance
Measures

       

      12.1   Performance
Measures. The performance goals upon which the payment or vesting of an
Award to a Covered Employee that is intended to
qualify as Performance-Based Compensation shall be limited to the following
Performance Measures:

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          21

          
            

          

        

        
           

        

      

      

       

      
        	
                (a)  

              	
                Net earnings or net income (before or
      after taxes);

              

      

      
        	
                (b)  

              	
                Income

              

      

      
        	
                (c)  

              	
                Retained
  earnings;

              

      

      
        	
                (d)  

              	
                Earnings per
  share;

              

      

      
        	
                (e)  

              	
                Net sales or revenue
    growth;

              

      

      
        	
                (f)  

              	
                Net operating profit or
      income;

              

      

      
        	
                (g)  

              	
                Return measures (including return on
      assets, capital, invested capital, equity, sales or
    revenue);

              

      

      
        	
                (h)  

              	
                Cash flow (including operating cash flow,
      free cash flow, cash flow return on equity and cash flow return on
      investment);

              

      

      
        	
                (i)  

              	
                Earnings before or after taxes, interest,
      depreciation and/or amortization;

              

      

      
        	
                (j)  

              	
                Gross or operating
    margins;

              

      

      
        	
                (k)  

              	
                Productivity
  ratios;

              

      

      
        	
                (l)  

              	
                Share price (including growth measures
      and total shareholder return);

              

      

      
        	
                    (m)  

              	
                Costs or cost
  control;

              

      

      
        	
                (n)  

              	
                Margins;

              

      

      
        	
                (o)  

              	
                Operating
  efficiency;

              

      

      
        	
                (p)  

              	
                Operating and maintenance cost
      management

              

      

      
        	
                (q)  

              	
                Demand-side management (including
      conservation and load management)

              

      

      
        	
                (r)  

              	
                Market
share;

              

      

      
        	
                (s)  

              	
                Service
  reliability;

              

      

      
        	
                (t)  

              	
                Energy production availability
      performance;

              

      

      
        	
                (u)  

              	
                Results of customer satisfaction or
      employee satisfaction surveys;

              

      

      
        	
                (v)  

              	
                Aggregate product price and other product
      price measures;

              

      

      
        	
                (w)  

              	
                Working
  capital;

              

      

      
        	
                (x)  

              	
                Economic value added or EVA®
      (net operating profit after tax minus the sum of capital multiplied by the
      cost of capital);

              

      

      
        	
                (y)  

              	
                Management
  development;

              

      

      
        	
                (z)  

              	
                Succession
  planning;

              

      

      
        	
                     (aa)  

              	
                Shaping legislative and regulatory
      initiatives and outcomes;

              

      

      
        	
                (bb)  

              	
                Taxes;

              

      

      
        	
                (cc)  

              	
                Safety
record;

              

      

      
        	
                (dd)  

              	
                Depreciation and
      amortization;

              

      

      
        	
                (ee)  

              	
                Total shareholder
  return;

              

      

      
        	
                (ff)  

              	
                Workforce hiring plan
      measures;

              

      

      
        	
                (gg)  

              	
                Air quality control project
      management;

              

      

      
        	
                (hh)  

              	
                Environmental;

              

      

      
        	
                (ii)  

              	
                Risk
  management;

              

      

      
        	
                (jj)  

              	
                Technology upgrade
    measures;

              

      

      
        	
                (kk)  

              	
                Financial contribution to earnings from
      special projects or initiatives;

              

      

      
        	
                (ll)  

              	
                Capital
  expenditures;

              

      

      
        	
                (mm)  

              	
                Generation
  output;

              

      

      
        	
                (nn)  

              	
                Power supply sourcing
      adequacy;

              

      

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          22

          
            

          

        

        
           

        

      

      

      
        	
                (oo)  

              	
                Results of asset
      acquisitions;

              

      

      
        	
                (pp)  

              	
                Results of asset
      divestitures;

              

      

      
        	
                (qq)  

              	
                Capitalization;

              

      

      
        	
                (rr)  

              	
                Credit
metrics;

              

      

      
        	
                (ss)  

              	
                Credit
ratings;

              

      

      
        	
                (tt)  

              	
                Compound growth rates (earnings, revenue,
      income from continuing operations, cash generation,
  etc.);

              

      

      
        	
                (uu)  

              	
                Generation outage
    duration;

              

      

      
        	
                (vv)  

              	
                Transmission outage
    duration;

              

      

      
        	
                (ww)  

              	
                Distribution outage
    duration;

              

      

      
        	
                (xx)  

              	
                Value
creation;

              

      

      
        	
                (yy)  

              	
                Effective tax
  rate;

              

      

      
        	
                (zz)  

              	
                Financing
  flexibility;

              

      

      
        	
                (aaa)  

              	
                Financing capability;
  and

              

      

      
        	
                (bbb)  

              	
                Value returned to
      shareholders.

              

      

      
 

        Any Performance Measure(s) may be
used to measure the performance of the Company, Subsidiary or Subsidiaries as a
whole or any business unit of the Company and/or a Subsidiary or Subsidiaries or
any combination thereof, as the Committee may deem appropriate, or any of the
above Performance Measures as compared to the performance of a group of
comparator companies, or published or special index that the Committee, in its
sole discretion, deems appropriate, or the Company may select a share price
performance measure as compared to various stock market indices.  The
Committee also has the authority to provide for accelerated vesting of any Award
based on the achievement of performance goals pursuant to the Performance
Measures specified in this Article.

       

      12.2   Evaluation of
Performance. The Committee may provide in any such Award that any
evaluation of performance may include or exclude any of the following events
that occur during a Performance Period: (a) asset write-downs, (b) litigation or
claim judgments or settlements, (c) the effect of changes in tax laws,
accounting principles or other laws or provisions affecting reported results,
(d) any reorganization and restructuring programs, (e) extraordinary
nonrecurring items as described in Accounting Principles Board Opinion No. 30
and/or in management’s discussion and analysis of financial condition and
results of operations appearing in the Company’s consolidated report to the
investment community or investor letters, (f) acquisitions or divestitures and
(g) foreign exchange gains and losses.  To the extent such inclusions
or exclusions affect Awards to Covered Employees, they shall be prescribed in a
form that meets the requirements of Code Section 162(m) for deductibility except
as otherwise determined by the Committee in its sole discretion.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          23

          
            

          

        

        
           

        

      

      

       

      12.3   Adjustment of
Performance-Based Compensation. Awards that are intended to qualify as
Performance-Based Compensation may not be adjusted upward.  The
Committee shall retain the discretion to adjust such Awards downward, either on
a formula or discretionary basis or a combination of the two, as the Committee
determines.

       

      12.4   Committee
Discretion. If applicable tax and/or securities laws change to permit
Committee discretion to alter the governing Performance Measures without
obtaining shareholder approval of such changes, the Committee shall have sole
discretion to make such changes without obtaining shareholder
approval.  In addition, in the event the Committee determines that it
is advisable to grant Awards that shall not qualify as Performance-Based
Compensation, the Committee may make such grants without satisfying the
requirements of Code Section 162(m) and base vesting on performance measures
other than those set forth in Section 12.1.

       

      Article
13.   Nonemployee
Director Awards

       

      The Board or
Committee shall establish the terms of any Awards to Nonemployee
Directors.

       

      Article
14.   Dividend
Equivalents

       

      Any Participant
selected by the Committee may be granted dividend equivalents based on the
dividends declared on Shares that are subject to any Award, to be credited as of
dividend payment dates, during the period between the date the Award is granted
and the date the Award is exercised, vests or expires, as determined by the
Committee.  Dividend equivalents shall be converted to cash or
additional Shares by a formula, at a time and subject to any limitations as may
be determined by the Committee.

       

      Article
15.   Beneficiary
Designation

       

      Each Participant
under this Plan may, from time to time, name any beneficiary or beneficiaries
(who may be named contingently or successively) to whom any benefit payable for
a particular type of Award under this Plan is to be paid in case of the
Participant’s death before the Participant receives any or all of such
benefit.  Each such designation shall revoke all prior
designations by the same Participant with respect to the same type of Award,
shall be in a form prescribed by the Committee and will be effective only when
filed by the Participant in writing with the Company during the Participant’s
lifetime.  In the absence of any such beneficiary designation, or a
beneficiary designation for a particular type of Award, benefits remaining
unpaid or rights remaining unexercised at the Participant’s death shall be paid
to or exercised by the Participant’s executor, administrator or legal
representative.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          24

          
            

          

        

        
           

        

      

      

       

      Article
16.   Rights of
Participants

       

      16.1   Employment.
Nothing in this Plan or an Award Agreement shall interfere with or limit in any
way the right of the Company and its Subsidiaries to terminate any Participant’s
employment or service, at any time or for any reason, nor confer upon any
Participant any right to continue employment or service as a Director for any
specified period of time.

       

      Neither an Award nor any benefits arising
under this Plan shall constitute an employment contract with the Company or its
Subsidiaries and, accordingly, subject to Articles 3 and 18, this Plan and
the benefits hereunder may be terminated at any time in the sole and exclusive
discretion of the Committee without giving rise to any liability on the part of
the Company and its Subsidiaries.

       

      16.2   Participation. No
individual shall have the right to be selected to receive an Award under this
Plan or, having been so selected, to be selected to receive a future
Award.

       

      16.3   Rights as a
Shareholder. Except as otherwise provided herein, a Participant shall
have none of the rights of a shareholder with respect to Shares covered by any
Award until the Participant becomes the record holder of such
Shares.

       

      Article
17.   Change in Control

       

      17.1   Change in Control of the
Company. Notwithstanding any other provision of this Plan to the
contrary, the provisions of this Article shall apply in the event of a Change in
Control unless otherwise determined by the Committee in connection with the
grant of an Award as reflected in the applicable Award Agreement.

       

        Upon a Change in Control, except to
the extent that another Award meeting the requirements of Section 17.2 (a
“Replacement Award”) is provided to the Participant to replace such Award (the
“Replaced Award”), all then-outstanding Stock Options and Stock Appreciation
Rights shall immediately become fully vested and exercisable, and all other
then-outstanding Awards whose exercisability depends merely on the satisfaction
of a service obligation by a Participant to the Company or Subsidiary shall vest
in full and be free of restrictions related to the vesting of such
Awards.  The treatment of any other Awards shall be as determined by
the Committee in connection with the grant thereof, as reflected in the
applicable Award Agreement.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          25

          
            

          

        

        
           

        

      

      

       

        Except to the extent that a
Replacement Award is provided to the Participant, the Committee may, in its sole
discretion:  (a) determine that any or all outstanding Awards
granted under the Plan, whether or not exercisable, will be canceled and
terminated and that in connection with such cancellation and termination the
holder of such Award may receive for each Share of Common Stock subject to such
Awards a cash payment (or the delivery of shares of stock, other securities or a
combination of cash, stock and securities equivalent to such cash payment) equal
to the difference, if any, between the consideration received by shareholders of
the Company in respect of a Share of Common Stock in connection with such
transaction and the purchase price per share, if any, under the Award multiplied
by the number of Shares of Common Stock subject to such Award; provided that if
such product is zero or less, or to the extent that the Award is not then
exercisable, the Awards will be canceled and terminated without payment
therefor, or (b) provide that the period to exercise Options or Stock
Appreciation Rights granted under the Plan shall be extended (but not beyond the
expiration of such Options or Stock Appreciation Rights).

       

      17.2   Replacement
Awards. An Award shall meet the conditions of this Section (and hence
qualify as a Replacement Award) if: (a) it has a value at least equal to the
value of the Replaced Award as determined by the Committee in its sole
discretion; (b) it relates to publicly traded equity securities of the Company
or its successor in the Change in Control or another entity that is affiliated
with the Company or its successor following the Change in Control; and (c) its
other terms and conditions are not less favorable to the Participant than the
terms and conditions of the Replaced Award (including the provisions that would
apply in the event of a subsequent Change in Control).  Without
limiting the generality of the foregoing, the Replacement Award may take the
form of a continuation of the Replaced Award if the requirements of the
preceding sentence are satisfied.  The determination of whether the
conditions of this Section are satisfied shall be made by the Committee, as
constituted immediately before the Change in Control, in its sole
discretion.

       

      17.3   Termination of
Employment. Upon a termination of employment or termination of
directorship of a Participant occurring in connection with or during the period
of two (2) years after such Change in Control, other than for Cause: (a) all
Replacement Awards held by the Participant shall become fully vested and (if
applicable) exercisable and free of restrictions, and (b) all Stock Options and
Stock Appreciation Rights held by the Participant immediately before the
termination of employment or termination of directorship that the Participant
held as of the date of the Change in Control or that constitute Replacement
Awards shall remain exercisable until the earlier of one (1) year following such
termination and expiration of the stated term of such Stock Option or SAR;
provided that if the applicable Award Agreement provides for a longer period of
exercisability, that provision shall control.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          26

          
            

          

        

        
           

        

      

      

       

      Article
18.   Amendment, Modification, Suspension
and Termination

       

      18.1   Amendment, Modification,
Suspension and Termination. Subject to Section 18.3, the Committee may,
at any time and from time to time, alter, amend, modify, suspend or terminate
this Plan and any Award Agreement in whole or in part; provided, however, that,
without the prior approval of the Company’s shareholders and except as provided
in Section 4.4, Options or SARs issued under this Plan will not be repriced,
replaced (with any other Awards), regranted through cancellation or regranted by
lowering the Exercise Price of a previously granted Option or SAR, nor will any
outstanding underwater Options or SARs under this Plan be purchased for
cash.

       

      18.2   Adjustment of Awards Upon
the Occurrence of Certain Unusual or Nonrecurring Events. The Committee
may make adjustments in the terms and conditions of, and the criteria included
in, Awards in recognition of unusual or nonrecurring events (including the
events described in Section 4.4) affecting the Company or the financial
statements of the Company or of changes in applicable laws, regulations or
accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent unintended dilution or enlargement of the
benefits or potential benefits intended to be made available under this
Plan.  The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under this
Plan.

       

      18.3   Awards Previously
Granted. Notwithstanding any other provision of this Plan to the contrary
(other than Section 18.4), no termination, amendment, suspension or modification
of this Plan or an Award Agreement shall materially and adversely affect any
Award previously granted under this Plan without the written consent of the
Participant who received such Award.

       

      18.4   Amendment to Conform to
Law.

       

      
        	
                (a)  

              	
                Notwithstanding
      any other provision of this Plan to the contrary, the Board of Directors
      may amend the Plan or an Award Agreement prospectively or retroactively as
      it deems necessary or advisable to conform the Plan or an Award Agreement
      to any present or future law relating to plans of this or similar nature,
      and to the administrative regulations and rulings promulgated
      thereunder.  By accepting an Award under this Plan, a
      Participant agrees to any amendment made pursuant to this Section to any
      Award granted under the Plan without further consideration or
      action.

              

      

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          27

          
            

          

        

        
           

        

      

      

       

      
        	
                (b)  

              	
                Except as may
      otherwise be expressly provided in an Award Agreement, the Committee
      intends that Awards be exempt from, and avoid adverse tax consequences
      under, Code Section 409A and all Awards shall be interpreted,
      construed and administered accordingly.  The Committee may
      amend, modify or reform the Plan or an Award Agreement, both prospectively
      and retroactively and without notice to or the consent of any Participant
      or beneficiary, to obtain or preserve such exemption or avoidance of
      adverse tax consequences.  The Committee, in its sole
      discretion, shall determine to what extent, if any, this Plan or an Award
      Agreement must be amended, modified or reformed or a substitute Award or
      Award Agreement must be made.

              

      

      

      Article
19.   Withholding

       

      19.1   Tax Withholding.
The Company shall have the power and the right to deduct or withhold, or require
a Participant to remit to the Company, the minimum statutory amount to satisfy
federal, state and local taxes required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Plan.

       

      19.2   Share Withholding or Open
Market Sales. With respect to withholding required upon the exercise of
Options or SARs, upon the lapse of restrictions on Restricted Stock and
Restricted Stock Units, or upon the achievement of performance goals related to
Performance Shares, or any other taxable event arising as a result of an Award
granted hereunder, Participants may elect, subject to the approval of the
Committee, to satisfy the withholding requirement by having the Company withhold
Shares having a Fair Market Value on the date the withholding amount is to be
determined in an amount equal to the minimum statutory tax or sell Shares on the
open market having a Fair Market Value on the date the withholding amount is to
be determined in an amount not to exceed the total tax that could be imposed on
the transaction.  All such elections shall be irrevocable, made in
writing, and signed by the Participant, and shall be subject to any restrictions
or limitations that the Committee, in its sole discretion, deems
appropriate.

       

      Article
20.   Successors

       

        All obligations of the Company
under this Plan with respect to Awards shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation or otherwise, of all or substantially
all of the business and/or assets of the Company.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          28

          
            

          

        

        
           

        

      

      

       

      Article
21.   General
Provisions

       

      21.1   Legend. The
certificates for Shares may include any legend which the Committee deems
appropriate to reflect any restrictions on transfer of such Shares.

       

      21.2   Interpretation.
Except where otherwise indicated by the context, any masculine term used herein
also shall include the feminine, the plural shall include the singular and the
singular shall include the plural.  The word “including” or any
variation thereof, means “including, without limitation,” and shall not be
construed to limit any general statement that it follows to the specific or
similar items or matters immediately following it.

       

      21.3   Severability. In
the event any provision of this Plan shall be found illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of
this Plan, and this Plan shall be construed and enforced as if the illegal or
invalid provision had not been included.

       

      21.4   Requirements of
Law. The granting of Awards and the issuance of Shares under this Plan
shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

       

      21.5   Delivery of Title.
The Company shall have no obligation to issue or deliver evidence of title for
Shares issued under this Plan prior to:

       

      
        	
                (a)  

              	
                Obtaining any
      approvals from governmental agencies that the Company determines are
      necessary or advisable; and

              

      

       

      
        	
                (b)  

              	
                Completion of
      any registration or other qualification of the Shares under any applicable
      ruling of any governmental body that the Company determines are necessary
      or advisable.

              

      

       

      21.6   Inability to Obtain
Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such authority is not obtained.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          29

          
            

          

        

        
           

        

      

      

       

      21.7   Investment
Representations. The Committee may require any individual receiving
Shares pursuant to an Award under this Plan to represent and warrant in writing
that the individual is acquiring the Shares for investment purposes and without
any intention to sell or distribute the Shares.

       

      21.8   Uncertificated
Shares. To the extent that this Plan provides for issuance of
certificates to reflect the transfer of Shares, the transfer of those Shares may
be effected on a noncertificated basis, to the extent not prohibited by
applicable law or the rules of any stock exchange.

       

      21.9   Unfunded
Plan. Participants shall have
no right, title or interest whatsoever in or to any investments that the Company
and its Subsidiaries may make to aid it in meeting its obligations under this
Plan.  Nothing contained in this Plan, and no action taken pursuant to
its provisions, shall create or be construed to create a trust of any kind or a
fiduciary relationship between the Company and any Participant, beneficiary,
legal representative or any other individual.  To the extent that any
individual acquires a right to receive payments from the Company or its
Subsidiaries under this Plan, such right shall be no greater than the right of
an unsecured general creditor of the Company or Subsidiary, as the case may
be.  All payments to be made hereunder shall be paid from the general
funds of the Company or a Subsidiary, as the case may be, and no special or
separate fund shall be established and no segregation of assets shall be made to
assure payment of such amounts except as expressly set forth in this
Plan.

       

      21.10   No Fractional
Shares. No fractional Shares shall be issued or delivered pursuant to
this Plan or any Award.  The Committee shall determine whether cash,
Awards or other property shall be issued or paid in lieu of fractional Shares or
whether such fractional Shares or any rights thereto shall be forfeited or
otherwise eliminated.

       

      21.11   Nonexclusivity of this
Plan. The adoption of this Plan shall not be construed as creating any
limitations on the power of the Board or Committee to adopt such other
compensation arrangements as it may deem desirable for any
Participant.

       

      21.12   No Constraint on
Corporate Action. Nothing in this Plan shall be construed to:
(a) limit, impair, or otherwise affect the Company’s or a Subsidiary’s
right or power to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, or to merge or consolidate, or
dissolve, liquidate, sell or transfer all or any part of its business or assets;
or (b) limit the right or power of the Company or a Subsidiary to take any
action which such entity deems to be necessary or appropriate.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          30

          
            

          

        

        
           

        

      

      

       

      21.13   Governing Law. The
Plan and each Award Agreement shall be governed by the laws of the State of
Ohio, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of this Plan to the substantive
law of another jurisdiction.  Unless otherwise provided in the Award
Agreement, recipients of an Award and their beneficiaries, estates, successors
and assignees are deemed to submit to the exclusive jurisdiction and venue of
the federal or state courts of Ohio, to resolve any and all issues that may
arise out of or relate to this Plan or any related Award Agreement.

       

      21.14   Action
Required.  If a Participant or beneficiary is required to take
any action under this Plan within a certain number of days, and the final day of
such period ends on Saturday, Sunday or a federal holiday, the Participant or
beneficiary must take such action no later than the last business day preceding
such day.

       

      
        
          
            {EXHIBIT
10.4.DOC;1}                                                                   
  02590/PL001SD.DOC/05TOCcf  01/2007

          

           

        

        
          31

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