Exhibit 10-A


                         SEVERANCE PROTECTION AGREEMENT
                         ------------------------------


                THIS  AGREEMENT  made as of the 5th day of  June,  1997,  by and
between GPU, Inc. (the "Corporation"), Jersey Central Power & Light Company (the
"Company") and Dennis P.  Baldassari (the  "Executive")  amends and restates the
former Severance Protection Agreement dated February 7, 1997.

                WHEREAS, the Board of Directors of the Corporation and the Board
of Directors of the Company (the "Boards")  recognize that the  possibility of a
Change in Control  (as  hereinafter  defined)  exists and that the threat or the
occurrence of a Change in Control can result in  significant  distraction of the
Company's key management personnel because of the uncertainties inherent in such
a situation;

                WHEREAS,  the Boards have determined that it is essential and in
the best interest of the Company, and the Corporation and its stockholders,  for
the Company to retain the services of the  Executive in the event of a threat or
occurrence  of a Change in  Control  and to  ensure  the  Executive's  continued
dedication  and efforts in such event without undue concern for the  Executive's
personal financial and employment security; and

                WHEREAS,  in order to  induce  the  Executive  to  remain in the
employ of the Company,  particularly  in the event of a threat or the occurrence
of a Change in Control,  the Company  desires to enter into this  Agreement with
the  Executive to provide the Executive  with certain  benefits in the event the
Executive's  employment is  terminated as a result of, or in connection  with, a
Change in Control.

                NOW, THEREFORE, in consideration of the respective agreements of
the parties contained herein, it is agreed as follows:

       1.  Term of  Agreement.  This  Agreement  shall  commence  as of
           ------------------
November  1, 1996,  and shall  continue  in effect  until  October 31, 1998 (the
"Term");  provided,  however,  that on November 1, 1997,  and on each November 1
thereafter,  the Term shall  automatically  be extended  for one (1) year unless
either the Executive or the Company shall have given written notice to the other
at least ninety (90) days prior  thereto that the Term shall not be so extended;
provided,  further,  however,  that  following  the  occurrence  of a Change  in
Control,  the Term shall not expire prior to the expiration of twenty-four  (24)
months after such occurrence.

       2.   Termination  of  Employment.   If,  during  the  Term,  the
            ---------------------------
Executive's  employment  with the Company and with all other  Affiliates  of the
Corporation  shall be  terminated  within  twenty-four  (24) months  following a
Change in Control, the Executive shall be entitled to the following compensation
and benefits:



<PAGE>



         (a) If the  Executive's  employment with the Company and with all other
Affiliates of the  Corporation  shall be terminated (1) by the Company for Cause
or Disability,  (2) by reason of the Executive's  death, or (3) by the Executive
other than for Good Reason,  the Company  shall pay to the Executive his Accrued
Compensation.  In addition to the foregoing,  if the  Executive's  employment is
terminated by the Company for Disability or by reason of the Executive's  death,
the Company  shall pay to the Executive or his  beneficiaries  a Pro Rata Bonus.
The  Executive's  entitlement  to any other  compensation  or benefits  shall be
determined in accordance  with the Company's  employee  benefits plans and other
applicable programs and practices then in effect.

         (b) If the  Executive's  employment with the Company and with all other
Affiliates of the  Corporation  shall be terminated for any reason other than as
specified in Section 2(a), the Executive shall be entitled to the following:

               (1)  the Company shall pay the Executive all Accrued Compensation
and a Pro Rata Bonus;

               (2) the Company  shall pay the  Executive as severance pay and in
lieu of any further compensation for periods subsequent to the Termination Date,
an amount determined by multiplying (A) two times the sum of (i) the Executive's
Base  Amount and (ii) the  Executive's  Bonus  Amount,  by (B) a  fraction,  the
numerator of which is the number of months,  not to exceed  twenty-four (24), in
the period  beginning  on the  Termination  Date and  ending on the  Executive's
Normal Retirement Date (as defined in the Company's  Employee Pension Plan), and
the denominator of which is twenty-four (24).

               (3) for a number  of  months  equal to  twenty-four  (24),  or if
earlier,  until  the  Executive's  Normal  Retirement  Date (as  defined  in the
Company's Employee Pension Plan) (the "Continuation  Period"), the Company shall
at its  expense  continue  on behalf of the  Executive  and his  dependents  and
beneficiaries   the   life   insurance,    disability,   medical,   dental   and
hospitalization  coverages and benefits  provided to the  Executive  immediately
prior to the  Change in Control  or, if  greater,  the  coverages  and  benefits
provided  at  any  time  thereafter.   The  coverages  and  benefits  (including
deductibles and costs) provided in this Section 2(b)(3) during the  Continuation
Period  shall be no less  favorable  to the  Executive  and his  dependents  and
beneficiaries,  than the most favorable of such coverages and benefits  referred
to above.  The  Company's  obligation  hereunder  with respect to the  foregoing
coverages and benefits shall be reduced to the extent that the Executive obtains
any such coverages and benefits pursuant to a subsequent

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<PAGE>


employer's  benefit  plans,  in which  case the  Company  may  reduce any of the
coverages or benefits it is required to provide the Executive  hereunder so long
as the aggregate coverages and benefits of the combined benefit plans is no less
favorable  to the  Executive  than the  coverages  and  benefits  required to be
provided hereunder. This Section 2(b)(3) shall not be interpreted so as to limit
any benefits to which the  Executive,  his  dependents or  beneficiaries  may be
entitled  under  any  of the  Company's  employee  benefit  plans,  programs  or
practices following the Executive's termination of employment, including without
limitation, retiree medical and life insurance benefits;

               (4) the Company  shall pay or  reimburse  the  Executive  for the
costs,  fees and expenses of  outplacement  assistance  services  (not to exceed
twenty percent (20%) of the sum of (A) the  Executive's  Base Amount and (B) the
Executive's  Bonus Amount) provided by any  outplacement  agency selected by the
Executive; and

               (5) the  Company  shall  provide  to the  Executive  the use of a
Company-leased  vehicle,  at no cost to the Executive,  until the earlier of (A)
the  date  occurring  six  (6)  months  after  the  Termination  Date or (B) the
Executive's  sixty-fifth  (65th) birthday,  after which date the Executive shall
have the option to purchase the vehicle at its "blue book" value.

         (c) If the Executive's  employment is terminated by the Company without
Cause (1) within twelve (12) months prior to a Change in Control or (2) prior to
the date of a Change in Control but the Executive  reasonably  demonstrates that
such  termination  (A) was at the request of a third party who has  indicated an
intention or taken steps reasonably  calculated to effect a Change in Control (a
"Third Party") and who effectuates a Change in Control or (B) otherwise arose in
connection  with,  or in  anticipation  of, a Change in  Control  which has been
threatened or proposed and which  actually  occurs,  such  termination  shall be
deemed to have occurred after a Change in Control,  provided a Change in Control
shall actually have occurred.

         (d)     (1) Gross-Up Payment. In the event it shall be
                     ----------------
determined that any payment or distribution of any type to or for the benefit of
the Executive,  by the Company, the Corporation,  any Affiliate,  any Person (as
defined in Section 15.6(a) hereof) who acquires  ownership or effective  control
of the  Corporation or ownership of a substantial  portion of the  Corporation's
assets (within the meaning of Section 280G of the Internal Revenue Code of 1986,
as amended (the "Code"),  and the  regulations  thereunder)  or any affiliate of
such Person, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (the "Total Payments"), is

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<PAGE>


or will be subject to the excise tax imposed by Section  4999 of the Code or any
interest or penalties with respect to such excise tax (such excise tax, together
with any such  interest  and  penalties,  are  collectively  referred  to as the
"Excise  Tax"),  then the  Executive  shall be entitled to receive an additional
payment (a  "Gross-Up  Payment")  in an amount  such that  after  payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the
Executive  retains  an amount of the  Gross-Up  Payment  equal to the Excise Tax
imposed upon the Total Payments.



                 (2)   Determination By Accountant.  All mathematical
                       ---------------------------
determinations,  and all  determinations as to whether any of the Total Payments
are "parachute  payments" (within the meaning of Section 280G of the Code), that
are required to be made under this Section 2(d), including  determinations as to
whether a Gross-Up Payment is required,  the amount of such Gross-Up Payment and
amounts relevant to the last sentence of this Section 2(d)(2),  shall be made by
an independent  accounting firm selected by the Executive from among the six (6)
largest  accounting  firms in the United States (the "Accounting  Firm"),  which
shall provide its determination  (the  "Determination"),  together with detailed
supporting  calculations  regarding  the amount of any Gross-Up  Payment and any
other  relevant  matter,  both to the Company and the Executive by no later than
ten (10) days following the  Termination  Date, if  applicable,  or such earlier
time  as is  requested  by  the  Company  or the  Executive  (if  the  Executive
reasonably  believes that any of the Total Payments may be subject to the Excise
Tax). If the  Accounting  Firm  determines  that no Excise Tax is payable by the
Executive,  it shall  furnish  the  Executive  and the  Company  with a  written
statement that such  Accounting Firm has concluded that no Excise Tax is payable
(including  the  reasons  therefor)  and  that  the  Executive  has  substantial
authority  not to report any Excise Tax on his federal  income tax return.  If a
Gross-Up Payment is determined to be payable,  it shall be paid to the Executive
within  twenty  (20)  days  after  the   Determination   (and  all  accompanying
calculations and other material  supporting the  Determination)  is delivered to
the Company by the Accounting  Firm. Any  determination  by the Accounting  Firm
shall be binding upon the Company and the Executive, absent manifest error. As a
result of uncertainty in the application of Section 4999 of the Code at the time
of the initial  determination  by the Accounting Firm hereunder,  it is possible
that  Gross-Up   Payments  not  made  by  the  Company  should  have  been  made
("Underpayment"),  or that Gross-Up  Payments will have been made by the Company
which  should not have been made  ("Overpayments").  In either such  event,  the
Accounting Firm shall determine the amount of the Underpayment or

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<PAGE>


Overpayment  that has occurred.  In the case of an  Underpayment,  the amount of
such Underpayment shall be promptly paid by the Company to or for the benefit of
the  Executive.  In the case of an  Overpayment,  the  Executive  shall,  at the
direction  and  expense  of the  Company,  take  such  steps  as are  reasonably
necessary  (including  the filing of returns  and  claims  for  refund),  follow
reasonable  instructions from, and procedures  established by, the Company,  and
otherwise  reasonably  cooperate  with the Company to correct such  Overpayment,
provided, however, that (i) the Executive shall not in any event be obligated to
return to the Company an amount  greater than the net  after-tax  portion of the
Overpayment  that  he has  retained  or  has  recovered  as a  refund  from  the
applicable taxing  authorities and (ii) this provision shall be interpreted in a
manner  consistent  with the  intent of  Section  2(d)(1),  which is to make the
Executive whole, on an after-tax basis,  from the application of the Excise Tax,
it being  understood  that the  correction of an  Overpayment  may result in the
Executive repaying to the Company an amount which is less than the Overpayment.

         (e) The amounts provided for in Sections 2(a) and 2(b)(1),  (2) and (4)
shall be paid in a single lump sum cash  payment  within  thirty (30) days after
the Executive's Termination Date (or earlier, if required by applicable law).
         (f) The  Executive  shall not be required to mitigate the amount of any
payment  provided for in this Agreement by seeking other employment or otherwise
and no such payment shall be offset or reduced by the amount of any compensation
or benefits  provided to the Executive in any  subsequent  employment  except as
provided in Section 2(b)(3).

         (g) The severance pay and benefits provided for in this Section 2 shall
be in lieu of any other  severance  pay to which the  Executive  may be entitled
under the GPU  System  Severance  Procedure  or any  other  plan,  agreement  or
arrangement of the Company or any other Affiliate of the Corporation.

       3. Notice of Termination. Following a Change in Control, any intended
          ---------------------
termination of the  Executive's  employment by the Company shall be communicated
by a Notice of Termination  from the Company to the Executive,  and any intended
termination of the Executive's employment by the Executive for Good Reason shall
be communicated by a Notice of Termination from the Executive to the Company.







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<PAGE>


       4. Fees and  Expenses.  The Company shall pay all legal fees and
          ------------------
related expenses (including the costs of experts, evidence and counsel) incurred
by the  Executive as they become due as a result of (a) the  termination  of the
Executive's  employment  by the  Company  or by the  Executive  for Good  Reason
(including all such fees and expenses, if any, incurred in contesting, defending
or  disputing  the  basis  for any  such  termination  of  employment),  (b) the
Executive's  hearing  before  the  Board  of  Directors  of the  Corporation  as
contemplated  in Section 15.5 of this Agreement or (c) the Executive  seeking to
obtain or enforce  any right or benefit  provided  by this  Agreement  or by any
other plan or arrangement maintained by the Company under which the Executive is
or may be entitled to receive benefits;  provided,  however, that the payment of
fees and expenses  pursuant to this  Section 4(c) shall be made only after,  and
only to the extent that, the Executive is  unsuccessful in his attempt to obtain
or enforce such right or benefit  through the procedures  established  under the
Legal  Defense Fund  maintained  by the Company  under the GPU System  Companies
Master  Executives'  Benefits  Protection  Trust (or any  similar  fund  under a
successor trust).

       5. Transfer of Employment.  Notwithstanding  any other provision
          ----------------------
herein to the contrary,  the Company shall cease to have any further  obligation
or  liability  to the  Executive  under this  Agreement  if (a) the  Executive's
employment  with the  Company  terminates  as a result  of the  transfer  of his
employment  to any other  Affiliate of the  Corporation,  (b) this  Agreement is
assigned to such other Affiliate, and (c) such other Affiliate expressly assumes
and agrees to perform  this  Agreement in the same manner and to the same extent
that the  Company  would be required  to perform it if no  assignment  had taken
place.  Any Affiliate to which this Agreement is so assigned shall be treated as
the  "Company"  for all  purposes of this  Agreement  on or after the date as of
which such  assignment to the  Affiliate,  and the  Affiliate's  assumption  and
agreement to so perform this Agreement, becomes effective.

       6. Corporation's Obligation. The Corporation agrees that it will
          ------------------------
take such steps as may be necessary to cause the Company (or any Affiliate  that
has  become  the  "Company"  pursuant  to  Section 5 hereof) to meet each of its
obligations to the Executive under this Agreement.

        7. Notice.  For the purposes of this Agreement,  notices and all
           ------
other  communications  provided for in the  Agreement  (including  any Notice of
Termination)  shall be in writing,  shall be signed by the  Executive  if to the
Company or by a duly authorized officer of the Company if to the Executive, and



                                        6

<PAGE>


shall be deemed to have been duly given  when  personally  delivered  or sent by
certified mail,  return receipt  requested,  postage  prepaid,  addressed to the
respective  addresses  last given by each party to the other,  provided that all
notices to the Company  shall be directed to the  attention  of the Board with a
copy to the Secretary of the Company.  All notices and  communications  shall be
deemed to have been  received  on the date of  delivery  thereof or on the third
business day after the mailing thereof,  except that notice of change of address
shall be effective only upon receipt.

       8. Nature of Rights.  The  Executive  shall have the status of a
          ----------------
mere unsecured  creditor of the Company and the Corporation  with respect to his
right to  receive  any  payment  under  this  Agreement.  This  Agreement  shall
constitute a mere promise by the Company and the Corporation to make payments in
the future of the  benefits  provided  for herein.  It is the  intention  of the
parties  hereto  that the  arrangements  reflected  in this  Agreement  shall be
treated as unfunded for tax purposes and, if it should be determined  that Title
I of ERISA is  applicable to this  Agreement,  for purposes of Title I of ERISA.
Except as provided in Section 2(g),  nothing in this Agreement  shall prevent or
limit the Executive's continuing or future participation in any benefit,  bonus,
incentive or other plan or program  provided by the Company,  the Corporation or
any other  Affiliate of the Corporation and for which the Executive may qualify,
nor shall anything  herein limit or reduce such rights as the Executive may have
under  any other  agreements  with the  Company,  the  Corporation  or any other
Affiliate of the  Corporation.  Amounts  which are vested  benefits or which the
Executive  is  otherwise  entitled  to receive  under any plan or program of the
Company,  the  Corporation or any other  Affiliate of the  Corporation  shall be
payable in accordance with such plan or program,  except as explicitly  modified
by this Agreement.

       9.  Settlement of Claims.  The Company's  obligation to make the
           --------------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder  shall  not be  affected  by  any  circumstances,  including,  without
limitation, any set-off, counterclaim, defense, recoupment, or other right which
the Company may have against the Executive or others.

       10.  Miscellaneous.  No  provision  of  this  Agreement  may  be
            -------------
modified, waived or discharged unless such waiver,  modification or discharge is
agreed to in  writing  and  signed by the  Executive,  the  Corporation  and the
Company.  No waiver by any party  hereto at any time of any  breach by any other
party  hereto  of, or  compliance  with,  any  condition  or  provision  of this
Agreement to be performed by such other party shall be deemed a



                                        7

<PAGE>


waiver of similar or  dissimilar  provisions or conditions at the same or at any
prior or subsequent  time. No agreement or  representations,  oral or otherwise,
express or implied,  with respect to the subject matter hereof have been made by
any party which are not expressly set forth in this Agreement.

       11. Successors; Binding Agreement.
           ------------------------------

         (a) This Agreement shall be binding upon and shall inure to the benefit
of the Company, the Corporation and their respective Successors and Assigns. The
Company and the  Corporation  shall  require  their  respective  Successors  and
Assigns to  expressly  assume and agree to perform  this  Agreement  in the same
manner and to the same extent that the Company and/or the  Corporation  would be
required to perform it if no such succession or assignment had taken place.

         (b) Neither this Agreement nor any right or interest hereunder shall be
assignable  or  transferable  by  the  Executive,  his  beneficiaries  or  legal
representatives, except by will or by the laws of descent and distribution. This
Agreement  shall inure to the benefit of and be enforceable  by the  Executive's
legal personal representative.

       12.  Governing  Law.  This  Agreement  shall be  governed by and
            --------------
construed  and enforced in  accordance  with the laws of the State of New Jersey
without  giving effect to the conflict of laws  principles  thereof.  Any action
brought by any party to this  Agreement  shall be brought  and  maintained  in a
court of competent jurisdiction in Morris County in the State of New Jersey.

       13.  Severability.  The  provisions of this  Agreement  shall be
            ------------
deemed severable and the invalidity or  unenforceability  of any provision shall
not affect the validity or enforceability of the other provisions hereof.

       14.  Entire  Agreement.  This  Agreement  constitutes  the
            -----------------
entire  agreement   between  the  parties  hereto,   and  supersedes  all  prior
agreements,  if any, understandings and arrangements,  oral or written,  between
the parties hereto, with respect to the subject matter hereof.

       15.  Definitions.
            -----------
            15.1.      Accrued Compensation.  For purposes of this Agreement,
                       --------------------
"Accrued  Compensation"  shall mean all  amounts of  compensation  for  services
rendered to the Company or any other  Affiliate that have been earned or accrued
through the  Termination  Date but that have not been paid as of the Termination
Date including (a) base salary, (b) reimbursement for



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<PAGE>


reasonable and necessary  business  expenses incurred by the Executive on behalf
of the Company  during the period ending on the  Termination  Date, (c) vacation
pay and (d) bonuses and incentive compensation;  provided, however, that Accrued
Compensation shall not include any amounts described in clause (a) or clause (d)
that  have  been  deferred   pursuant  to  any  salary   reduction  or  deferred
compensation elections made by the Executive.

           15.2.      Affiliate.  For purposes of this Agreement, "Affiliate"
                      ---------
means any entity,  directly or indirectly,  controlled by,  controlling or under
common  control  with  the  Corporation  or  any  corporation  or  other  entity
acquiring,  directly  or  indirectly,  all or  substantially  all the assets and
business of the Corporation, whether by operation of law or otherwise.

           15.3.      Base Amount.  For purposes of this Agreement, "Base
                      -----------
Amount" shall mean the  Executive's  annual base salary at the rate in effect as
of the date of a Change in  Control  or,  if  greater,  at any time  thereafter,
determined  without  regard to any salary  reduction  or  deferred  compensation
elections made by the Executive.

           15.4.      Bonus Amount.  For purposes of this Agreement, "Bonus
                      ------------
Amount"  shall mean the greater of (a) the target  annual  bonus  payable to the
Executive  under the  Incentive  Plan in respect of the fiscal year during which
the  Termination  Date  occurs or (b) the highest  annual  bonus paid or payable
under the Incentive  Plan in respect of any of the three full fiscal years ended
prior to the  Termination  Date or, if greater,  the three (3) full fiscal years
ended prior to the Change in Control.

           15.5.      Cause.  For purposes of this Agreement, a termination of
                      -----
employment is for "Cause" if the Executive has been convicted of a felony or the
termination is evidenced by a resolution  adopted in good faith by two-thirds of
the Board of Directors of the Corporation that the Executive:

                      (a)     intentionally and continually failed substantially
to perform his reasonably assigned duties with the Company (other than a failure
resulting from the  Executive's  incapacity due to physical or mental illness or
from the  assignment  to the  Executive  of duties  that would  constitute  Good
Reason) which failure  continued for a period of at least thirty (30) days after
a  written  notice  of  demand  for  substantial  performance,  signed by a duly
authorized  officer  of  the  Company,  has  been  delivered  to  the  Executive
specifying  the  manner in which  the  Executive  has  failed  substantially  to
perform, or




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<PAGE>



                      (b)     intentionally engaged in conduct which is
demonstrably  and  materially  injurious  to the  Corporation  or  the  Company;
provided,  however,  that no termination of the Executive's  employment shall be
for Cause as set forth in this Section  15.5(b)  until (1) there shall have been
delivered  to the  Executive  a  copy  of a  written  notice,  signed  by a duly
authorized  officer of the Company,  setting forth that the Executive was guilty
of the conduct set forth in this Section  15.5(b) and specifying the particulars
thereof in detail, and (2) the Executive shall have been provided an opportunity
to be heard in person by the Board of  Directors  of the  Corporation  (with the
assistance of the Executive's counsel if the Executive so desires).  No act, nor
failure to act,  on the  Executive's  part,  shall be  considered  "intentional"
unless the Executive has acted,  or failed to act, with a lack of good faith and
with a lack of reasonable  belief that the Executive's  action or failure to act
was in the best  interest of the  Corporation  and the Company.  Notwithstanding
anything  contained in this Agreement to the contrary,  no failure to perform by
the  Executive  after a Notice of  Termination  is given to the  Company  by the
Executive shall constitute Cause for purposes of this Agreement.

           15.6.      Change in Control.  A "Change in Control" shall mean the
                      -----------------
occurrence during the term of the Agreement of:

                      (a)     An acquisition (other than directly from the
Corporation)  of any common stock of the Corporation  ("Common  Stock") or other
voting securities of the Corporation entitled to vote generally for the election
of directors  (the "Voting  Securities")  by any "Person" (as the term person is
used for purposes of Section  13(d) or 14(d) of the  Securities  Exchange Act of
1934, as amended (the "Exchange Act")),  immediately after which such Person has
"Beneficial  Ownership"  (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of twenty percent (20%) or more of the then outstanding  shares of
Common Stock or the combined voting power of the Corporation's  then outstanding
Voting Securities; provided, however, in determining whether a Change in Control
has occurred,  Voting Securities which are acquired in a Non-Control Acquisition
(as hereinafter defined) shall not constitute an acquisition which would cause a
Change in Control. A "Non-Control  Acquisition" shall mean an acquisition by (i)
an employee  benefit plan (or a trust forming a part thereof)  maintained by (A)
the  Corporation  or (B) any  corporation or other Person of which a majority of
its voting power or its voting equity  securities  or equity  interest is owned,
directly or indirectly, by the Corporation (a "Subsidiary") (ii) the Corporation
or its  Subsidiaries,  or (iii) any  Person  in  connection  with a  Non-Control
Transaction (as hereinafter defined);


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                      (b)     The individuals who, as of August 1, 1996, are
members of the Board of Directors of the Corporation  (the  "Incumbent  Board"),
cease for any reason to constitute at least seventy percent (70%) of the members
of the Board of Directors of the  Corporation;  provided,  however,  that if the
election, or nomination for election by the Corporation's  shareholders,  of any
new  director  was approved by a vote of at least  two-thirds  of the  Incumbent
Board, such new director shall, for purposes of this Agreement, be considered as
a member of the Incumbent Board;  provided further,  however, that no individual
shall be considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual or threatened  "Election Contest"
(as described in Rule 14a-11 promulgated under the Exchange Act) or other actual
or  threatened  solicitation  of proxies or consents by or on behalf of a Person
other  than the  Board of  Directors  of the  Corporation  (a  "Proxy  Contest")
including  by reason of any  agreement  intended to avoid or settle any Election
Contest or Proxy Contest; or

                      (c)     The consummation of:

                              (1) A merger, consolidation or reorganization with
                         or into the  Corporation or in which  securities of the
                         Corporation    are   issued,    unless   such   merger,
                         consolidation  or   reorganization  is  a  "Non-Control
                         Transaction." A "Non-Control  Transaction" shall mean a
                         merger,  consolidation or  reorganization  with or into
                         the   Corporation   or  in  which   securities  of  the
                         Corporation are issued where:

                                                     (A) the shareholders of the
                                    Corporation, immediately before such merger,
                                    consolidation   or    reorganization,    own
                                    directly or indirectly immediately following
                                    such      merger,      consolidation      or
                                    reorganization, at least sixty percent (60%)
                                    of  the   combined   voting   power  of  the
                                    outstanding   voting   securities   of   the
                                    corporation  resulting  from such  merger or
                                    consolidation   or    reorganization    (the
                                    "Surviving  Corporation")  in  substantially
                                    the same  proportion  as their  ownership of
                                    the  Voting  Securities  immediately  before
                                    such      merger,      consolidation      or
                                    reorganization,






                                       11


<PAGE>




                                                     (B)  the   individuals  who
                                    were   members   of  the   Incumbent   Board
                                    immediately  prior to the  execution  of the
                                    agreement   providing   for   such   merger,
                                    consolidation or  reorganization  constitute
                                    at  least  seventy   percent  (70%)  of  the
                                    members  of the  board of  directors  of the
                                    Surviving  Corporation,   or  a  corporation
                                    beneficially directly or indirectly owning a
                                    majority  of the  Voting  Securities  of the
                                    Surviving Corporation, and

                                                     (C) no  Person  other  than
                                    (i) the  Corporation,  (ii) any  Subsidiary,
                                    (iii)  any  employee  benefit  plan  (or any
                                    trust   forming   a  part   thereof)   that,
                                    immediately    prior    to   such    merger,
                                    consolidation   or    reorganization,    was
                                    maintained by the Corporation, the Surviving
                                    Corporation,  or any Subsidiary, or (iv) any
                                    Person  who,   immediately   prior  to  such
                                    merger,  consolidation or reorganization had
                                    Beneficial Ownership of twenty percent (20%)
                                    or  more  of  the  then  outstanding  Voting
                                    Securities    or   common   stock   of   the
                                    Corporation,  has  Beneficial  Ownership  of
                                    twenty percent (20%) or more of the combined
                                    voting power of the Surviving  Corporation's
                                    then  outstanding  voting  securities or its
                                    common stock.

                                   (2)      A complete liquidation or
                         dissolution of the Corporation; or

                                   (3) The sale or other  disposition  of all or
                         substantially  all of the assets of the  Corporation to
                         any Person (other than a transfer to a Subsidiary).

                         Notwithstanding the foregoing, a Change in Control
shall not be deemed to occur solely  because any Person (the  "Subject  Person")
acquired  Beneficial  Ownership  of more than the  permitted  amount of the then
outstanding  common stock or Voting Securities as a result of the acquisition of
Common Stock or Voting  Securities  by the  Corporation  which,  by reducing the
number  of  shares  of  Common  Stock or  Voting  Securities  then  outstanding,
increases the proportional  number of shares  Beneficially  Owned by the Subject
Person,  provided that if a Change in Control would occur (but for the operation
of this sentence) as a result of the



                                       12



<PAGE>


acquisition of shares of Common Stock or Voting  Securities by the  Corporation,
and after such share acquisition by the Corporation,  the Subject Person becomes
the  Beneficial  Owner of any  additional  shares  of  Common  Stock  or  Voting
Securities  which  increases the  percentage of the then  outstanding  shares of
Common Stock or Voting Securities Beneficially Owned by the Subject Person, then
a Change in Control shall occur.

           15.7.      Company and Corporation.  For purposes of this Agreement,
                      -----------------------
all references to the Company and the Corporation shall include their respective
Successors and Assigns.

           15.8.      Disability.  For purposes of this Agreement, "Disability"
                      ----------
shall mean a physical or mental infirmity which impairs the Executive's  ability
to  substantially  perform his duties  with the Company for six (6)  consecutive
months, and within the time period set forth in a Notice of Termination given to
the Executive  (which time period shall not be less than thirty (30) days),  the
Executive  shall not have  returned  to  full-time  performance  of his  duties;
provided,  however,  that  if  the  Company's  Voluntary  Employees  Beneficiary
Association  Long  Term  Disability  Income  Plan,  or any  successor  plan (the
"Disability  Plan"),  is then in  effect,  the  Executive  shall  not be  deemed
disabled for purposes of this  Agreement  unless the  Executive is also eligible
for "Total  Disability" (as defined in the Disability Plan) benefits (or similar
benefits in the event of a successor plan) under the Disability Plan.

           15.9.      Good Reason.  (a)  For purposes of this Agreement, "Good
                      -----------
Reason"  shall  mean the  occurrence  after a Change  in  Control  of any of the
following events or conditions:

                      (1)     a change in the Executive's status, title,
position or responsibilities  (including reporting  responsibilities)  which, in
the  Executive's  reasonable  judgment,  represents  an adverse  change from his
status,  title,  position or  responsibilities  as in effect  immediately  prior
thereto;  the  assignment  to the  Executive  of any duties or  responsibilities
which, in the Executive's reasonable judgment, are inconsistent with his status,
title,  position or  responsibilities;  or any removal of the Executive  from or
failure to reappoint or reelect him to any of such offices or positions,  except
in connection with the termination of his employment for Disability, Cause, as a
result of his death or by the Executive other than for Good Reason;

                      (2)     a reduction in the rate of the Executive's annual
base salary;





                                       13

<PAGE>


                      (3)     the relocation of the offices of the Company at
which the Executive is principally  employed to a location more than twenty-five
(25)  miles  from  the  location  of  such  offices  immediately  prior  to such
relocation,  or the Company's requiring the Executive to be based anywhere other
than at such  offices,  except to the extent the  Executive  was not  previously
assigned  to a  principal  place of duty and except for  required  travel on the
Company's  business to an extent  substantially  consistent with the Executive's
previous business travel obligations;

                      (4)     the failure by the Company to pay to the Executive
any portion of the Executive's  current  compensation or to pay to the Executive
any  portion of an  installment  of  deferred  compensation  under any  deferred
compensation program of the Company in which the Executive participated,  within
seven (7) days of the date such compensation is due;

                      (5)     the failure by the Company (A) to continue in
effect (without  reduction in benefit level,  and/or reward  opportunities)  any
material  compensation  or  employee  benefit  plan in which the  Executive  was
participating  immediately prior to such failure by the Company,  including, but
not  limited  to,  any of the  plans  listed  in  Appendix  A  hereto,  unless a
substitute or replacement plan has been implemented which provides substantially
identical  compensation  or  benefits  to the  Executive  or (B) to  continue to
provide the Executive with compensation and benefits, in the aggregate, at least
equal (in terms of benefit levels and/or reward opportunities) to those provided
for under each other compensation or employee benefit plan, program and practice
in which the Executive was  participating  immediately  prior to such failure by
the Company;

                      (6)     the failure of the Company to obtain from its
Successors  or Assigns the  express  assumption  and  agreement  required  under
Section 11 hereof; or

                      (7)     any purported termination of the Executive's
employment  by the  Company  which  is not  effected  pursuant  to a  Notice  of
Termination  satisfying  the  terms  set  forth in the  definition  of Notice of
Termination  (and,  if  applicable,  the terms set  forth in the  definition  of
Cause).

                      (b)     Any event or condition described in Section
15.9(a)(1)  through (7) which  occurs (1) within  twelve (12) months  prior to a
Change in Control or (2) prior to a Change in  Control  but which the  Executive
reasonably  demonstrates (A) was at the request of a Third Party who effectuates
a Change in Control or (B) otherwise arose in connection with, or in




                                       14



<PAGE>


anticipation  of a Change in Control  which has been  threatened or proposed and
which  actually  occurs,  shall  constitute  Good  Reason for  purposes  of this
Agreement notwithstanding that it occurred prior to a Change in Control.

           15.10.     Incentive Plan.  For purposes of this Agreement,
                      --------------
"Incentive  Plan"  shall  mean  the  Incentive  Compensation  Plan  for  Elected
Officers,  or any successor annual incentive plan,  maintained by the Company or
any other Affiliate.
           15.11.     Notice of Termination.  For purposes of this Agreement,
                      ---------------------
following  a Change in  Control,  "Notice of  Termination"  shall mean a written
notice of termination of the Executive's employment,  signed by the Executive if
to the  Company  or by a  duly  authorized  officer  of  the  Company  if to the
Executive, which indicates the specific termination provision in this Agreement,
if any,  relied  upon and which  sets forth in  reasonable  detail the facts and
circumstances  claimed to  provide a basis for  termination  of the  Executive's
employment under the provision so indicated.

           15.12.    Pro Rata Bonus.  For purposes of this Agreement, "Pro Rata
                     --------------
Bonus" shall mean an amount equal to the Bonus Amount  multiplied  by a fraction
the  numerator  of which is the number of days in such fiscal  year  through the
Termination Date and the denominator of which is 365;  provided,  however,  that
the Pro Rata Bonus  shall be reduced,  but not below zero,  to the extent of any
bonus the  Executive is entitled to receive  pursuant to the  Incentive  Plan in
respect of the fiscal year (denoted a  "Performance  Period" under the Incentive
Plan) in which the Termination Date occurs.

           15.13.    Successors and Assigns.  For purposes of this Agreement,
                     ----------------------
"Successors  and  Assigns"  shall  mean,  with  respect  to the  Company  or the
Corporation,  a corporation or other entity acquiring all or  substantially  all
the assets and  business of the Company or the  Corporation,  as the case may be
(including this Agreement) whether by operation of law or otherwise.

           15.14.    Termination Date.  For purposes of this Agreement,
                     ----------------
"Termination Date" shall mean (a) in the case of the Executive's death, his date
of death, (b) if the Executive's employment is terminated for Disability, thirty
(30) days after Notice of  Termination  is given  (provided  that the  Executive
shall not have returned to the  performance  of his duties on a full-time  basis
during such thirty (30) day  period) and (c) if the  Executive's  employment  is
terminated for any other reason, the date specified in the Notice of Termination
(which,  in the case of a  termination  for Cause  shall not be less than thirty
(30) days, and in the case of a termination for Good Reason shall not


                                       15

<PAGE>




be more than  sixty  (60)  days,  from the date such  Notice of  Termination  is
given);  provided,  however, that if within thirty (30) days after any Notice of
Termination  is given the party  receiving  such Notice of  Termination  in good
faith  notifies the other party that a dispute  exists  concerning the basis for
the termination,  the Termination Date shall be the date on which the dispute is
finally determined, either by mutual written agreement of the parties, or by the
final judgment,  order or decree of a court of competent  jurisdiction (the time
for  appeal   therefrom  having  expired  and  no  appeal  having  been  taken).
Notwithstanding the pendency of any such dispute,  the Company shall continue to
pay the Executive his Base Amount and continue the Executive as a participant in
all  compensation,   incentive,   bonus,  pension,   profit  sharing,   medical,
hospitalization, dental, life insurance and disability benefit plans in which he
was  participating  when the notice giving rise to the dispute was given,  until
the dispute is finally  resolved in accordance  with this Section whether or not
the dispute is resolved in favor of the Company,  and the Executive shall not be
obligated to repay to the Company any amounts paid or benefits provided pursuant
to this sentence.



                IN WITNESS WHEREOF,  the Corporation and the Company have caused
this  Agreement  to be  executed  by  their  duly  authorized  officers  and the
Executive  has  executed  this  Agreement  as of the day and  year  first  above
written.

                                    GPU, Inc.


                                          By:          /s/ Fred D. Hafer
                                                 ------------------------------
ATTEST:                                                Fred D. Hafer
                                                       Chairman, President and
                                                       Chief Executive Officer
                 Secretary

                                          Jersey Central Power & Light Company


                                          By:          /s/ Fred D. Hafer
                                                -------------------------------
ATTEST:                                                Fred D. Hafer
                                                       Chief Executive Officer

                 Secretary

                                          By:          /s/ Dennis P. Baldassari
                                                -------------------------------
                                                       Dennis P. Baldassari


                                       16