Document:

Exhibit 10-L

                                            August 8, 2000

Mr. Ira H. Jolles
610 West End Avenue
New York, New York 10024

Dear Ira:

        The purpose of this letter is to amend and restate the letter  agreement
dated August 7, 1997 between you, GPU, Inc. (GPU) and GPU Service,  Inc. (GPUS).
That letter  (the "Prior  Agreement")  amended and  restated a letter  agreement
between  you, GPU and GPUS,  initially  dated  December 13, 1989 and  thereafter
amended and restated on various  subsequent  dates,  that set forth the terms of
your employment, effective January 1, 1990, as Senior Vice President and General
Counsel of GPU and as Executive Vice  President and General  Counsel of GPUS, as
well as the  agreement  between  you,  GPU and GPUS with respect to your pension
arrangements.

        Upon your agreement to this amendment and restatement as provided on the
last page hereof,  this letter agreement (the  "Agreement")  shall supersede and
replace, in its entirety, the Prior Agreement.

Section 1.     Election to Other GPU Offices and Source of Your
               -------------------------------------------------
               Compensation.
               ------------

        You will be a director of GPUS.

        Your  compensation and other benefits from GPU and its subsidiaries (the
"GPU  Companies")  will be paid to you by GPUS. You will not receive separate or
additional  compensation  for serving as a director or officer of GPU or any GPU
Company other than GPUS.  Payment of your  compensation  and the other  benefits
payable to you pursuant to this  Agreement  shall be obligations of both GPU and
GPUS. Your other unfunded  employee  benefits payable by GPUS will be guaranteed
by GPU to the extent covered under the latter's  guarantee of unfunded  benefits
for all GPUS officers.

<PAGE>

Mr. Ira H. Jolles
August 8, 2000
Page 2

Section 2.     Base Salary.
               -----------

        Your Base Salary will be  determined  from time to time by the GPU Board
of Directors. As of the date of this amendment and restatement, your Base Salary
is $360,000.00

Section 3.     Retirement Provisions.
               ---------------------

        (a) You will be a participant in the GPU Companies Employee Pension Plan
and the GPUS Supplemental and Excess Benefits Plan (the "Retirement Plans") and,
by reason of the services rendered by you in accordance with this Agreement, you
will accrue  benefits,  commencing as of January 1, 1990, in accordance with the
terms of such Retirement  Plans,  as the Retirement  Plans may be in effect from
time to time.

        (b)  Under  the  terms of the  present  Retirement  Plans,  your  Normal
Retirement  Date  under  those  plans is the last day of the  month in which you
reach your sixty-fifth  birthday (December 12, 2003). It is anticipated that you
will retire on your Normal  Retirement  Date.  If you do retire on or after that
date, you will receive an additional  retirement  pension from the GPU Companies
equal to the additional  pension which would have been paid under the Retirement
Plans if, in addition to your actual  years of  creditable  service,  you had an
additional  20 years  of past  creditable  service.  Payment  of the  additional
retirement  pension will  commence on the first day of the month  following  the
month in which you so retire.

        (c) GPUS has in effect Short-Term and Long-Term  Disability Income Plans
that provide coverage,  up to your Normal Retirement Date, for employees meeting
the  requirements  of such Plans. If you are receiving  Disability  Income under
either such Plan at the time you reach your  Normal  Retirement  Date,  you will
thereafter receive an additional retirement pension from the GPU Companies equal
to the additional  pension which would have been paid under the Retirement Plans
if,  in  addition  to  your  actual  years  of  creditable  service,  you had an
additional 20 years of past creditable service.

        (d) If your employment with the GPU Companies shall be terminated (i) as
a result of an "Involuntary  Termination"  (as defined below) at any time within
two (2) years  following the  occurrence of a "Change in Control" (as defined in
Appendix A hereto),  or (ii) by any GPU Company  without  "Cause" (as defined in

<PAGE>
Mr. Ira H. Jolles
August 8, 2000
Page 3

Appendix A hereto),  then you will receive from the GPU  Companies an additional
retirement  pension,  equal to the additional pension which would have been paid
under the  Retirement  Plans if, in addition to your actual years of  creditable
service,  you had an additional  twenty (20) years of past  creditable  service.
Payment of the additional  retirement  pension will commence on the first day of
the month following the month in which your employment is so terminated.

        For purposes of clause (i) above,  "Involuntary  Termination" shall mean
(A) the  termination  of your  employment  with  the  GPU  Companies  by any GPU
Company,  or (B) a  termination  by you (x) for "Good  Reason"  (as  defined  in
Appendix A hereto) or (y) as the result of any other material  adverse change in
the conditions of your employment with the GPU Companies.  If the termination of
your  employment  by any GPU Company is (1) within twelve (12) months prior to a
Change  in  Control  or (2)  prior to the date of a Change  in  Control  but you
reasonably  demonstrate  that the  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  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.

        (e) If your  employment  with the GPU Companies  shall terminate for any
reason,  other than by death or retirement  or  termination  in accordance  with
paragraphs  (b), (c) or (d) above,  you will  receive from the GPU  Companies an
additional  retirement  pension equal to the additional pension which would have
been paid under the  Retirement  Plans if, in addition  to your actual  years of
creditable  service,  you had an additional  number of years of past  creditable
service   determined  in  accordance   with  the  following   table   (employing
straight-line  interpolation  for fractional years of actual employment with the
GPU Companies):

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Mr. Ira H. Jolles
August 8, 2000
Page 4

               Years of Actual                     Additional Number of Years
               GPU Employment                      of Past Creditable Service
               --------------                      --------------------------
                         1                                    2.0
                         2                                    3.5
                         3                                    5.0
                         4                                    6.0
                         5                                    7.0
                        .6                                    8.0
                        .7                                    8.5
                        .8                                    9.0
                        .9                                    9.5
                        10                                   10.0
                        11                                   12.5
                        12                                   15.0
                        13                                   17.5
                        14                                   20.0

Payment of the additional retirement pension payable to you under this paragraph
(e) shall  commence on the first day of the month  following  the month in which
your employment so terminates.

        (f) For purposes of determining the amount of the additional  retirement
pension payable to you under  paragraphs (b), (c), (d) or (e) above, it shall be
assumed that the pension payable to you under the Retirement Plans is payable in
the  form of a single  life  annuity,  and that  payment  of such  pension  will
commence  on the same date as  payment  of your  additional  retirement  pension
hereunder will commence.

        The additional retirement pension payable to you hereunder shall be paid
to you in the form of a single life  annuity  unless you are married on the date
as of which  payment of such pension is to commence,  in which event it shall be
paid in the form  described  as Option 2 in  Section  10.1 of the GPUS  Employee
Pension Plan, with your spouse as your beneficiary.

        (g) If you should die before you start to receive the additional pension
payable to you under paragraph (b), (c), (d) or (e), your surviving  spouse,  if
any, will receive, for the rest of her life from the GPU System Companies,  100%
of the pension which would have been payable to you under the Retirement Plans

<PAGE>

Mr. Ira H. Jolles
August 8, 2000
Page 5

and 100% of the additional  retirement  pension which would have been payable to
you in accordance with paragraph (e), had you terminated  employment on the date
of your death.  Such  payments to your  surviving  spouse shall  commence on the
first day of the month following the month of your death.

        To the extent your  surviving  spouse does not receive such pension from
the Retirement Plans, she will receive it from the GPU Companies.

        (h) Retirement or pension benefits from prior employers to which you are
now, or may in the future be,  entitled will not be applied  against the pension
benefits  payable to you  pursuant to this  Section and you are free to elect to
receive such other pension benefits when, and in such manner as, you choose.

Section 4.     Supplemental Pension.
               --------------------

        Upon your  retirement on any date  subsequent to the date of this letter
(the date as of which you so retire is  referred  to herein as your  "Retirement
Date") you shall be entitled to receive from the GPU  Companies,  in addition to
the additional retirement pension payable to you pursuant to Section 3 hereof, a
supplemental  pension,  which  shall be  payable  upon the  following  terms and
conditions:

        (a) The supplemental pension payable to you hereunder, when expressed as
a single life annuity,  shall be a monthly amount of income equal to the amount,
if any,  by which  either (i)  $10,825.75  for each month  beginning  after your
Retirement Date and before the month beginning after your 62nd birthday, or (ii)
$10,325.75 for each month  beginning  after the later of your Retirement Date or
your 62nd  birthday,  exceeds (iii) the aggregate  pension amount payable to you
for such month under the Retirement  Plans and Section 3 hereof,  determined for
this purpose  without  taking into  account (x) any  Additional  Pension  amount
payable to you under the GPUS Employee Pension Plan, and (y) the 20% increase in
the  pension  amounts  payable to you under the  Retirement  Plans and Section 3
hereof during the first 12 months following your retirement. For purposes of the
foregoing,  if any part of the aggregate pension amount payable to you under the
Retirement Plans or Section 3 hereof is not payable in the form of a single life

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Mr. Ira H. Jolles
August 8, 2000
Page 6

annuity commencing on the first day of the month following your Retirement Date,
the pension  amount  referred to in (iii) above shall be  determined  as if such
part were so payable.

        (b) The supplemental  pension shall be paid to you in the same form, and
payments  shall  commence  at the  same  time,  as  payment  of  the  additional
retirement pension provided for under Section 3 hereof.

        (c) If you should die  before  you start to  receive  your  supplemental
pension,  your surviving  spouse,  if any, shall be entitled to receive from GPU
System  sources an annuity  payable to her for her lifetime in a monthly  amount
equal to 100% of the  supplemental  pension  that would have been payable to you
hereunder  if you had not died,  if you had retired on the last day of the month
in which your death occurs, and if you had not been married on such last day.

        (d) With each monthly payment of the supplemental pension payable to you
during the first 12 months following your Retirement Date, you shall be entitled
to  receive an  additional  amount  equal to 20% of the  amount of such  monthly
payment; provided, however, that if clause (i) of paragraph (a) above applies in
calculating  the  supplemental  pension  amount  payable  for  such  month,  the
additional  amount  payable to you for such month under this paragraph (d) shall
be equal to 20% of the supplemental  pension amount that would be payable to you
for such  month if clause  (ii)  instead  of clause  (i) of  paragraph  (a) were
applicable in calculating  the amount of your  supplemental  pension payment for
such month.

Section 5.     Regular Benefit Payment Election.
               --------------------------------

        Notwithstanding  any other  provision of Section 3 or 4 to the contrary,
you may elect to have the  additional  retirement  pension and the  supplemental
pension that become payable to you or your surviving  spouse  thereunder paid in
the form of a single lump sum payment. The amount of such lump sum payment shall
be determined  in the same manner as the amount of the lump sum payment  payable
pursuant  to an  election  by you under  clause  (a) of the first  paragraph  of
Section 6 would be determined, as provided in the third paragraph of Section 6.

<PAGE>

Mr. Ira H. Jolles
August 8, 2000
Page 7

        Subject  to  Section  10, any  election  under  this  Section 5 shall be
effective only if it is made (i) at least  twenty-four  (24) months prior to the
termination  of  your  employment  with  the GPU  Companies,  or  (ii),  if your
termination of employment  constitutes  an Involuntary  Termination or occurs by
reason of your death,  at least twelve (12) months prior to such  termination of
your employment.  Any election so made may be revoked, and a new election may be
made under this  Section 5, at any time;  provided,  however,  that,  subject to
Section 10, any such revocation or new election shall be effective only if it is
made within the period  specified in the preceding  sentence.  Any election,  or
revocation of an election, that may be made by you under this Section 5 shall be
made in  writing,  on a form that is  furnished  to you for such  purpose by the
Administrative  Committee of the GPUS Employee Pension Plan (the "Administrative
Committee")  and  that is  signed  by you and  delivered  to the  Administrative
Committee.

Section 6.     Special Benefit Payment Election.
               --------------------------------

        Notwithstanding  any other form of  distribution  or payment or date for
the  payment,  (or  commencement  of payment) of benefits  otherwise  elected or
provided  for  under  this  Agreement  or the  Retirement  Plans,  you  shall be
permitted  to make  either  one,  or  both,  of the  following  special  payment
elections:  (a) to have the additional  retirement  pension payable  pursuant to
Section 3 hereof and the  supplemental  pension  payable  pursuant  to Section 4
hereof  paid in the  form of a  single  lump sum  payment  in the  event of your
termination  of employment  with the GPU Companies for any reason within the two
(2) year period  following the  occurrence  of a Change in Control,  or (b) if a
Change in Control occurs after the  termination of your  employment with the GPU
Companies but before all payments  required to be made hereunder with respect to
your additional  retirement pension and supplemental  pension have been made, to
have the additional  retirement  pension and supplemental  pension payments that
otherwise  would be made hereunder after the date of such Change in Control paid
in the form of a single lump sum payment.

<PAGE>

Mr. Ira H. Jolles
August 8, 2000
Page 8

        Subject to Section 10, an  election  under  clause (a) of the  preceding
paragraph shall be effective only if it is made either at least twenty-four (24)
months prior to such termination of your  employment,  or if such termination of
your  employment  is due  to  your  death  or is the  result  of an  Involuntary
Termination  as defined in Section 3(d) hereof,  at least one year prior to such
Change in Control.  Subject to Section 10, an election  under  clause (b) of the
preceding  paragraph  shall be  effective  only if it is made at least  one year
prior to the Change in Control, and prior to the termination of your employment.
Any special election made under clause (a) or (b) of the preceding paragraph may
be revoked,  and a new special  election  may be made  thereunder,  at any time;
provided,  however,  that,  subject to Section  10, any such  revocation  or new
election  shall be  effective  only if it is made  within  the  election  period
specified in this paragraph.  Any special  election,  or revocation of a special
election,  that  may be made  hereunder  shall  be made in the  same  manner  as
provided in the last sentence of the second paragraph of Section 5.

        The lump sum payment to be made to you pursuant to your  election  under
clause  (a) of the  second  preceding  paragraph  shall be in an amount  that is
"Actuarially Equivalent" (as defined below and determined as of the first day of
the  month  following  the  date  of  your  termination  of  employment)  to the
additional  retirement pension and supplemental  pension that otherwise would be
payable to you hereunder if payment of your  additional  retirement  pension and
supplemental  pension and the pension payable to you under the Retirement  Plans
(i) were to  commence  on your Normal  Retirement  Date or, if  earlier,  on the
earliest  date as of which you could elect to have payment of your pension under
the  Retirement  Plans commence and (ii) were to be made in the form of a single
life annuity.  The lump sum payment to be made to your surviving spouse pursuant
to your election under clause (a) of the second preceding  paragraph shall be in
an amount that is  "Actuarially  Equivalent" (as defined below and determined as
of the first day of the month  following  the date of your death) to the pension
and the  annuity  that  otherwise  would be  payable  to your  surviving  spouse
pursuant to Section  3(g) and Section  4(c)  hereof.  The lump sum payment to be
made to you or your surviving  spouse pursuant to your election under clause (a)
of the second  preceding  paragraph  shall be made by no later than  thirty (30)
days following the date of your termination of employment.

<PAGE>

Mr. Ira H. Jolles
August 8, 2000
Page 9

        The lump sum payment to be made pursuant to your  election  under clause
(b) of the third  preceding  paragraph shall be in an amount that is Actuarially
Equivalent  (as defined  below and  determined  as of the first day of the month
coincident  with or next  following  the date on which  the  Change  in  Control
occurs) to the payments that  otherwise  would be made hereunder with respect to
your additional  retirement  pension and supplemental  pension after the date of
such  Change in Control.  Such lump sum  payment  shall be made by no later than
thirty (30) days following the date on which such Change in Control occurs.

        For purposes of this  Section 6,  "Actuarially  Equivalent"  shall mean,
with respect to any distribution or payment,  an actuarially  equivalent amount,
calculated by using the annual interest rate on 30-year Treasury  securities for
the second month preceding the calendar year in which such  distribution is made
or  commences,  and the  mortality  table  prescribed  for  purposes  of section
417(e)(3)(A)(ii)(I)  of the  Internal  Revenue  Code of 1986,  as  amended  (the
"Code").  Such annual interest rate and mortality table shall be as specified or
prescribed by the  Commissioner of the Internal  Revenue Service for purposes of
Section  417(e)(3)(A)(ii)  of the  Code in  revenue  rulings,  notices  or other
guidance.

Section 7.     Other Benefits.
               --------------

        To the extent  permitted by such plans without  requiring prior evidence
of insurability or eligibility, you will participate in all of the benefit plans
maintained  by any of the GPU  Companies  in which  senior  GPU  executives  are
eligible to participate,  as such plans shall be in effect from time to time. In
the case of each such plan that provides a benefit the amount of which  depends,
directly or indirectly,  on the number of years of a participant's  service with
the GPU  Companies,  you shall  receive  the same  benefit  amount that would be
payable to you under such plan if you were  treated as having,  in  addition  to
your actual years of services,  the number of years of service  determined under
the  table in  Section  3(e).  The  number of  additional  years of  service  so
determined  shall also be taken into account in determining  your eligibility to
participate in any benefit plan  maintained by any of the GPU Companies in which

<PAGE>
Mr. Ira H. Jolles
August 8, 2000
Page 10

senior GPU executives are eligible to participate that requires,  as a condition
for  eligibility,  the completion of a specified number of years of service with
the GPU Companies.

        In addition to the supplemental  pension  described above, you will also
receive  (i) an  extension  of coverage  in your and your  family's  health care
benefits under the Supplemental and Excess Medical Plan to the third anniversary
of the date of your  retirement,  or your  attainment  of age 62,  whichever  is
later;  and (ii) an amended  Split-Dollar  Agreement with respect to your Senior
Executive  Life  Insurance  policy to provide for  eligibility  to receive  full
benefits under your policy at age 55 with 10 years of service.

Section 8.     Nature of Your Rights.
               ---------------------

        With respect to your right to receive an additional  retirement  pension
pursuant to Section 3 hereof and the  supplemental  pension  provided  for under
Section 4 hereof, or to receive a lump sum payment with respect to such pensions
under  Section 5 or 6  hereof,  you shall  have the  status of a mere  unsecured
creditor of GPUS and GPU;  and this letter  agreement  shall  constitute  a mere
promise  by GPUS and GPU to make  payments  in the  future of such  pensions  in
accordance with the provisions of Sections 3, 4, 5 and 6. It is the intention of
the parties hereto that the  arrangements set forth in Sections 3, 4, 5 and 6 of
this  letter  agreement   regarding  your  additional   retirement  pension  and
supplemental  pension  shall be treated as unfunded for tax purposes  and, if it
should be determined  that Title I of ERISA is applicable to such  arrangements,
for purposes of Title I of ERISA.

Section 9.     Nonassignability.
               ----------------

        Your  rights  to  receive   payments  with  respect  to  the  additional
retirement pension and supplemental  pension provided for under Sections 3 and 4
of this  letter  agreement  shall not be subject in any manner to  anticipation,
alienation,  sale,  transfer,  assignment,  pledge,  encumbrance,  attachment or
garnishment  by  your  creditors  or  creditors  of  your  spouse  or any  other
beneficiary.

<PAGE>

Mr. Ira H. Jolles
August 8, 2000
Page 11

Section 10.    Additional Change in Control Provisions.
               ---------------------------------------

        Notwithstanding any other provision of the Plan to the contrary,  if the
Personnel,  Compensation  and Nominating  Committee of the Board of Directors of
GPU so directs in connection with any proposed or threatened Change in Control

        (A)    the regular election provided for under Section 5 and any special
               benefit payment election provided for under Section 6 may be made
               by  you,  and any  such  election  previously  made by you may be
               revoked  and a new  election  made by you  under  such  Sections,
               within  the  period  beginning  on the date of the  first  public
               announcement of such proposed or threatened Change in Control and
               ending on the 45th day following such date; and

        (B)    you may  also  elect,  within  such  45-day  period,  to have the
               additional  retirement pension and the supplemental  pension that
               become payable to you or your surviving spouse under Section 3 or
               4 paid in the form of a single  lump-sum  payment in the event of
               your  Involuntary  Termination  or death at any time  within  the
               12-month period  following the date of such public  announcement,
               notwithstanding any other benefit payment election otherwise made
               by you under Section 5 and/or Section 6.

               The lump-sum  payment to be made pursuant to your election  under
               clause (B) above  shall be made no later  than 30 days  following
               the date of your Involuntary  Termination or death. The amount of
               such lump sum payment  shall be  determined in the same manner as
               the  amount  of the  lump  sum  payment  payable  pursuant  to an
               election  by you  under  clause  (a) of the  first  paragraph  of
               Section 6 would be determined, as provided in the third paragraph
               of Section 6.

               Any  election,  or  revocation  of an election,  that may be made
               pursuant to this Section 10 shall be made in the manner set forth
               in the last  sentence of the second  paragraph  of Section 5. Any
               election,  or revocation  of an election  under Section 5 that is
               made pursuant to

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Mr. Ira H. Jolles
August 8, 2000
Page 12

               this Section 10, shall be effective only if either (1) the Change
               in Control  which was proposed or threatened  actually  occurs or
               (2) your employment with the GPU Companies terminates at any time
               within  the  twelve  (12)  month  period  following  such  public
               announcement  as a  result  of  Involuntary  Termination  or your
               death.

        If the foregoing  correctly reflects your understanding of the agreement
between  you and GPU and GPUS,  will you  please  so  indicate  on the  enclosed
duplicate  copy of this letter which will then  constitute  a binding  agreement
between GPU and GPUS, on the one hand, and you, on the other.

                             GPU, INC.

                             By:
                                  ------------------------------------------
                                  Fred D. Hafer, Chairman and
                                  Chief Executive Officer

                             GPU SERVICE, INC.

                             By:
                                  ------------------------------------------
                                  Fred D. Hafer, Chairman and
                                  Chief Executive Officer

The foregoing is agreed to by me as of the date of this letter.

              ---------------------------------
                      Ira H. Jolles

<PAGE>

                                   APPENDIX A
                                   ----------

        Cause.  For purposes of this  Agreement,  a termination of employment is
for  "Cause"  if you have  been  convicted  of a felony  or the  termination  is
evidenced by a resolution  adopted in good faith by  two-thirds of the GPU Board
of Directors (the "Board") that you:

        (a) intentionally and continually  failed  substantially to perform your
reasonably assigned duties with GPU or GPUS (other than a failure resulting from
your  incapacity  due to physical or mental  illness or from your  assignment of
duties that would constitute "Good Reason" as hereinafter defined) 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 GPU,
has been  delivered  to you  specifying  the  manner  in which  you have  failed
substantially to perform, or

        (b)   intentionally   engaged  in  conduct  which  is  demonstrably  and
materially  injurious to GPU;  provided,  however,  that no  termination of your
employment  shall be for Cause as set forth in this  clause  (b) until (1) there
shall have been  delivered to you a copy of a written  notice,  signed by a duly
authorized officer of GPU, setting forth that you were guilty of the conduct set
forth in this clause (b) and specifying the particulars  thereof in detail,  and
(2) you shall have been  provided  an  opportunity  to be heard in person by the
Board (with the assistance of your counsel if you so desire).

        No  act,  nor  failure  to  act,  on  your  part,  shall  be  considered
"intentional" unless you have acted, or failed to act, with a lack of good faith
and with a lack of  reasonable  belief that your action or failure to act was in
the best interest of GPU.  Notwithstanding  anything contained in this Agreement
to the  contrary,  no  failure  to  perform  by you  after a  written  notice of
termination  is  given  by you  shall  constitute  Cause  for  purposes  of this
Agreement.

        Change in Control.  "Change in Control" shall mean:
        -----------------

               (1) An  acquisition  (other than directly from GPU) of any common
stock of GPU ("Common Stock") or other voting securities of GPU 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

                                       A-1

<PAGE>

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 GPU'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 (A) an employee  benefit plan (or a
trust forming a part thereof)  maintained by (i) GPU or (ii) 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 GPU (for
purposes of this definition,  a "Subsidiary"),  (B) GPU or its Subsidiaries,  or
(C) any Person in connection  with a "Non-Control  Transaction"  (as hereinafter
defined);

               (2) The individuals who, as of August 1, 1996, are members of the
Board  (the  "Incumbent  Board"),  cease for any reason to  constitute  at least
seventy percent (70%) of the members of the Board;  provided,  however,  that if
the  election,  or  nomination  for election by GPU'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 (a "Proxy  Contest")  including by reason of any  agreement
intended to avoid or settle any Election Contest or Proxy Contest; or

               (3)    The consummation of:

                      (A)    A merger,  consolidation or reorganization  with or
                             into GPU or in which  securities of GPU 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  GPU  or  in  which
                             securities of GPU are issued where:

                                       A-2

<PAGE>

                             (i)       the  shareholders  of  GPU,  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,

<PAGE>

                             (ii)      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,  directly
                                        or  indirectly,  beneficially  owning  a
                                        majority of the Voting Securities of the
                                        Surviving Corporation, and

                             (iii)      no Person  other  than (w) GPU,  (x) any
                                        Subsidiary,  (y)  any  employee  benefit
                                        plan  (or  any  trust   forming  a  part
                                        thereof) that, immediately prior to such
                                        merger, consolidation or reorganization,
                                        was maintained by GPU or any Subsidiary,
                                        or (z) 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 Ownership of twenty percent (20%)
                                        or more of the combined voting

                                            A-3

<PAGE>

                                          power of the Surviving Corporation's
                                          then outstanding voting securities or
                                          its common stock.

                      (B)    A complete liquidation or dissolution of GPU; or

                      (C)    The   sale   or   other   disposition   of  all  or
                             substantially  all  of  the  assets  of  GPU 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 GPU 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 Persons,  provided that if a Change
in Control would occur (but for the  operation of this  sentence) as a result of
the acquisition of shares of Common Stock or Voting Securities by GPU, and after
such share  acquisition by GPU, 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.

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

                                       A-4

<PAGE>

               (2) a reduction in the rate of your annual base salary;

               (3) any  change in  location  of your  place of  employment
to a location other than Morristown, New Jersey without your consent,

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

               (5) the  failure by the GPU  Companies  (A) to continue in effect
(without reduction in benefit level,  and/or reward  opportunities) any material
compensation  or  employee   benefit  plan  in  which  you  were   participating
immediately  prior to such failure by the GPU Companies,  unless a substitute or
replacement plan has been  implemented  which provides  substantially  identical
compensation  or  benefits  to you  or  (B) to  continue  to  provide  you  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 you were
participating immediately prior to such failure by the GPU Companies;

               (6) the failure of GPU or GPUS to obtain a satisfactory agreement
from any  successors  or assigns to assume and agree to honor and perform  their
respective obligations under this Agreement; or

               (7) any purported  termination  of your  employment  which is not
effected  pursuant  to a Notice of  Termination  as that term is defined in your
Severance Agreement dated November 5, 1998.

        (b) Any event or  condition  described  in clauses  (1)  through  (7) of
paragraph  (a) above of paragraph  (a) above which occurs (A) within twelve (12)
months  prior to a Change in  Control  or (B) prior to a Change in  Control  but
which you reasonably demonstrate (x) was at the request of a third party who has
indicated an intention or taken steps  reasonably  calculated to effect a Change
in Control and who  effectuates  a Change in Control or (y)  otherwise  arose in
connection  with,  or in  anticipation  of a Change  in  Control  which has been
threatened  or  proposed,  shall  constitute  Good  Reason for  purposes of this
Agreement notwithstanding that it occurred prior to a Change in Control.

                                       A-5Exhibit 10-N

                      RETIREMENT PLAN FOR OUTSIDE DIRECTORS
                                       OF
                                    GPU, INC.

                          As Amended and Restated as of

                                 August 8, 2000

<PAGE>

                      RETIREMENT PLAN FOR OUTSIDE DIRECTORS
                                       OF
                                    GPU, INC.

                          As Amended and Restated as of

                                 August 8, 2000
                                 --------------

1.    Purpose

      The  Retirement  Plan for Outside  Directors of GPU,  Inc. (the "Plan") is
designed to enhance the ability of GPU, Inc. (the  "Corporation") to attract and
retain  competent  and  experienced  Outside  Directors by providing  retirement
benefits and death  benefits for Eligible  Outside  Directors  who retire or die
after the Plan's Effective Date.

2.    Definitions

      Except as otherwise specified or as the context may otherwise require, the
following terms have the meanings indicated below for all purposes of this Plan:

      "Board of Directors" means the board of directors of the Corporation.

      "Outside  Director"  means a member of the Board of Directors who,  during
the  period  involved,  is not  or was  not an  Officer  or an  employee  of the
Corporation or a subsidiary thereof.

      "Board  Service" means service as an Outside  Director of the  Corporation
both before and after the Effective Date.

      "Change in Control" means the occurrence during the term of the Plan of:

      1. An acquisition (other than directly from the Corporation) of any 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

                                        1
<PAGE>

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 (A) an employee  benefit plan (or a
trust forming a part  thereof)  maintained  by (i) the  Corporation  or (ii) 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  (for purposes of this  definition,  a  "Subsidiary"),  (B) the
Corporation  or its  Subsidiaries,  or  (C)  any  Person  in  connection  with a
"Non-Control Transaction" (as hereinafter defined);

      2. The individuals  who, as of August 1, 1996, are members of the Board of
Directors (the "Incumbent  Board"),  cease for any reason to constitute at least
seventy  percent  (70%) of the  members  of the  Board of  Directors;  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 Plan, 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  (a  "Proxy
Contest")  including by reason of any agreement  intended to avoid or settle any
Election Contest or Proxy Contest; or

      3.   The consummation of:

      (A)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 the securities of the Corporation are issued where:

            (i) 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

                                        2
<PAGE>

      substantially  the  same  proportion  as  their  ownership  of the  Voting
      Securities    immediately    before   such   merger,    consolidation   or
      reorganization,

           (ii)  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, directly or indirectly, beneficially owning
      a majority of the Voting Securities of the Surviving Corporation, and

          (iii) no Person other than (w) the  Corporation,  (x) any  Subsidiary,
      (y) 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 or any  Subsidiary,  or (z) 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, 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.

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

     (C) 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
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.

                                        3
<PAGE>

      "Compensation"  means the sum of: (a) the monthly retainer paid in cash to
an  Outside  Director  as  compensation  for  services  as  a  Director  of  the
Corporation,  excluding any fees paid for attendance at meetings of the Board of
Directors or any  committee of the Board of  Directors,  and also  excluding any
additional  retainer  paid  for  service  as  a  Committee  Chairman,   and  (b)
one-twelfth  of the cash value of all shares  awarded to, the  Outside  Director
pursuant to the Restricted Stock Plan for Outside  Directors as the annual award
thereunder for the year preceding his or her  Retirement,  and not  subsequently
forfeited.

      The cash value of a share shall be its closing  price as reported  for New
York Stock Exchange-Composite Transactions on the date of award.

      "Effective  Date"  means the date of initial  adoption of this Plan by the
Board of Directors.

      "Retirement  or  Retires"  means the  cessation  of  service as an Outside
Director for any reason other than (i) acceptance of employment as an officer or
employee of the Corporation or a subsidiary thereof or (ii) death.

3.    Eligibility

      An Outside  Director who has completed at least  fifty-four (54) months of
Board  Service,  whether  or not  continuous,  and who  Retires  or dies  before
Retirement  on or after the  Effective  Date shall be eligible  for  benefits as
provided herein. Upon the occurrence of a Change in Control,  any person who was
an  Outside  Director  immediately  prior to such  Change  in  Control  shall be
eligible  for  benefits  as  provided  herein upon  Retirement  or death  before
Retirement,  whether  or not  such  Outside  Director  has  completed  at  least
fifty-four (54) months of Board Service.

4.    Pension Benefits of Eligible Retired Outside Directors Before Death

      The accumulated  amount of pension benefits payable to an Outside Director
eligible to receive benefits  hereunder shall be equal to the product of (a) the
number of months of such Outside  Director's Board Service under this Plan times
(b) the  monthly  compensation  of such  Outside  Director  at the  date of such
Outside  Director's  Retirement  under the Plan. Such pension  benefits shall be
paid in monthly  installments equal to the monthly  compensation of each Outside
Director  at the  date of  such  Outside  Director's  Retirement.  Such  pension
benefits shall  commence on the first day of the month  following the Director's
60th birthday or the Director's Retirement under the Plan, whichever is later,

                                        4
<PAGE>

and shall continue  during the Retired  Outside  Director's  life until the date
when the total  payments to the Retired  Outside  Director shall be equal to the
Outside Director's  accumulated  pension benefits at the date of such Director's
Retirement.  Notwithstanding  the foregoing,  in the case of any retired Outside
Director  who again  becomes an Outside  Director  after  payment of his pension
benefits hereunder has commenced, no further payments shall be made with respect
to his pension benefits after the date on which he resumes Board Service,  until
his  subsequent  Retirement or death.  The pension  benefits  payable under this
Section 4 or under Section 5 upon such Outside Director's  subsequent Retirement
or death (i) shall be  determined  by taking into account only the excess of (A)
his total number of months of Board  Service  prior to July 1, 1997 over (B) the
number of months for which he received pension benefit payments  hereunder prior
to his  resumption  of Board  Service,  and (ii)  shall be based on his  monthly
compensation at the date of his subsequent Retirement or death.

      Notwithstanding  the  provisions  of the preceding  paragraph,  an Outside
Director may elect to have the accumulated  amount of the pension  benefits that
become payable  hereunder upon his or her Retirement or death before  Retirement
paid  to  the  Outside  Director,  or to his or her  surviving  spouse  (or,  if
applicable,  designated  beneficiary)  in the event of his or her  death  before
Retirement,  in the form of a single lump sum payment.  Such payment shall be in
an amount  that is  Actuarially  Equivalent  (as  defined  in the GPU  Companies
Employee  Pension Plan or any successor  thereto and  determined as of the first
day of the month next following the date of the Outside Director's Retirement or
earlier  death) to the payments  that  otherwise  would be made  hereunder  with
respect to the Outside Director's  accumulated pension benefits if such payments
were made in the form,  and if such  payments  commenced to be made at the time,
provided in the preceding paragraph or in Section 5(b), as applicable. Such lump
sum payment  shall be made by no later than thirty (30) days  following the date
of the Outside Director's Retirement or earlier death.

      Subject to Section 13(a),  any election made by an Outside  Director under
the  preceding  paragraph  shall  be  effective  only  if it is  made  at  least
twenty-four  (24) months  (twelve  (12)  months,  if the  election is made on or
before  August 31, 1997) prior to the Outside  Director's  Retirement or earlier
death. Any election so made may be revoked, and a new election may be made under
the preceding paragraph, at any time; provided, however, that subject to Section
13(a), any such revocation or new election shall be effective only if it is made
within  the  election  period  specified  in the  preceding  sentence.  Any such
election, or any such revocation of an election,  shall be made in writing, on a

                                       5
<PAGE>

form  that  is  furnished  to the  Outside  Director  for  such  purpose  by the
Personnel,  Compensation  and  Nominating  Committee  and  that is  filed by the
Outside Director with such Committee.

5.    Benefits Payable by Reason of Death of Eligible Outside
      Director

      In the event that an Outside  Director who is eligible to receive benefits
hereunder should die prior to receiving payment of the full amount of his or her
accumulated  pension benefits,  the remaining portion of such Outside Director's
accumulated pension benefits shall be paid as follows:

     (a) If the Outside  Director dies after  Retirement  and if, at the time of
his or her death,  monthly  installment  payments were being made to the Outside
Director,  such  payments  shall  continue to be made to the Outside  Director's
surviving spouse (or, if applicable, designated beneficiary) until the aggregate
of the payments to the Outside Director and such surviving spouse or beneficiary
shall be equal to the Outside  Director's  accumulated  pension  benefits at the
date of such Director's Retirement.

     (b) If the Outside  Director dies prior to Retirement,  there shall be paid
to the  Outside  Director's  surviving  spouse (or,  if  applicable,  designated
beneficiary)  monthly  installments  equal to the monthly  compensation  of such
Outside  Director  at the  date of  such  Outside  Director's  death  until  the
aggregate  of  the  payments  to  such  surviving  spouse  (or,  if  applicable,
designated  beneficiary)  shall be equal to the Outside  Director's  accumulated
amount of pension benefits at the date of the Outside Director's death.  Payment
of such  monthly  installments  shall  begin on the first day of the month  next
following the Outside  Director's death or, if later, the first day of the month
in which the Outside Director's 60th birthday would have occurred if the outside
Director had survived. The provision of this Section 5(b) shall not apply if, at
the time of the Outside Director's death, there is in effect an election made by
the Outside Director under the second paragraph of Section 4.

6.  Change in Control

      Notwithstanding  any other  provision  of the Plan to the  contrary or any
other form of payment otherwise elected  hereunder,  each Outside Director shall
be permitted to make either one or both of the  following  special  distribution
elections:  (a) to have his or her pension benefits distributed in the form of a
single lump sum payment in the event of the Outside  Director's  Retirement upon
the  occurrence  of a Change in  Control,  or (b) if a Change in Control  occurs

                                        6
<PAGE>

after the Outside Director's Retirement or earlier death but before all payments
required  to be made with  respect to his or her  accumulated  pension  benefits
pursuant to Section 4 and Section 5(a) have been made, to have the payments that
otherwise  would  be made  hereunder  with  respect  to the  Outside  Director's
accumulated  pension  benefits  after the date of such Change in Control paid in
the form of a single lump sum payment.

      Subject to Section 13(a),  any such election shall be effective only if it
is made at least twelve (12) months  prior to such Change in Control,  and prior
to the Outside Director's Retirement or earlier death. Any special election made
under clause (a) or (b) of the  preceding  paragraph  may be revoked,  and a new
special  election may be made thereunder at any time;  provided,  however,  that
subject to Section 13(a), any such revocation or new election shall be effective
only if it is made within the period  specified in the preceding  sentence.  Any
special  election,  or  revocation  of a  special  election,  that  may be  made
hereunder  shall be made in the manner provided in the last sentence of the last
paragraph of Section 4.

      The lump sum payment to be made to an Outside Director  pursuant to his or
her election under clause (a) of the second  preceding  paragraph shall be in an
amount that is Actuarially  Equivalent (as defined in the GPU Companies Employee
Pension Plan or any successor  thereto and determined as of the first day of the
month next  following  the date of the  Outside  Director's  Retirement)  to the
pension  benefits that otherwise would be payable  hereunder with respect to the
Outside  Director if such  pension  benefits  were to commence  upon the Outside
Director's  Retirement  or 60th  birthday,  whichever  is  later.  Such lump sum
payment  shall be made by no later than thirty (30) days  following  the date of
the Outside Director's Retirement.

      The lump sum payment to be made pursuant to an Outside Director's election
under clause (b) of the third preceding  paragraph shall be in an amount that is
Actuarially Equivalent (as defined in the GPU Companies Employee Pension Plan or
any successor thereto and determined as of the first day of the month coincident
with or next  following  the date on which the Change in Control  occurs) to the
payments  that  otherwise  would be made  hereunder  with respect to the Outside
Director's  accumulated  pension  benefits  after  the  date of such  Change  in
Control.  Such lump sum payment  shall be made by no later than thirty (30) days
following the date on which such Change in Control occurs.

                                        7
<PAGE>

7.    Designated Beneficiary of Eligible Outside Director

      If an Eligible  Outside  Director  shall die  without  leaving a surviving
spouse or if the Outside Director's  surviving spouse shall die prior to payment
in full of the outside  Director's  accumulated  pension benefits,  the payments
which would otherwise have been made to the Outside Director's  surviving spouse
shall  be  made  to  the   Outside   Director's   designated   beneficiary   (or
beneficiaries).  Such designations shall be made in writing on forms provided by
the  Corporation  to the Outside  Director.  Any such  designation by an Outside
Director  may be revoked by the  Outside  Director  at any time  before or after
Retirement.  Any such revocation  shall be made in writing on a form provided by
the Corporation to the Outside Director.

8.    Provision for Benefits

      All benefits  payable  hereunder shall be provided from the general assets
of the  Corporation.  No Outside  Director  shall  acquire  any  interest in any
specific assets of the  Corporation by reason of this Plan. An Outside  Director
shall have the  status of a mere  unsecured  creditor  of the  Corporation  with
respect  to his or her right to receive  any  payment  under the Plan.  The Plan
shall  constitute  a mere  promise by the  Corporation  to make  payments in the
future of the benefits provided for herein. It is intended that the arrangements
reflected in this Plan be treated as unfunded for tax purposes.

9.    Amendment and Termination

      The Board of Directors  reserves the right to terminate this Plan or amend
this Plan  prospectively  in any respect at any time,  but no such amendment may
reduce (a) the  benefits  of any Outside  Director  who has  previously  Retired
hereunder,  or (b) the benefits accrued  hereunder by any Outside Director prior
to the  effective  date of such  termination  or  amendment.  In  addition,  the
definition  of Change in Control in Section 2, the last  sentence  in Section 3,
the last  paragraph  in Section  4, this  Section  9, and the last  sentence  of
Section 10 may not be amended or modified,  and the Plan may not be  terminated,
(i) at the  request of a third party who has  indicated  an  intention  or taken
steps to effect a Change in Control  and who  effectuates  a Change in  Control,
(ii) within six (6) months  prior to, or  otherwise in  connection  with,  or in
anticipation  of, a Change in Control which has been  threatened or proposed and
which actually occurs, or (iii) following a Change in Control, if the amendment,

                                        8
<PAGE>

modification or termination adversely affects the rights of any Outside Director
under the Plan.

10.   Administration

      This  Plan  shall be  administered  by the  Personnel,  Compensation,  and
Nominating Committee of the Board of Directors. Such Committee's final decision,
in making any  determination  or construction  under this Plan and in exercising
any  discretionary  power,  shall in all  instances  be final and binding on all
persons  having or  claiming  any rights  under this Plan.  Notwithstanding  the
foregoing,  any  determination  made by the Committee  after the occurrence of a
Change  in  Control  that  denies  in  whole or in part  any  claim  made by any
individual  for  benefits  under the Plan shall be subject to  judicial  review,
under a "de novo", rather than a deferential, standard.

11.   Miscellaneous

      Nothing herein  contained shall be deemed to give any Outside Director the
right to be retained as a director of the  Corporation,  nor shall it  interfere
with the Outside Director's right to terminate such directorship at any time. An
Outside  Director's  rights to payments  under this Plan shall not be subject in
any manner to anticipation,  alienation,  sale, transfer (other than transfer by
will or by the laws of descent and distribution, in the absence of a beneficiary
designation),  assignment,  pledge,  encumbrance,  attachment or  garnishment by
creditors of the Outside Director or his or her spouse or other beneficiary.

12.   Phase Out of Plan

      Notwithstanding  any other  provision  in this Plan to the  contrary,  the
provisions of this Section 12 shall apply on or after July 1, 1997.

     (a) No individual who first becomes an Outside Director on or after July 1,
1997 shall be entitled to receive any pension benefits under this Plan.

     (b) For  purposes of  determining  the amount of pension  benefits  payable
under  Section  4,  5 or 6 with  respect  to any  individual  who is an  Outside
Director on July 1, 1997, the number of months of such Outside  Director's Board
Service  shall be determined by taking into account only months of Board Service
completed prior to July 1, 1997.

                                        9
<PAGE>

      (c)In the case of any  individual  who is an Outside  Director  on July 1,
1997,  his or her Board  Service  on and after  such  date  shall be taken  into
account for purposes of determining his or her  eligibility  under Section 3 for
benefits payable under the Plan.

13.   Additional Change in Control Provisions

      In the event of a Change in Control,  the provisions set forth below shall
apply, notwithstanding any other provisions of the Plan to the contrary.

      (a) The regular distribution election provided for under Section 4 and any
special  distribution  election  provided for under  Section 6 may be made by an
Outside Director,  and any such election  previously made by an Outside Director
may be  revoked  and a new  election  made by the  Outside  Director  under such
Sections,  at any time during the period  beginning on the date of any agreement
entered into by the Corporation which provides for the occurrence of one or more
transactions  which, if consummated,  would constitute a Change in Control,  and
ending on the 45th day after such date (the "Window Period").  Any election,  or
revocation of an election, that may be made pursuant to this Section 13(a) shall
be made in the manner set forth in Section 4. Any election,  or revocation of an
election  under  Section 4 that is made  pursuant to this Section 13(a) shall be
effective only if the transactions  provided for in the agreement referred to in
the preceding sentence are consummated.

      (b) In the case of any Outside Director whose Retirement has not otherwise
occurred prior to a Change in Control,  such Outside Director's Retirement shall
be treated,  for  purposes of this Plan,  as occurring on the date on which such
Change in Control  occurs,  unless an election  under (c) below is in effect for
the Outside Director at the time of such Change in Control.

      (c) During the Window  Period or on any date  thereafter  that is at least
one year  prior to the date on which a Change  in  Control  occurs,  an  Outside
Director may make an election under this Section 13(c) pursuant to which,  if he
or she is designated to serve as a member of the Successor Board (as hereinafter
defined)  immediately  following  the  occurrence  of a Change in  Control,  the
Outside  Director's  Retirement under this Plan will not be treated as occurring
on the date of the Change in Control but  instead,  will be treated as occurring
on the date on which  his or her  service  as a member  of the  Successor  Board

                                       10
<PAGE>

terminates for any reason other than death. For purposes of this Section 13, the
term  "Successor  Board" shall mean the board of  directors  of the  corporation
described in Section  13(e)(i).  An election  under this Section  13(c) shall be
made in the manner set forth in Section 4.

      (d) In the case of any Outside Director for whom an election under Section
13(c) is in effect at the time of a Change in Control,  the  Outside  Director's
accumulated  pension benefits shall become payable upon his or her Retirement or
earlier  death  subsequent  to the Change in Control.  Payment of such  benefits
shall be made at the time or times,  and in the form,  specified in Section 4 or
5. The amount of  accumulated  pension  benefits so payable  shall be the amount
that would have been payable with respect to the Outside  Director under Section
4 if his or her  Retirement  had  occurred  on the date on which  the  Change in
Control occurred.

      (e) With respect to all periods  subsequent to the  occurrence of a Change
in Control, the following terms shall have the following meanings:

            (i) the term  "Corporation"  shall  refer to the  corporation  whose
acquisition of the Common Stock of the Corporation or  substantially  all of its
assets,  or whose merger with the Corporation,  results in the occurrence of the
Change in Control;

            (ii) the term "Board of  Directors"  shall refer to the Successor
                 Board; and

            (iii) the term "Personnel,  Compensation  and Nominating  Committee"
shall refer to the committee of the Successor Board that has  responsibility for
the administration of the Plan after the occurrence of the Change in Control.

                                       11

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