Document:

Unassociated Document

    

                        February 26,
2008

    

    

    Mr.
Gary R. Leidich

    4672 Barnsleigh
Drive

    Fairlawn, OH
44333

    

    Dear
Gary,

    

    The
purpose of this letter agreement (“Agreement”) is to set forth the general terms
and conditions of your continued employment with FirstEnergy Service Company or
any of its affiliates (collectively “FirstEnergy” or the “Company”) for the term
of this Agreement:

    

    
      	
              1.  

            	
              Effective
      March 2, 2008, your title will be Executive Vice President of FirstEnergy
      Corp. and President, FE Generation, and your duties and responsibilities
      will be commensurate with those customarily performed, undertaken and
      exercised by persons situated in a similar executive capacity, including,
      without limitation responsibility for the FirstEnergy Fossil Generation
      and Commodity Operations, and such other duties as may be assigned from
      time to time.  In consideration of your performance of such
      duties you will be compensated as
follows:

            

    

    

    
      	
              (a)  

            	
              Base
      Salary.  You will receive a base salary (the “Base
      Salary”) at an annual rate of Six Hundred Fifty Thousand Dollars
      ($650,000) which will be payable in accordance with the existing payroll
      practices of FirstEnergy.  The Base Salary will be reviewed at
      least annually at the same time as the base salaries of FirstEnergy’s
      other executives.

            

    

    

    
      	
              (b)  

            	
              Annual
      Bonus.  You will be a participant in FirstEnergy’s 2007
      Incentive Plan (“ICP”) and be eligible to receive an annual bonus each
      year under the Short-Term Incentive Program (“STIP”) component of the ICP
      (or any successor program).  Your annual short-term target
      opportunity will be set by the Compensation Committee of the Board of
      Directors at the same time as other senior executive
      officers.  For 2008, your target bonus opportunity will be 80%
      of your Base Salary.  Any annual incentive compensation awarded
      to you will be payable in accordance with the provisions of the
      STIP.  The Key Performance Indicators (“KPIs”), which serve as
      the basis for determining the amount of the annual bonus earned, will be
      set and approved by the Company’s Board of Directors and provided to you
      as soon as practicable thereafter.

            

    

    

    
      	
              (c)  

            	
              Long-Term Incentive
      Compensation.  You are eligible for a long-term incentive
      opportunity under the Long-Term Incentive Program (“LTIP”) component of
      the ICP.  Your annual long-term target opportunity will be set
      by the Compensation Committee of the Board of Directors at the same time
      as other senior executive officers.  For 2008, your target bonus
      opportunity for Performance-Adjusted Restricted Stock Units will be 138%
      of your Base Salary.  For 2008, your target bonus opportunity
      for Performance Shares will be 146% of your Base Salary.  Any
      long-term incentive compensation awarded to you will be payable in
      accordance with the provisions of the
LTIP.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
        Gary R.
Leidich                                                                                                                                       2                                                                                                            
February 26, 2008

      

    

     

    
 

    As
soon as practicable after the execution of this Agreement, the Company will
provide you a grant of restricted FirstEnergy common stock units with an
equivalent cash value of approximately One Million Three Hundred Thousand
Dollars ($1,300,000).  The restricted stock units will be granted
under and subject to the terms of the Company’s ICP and a restricted stock unit
agreement to be entered into between you and the Company.  The stock
unit grant will fully vest on June 30, 2010 and can be increased or decreased by
25% at that time based on the achievement of specific corporate performance
criteria.  The criteria and the ultimate adjustment will mirror the
annual 2008 and 2009 performance measures for the Performance-Adjusted
Restricted Stock Unit grants.  In the event your employment is
terminated by the Company without Cause, as defined in the ICP, prior to June
30, 2010, the stock unit grant will fully vest on the date of your
termination.  In the event you voluntarily resign or retire prior to
June 30, 2010, the restricted stock unit grant will vest on a prorated basis
based on your full months of service from the date of grant through the
termination of your employment.  In the event of your death, the stock
unit grant will fully vest.

    

    
      	
              (d)  

            	
              Previously Granted
      Stock Award.  In March 2005, you were granted 50,000
      shares of restricted FirstEnergy common stock pursuant to a Restricted
      Stock Agreement.  You and the Company hereby agree that in the
      event your employment is terminated by the Company without Cause prior to
      March 1, 2010, this stock grant will fully vest on the date of your
      termination.  Consistent with the terms of the Restricted Stock
      Agreement, in the event you voluntarily resign or retire prior to March 1,
      2010, the restricted stock grant will be forfeited in its
      entirety.  The Restricted Stock Agreement will be amended to
      reflect these terms.

            

    

    

    
      	
              (e)  

            	
              Prior Severance
      Benefit.  Pursuant to the terms of your 1997 agreement
      with Centerior Energy Corporation (“Centerior”) which provided you with a
      severance benefit due to the change in control of Centerior, you remain
      entitled to the lump-sum amount of $1,095,889 payable to you when you
      reach age 62.  This lump-sum amount is subject to gross-up to
      cover any applicable excise tax.

            

    

    

    
      	
              (f)  

            	
              Employee
      Benefits.  The Company maintains a Flexible Benefits Plan
      that includes programs providing health care insurance, dental insurance,
      group term life insurance, accidental death and dismemberment insurance,
      long-term disability, long-term care, dependent care and health care
      spending accounts.  You will be eligible to participate in the
      FirstEnergy Flexible Benefits Plan, as well as all executive and employee
      welfare benefit plans, programs, policies and arrangements sponsored,
      maintained or contributed to by FirstEnergy on the same level as other
      senior executive officers of FirstEnergy, subject to the terms and
      conditions of such plans.  Consistent with prior agreements, you
      are not eligible to participate in the FirstEnergy Supplemental Executive
      Retirement Program (the “SERP”).

            

    

    

    
      	
              (g)  

            	
              Financial
      Planning.  You will be entitled to the financial planning
      benefits available to other senior executive officers during your
      employment with the Company and will be entitled to continue to receive
      the financial planning benefits for one (1) year following the date of the
      termination of your employment, provided that the Company continues to
      offer this benefit to other similarly situated executives of
      FirstEnergy.

            

    

     

    
       

      
        
           

        

        
           

          
            

          

        

        
          Gary R. Leidich                                                                                                                                       3                                                                                                           
February 26, 2008

        

      

       

    
      	
              (h)  

            	
              Executive Severance
      Plan.  You and the Company agree that, notwithstanding
      any other agreement you may have had with the Company or any of its
      affiliates, under no circumstances will you be eligible for benefits under
      the Company’s Executive Severance Benefits Plan or any successor plan at
      any time.

            

    

    

    
      	
              (i)  

            	
              Other
      Agreements.  This Agreement supersedes any other
      agreements you may have had with the Company regarding the terms of your
      employment.

            

    

    

    
      	
              2.  

            	
              The term of
      this Agreement shall be from the date so agreed below until June 30, 2010;
      unless either terminated early by either party for any reason upon written
      notice given 60 days in advance, or mutually extended in
      writing.

            

    

    

    If
the above is agreeable to you, please sign where indicated and return a copy to
me for our records.  You should retain a copy for
yourself.  If you have any questions, please do not hesitate to
call.

     

    
      
        	 	 	 
	 	 	 Sincerely,	 
	
                 

              	
                 

              	 	 
	 	 	 	 
	 	 	Anthony J. Alexander	 
	 	 	President & Chief Executive Officer	 
	 	 	 	 

      

    

    

     

    So
Agreed: _______________________________________________

    

    

    

    Date:____________________________________________________Unassociated Document

    

    

    

                                February 26,
2008

    

    Mr.
Richard R. Grigg

    4140 Far-O-Way
Lane

    Richfield, OH
44286

    

    Dear
Dick,

    

    Based on our
discussions we have mutually agreed to extend the expiration date of your
January 16, 2007, amendment to your July 20, 2004 employment agreement
(collectively the “Prior Agreements”) from March 31, 2008 to June 30,
2010.

    

    In
consideration of the foregoing, the sufficiency of which is hereby acknowledged
by the parties, your Prior Agreements are hereby replaced in their entirety with
the following terms of this agreement (“Agreement”) which shall set forth the
general terms and conditions of your continued employment with the FirstEnergy
Service Company or any of its affiliates (collectively “FirstEnergy” or the
“Company”) for the term of this Agreement:

    

    
      	
              1.  

            	
              Effective
      March 2, 2008, your title will be Executive Vice President of FirstEnergy
      Corp. and President, FE Utilities, and your duties and responsibilities
      will be commensurate with those customarily performed, undertaken and
      exercised by persons situated in a similar executive capacity, including,
      without limitation responsibility for the FirstEnergy Energy Delivery and
      Customer Service Business Unit and such other duties as may be assigned
      from time to time.  In consideration of your performance of such
      duties you will be compensated as
follows:

            

    

    

    
      	
              (a)  

            	
              Base
      Salary.  You will receive a base salary (the “Base
      Salary”) at an annual rate of Seven Hundred Fifty Thousand Dollars
      ($750,000) which will be payable in accordance with the existing payroll
      practices of FirstEnergy.  The Base Salary will be reviewed at
      least annually at the same time as the base salaries of FirstEnergy’s
      other executives.

            

    

    

    
      	
              (b)  

            	
              Annual
      Bonus.  You will be a participant in FirstEnergy’s 2007
      Incentive Plan (“ICP”) and be eligible to receive an annual bonus each
      year under the Short-Term Incentive Program (“STIP”) component of the ICP
      (or any successor program).  Your annual short-term target
      opportunity will be set by the Compensation Committee of the Board of
      Directors at the same time as other senior executive
      officers.  For 2008, your target bonus opportunity will be 70%
      of your Base Salary.  Any annual incentive compensation awarded
      to you will be payable in accordance with the provisions of the
      STIP.  The Key Performance Indicators (“KPIs”), which serve as
      the basis for determining the amount of the annual bonus earned, will be
      set and approved by the Company’s Board of Directors and provided to you
      as soon as practicable thereafter.

            

    

    

    
      	
              (c)  

            	
              Long-Term Incentive
      Compensation.  You are eligible for a long-term incentive
      opportunity under the Long-Term Incentive Program (“LTIP”) component of
      the ICP.  Your annual long-term target opportunity will be set
      by the Compensation Committee of the Board of Directors at the same time
      as other senior executive officers.  For 2008, your target bonus
      opportunity for Performance-Adjusted Restricted Stock Units will be 101%
      of your Base Salary.  For 2008, your target bonus opportunity
      for Performance Shares will be 107% of your Base Salary.  Any
      long-term incentive compensation awarded to you will be payable in
      accordance with the provisions of the
LTIP.

            

    

     

    

      
        
           

        

        
           

          
            

          

        

        
           

          
            Mr.
Richard R.
Grigg                                                                                                                             
2                                                                                                               
 February 26, 2008

          

        

      

     

    As
soon as practicable after the execution of this Agreement, the Company will
provide you a grant of restricted FirstEnergy common stock units with an
equivalent cash value of approximately One Million One Hundred Thousand Dollars
($1,100,000).  The restricted stock units will be granted under and
subject to the terms of the Company’s ICP and a restricted stock unit agreement
to be entered into between you and the Company.  The stock unit grant
will fully vest on June 30, 2010 and can be increased or decreased by 25% at
that time based on the achievement of specific corporate performance
criteria.  The criteria and the ultimate adjustment will mirror the
annual 2008 and 2009 performance measures for the Performance-Adjusted
Restricted Stock Unit grants.  In the event your employment is
terminated by the Company without Cause, as defined in the ICP, prior to June
30, 2010, the stock unit grant will fully vest on the date of your
termination.  In the event you voluntarily resign or retire prior to
June 30, 2010, the restricted stock unit grant will vest on a prorated basis
based on your full months of service from the date of grant through the
termination of your employment.  In the event of your death, the stock
unit grant will fully vest.

    

    
      	
              (d)  

            	
              Change in Control
      Agreement (CIC).  The CIC executed by you on December 31,
      2007, remains in effect pursuant to its terms and is unaffected by the
      terms of this Agreement.

            

    

    

    
      	
              (e)  

            	
              Employee
      Benefits.  The Company maintains a Flexible Benefits Plan
      that includes programs providing health care insurance, dental insurance,
      group term life insurance, accidental death and dismemberment insurance,
      long-term disability, long-term care, dependent care and health care
      spending accounts.  Except as specifically set forth in this
      Agreement, you will be eligible to participate in the FirstEnergy Flexible
      Benefits Plan, as well as all executive and employee welfare benefit
      plans, programs, policies and arrangements sponsored, maintained or
      contributed to by FirstEnergy on the same level as other senior executive
      officers of FirstEnergy, subject to the terms and conditions of such
      plans.

            

    

    

    At
the conclusion of your employment with the Company, you will be granted the
maximum credit (currently 85 points) for purposes of determining the Company
contribution toward the cost of retiree health care coverage under the Flexible
Benefits Plan or any successor plan, so long as retiree health care is provided
under the Flexible Benefits Plan and a Company contribution is provided to other
senior executive officers of FirstEnergy.

    

    In
the event of your death as an active employee, health care coverage for your
surviving spouse will be obtained and provided at substantially the same
coverage level and participant contribution level as available to active
employees through March 31, 2008.  Thereafter, health care coverage
would be provided to your surviving spouse on the same terms and conditions as
provided to other surviving spouses under the terms of the Company’s welfare
benefit plan.

    

    
      	
              (f)  

            	
              Pension
      Benefits.  You are eligible to participate in any and all
      of FirstEnergy’s qualified and non-qualified pension, retirement, and
      deferred compensation plans, programs, policies and arrangements as they
      relate to FirstEnergy’s senior executive officers with the exception of
      the Supplemental Executive Retirement Program (the
      “SERP”).  Your participation in any of the programs for which
      you are eligible will be on the same terms and conditions as applicable to
      other participants in those programs and will be governed by the
      applicable plan documents.

            

    

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

          
            Mr.
Richard R.
Grigg                                                                                                                              3                                                                                                                 February
26, 2008

          

        

      

    Upon the termination
of your employment you will be provided additional service credit of four (4)
years and two (2) months for purposes of calculating your non-qualified
supplemental pension benefit.  In the event of your death while you
are an active employee, your service credit for purposes of calculating this
non-qualified supplemental pension benefit will be enhanced as necessary to give
you credit for a total of at least 10 years of service.

    

    
      	
              (g)  

            	
              Financial
      Planning.  You will be entitled to the financial planning
      benefits available to other senior executive officers during your
      employment with the Company and will be entitled to continue to receive
      the financial planning benefits for one (1) year following the termination
      of your employment, provided that the Company continues to offer this
      benefit to other similarly situated executives of
    FirstEnergy.

            

    

    

    
      	
              (h)  

            	
              Executive Severance
      Plan.  You and the Company agree that, notwithstanding
      any other agreements you may have had with the Company or any of its
      affiliates, under no circumstances will you be eligible for benefits under
      the Company’s Executive Severance Benefits Plan or any successor plan at
      any time.

            

    

    

    
      	
              (i)  

            	
              Other
      Agreements.  This Agreement supersedes any other
      agreements you may have had with the Company regarding the terms of your
      employment.

            

    

    

    
      	
              2.  

            	
              The term of
      this agreement shall be from the date so agreed below until June 30, 2010;
      unless either terminated early by either party for any reason upon written
      notice given 60 days in advance, or mutually extended in
      writing.

            

    

    

    If
the above is agreeable to you, please sign where indicated and return a copy to
me for our records.  You should retain a copy for
yourself.  If you have any questions, please do not hesitate to
call.

    

    

    

    
      	 
    	
              Sincerely,

            
	 
    	 
    
	 
    	 
    
	 
    	
              Anthony J.
      Alexander

            
	 
    	
              President
      & Chief Executive Officer

            

    

    

    

    

    So
Agreed: _______________________________________________

    

    

    

    Date:____________________________________________________

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