Document:

AMENDMENT No. 1 dated as of November 8, 2000 (this
                    "Amendment"), to the RIGHTS AGREEMENT dated as of February
                    1, 2000 (the "Rights Agreement"), between PRIMEX
                    TECHNOLOGIES, INC., a Virginia corporation (the "Company"),
                    and THE BANK OF NEW YORK, a New York banking corporation, as
                    Rights Agent (the "Rights Agent").

          Pursuant to the terms of the Rights Agreement and in accordance with
Section 26 thereof, the following actions are hereby taken prior to executing
the Merger Agreement referred to below:

          SECTION 1. Amendments to Rights Agreement. The Rights Agreement is
hereby amended as follows:

          (a) The following definitions shall be added in appropriate
alphabetical order to Section 1 of the Rights Agreement:

          '"Merger Agreement" shall mean the Agreement and Plan of Merger dated
     as of November 9, 2000, among the Company, the Parent Corporation and
     Merger Sub, as amended, supplemented or otherwise modified from time to
     time.'

          '"Merger Sub" shall mean Mars Acquisition Corporation, a wholly-owned
     subsidiary of the Parent Corporation and a Delaware corporation.'

          '"Parent Corporation" shall mean General Dynamics Corporation, a
Delaware corporation.'

          (b) Section 3 of the Rights Agreement shall be amended by inserting
the following new subsection (e) at the end thereof:

               "(e) Notwithstanding anything in this Rights Agreement to the
          contrary, (i) none of the Parent Corporation, Merger Sub or any of
          their respective Affiliates or Associates shall be deemed to be an
          Acquiring Person, either individually or collectively, (ii) no
          Distribution Date or Business Combination shall occur, (iii) no Rights
          shall separate from Common Shares or otherwise become exercisable and
          (iv) no adjustment shall be made pursuant Section 11 or 12, in each
          case solely by virtue of (A) the announcement of the Merger (as such
          term is defined in the Merger Agreement), (B) any deemed acquisition
          of Common Shares by the Parent Corporation or Merger Sub pursuant to
          the Merger, (C) the execution of the Merger Agreement or (D) the
          consummation of the Merger or of the other transactions contemplated
          by the Merger Agreement in accordance with the terms thereof."

<PAGE>

                                                                               2

          SECTION 2. Full Force and Effect. Except as expressly amended hereby,
the Rights Agreement shall continue in full force and effect in accordance with
the provisions thereof on the date hereof.

          SECTION 3. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the Commonwealth of Virginia applicable
to contracts to be made and performed entirely within such Commonwealth, except
that the duties and rights of the Rights Agent shall be governed by the law of
the State of New York without reference to the choice of law doctrine of such
State.

          SECTION 4. Counterparts. This Amendment may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

<PAGE>

                                                                               3

          IN WITNESS WHEREOF, the Company and the Rights Agent have caused this
Amendment to be duly executed as of the day and year first above written and as
of the time specified herein.

                                     PRIMEX TECHNOLOGIES, INC.

                                     by: /s/ George H. Pain
                                         -------------------
                                         Name:  George H. Pain
                                         Title: Vice President, General Counsel
                                                and Secretary

                                     THE BANK OF NEW YORK,
                                     as Rights Agent,

                                     by: /s/ John I. Sivertsen
                                         ----------------------
                                         Name:   John I. Sivertsen
                                         Title:  Vice President11/12/99

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

                                      among

                               UNICOM CORPORATION,

                           COMMONWEALTH EDISON COMPANY

                                       and

                                  JOHN W. ROWE

<PAGE>

         THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), dated
as of December 15, 1999 (the "Agreement Date"), by and among Unicom Corporation,
an Illinois  corporation  ("Unicom"),  Commonwealth  Edison Company, an Illinois
corporation ("ComEd"),  and John W. Rowe ("Executive"),  amends and restates, to
be effective  immediately prior to the Merger Effective Time (as defined below),
that certain Employment  Agreement dated as of March 10, 1998, as heretofore and
as hereafter  otherwise  amended prior to the Merger  Effective Time (the "Prior
Agreement"), by and among Unicom, ComEd and Executive.

         WHEREAS, Executive is currently serving as Chairman of the Unicom Board
and the ComEd Board,  President and Chief  Executive  Officer of both Unicom and
ComEd and a member of the Unicom Board and the ComEd Board;

         WHEREAS,  Peco Energy Company, a Pennsylvania  corporation  ("Parent"),
Newholdco  Corporation,  a Pennsylvania  corporation  (the "Company") and Unicom
have  executed  an  Agreement  and  Plan of  Exchange  and  Merger,  dated as of
September  22, 1999 (the "Merger  Agreement"),  which  contemplates  that Parent
shall become a wholly owned subsidiary of the Company and immediately thereafter
Unicom will be merged with and into the Company  (the  "Merger"),  which  Merger
will become  effective  at the Merger  Effective  Time (as defined in the Merger
Agreement);

         WHEREAS,  as contemplated by the Merger Agreement,  the Company will be
the surviving  corporation in the Merger and, as such,  will by operation of law
succeed to the rights and obligations of Unicom hereunder;

         WHEREAS, in order to induce Executive to serve, on and after the Merger
Effective Time, as President and Co-Chief  Executive  Officer of the Company (as
the  surviving  entity in the  Merger and as  successor  to Unicom at the Merger
Effective  Time),  and Chairman of the Executive  Committee of the Company Board
and other positions as provided in this Agreement, Unicom desires from and after
the Merger  Effective  Time to provide  Executive  with  compensation  and other
benefits on the terms and conditions set forth in this Agreement; and

         WHEREAS,  Executive  is willing to accept such  employment  and perform
such services on the terms and conditions hereunder set forth;

         NOW,  THEREFORE,  in  consideration  of the mutual  undertakings of the
parties hereto, Unicom, ComEd and Executive agree as follows:

                                   ARTICLE I.
                                   DEFINITIONS

         The terms set forth below have the following meanings (such meanings to
be applicable to both the singular and plural forms):

         I.1 "Accrued Base Salary" means that portion of Executive's Base Salary
which is accrued but unpaid as of the Termination Date.

         I.2      "Accrued Annual Incentive" means either:

                                       1
<PAGE>

                           (1) the amount of any Annual  Incentive  earned  with
                  respect to the  calendar  year ended prior to the  Termination
                  Date, but which is unpaid as of the Termination  Date, if both
                  (x) the amount of such Annual  Incentive has been  objectively
                  determined  solely by the  application  of a formula that does
                  not provide the Company,  Unicom or any Company  Affiliate any
                  discretion to increase the amount of the Annual  Incentive and
                  (y) neither the Company,  Unicom nor any Company Affiliate has
                  applied  any  discretion  it may have  pursuant  to the Annual
                  Incentive  Award Program in which  Executive  participates  or
                  otherwise to reduce the amount of such Annual Incentive or,

                           (2) if the conditions specified in clause (i) of this
                  sentence  have not been  satisfied,  the average of the Annual
                  Incentives  that were actually paid to Executive  with respect
                  to Executive's last three full calendar years of employment by
                  the Company, Unicom or any Company Affiliate.

         For  purposes  of  clause  (ii) of the  preceding  sentence,  if Annual
Incentives  have been paid to  Executive  in respect of fewer than three  years,
such average shall be computed by reference to the Annual  Incentives  that were
actually paid to Executive.

         I.3  "Affiliate"  means,  when used with  reference to any Person,  any
other Person directly or indirectly controlling,  controlled by, or under direct
or indirect  common control with, the referent  Person or such other Person,  as
the case may be. For the purposes of this  definition,  the term  "control" when
used with respect to any Person means the power to direct or cause the direction
of  management  or policies of such  Person,  directly  or  indirectly,  whether
through the ownership of voting securities, by contract or otherwise.

         I.4 "Agreement Date" -- see the recitals to this Agreement.

         I.5 "Anniversary Date" means any annual anniversary of March 16, 1998.

         I.6 "Annual Incentive" -- see Section 4.2.

         I.7 "Base Salary" -- see Section 4.1.

         I.8 "Beneficiary" -- see Section 10.4.

         I.9 "Cause" means any of the following:

                  (1)  Executive's  conviction  of a felony or of a  misdemeanor
         involving moral turpitude, fraud or dishonesty,

                  (2) wilful  misconduct by Executive in the  performance of his
         duties under this  Agreement  that was intended to  personally  benefit
         Executive, or

                  (3) material breach of this Agreement by Executive (other than
         as a result of incapacity due to physical or mental illness);

                                       2
<PAGE>

provided  that,  if a material  breach of this  Agreement  involved an act, or a
failure to act,  which was done,  or omitted to be done,  by  Executive  in good
faith and with a reasonable  belief that Executive's act, or failure to act, was
in the best  interest  of the  Company  or was  required  by  applicable  law or
administrative regulation,  such breach shall not constitute Cause if, within 30
days (10 days in the event of a breach of  covenants  contained  in Article  IX)
after Executive is given written notice of such breach that specifically  refers
to this Section,  Executive  cures such breach to the fullest  extent that it is
curable.

         I.10  "Change in  Control"  means any one or more of the  following  to
occur after the Merger Effective Time:

                  (1) the  acquisition by any Person  (including for purposes of
         this definition any "person" within the meaning of Section 13(d) (3) or
         14(d) (2) of the  Exchange  Act) of  beneficial  ownership  (within the
         meaning of Rule 13d-3  promulgated  under the  Exchange  Act) of 20% or
         more of either  (i) the then  outstanding  shares of Common  Stock (the
         "Outstanding  Common  Stock") or (ii) the combined  voting power of the
         then-outstanding  Voting  Securities  of the Company (the  "Outstanding
         Voting  Securities"),  but excluding (A) any acquisition  directly from
         the Company  (excluding any acquisition  resulting from the exercise of
         an exercise, conversion or exchange privilege unless the security being
         so  exercised,  converted or exchanged  was acquired  directly from the
         Company), (B) any acquisition by the Company, (C) any acquisition by an
         employee benefit plan (or related trust) sponsored or maintained by the
         Company or any corporation controlled by the Company (a "Company Plan")
         or (D) any  acquisition  by any  corporation  pursuant to a transaction
         which  complies with clauses (i),  (ii) and (iii) of subsection  (c) of
         this definition;  provided further, that for purposes of clause (B), if
         any Person  (other than the Company or any Company  Plan) shall  become
         the beneficial owner of 20% or more of the Outstanding  Common Stock or
         20% or  more of the  Outstanding  Voting  Securities  by  reason  of an
         acquisition  by  the  Company,   and  such  Person  shall,  after  such
         acquisition  by  the  Company,  become  the  beneficial  owner  of  any
         additional  shares of the  Outstanding  Common Stock or any  additional
         Outstanding  Voting  Securities  (other than  pursuant to any  dividend
         reinvestment  plan or  arrangement  maintained by the Company) and such
         beneficial ownership is publicly announced,  such additional beneficial
         ownership shall constitute a Change in Control;

                  (2)  individuals   who,  as  of  the  Merger  Effective  Time,
         constitute  the Company  Board (the  "Incumbent  Board")  cease for any
         reason  to  constitute  at least a  majority  of the  Incumbent  Board;
         provided  that any  individual  who  becomes a director  of the Company
         subsequent to the Merger  Effective Time whose election,  or nomination
         for election by the Company's stockholders, was approved by the vote of
         at least a majority of the  directors  then  comprising  the  Incumbent
         Board shall be deemed a member of the  Incumbent  Board;  and  provided
         further, that any individual who was initially elected as a director of
         the Company as a result of an actual or threatened election contest (as
         such terms are used in Rule 14a-11  promulgated under the Exchange Act)
         or any other actual or threatened  solicitation  of proxies or consents
         by or on behalf of any Person other than the Company Board shall not be
         deemed a member of the Incumbent Board;

                                       3
<PAGE>

                  (3)  approval  by  the   stockholders  of  the  Company  of  a
         reorganization, merger or consolidation or sale or other disposition of
         more than 50% of the operating  assets of the Company  (determined on a
         consolidated  basis) other than in connection with a sale-leaseback  or
         other arrangement resulting in the continued utilization of such assets
         (or  the  operating  products  of such  assets)  by the  Company  (such
         reorganization,  merger,  consolidation,  sale or other disposition,  a
         "Corporate Transaction");  excluding,  however, a Corporate Transaction
         pursuant to which:

                           (1) all or  substantially  all of the  individuals or
                  entities who are the beneficial owners,  respectively,  of the
                  Outstanding Common Stock and the Outstanding Voting Securities
                  immediately   prior  to  such   Corporate   Transaction   will
                  beneficially  own,  directly or indirectly,  more than 60% of,
                  respectively,  the outstanding shares of common stock, and the
                  combined voting power of the outstanding  Voting Securities of
                  such  corporation,  as the  case  may be,  of the  corporation
                  resulting  from  such  Corporate   Transaction   (including  a
                  corporation  which as a result  of such  transaction  owns the
                  Company  or all or  substantially  all  of its  assets  either
                  directly or indirectly) in substantially  the same proportions
                  relative to each other as their ownership,  immediately  prior
                  to such Corporate Transaction, of the Outstanding Common Stock
                  and the Outstanding Voting Securities, as the case may be;

                           (2) no Person  (other than the  Company;  any Company
                  Plan;   the   corporation   resulting   from  such   Corporate
                  Transaction;   and  any  Person  which   beneficially   owned,
                  immediately prior to such Corporate  Transaction,  directly or
                  indirectly, 20% or more of the Outstanding Common Stock or the
                  Outstanding  Voting  Securities,  as the  case  may  be)  will
                  beneficially  own,  directly  or  indirectly,  20% or more of,
                  respectively,  the  outstanding  shares of common stock of the
                  corporation  resulting from such Corporate  Transaction or the
                  combined voting power of the outstanding  Voting Securities of
                  such corporation;

                           (3)  individuals  who were  members of the  Incumbent
                  Board will  constitute  at least a majority  of the members of
                  the board of directors of the corporation  resulting from such
                  Corporate Transaction; and

                           (4)  Executive  shall  be  appointed  or  elected  to
                  positions in respect of the  corporation  resulting  from such
                  Corporate  Transaction  that are  comparable  to the positions
                  held by Executive pursuant to Section 2.1 immediately prior to
                  the Corporate Transaction; or

                  (4) approval by the  stockholders  of the Company of a plan of
         complete  liquidation or dissolution of the Company,  other than a plan
         of liquidation or dissolution  which results in the  acquisition of all
         or substantially all the assets of the Company by its Affiliates.

         I.11 "ComEd" -- see the recitals to this Agreement.

                                       4
<PAGE>

         I.12  "Common  Stock"  means common  stock,  without par value,  of the
Company.

         I.13 "Commencement Date" -- see Section 3.1.

         I.14 "Company" -- see the recitals to this Agreement.

         I.15 "Company Board" means the Board of Directors of the Company.

         I.16 "Compensation  Committee" means the Compensation  Committee of the
Company Board, or any successor committee thereto.

         I.17  "Confidential  Information"  means any  information not generally
known in the relevant  trade or industry,  which was obtained  from the Company,
Unicom or any Company Affiliate,  or which was learned,  discovered,  developed,
conceived,  originated or prepared  during or as a result of the  performance of
any  services  by  Executive  on behalf of the  Company,  Unicom or any  Company
Affiliate and which:

                  (1) relates to one or more of the following:

                        (1) trade secrets of the Company or an Affiliate thereof
                  or any  customer or  supplier  of the Company or an  Affiliate
                  thereof;

                        (2)  existing  or   contemplated   products,   services,
                  technology, designs, processes, formulae, algorithms, research
                  or product developments of the Company or an Affiliate thereof
                  or any  customer or  supplier  of the Company or an  Affiliate
                  thereof;

                        (3) business plans, sales or marketing methods,  methods
                  of doing  business,  customer  lists,  customer  usages and/or
                  requirements,  supplier  information  of  the  Company  or  an
                  Affiliate  thereof or any  customer or supplier of the Company
                  or an Affiliate thereof; or

                  (2) the  Company or an  Affiliate  thereof or any  customer or
         supplier of the Company or an Affiliate thereof may reasonably have the
         right to  protect  by  patent,  copyright  or by  keeping it secret and
         confidential.

Confidential  Information does not include any information that is or may become
publicly known other than through the improper actions of Executive.

         I.18 "Contract Term" -- see Section 3.1.

         I.19  "Disability"  means a mental or physical  condition which, in the
opinion of the Company Board,  renders  Executive unable or incompetent to carry
out the job  responsibilities  which such  Executive held or the duties to which
Executive  was  assigned  at the time the  disability  was  incurred,  which has
existed  for at least  three  months  and which in the  opinion  of a  physician

                                       5
<PAGE>

mutually  agreed upon by the Company and Executive  (provided that neither party
shall unreasonably withhold or delay such agreement) is expected to be permanent
or to last for an indefinite duration or a duration in excess of six months.

         I.20 "Early  Retirement" means a Termination of Employment by Executive
on or after March 16, 2003, other than a Normal  Retirement or a Termination for
Good Reason prior to Normal Retirement.

         I.21 "Exchange Act" means the Securities Exchange Act of 1934.

         I.22 "Executive" -- see the recitals to this Agreement.

         I.23  "Formula  Annual  Incentive"  means the greater of (i) the Annual
Incentive for the latest calendar year ended on or before the Termination  Date,
or (ii) the average of the Annual  Incentives  that were actually paid (or would
have been paid in respect of the year preceding the  Termination  Date but for a
termination of Executive's  employment  after the end of such preceding year) to
Executive  with  respect  to  Executive's  last  three  full  calendar  years of
employment by the Company,  Unicom or any Affiliate of the Company. For purposes
of clause (ii) of the preceding sentence, if Annual Incentives have been paid to
Executive in respect of fewer than three years,  such average  shall be computed
by reference to the Annual Incentives that were actually paid to Executive.

         I.24 "Good Reason" means any material  breach of this  Agreement by the
Company, including:

                  (1)  a  failure  to  provide  the  compensation  and  benefits
         required by this Agreement, including a reduction in the Base Salary of
         Executive  below  the Base  Salary  in effect  during  the  immediately
         preceding  year under this  Agreement or, where  applicable,  the Prior
         Agreement,  unless such  reduction is  commensurate  with and part of a
         general salary reduction program applicable to all senior executives of
         the Company;

                  (2) failure to appoint or elect  Executive  (i) for the period
         beginning at the Merger  Effective Time and  continuing  until the last
         day of the first  half of the  Transition  Period,  the  President  and
         Co-Chief  Executive  Officer  of  the  Company,  the  Chairman  of  the
         Executive Committee of the Company Board and as a member of the Company
         Board,  (ii) for the period  beginning at the  commencement of the last
         half of the Transition  Period and continuing until the last day of the
         Transition Period,  the Co-Chief Executive Officer of the Company,  the
         Chairman of the Company  Board and a member of the Company  Board,  and
         (iii) for the  period  commencing  immediately  prior to the end of the
         Transition Period and continuing after the Transition  Period, the sole
         Chief Executive  Officer of the Company,  Chairman of the Company Board
         and a member of the Company Board; except that, in the event that prior
         to the end of the Transition Period Corbin A. McNeill, Jr. should cease
         to serve as Co-Chief Executive Officer of the Company,  or prior to the
         end of the  first  half of the  Transition  Period as  Chairman  of the
         Company  Board,  "Good  Reason"  under this  subsection  (b) shall also
         include failure to immediately appoint or elect Executive as sole Chief
         Executive Officer and/or Chairman of the Company Board, as applicable;

                                       6
<PAGE>

                  (3) causing or requiring  Executive to report to any Person or
         group other than the Company Board;

                  (4)   any   material    adverse    change   in   the   status,
         responsibilities or perquisites of Executive; or

                  (5) any public  announcement  by the Company  Board that it is
         seeking a replacement for Executive,  which  announcement is made prior
         to Executive's attaining age 60, unless Executive has consented to such
         announcement;

provided,  however,  that an act or  omission  shall not  constitute  a material
breach of this Agreement by the Company:

                           (1) unless Executive gives the Company 30 days' prior
                  notice of such act or omission  and the Company  fails to cure
                  such act or omission within the 30-day period;

                           (2) if Executive first acquired  actual  knowledge of
                  such act or  omission  more  than 12 months  before  Executive
                  gives the Company such notice; or

                           (3) if Executive has consented in writing to such act
                  or omission in a document  that makes  specific  reference  to
                  this Section.

         I.25  "Initial  Term" shall mean the period,  if any,  beginning at the
Merger Effective Time and ending on March 15, 2001.

         I.26 "including" means including without limitation.

         I.27 "Key  Employee"  means any  employee  of the  Company who is Group
Level 12 or above  ("Group  Level")  or any  employee  of any  Affiliate  of the
Company who is at a level which is the equivalent of Group Level.

         I.28 "LTIP" means the Company's Long-Term Incentive Plan.

         I.29 "Merger" -- see the recitals to this Agreement.

         I.30 "Merger Effective Time" -- see the recitals to this Agreement.

         I.31 "Normal Retirement" means a Termination of Employment by Executive
either (i) on or after  March 16, 2006 or (ii) on or after March 16, 2003 if the
Company Board shall have  determined  with the written  consent of the Executive
that such Termination  shall constitute  Normal  Retirement for purposes of this
Agreement.

         I.32  "Option"  means an option  to  purchase  shares  of Common  Stock
pursuant to the terms and  conditions of either this  Agreement and the LTIP (or
any successor  plan) or the Prior Agreement and the Unicom  Long-Term  Incentive
Plan.

                                       7
<PAGE>

         I.33 "Option Expiration Date" means, with respect to a specific Option,
the  expiration  date of such Option as specified in the grant  agreement or the
plan (as applicable) relating thereto.

         I.34 "Parent" -- see the recitals to this Agreement.

         I.35  "Performance  Unit Program" means Unicom's Long Term  Performance
Unit Award Program, or any successor program maintained by the Company.

         I.36 "Person" means any individual,  sole proprietorship,  partnership,
limited liability company, joint venture,  trust,  unincorporated  organization,
association,  corporation,  institution,  entity or government (whether federal,
state, county, municipal or otherwise).

         I.37 "Post-Retirement  Health Care Coverage" means the medical,  dental
and vision care coverage  provided by the Company or Unicom from time to time to
its retired senior executives who retired at or after March 10, 1998.

         I.38 "Practices" means practices, policies and programs.

         I.39 "Prior Agreement" -- see the recitals to this Agreement.

         I.40 "Prorated Annual Incentive" means, in respect of the calendar year
during which the Termination Date occurs,  an amount equal to the product of the
Formula Annual Incentive multiplied by a fraction, the numerator of which equals
the number of days between  January 1 of such calendar year and the  Termination
Date and the denominator of which equals 365.

         I.41 "SERP Benefit" -- see Section 6.2(a).

         I.42 "Service  Annuity  System" means the  Commonwealth  Edison Company
Service Annuity System.

         I.43  "Severance  Period"  means  the  period  that  commences  on  the
Termination  Date and ends two  years  after  the  Termination  Date;  provided,
however,  that if (i) the Termination  Date occurs at any time prior to December
31, 2004,  (ii) the  Termination  Date occurs within the first 24 months after a
Change in Control, or (iii) the Termination Date occurs at any time because of a
Termination for Good Reason within the meaning of Section 1.24(b), the Severance
Period shall end three years after the Termination Date.

         I.44  "Supplemental  Retirement  Plan"  means the  Commonwealth  Edison
Company Supplemental Management Retirement Plan.

         I.45 "Taxes" means federal, state, local or other income, employment or
other taxes.

         I.46  "Termination  Date"  means  the  date  as  of  which  Executive's
employment  with the Company and all  Affiliates  thereof is  terminated  by the
Company or by Executive for any reason.

                                       8
<PAGE>

         I.47 "Termination for Good Reason" means a Termination of Employment by
Executive for Good Reason.

         I.48  "Termination  of  Employment"  occurs  on the  first day on which
Executive is for any reason no longer  employed by the Company or any  Affiliate
thereof.

         I.49  "Termination  Without  Cause" means a termination  of Executive's
employment by the Company and all  Affiliates  thereof for any reason other than
Cause or Disability.

         I.50  "Transition  Period"  means the  period  beginning  at the Merger
Effective Time and ending on December 31, 2003.

         I.51 "Unicom" -- see the recitals to this Agreement.

         I.52 "Voting  Securities"  means,  with respect to a  corporation,  the
securities of such corporation entitled to vote generally in the election of the
directors of such corporation.

                                   ARTICLE II.
                                     DUTIES

         II.1 Duties.  During the Contract Term, (a) for the period beginning at
the Merger Effective Time and continuing until the last day of the first half of
the Transition  Period,  Executive shall be the President and Co-Chief Executive
Officer of the Company,  the Chairman of the Executive  Committee of the Company
Board,  and a member of the Company Board,  (b) for the period  beginning at the
commencement of the last half of the Transition  Period and continuing until the
last day of the Transition  Period,  Executive  shall be the Co-Chief  Executive
Officer of the Company,  the  Chairman of the Company  Board and a member of the
Company Board, and (c) for the period commencing immediately prior to the end of
the Transition  Period and continuing  after the  Transition  Period,  Executive
shall be sole Chief  Executive  Officer of the Company,  Chairman of the Company
Board and a member of the Company Board.  In the event,  however,  that prior to
the end of the Transition Period Corbin A. McNeill,  Jr. should cease during the
Contract Term to serve as Co-Chief  Executive Officer of the Company,  Executive
shall immediately be sole Chief Executive Officer of the Company,  and if Corbin
A.  McNeill,  Jr.  should cease to serve during the Contract Term as Chairman of
the Company Board prior to the end of the first half of the  Transition  Period,
Executive  shall  immediately  become  Chairman  of  the  Company  Board.  It is
contemplated  that, in connection with each annual meeting of  shareholders  (or
action by written  consent in lieu  thereof) of the Company  during the Contract
Term, the shareholders of the Company will elect Executive to the Company Board.
During the  Contract  Term  (excluding  any periods of  vacation,  sick leave or
disability to which Executive is entitled),  Executive  (subject to Section 2.2)
shall  devote his full  attention  and time to the  business  and affairs of the
Company  and use his best  efforts  to perform  his duties and  responsibilities
described herein.

         II.2 Other Activities.  Executive may (a) serve on corporate,  civic or
charitable  boards or committees,  (b) fulfill speaking  engagements or teach at
educational institutions or (c) manage

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<PAGE>

personal  investments,  in each case to the extent that such  activities  do not
materially interfere with the performance of his duties under this Agreement.

                                  ARTICLE III.
                                TERM OF AGREEMENT

         III.1 Term.  The term of this  Agreement  (the  "Contract  Term") shall
begin at the Merger Effective Time (the "Commencement  Date") and shall continue
in effect until the Termination Date.

                                   ARTICLE IV.
                                  COMPENSATION

         IV.1 Base Salary. During any portion of the Contract Term consisting of
the Initial Term, the Company shall pay Executive in accordance  with its normal
payroll  practices an annual salary (the "Base Salary") of at least $900,000 but
not less than  either  Executive's  annual  salary  under  the  Prior  Agreement
immediately prior to the Merger Effective Time or the annual salary of the other
Co-Chief Executive Officer, if any, of the Company.  After the expiration of the
Initial  Term,  the Base Salary  shall be reviewed at least  annually and may be
adjusted  at any  time  and from  time to time as  shall  be  determined  by the
Compensation  Committee,  except that during the Transition  Period  Executive's
Base  Salary  shall not be less  than the  annual  salary of the other  Co-Chief
Executive Officer, if any, of the Company. Any increase in Base Salary shall not
limit or reduce any other obligation to Executive under this Agreement.

         IV.2  Annual  Incentive.  During the  Contract  Term,  Executive  shall
participate  in the  Company's  Annual  Incentive  Award  Program  and  shall be
eligible to receive an annual  incentive  award in accordance with the terms and
conditions  thereof  and on the same  basis as other  senior  executives  of the
Company,  except that during the Transition  Period such award shall not be less
than that of the other  Co-Chief  Executive  Officer,  if any,  of the  Company.
Executive  shall continue to participate  in the Unicom Annual  Incentive  Award
Program in  accordance  with the terms and  conditions  thereof  with respect to
annual incentive awards (collectively with annual incentive awards granted under
the Company's Annual Incentive Award Program,  "Annual Incentive") granted prior
to the Merger Effective Time.

         IV.3  Long-Term  Incentives.  Effective  as of the  Commencement  Date,
Executive shall  participate in the Company's LTIP and in any  Performance  Unit
Program in  accordance  with the terms and  conditions  thereof  and on the same
basis  as other  senior  executives  of the  Company,  except  that  during  the
Transition Period such  participation  shall be on a basis that is not less than
that of the other Co-Chief Executive Officer, if any, of the Company.  Executive
shall continue to participate in the Performance Unit Program in accordance with
the terms and conditions thereof with respect to performance cycles in effect as
of the Merger Effective Time. In addition,  any award payable to Executive under
the Performance Unit Program with respect to the three-year  performance  period
ending on December 31, 2000 will be made as though Executive had participated in
such  Program  throughout  such  performance  period  (except  in the event of a
Termination of Employment,  in which case the provisions of the Performance Unit
Program shall apply).

         IV.4 Deferred Stock and Additional Option.

                                       10
<PAGE>

                  (1) Deferred Stock. Pursuant to the Prior Agreement, effective
         on the date in 1999 on which Executive's  Annual Incentive with respect
         to 1998 first  became  payable  pursuant  to  Section  4.3 of the Prior
         Agreement  (the "Grant  Date"),  Unicom granted to Executive a right to
         receive,  on the  Payment  Date (as  defined  in the last  sentence  of
         Section  4.4(b)),  a number of shares  of Common  Stock of Unicom  (the
         "Deferred Shares") equal to the sum of:

                           (1)  a  number  of  shares  (the  "Initial   Deferred
                  Shares") equal to $600,000  divided by 100% of the fair market
                  value  (determined  in  accordance  with the Unicom  Long-Term
                  Incentive  Plan or any  applicable  successor  plan (the "Fair
                  Market  Value"))  of a share of the Common  Stock of Unicom on
                  the Grant Date (such price, the "Grant Price"), and

                           (2) the  aggregate  number of  shares of such  Common
                  Stock that would be issued from time to time if all  dividends
                  (other than dividends payable in such Common Stock) payable in
                  respect of the  Initial  Deferred  Shares were  reinvested  in
                  additional  shares of such  Common  Stock  (assuming  for this
                  purposes  that the Initial  Deferred  Shares were  outstanding
                  throughout  the period  beginning on the Grant Date and ending
                  on the Payment  Date)  based on the Fair Market  Value of such
                  Common Stock as of the applicable dividend payment date.

         Such Deferred  Shares shall be payable as provided in this Section 4.4;
         provided,  however,  that the  aggregate  number  and kind of  Deferred
         Shares  shall from time to time be  equitably  adjusted  to prevent any
         material dilution or enlargement of the aggregate value of the Deferred
         Shares that may otherwise  occur by reason of a change in the number or
         kind of  outstanding  shares of Unicom  Common Stock or of Common Stock
         resulting   from   any   recapitalization,    reorganization,   merger,
         consolidation,  stock  split,  stock  dividend  or any  similar  change
         affecting  such Common Stock (other than a dividend  which is deemed to
         have been reinvested  pursuant to clause (ii) of this Section  4.4(a)),
         including the Merger.

                  (2) Vesting.  The Deferred Shares shall vest as follows: as to
         50% of the Deferred  Shares  specified in clause (i) of Section 4.4(a),
         on the  Grant  Date,  and  as to all  remaining  Deferred  Shares  (the
         "Unvested  Deferred  Shares") on the date in 2000 on which  Executive's
         Annual Incentive with respect to 1999 first becomes payable pursuant to
         Section 4.3 of the Prior Agreement (the "Year 2000 Bonus Date") . On or
         before the fifth business day following  Executive's  Termination  Date
         (such day, the "Payment Date"),  the Company shall deliver to Executive
         a number  of shares of Common  Stock  equal to the  number of  Deferred
         Shares that have become vested on or before the Termination Date.

                  (3) Effect on SERP Benefit. Solely for purposes of determining
         the  amount of  Executive's  SERP  Benefit  pursuant  to  Section  6.2,
         Executive's  Annual  Incentive  with  respect  to each of 1998 and 1999
         under the Prior Agreement shall be deemed to have been $300,000 greater
         than the Annual Incentive actually paid to Executive in respect of such
         year.

                                       11
<PAGE>

                  (4) Additional Option.  Effective as of the Grant Date, Unicom
         granted  to  Executive  an Option  (the  "Additional  Option")  with an
         exercise price equal to the Grant Price and subject to such other terms
         and  conditions as are  applicable  to other stock  options  granted to
         senior executives of Unicom under the Unicom Long-Term  Incentive Plan.
         The Additional Option shall be exercisable  during its term as follows:
         (i) as to 50% of the shares  subject  thereto,  at any time on or after
         the Grant Date, and (ii) as to all of the other shares subject  thereto
         (the "Unvested Option  Shares"),  at any time on or after the Year 2000
         Bonus Date.

                                   ARTICLE V.
                                  OPTION GRANTS

         V.1 Initial  Grant.  On March 16, 1998,  Unicom granted to Executive an
Option to  purchase  250,000  shares  of Unicom  Common  Stock.  Subject  to the
provisions of Article VII and Article VIII, such Option shall become exercisable
in equal  installments  on each of the three first  Anniversary  Dates and shall
thereafter remain  exercisable until the 10th Anniversary Date. The option price
of such Option equaled 100% of the fair market value of Unicom's Common Stock as
of March 16, 1998 as  determined  by the  Compensation  Committee  of the Unicom
Board.

         V.2 Future Grants.  As of the Merger  Effective Time, the  Compensation
Committee  shall in its  discretion  consider  Executive  for a grant of Options
under the LTIP,  but such grant shall be in an amount which is not less than the
Options granted as of the Merger Effective Time to the other Co-Chief  Executive
Officer,  if any, of the Company.  In addition,  during the Contract  Term,  the
Compensation  Committee shall in its discretion  consider Executive for possible
future  annual  or other  grants of  Options  under the LTIP on the same date or
dates and on the same basis as other senior  executives  of the Company,  except
that during the Transition  Period such grants shall be in amounts which are not
less than those granted to the other Co-Chief Executive Officer,  if any, of the
Company.  Subject to the  provisions  of Article VII and Article  VIII,  Options
granted to  Executive  under the Unicom  Long-Term  Incentive  Plan prior to the
Merger  Effective Time shall become  exercisable in accordance  with their terms
and the terms of the Unicom Long-Term Incentive Plan.

                                   ARTICLE VI.
                                 OTHER BENEFITS

         VI.1 Savings and Other Plans. During the Contract Term, Executive shall
be entitled to participate in all savings,  deferred compensation and retirement
plans which are or may hereafter become generally available to senior executives
of the Company (subject to the eligibility requirements of such plans, except as
such  eligibility  requirements are modified by the provisions of Article IV and
this Article VI),  except that during the Transition  Period such  participation
shall be on terms no less favorable  than those  available to the other Co-Chief
Executive Officer, if any, of the Company.

         VI.2     Retirement Benefits.

                                       12
<PAGE>

                  (1) Upon the first to occur of Executive's Early Retirement or
         Normal Retirement,  a Termination Without Cause, a Termination for Good
         Reason, a Termination of Employment by reason of death or Disability or
         a Termination of Employment by the Executive for any other reason on or
         after  the  first  anniversary  of the  Commencement  Date  (any of the
         foregoing, a "SERP Payment Event"),  Executive (or, in the event of his
         death,  his  surviving  spouse) shall  thereafter  receive a retirement
         benefit (the "SERP Benefit") determined pursuant to Section 6.2(b).

                  (2) The SERP  Benefit to be provided to  Executive  during any
         year shall equal an amount  which,  when added to all other  retirement
         benefits provided to Executive by the Company and its Affiliates during
         such year (including  payments under the Service  Annuity  System,  the
         Supplemental  Retirement  Plan, any Social Security  supplement paid by
         ComEd until  Executive  attains  age 65, any  retirement  benefit  paid
         pursuant to Section  8.4, and any other  sources)  results an aggregate
         annual retirement  benefit equal to the annual retirement  benefit that
         would have been payable  under the Service  Annuity  System  (including
         under the  Supplemental  Retirement Plan) as in effect on the March 10,
         1998, calculated as though Executive had:

                            (1) retired at age 60 (or, if greater,  his attained
                  age upon the first SERP Payment Event), and

                            (2)  accrued 20 years of  service on March 16,  1998
                  and one additional  year of service on each  Anniversary  Date
                  occurring on or before the Termination Date;

         provided, however, that in no event shall any SERP Benefit be payable:

                            (A) during the  Severance  Period if either  Section
                  7.3 or 8.3 is applicable,

                            (B) in the event that, before the first SERP Payment
                  Event, Executive shall have received a Notice of Consideration
                  (as  defined  in  Section  7.1(b)(i))  and his  employment  is
                  subsequently terminated by the Company for Cause, or

                            (C) in the event of any  Termination  of  Employment
                  other than in connection with a SERP Payment Event.

         In addition,  Executive's  right to receive the SERP  Benefit  shall be
subject to Section 7.7.

                  (3)  Executive  shall  have the  option  to  receive  the SERP
         Benefit  (i)  as a  lump-sum  amount,  payable  within  30  days  after
         Termination  of Employment  notwithstanding  the  provisions of Section
         6.2(b)(A),  (ii) as a  regular  life  annuity,  or (iii) as a joint and
         survivor  marital annuity (to be  appropriately  adjusted in accordance
         with the  provisions of the Service  Annuity  System).  In the event of
         Executive's death during his employment by the Company, his spouse will
         immediately become entitled to a surviving spouse benefit.

         VI.3 Welfare  Benefits.  During the Contract  Term,  Executive (and his
family) shall be eligible to participate in and shall receive benefits under all
welfare benefit plans and Practices provided by the Company (including  medical,
prescription,  dental,  vision care,  disability,  salary

                                       13
<PAGE>

continuance,  employee life,  group life,  dependent life,  accidental death and
travel  accident  insurance  plans and programs)  generally  available to senior
executives of the Company; provided,  however, that the Company shall provide at
no cost to Executive an amount of term life insurance  coverage that, when added
to the coverage  available at no cost to Executive  under the Company's group or
employee life plans or programs,  equals three times his Base Salary. During the
Transition  Period  participation  in such welfare  benefit  plans and Practices
shall be on terms no less favorable  than those  available to the other Co-Chief
Executive Officer, if any, of the Company.

         VI.4 Employee  Benefits.  During the Contract Term,  Executive shall be
entitled to employee benefits generally  available to other senior executives of
the Company, including financial planning and tax planning services, except that
during the Transition Period such employee benefits available to Executive shall
be no less  favorable  than  those  available  to the other  Co-Chief  Executive
Officer, if any, of the Company.

         VI.5 Time Off.  During each year of the Contract Term,  Executive shall
be  entitled  to 30 "paid  time  off"  days in  accordance  with the PTO  policy
applicable  to  senior  executives  of  the  Company,  except  that  during  the
Transition  Period such amount shall not be less than the days applicable to the
other Co-Chief Executive Officer, if any, of the Company.

         VI.6 Expenses. During the Contract Term, Executive shall be entitled to
receive  prompt  reimbursement  for  all  of his  reasonable  employment-related
expenses upon the Company's  receipt of accounting in accordance  with Practices
applicable  to  senior  executives  of  the  Company,  except  that  during  the
Transition  Period  such  Practices  shall  not be  less  favorable  than  those
applicable to the other Co-Chief Executive Officer, if any, of the Company.

         VI.7 Office;  Support Staff. During the Contract Term,  Executive shall
be entitled to an office of a size and with furnishings and other  appointments,
and to personal  secretarial  and other  assistance,  as is  appropriate  to the
positions  being assumed by Executive,  but in no event less than those provided
to other senior  executives  of the Company or to the other  Co-Chief  Executive
Officer, if any, of the Company.

                                  ARTICLE VII.
                              TERMINATION BENEFITS

         VII.1 Termination for Cause or Other Than for Good Reason,  Retirement,
Death or Disability.

                  (1) If,  whether  before or after the end of the Initial Term,
         Executive's  employment  is  terminated  by the Company for Cause or by
         Executive  for any reason  other than Good Reason,  death,  Disability,
         Early Retirement or Normal Retirement, then:

                      (1) the Company shall within 10 days after the Termination
                   Date pay Executive his Accrued Base Salary and Accrued Annual
                   Incentive;

                      (2)  all of  Executive's  Options  (whether  or  not  then
                   exercisable) shall expire on the Termination Date; and

                                       14
<PAGE>

                      (3) any  Performance  Unit Program  award that has not yet
                   become  payable in accordance  with the terms and  conditions
                   thereof shall be forfeited.

                  (2) The Company may not terminate  Executive's  employment for
         Cause unless:

                           (1) no fewer  than 30 days  prior to the  Termination
                  Date,  the Company  provides  Executive with written notice of
                  its intent to consider a termination  of employment  for Cause
                  that  states  the  proposed  Termination  Date and  includes a
                  detailed  description  of the specific  reasons which form the
                  basis for such consideration (the "Notice of Consideration");

                           (2)  during a period of not fewer  than 15 days after
                  the date Notice of Consideration is provided,  Executive shall
                  have the opportunity to appear before the Company Board,  with
                  legal  representation if he so elects, to present arguments on
                  his own behalf; and

                           (3) following the  presentation  to the Company Board
                  as  provided  in  clause  (ii)  above,   Executive   shall  be
                  terminated  for  Cause  only if (x) not  less  than 60% of the
                  members  of  the  Company  Board  (other  than   Executive  if
                  Executive  is a member  of the  Company  Board,  or any  other
                  member of the  Company  Board  alleged to be  involved  in the
                  events  that form the basis of the  proposed  termination  for
                  Cause)  determines  that the actions of Executive  constituted
                  Cause and that his employment should accordingly be terminated
                  for Cause; and (y) the Company Board provides Executive with a
                  written   determination   setting  forth  the  basis  of  such
                  termination of employment  which shall be consistent  with the
                  reasons set forth in the Notice of Consideration.

                  (3) After providing Notice of Consideration to Executive,  the
         Company  Board  may  suspend   Executive   with  pay  pending  a  final
         determination pursuant to this Section.

         VII.2  Termination for Death or Disability.  If Executive's  employment
terminates due to death or Disability:

                  (1) the Company shall pay to Executive,  his  Beneficiaries or
         his estate, as the case may be,  immediately after the Termination Date
         an amount which is equal to the sum of his Accrued Base Salary, Accrued
         Annual Incentive and Prorated Annual Incentive; and

                  (2) each of  Executive's  Options  (including  any Options not
         then   exercisable)   shall  be  fully  exercisable  and  shall  remain
         exercisable until the applicable Option Expiration Date.

         VII.3 Termination Without Cause or for Good Reason. Except as otherwise
provided  in  Section  8.3,  in the event of a  Termination  Without  Cause or a
Termination for Good Reason:

                  (1)  Executive  shall  receive a lump sum equal to his Accrued
         Base Salary, Accrued Annual Incentive, and Prorated Annual Incentive;

                  (2) Executive  shall receive for the duration of the Severance
         Period,

                                       15
<PAGE>

                           (1)  periodic   payments  in   accordance   with  the
                  Company's normal payroll practices and in amounts equal to his
                  Base  Salary  in  effect  under  this   Agreement   or,  where
                  applicable,  the Prior  Agreement  during  the  calendar  year
                  preceding the  Termination  Date and, for each year during the
                  Severance Period, the Formula Annual Incentive, and

                           (2) a  continuation  of  the  benefits  described  in
                  Section 6.3 to which  Executive and his family are entitled as
                  of  the  Termination  Date  (or,  if  such  benefits  are  not
                  available, the economic equivalent thereof);

                  (3) each of  Executive's  Options that is  exercisable  on the
         Termination Date shall remain  exercisable  until the applicable Option
         Expiration Date;

                  (4)  each of  Executive's  Options  that  has  not yet  become
         exercisable as of the Termination Date shall become  exercisable during
         the  Severance  Period at such times and in such amounts (if any) as if
         Executive had remained employed by the Company throughout the Severance
         Period and, after  becoming so  exercisable,  shall remain  exercisable
         until the applicable Option Expiration Date; and

                  (5) any of Executive's  Options that remain  unexercisable  at
         the end of the Severance Period shall be forfeited.

         VII.4  Termination Upon Normal  Retirement.  If Executive's  employment
terminates due to Normal Retirement:

                  (1)  Executive  shall  receive a lump sum equal to his Accrued
         Base Salary, Accrued Annual Incentive, and Prorated Annual Incentive;

                  (2) each of  Executive's  Options that is  exercisable  on the
         Termination Date shall remain  exercisable  until the applicable Option
         Expiration Date; and

                  (3)  each of  Executive's  Options  that  has  not yet  become
         exercisable as of the Termination Date shall become  exercisable  after
         Executive's  retirement  at  such  times  and  in  such  amounts  as if
         Executive had remained employed by the Company following his retirement
         and, after becoming so exercisable,  shall remain exercisable until the
         applicable Option Expiration Date.

         VII.5  Termination  Upon Early  Retirement.  If Executive's  employment
terminates due to Early Retirement:

                  (1)  Executive  shall  receive a lump sum equal to his Accrued
         Base Salary, Accrued Annual Incentive, and Prorated Annual Incentive;

                  (2) each of  Executive's  Options that is  exercisable  on the
         Termination Date shall remain  exercisable  until the later to occur of
         (i) the end of the period that is applicable  under such  circumstances
         pursuant  to the form of grant  agreement  in general use for grants to

                                       16
<PAGE>

         senior  executives  at the time such Option was granted or (ii) 90 days
         after the Termination Date, but in no event after the applicable Option
         Expiration Date; and

                  (3)  each of  Executive's  Options  that  has  not yet  become
         exercisable as of the Termination  Date shall expire on the Termination
         Date.

         VII.6  Post-Retirement  Health  Care  Coverage.  In  the  event  of any
Termination  of Employment on account of death,  Disability,  Early  Retirement,
Normal Retirement, by Executive for Good Reason or by the Company without Cause,
Executive and his spouse shall each be entitled to  Post-Retirement  Health Care
Coverage for the remainder of their  respective  lives.  Such coverage shall not
duplicate  any benefits  that may then be available to Executive  and his spouse
under  Section 6.3 and shall be secondary to any coverage  provided by any other
employer or Medicare.

         VII.7 Breach of  Covenants;  Exculpation.  In the event of (a) a wilful
and material  breach by Executive of any of the  covenants  contained in Article
IX, or (b) a failure by  Executive  to cure (to the  fullest  extent  curable) a
non-wilful breach of any of such covenants within 10 days after his receipt of a
written  notice thereof from the Company,  the Company shall be entitled,  after
obtaining  a  final  judicial  determination  (or,  if  the  Company  reasonably
determines,  based upon the advice of  counsel,  that it is more likely than not
that each of the Circuit  Court of Cook County,  Illinois and the United  States
District Court for the Northern  District of Illinois will decline to adjudicate
the issue, a final decree in an arbitration  proceeding  conducted in accordance
with the rules of the American  Arbitration  Association,  with such arbitration
proceeding  to be  conducted  in  Chicago,  Illinois  before  a panel  of  three
arbitrators)  to the effect that such action by the Company is  appropriate  and
consistent with the requirements and procedures set forth in this Agreement,  to
take any or all of the following actions:

                        (1) discontinue the SERP Benefit and any or all payments
                  and benefits provided to Executive pursuant to Article VII and
                  any other provision of this Agreement,

                        (2)  terminate  any  Options  then  held  by  Executive,
                  whether or not then exercisable, and

                        (3) require Executive to:

                                    (w)  repay  to  the   Company   all  amounts
                           previously  received  by  Executive  pursuant  to any
                           provision  of Article  VII on or after the first date
                           on which the Executive  breached any of the covenants
                           contained in Article IX (the "Breach Date"),

                                    (x)  repay  to  the   Company   all  amounts
                           previously  received by  Executive  pursuant the SERP
                           Benefit at any time on or after the Termination Date,

                                    (y) pay to the  Company  an amount  equal to
                           the aggregate "spread" on all Options exercised on or
                           after the Breach Date, and

                                       17
<PAGE>

                                    (z) repay to the  Company  any other  amount
                           that it paid to Executive on or after the Breach Date
                           which  Executive  would  not have  been  entitled  to
                           receive if the Company had  terminated the employment
                           of Executive for Cause as of the Breach Date;

provided,  however, that (I) no benefits shall be discontinued or terminated nor
shall Executive have any monetary liability to the Company for any breach of the
covenants  contained  in Article  IX for any act or  failure  to act,  including
without  limitation  simple  negligence or an error in judgment,  if such act or
failure to act was done in good faith, with a reasonable belief that the act, or
failure to act,  was in the best  interest  of the  Company or was  required  by
applicable  law or  administrative  regulations,  and was not done  primarily to
benefit  Executive and (II) no action may be brought under this Section 7.7 more
than three years after the Termination Date. For purposes of clause (iii) (y) of
the preceding sentence, "spread" in respect of any Option shall mean the product
of the number of shares as to which such Option has been  exercised  on or after
the Breach Date  multiplied by the  difference  between the closing price of the
Common Stock on the  exercise  date (or if the Common Stock did not trade on the
New York Stock  Exchange on the exercise date, the most recent date on which the
Common Stock did so trade) and the exercise price of the Option.

         VII.8 Other Employment;  Other Plans.  Executive shall not be obligated
to seek other  employment  or take any other action by way of  mitigation of the
amounts payable to Executive under any provision of this Agreement.  The amounts
payable  hereunder  shall not be reduced by any  payments  received by Executive
from any other employer;  provided, however, that any continued welfare benefits
provided for by Section 6.3 shall not  duplicate  any benefits that are provided
to Executive and his family by such other employer and shall be secondary to any
coverage provided by such other employer.  The provisions of this Article VII or
Article VIII will not limit the  entitlement  of Executive to any other benefits
available to Executive  under any benefit plan or Practice that is maintained by
the Company, Unicom or any Company Affiliate in which Executive participates.

                                  ARTICLE VIII.
                       EFFECTS OF CERTAIN CONTROL CHANGES

         VIII.1  Effect  on  Certain  Defined  Terms.  In  the  event  of  (i) a
Termination  Without  Cause  or a  Termination  for  Good  Reason  (including  a
Termination for Good Reason within the meaning of Section 1.24(b)) for which the
Termination  Date occurs at any time during the period  beginning on the date on
which a Change in Control  first  occurs  and  ending 24 months  after such date
(such period, the "Post-Change  Period"),  (ii) a Termination Without Cause or a
Termination for Good Reason  (including a Termination for Good Reason within the
meaning of Section  1.24(b)) for which the Termination  Date occurs at any other
time on or after  the  Commencement  Date and  prior to the  earlier  of  Normal
Retirement or December 31, 2004,  or (iii) a Termination  for Good Reason within
the  meaning of Section  1.24(b)  for which the  Termination  Date occurs at any
other time on or after the Commencement Date and prior to Normal Retirement:

                  (1) the term "Formula Annual Incentive" shall mean the greater
         of (i)  that  amount  determined  pursuant  to  Section  1.23  or  (ii)
         Executive's  target Annual  Incentive  determined as of the Termination
         Date; and

                                       18
<PAGE>

                  (2) for  purposes of a  Termination  for Good Reason for which
         the  Termination  Date occurs during the Post-Change  Period,  the term
         "Good Reason" shall have the meaning  specified in Section 1.24, except
         that,  subject to the  proviso at the end of Section  1.24,  any one or
         more of the  following  acts or omissions  shall also  constitute  Good
         Reason:

                           (1) a determination by Executive,  made in good faith
                  at any time during the Post-Change  Period,  that, as a result
                  of a Change in Control, he is substantially unable to perform,
                  or that  there has been a  material  reduction  in, any of his
                  duties, functions, responsibilities or authority;

                           (ii) the failure for any reason of any  successor  to
                  the Company to assume this Agreement in writing as required by
                  Section 8.2;

                           (iii) a relocation  of the  principal  offices of the
                  Company at any time during the Post-Change Period by more than
                  50 miles from the location of such offices  immediately before
                  the date on which the Post-Change Period begins; or

                           (iv) during any 12-month period  commencing after the
                  Change in Control,  any increase of at least 20% in the amount
                  of  time   that   Executive   is   required   to   devote   to
                  business-related  travel outside of the metropolitan  Chicago,
                  Illinois  area  relative to the amount of time that  Executive
                  devoted to such  business  travel  during the 12-month  period
                  immediately  prior to the Change in  Control,  but only to the
                  extent that such  increase  is  attributable  to  requirements
                  imposed upon Executive by the Company Board.

         VIII.2 Successor(s).  Before the consummation of any Change in Control,
the  Company  shall  obtain from each  Person  that  becomes a successor  of the
Company by reason of the Change in Control, the unconditional  written agreement
of such Person to assume this Agreement and to perform all of the obligations of
the Company hereunder.

         VIII.3 Termination  Without Cause or for Good Reason During Post-Change
Period  or  Termination  in  Certain  Other  Situations.  In the  event of (i) a
Termination  Without  Cause  or a  Termination  for  Good  Reason  (including  a
Termination for Good Reason within the meaning of Section 1.24(b)) for which the
Termination  Date  occurs  during the  Post-Change  Period,  (ii) a  Termination
Without Cause or a Termination for Good Reason (including a Termination for Good
Reason  within the meaning of Section  1.24(b)) for which the  Termination  Date
occurs at any  other  time on or after  the  Commencement  Date and prior to the
earlier of Normal  Retirement or December 31, 2004,  or (iii) a Termination  for
Good Reason within the meaning of Section 1.24(b) for which the Termination Date
occurs at any other time on or after the  Commencement  Date and prior to Normal
Retirement,  the  provisions of Section 7.3 shall be  inapplicable  and, in lieu
thereof:

                  (a)  Executive  shall  receive a lump sum equal to his Accrued
         Base Salary,  Accrued Annual  Incentive,  and Prorated Annual Incentive
         (determined  by reference to the Formula Annual  Incentive  computed in
         accordance with Section 8.1(a));

                                       19
<PAGE>

                  (b)  Executive  shall  receive a lump sum equal to three (3.0)
         times the sum of (x) his Base Salary in effect under this Agreement or,
         where  applicable,   the  Prior  Agreement  during  the  calendar  year
         preceding the  Termination  Date and (y) his Formula  Annual  Incentive
         (computed in  accordance  with  Section  8.1(a))  determined  as of the
         Termination Date;

                  (c) Executive and his family shall receive for the duration of
         the  Severance  Period,  a  continuation  of the benefits  described in
         Section 6.3 to which  Executive  and his family are  entitled as of the
         Termination Date (or, if such benefits are not available,  the economic
         equivalent  thereof) and, upon the expiration of the Severance  Period,
         Executive  and his spouse shall be entitled to  Post-Retirement  Health
         Care Coverage in accordance with the provisions of Section 7.6;

                  (d)  Company  shall,  at its  expense,  engage a  professional
         outplacement  organization which shall provide individual  outplacement
         services  to  Executive  for a period of six months  commencing  on the
         Termination Date,  subject to extension for an additional period of six
         months in the sole discretion of Company;

                  (e) each of  Executive's  Options that is  exercisable  on the
         Termination Date shall remain  exercisable  until the applicable Option
         Expiration Date;

                  (f) each of Executive's  Options that is not fully exercisable
         as of the Termination Date shall  immediately  become fully exercisable
         and shall thereafter  remain  exercisable  until the applicable  Option
         Expiration Date;

                  (g) all forfeiture conditions which as of the Termination Date
         are  applicable  to  any  deferred  stock  unit,  restricted  stock  or
         restricted  share units awarded to Executive by the Company pursuant to
         the LTIP,  a  successor  plan,  or  otherwise  at any time  during  the
         Contract Term or by Unicom pursuant to the Unicom  Long-Term  Incentive
         Plan or otherwise at any time during the contract  term under the Prior
         Agreement, shall lapse immediately; and

                  (h) If all or any portion of any of  Executive's  awards under
         any other bonus or incentive  arrangement  under the LTIP or the Unicom
         Long-Term  Incentive  Plan shall for any reason be  unvested  as of the
         Termination  Date,  the Company  shall pay Executive a benefit equal to
         the increase in the benefit that  Executive  would have received if the
         unvested  portion of such  benefit  had become  fully  vested as of the
         Termination Date.

         VIII.4   Enhanced Retirement Benefit.

                  (a) In the  event  of (i) a  Termination  Without  Cause  or a
         Termination  for Good Reason  (including a Termination  for Good Reason
         within the meaning of Section  1.24(b)) for which the Termination  Date
         occurs during the Post-Change  Period, (ii) a Termination Without Cause
         or a  Termination  for Good Reason  (including a  Termination  for Good
         Reason within the meaning of Section 1.24(b)) for which the Termination
         Date  occurs at any other  time on or after the  Commencement

                                       20
<PAGE>

         Date and prior to the  earlier of Normal  Retirement  or  December  31,
         2004,  or (iii) a  Termination  for Good  Reason  within the meaning of
         Section 1.24(b) for which the Termination Date occurs at any other time
         on or after the Commencement Date and prior to Normal  Retirement,  the
         aggregate amount of Executive's  annual retirement  benefit pursuant to
         Section  6.2(a) shall be computed on the basis of the  assumptions  set
         forth in such Section 6.2(b),  together with the additional assumptions
         that Executive had:

                           (x) attained as of the  Termination  Date an age that
                  is three  greater than the age  determined  pursuant to clause
                  (i) of Section 6.2(b),

                           (y)  accrued  a number  of years of  service  that is
                  three  years  greater  than the  number  of  years of  service
                  determined pursuant to clause (ii) of Section 6.2(b), and

                           (z) received the lump-sum severance benefit specified
                  in Section  8.3(b) in equal  monthly  installments  during the
                  Severance Period.

                  (b) For purposes of applying the adjustments necessary to give
         effect to the form in which  Executive  may from time to time  elect to
         receive his SERP Benefit pursuant to Section 6.2(c),  the term "Service
         Annuity  System" shall refer to Service  Annuity System as in effect on
         the last date preceding the Post-Change  Period,  if any, if the amount
         of the SERP Benefit (in the form in which  Executive  elects to receive
         it) would  otherwise  be  reduced  by  application  of the  adjustments
         provided  for under the Service  Annuity  System as in effect as of the
         Termination Date.

         VIII.5 Gross-Up for Certain Taxes.

                  (a) If it is determined by the Company's  independent auditors
         that any  monetary  or other  benefit  received  or deemed  received by
         Executive  from the Company or any Affiliate  thereof  pursuant to this
         Agreement or otherwise,  whether or not in connection  with a Change in
         Control (such monetary or other benefits  collectively,  the "Potential
         Parachute Payments"), is or will become subject to any excise tax under
         Section  4999 of the Code or any  similar  tax under any United  States
         federal,  state,  local  or other  law  (such  excise  tax and all such
         similar taxes  collectively,  "Excise Taxes"),  then the Company shall,
         subject to Sections 8.10 and 8.11, within five business days after such
         determination,  pay Executive an amount (the "Gross-Up  Payment") equal
         to the product of:

                      (i) the amount of such Excise Taxes multiplied by

                      (ii) the Gross-Up Multiple (as defined in Section 8.8).

                                       21
<PAGE>

         The Gross-Up Payment is intended to compensate Executive for all Excise
         Taxes payable by Executive with respect to Potential Parachute Payments
         and all Taxes or Excise Taxes payable by Executive  with respect to the
         Gross-Up Payment.

                  (b) The  determination of the Company's  independent  auditors
         described in Section 8.5(a), including the detailed calculations of the
         amounts of the Potential Parachute Payments,  Excise Taxes and Gross-Up
         Payment and the assumptions  relating thereto,  shall be set forth in a
         written  certificate  of  such  auditors  (the  "Company  Certificate")
         delivered  to  Executive.  Executive  or the  Company  may at any  time
         request  the  preparation  and  delivery  to  Executive  of  a  Company
         Certificate.  The Company  shall cause the  Company  Certificate  to be
         delivered  to  Executive  as soon as  reasonably  possible  after  such
         request.

         VIII.6   Determination by Executive.

                  (a) If (i)  the  Company  shall  fail  to  deliver  a  Company
         Certificate  to  Executive  within  30 days  after its  receipt  of his
         written request therefor, or (ii) at any time after Executive's receipt
         of a Company  Certificate,  Executive disputes either (x) the amount of
         the Gross-Up  Payment set forth  therein or (y) the  determination  set
         forth therein to the effect that no Gross-Up Payment is due (whether by
         reason of  Section  8.11 or  otherwise),  then  Executive  may elect to
         require the Company to pay a Gross-Up Payment in the amount  determined
         by Executive as set forth in an Executive  Counsel  Opinion (as defined
         in Section 8.9). Any such demand by Executive shall be made by delivery
         to the Company of a written notice which specifies the Gross-Up Payment
         determined by Executive (together with the detailed calculations of the
         amounts of  Potential  Parachute  Payments,  Excise  Taxes and Gross-Up
         Payment and the assumptions  relating thereto) and an Executive Counsel
         Opinion  regarding  such  Gross-Up  Payment  (such  written  notice and
         opinion collectively, the "Executive's Determination") . Within 30 days
         after  delivery of an  Executive's  Determination  to the Company,  the
         Company shall either (i) pay  Executive the Gross-Up  Payment set forth
         in the Executive's  Determination  (less the portion  thereof,  if any,
         previously  paid  to  Executive  by the  Company)  or (ii)  deliver  to
         Executive  a Company  Certificate  and a Company  Counsel  Opinion  (as
         defined  in  Section  8.9),  and pay  Executive  the  Gross-Up  Payment
         specified  in such Company  Certificate.  If for any reason the Company
         fails to comply  with the  preceding  sentence,  the  Gross-Up  Payment
         specified in the Executive's Determination shall be controlling for all
         purposes.

                  (b) If Executive does not request a Company  Certificate,  and
         the Company does not deliver a Company  Certificate to Executive,  then
         (i) the Company shall,  for purposes of Section 8.11, be deemed to have
         determined that no Gross-Up Payment is due and (ii) Executive shall not
         pay any Excise Taxes in respect of Potential  Parachute Payments except
         in accordance with Sections 8.10(a) or (d).

         VIII.7 Additional Gross-Up Amounts. If for any reason (whether pursuant
to subsequently  enacted  provisions of the Code, final regulations or published
rulings of the IRS, a final  judgment of a court of  competent  jurisdiction,  a
determination  of the  Company's  independent  auditors  set  forth in

                                       22
<PAGE>

a Company  Certificate  or, subject to the last two sentences of Section 8.6(a),
an Executive's  Determination)  it is later determined that the amount of Excise
Taxes payable by Executive is greater than the amount  determined by the Company
or  Executive  pursuant to Section 8.5 or 8.6, as  applicable,  then the Company
shall,  subject to Sections 8.10 and 8.11,  pay Executive an amount (which shall
also be deemed a Gross-Up Payment) equal to the product of:

                  (a) the sum of (1) such  additional  Excise  Taxes and (2) any
         interest, penalties, expenses or other costs incurred by Executive as a
         result of having taken a position in  accordance  with a  determination
         made pursuant to Section 8.5 or 8.6, as applicable, multiplied by

                           (b)      the Gross-Up Multiple.

         VIII.8 Gross-Up Multiple. The Gross-Up Multiple shall equal a fraction,
the numerator of which is one (l.0),  and the  denominator of which is one (1.0)
minus  the  lesser  of (i) the sum,  expressed  as a  decimal  fraction,  of the
effective  after-tax marginal rates of all Taxes and any Excise Taxes applicable
to the  Gross-Up  Payment  or (ii) 0.80,  it being  intended  that the  Gross-Up
Multiple  shall in no event exceed five (5.0) . (If  different  rates of tax are
applicable to various  portions of a Gross-Up  Payment,  the weighted average of
such rates shall be used.)

         VIII.9 Opinion of Counsel. "Executive Counsel Opinion" means an opinion
of  nationally-recognized  executive compensation counsel to the effect (i) that
the amount of the Gross-Up Payment  determined by Executive  pursuant to Section
8.6 is the  amount  that a court  of  competent  jurisdiction,  based on a final
judgment  not subject to further  appeal,  is most likely to decide to have been
calculated in accordance  with this Article and  applicable  law and (ii) if the
Company has previously delivered a Company Certificate to Executive,  that there
is no reasonable  basis or no substantial  authority for the  calculation of the
Gross-Up Payment set forth in the Company Certificate. "Company Counsel Opinion"
means an opinion of nationally-recognized  executive compensation counsel to the
effect  that (i) the amount of the  Gross-Up  Payment  set forth in the  Company
Certificate  is the amount that a court of  competent  jurisdiction,  based on a
final judgment not subject to further  appeal,  is most likely to decide to have
been  calculated in accordance with this Article and applicable law and (ii) for
purposes of Section 6662 of the Code,  Executive  has  substantial  authority to
report on his federal  income tax return the amount of Excise Taxes set forth in
the Company Certificate.

         VIII.10  Amount Increased or Contested.

                                       23
<PAGE>

                  (a)  Executive   shall  notify  the  Company  in  writing  (an
         "Executive's Notice") of any claim by the IRS or other taxing authority
         (an "IRS Claim")  that,  if  successful,  would  require the payment by
         Executive of Excise Taxes in respect of Potential Parachute Payments in
         an amount in excess of the amount of such Excise  Taxes  determined  in
         accordance  with Section 8.5 or 8.6, as  applicable.  Such  Executive's
         Notice shall include the nature and amount of such IRS Claim,  the date
         on which such IRS Claim is due to be paid (the "IRS  Claim  Deadline"),
         and a  copy  of all  notices  and  other  documents  or  correspondence
         received by  Executive  in respect of such IRS Claim.  Executive  shall
         give his Executive's  Notice as soon as practicable,  but no later than
         the  earlier of (i) 10  business  days after  Executive  first  obtains
         actual  knowledge of such IRS Claim or (ii) five  business  days before
         the IRS Claim Deadline;  provided, however, that Executive's failure to
         give such notice  shall  affect the  Company's  obligations  under this
         Article only to the extent that the Company is actually  prejudiced  by
         such  failure.  If at least  one  business  day  before  the IRS  Claim
         Deadline the Company shall:

                           (1) deliver to Executive a Company Certificate to the
                  effect that the IRS Claim has been  reviewed by the  Company's
                  independent  auditors and,  notwithstanding the IRS Claim, the
                  amount of Excise  Taxes,  interest  and  penalties  payable by
                  Executive  is either  zero or an amount  less than the  amount
                  specified in the IRS Claim,

                           (2) pay to Executive  an amount  (which shall also be
                  deemed a Gross-Up  Payment)  equal to the positive  difference
                  between  (x)  the  product  of the  amount  of  Excise  Taxes,
                  interest and penalties  specified in the Company  Certificate,
                  if  any,  multiplied  by the  Gross-Up  Multiple,  and (y) the
                  portion of such product,  if any, previously paid to Executive
                  by the Company, and

                           (3) direct  Executive  pursuant to Section 8.10(d) to
                  contest the balance of the IRS Claim,

         then  Executive  shall pay only the amount,  if any,  of Excise  Taxes,
         interest  and  penalties  specified in the Company  Certificate.  In no
         event  shall  Executive  pay an IRS Claim  earlier  than 30 days  after
         having given an Executive's  Notice to the Company (or, if sooner,  the
         IRS Claim Deadline).

                  (b) At any time after the payment by  Executive  of any amount
         of  Excise  Taxes or  related  interest  or  penalties  in  respect  of
         Potential Parachute Payments (whether or not such amount was based upon
         a Company Certificate,  an Executive's  Determination or an IRS Claim),
         the Company may in its discretion  require  Executive to pursue a claim
         for a refund (a "Refund  Claim") of all or any  portion of such  Excise
         Taxes,  interest  or  penalties  as the  Company may specify by written
         notice to Executive.

                  (c) If the  Company  notifies  Executive  in writing  that the
         Company desires Executive to contest an IRS Claim or to pursue a Refund
         Claim, Executive shall:

                                       24
<PAGE>

                           (i)  give  the  Company  all   information   that  it
                  reasonably  requests in writing from time to time  relating to
                  such IRS Claim or Refund Claim, as applicable,

                           (ii) take such  action  in  connection  with such IRS
                  Claim  or  Refund  Claim  (as   applicable)   as  the  Company
                  reasonably  requests in writing  from time to time,  including
                  accepting  legal  representation  with  respect  thereto by an
                  attorney  selected by the Company,  subject to the approval of
                  Executive  (which approval shall not be unreasonably  withheld
                  or delayed),

                           (iii)  cooperate  with the  Company  in good faith to
                  contest  such IRS  Claim  or  pursue  such  Refund  Claim,  as
                  applicable,

                           (iv)  permit  the  Company  to   participate  in  any
                  proceedings  relating  to such IRS Claim or Refund  Claim,  as
                  applicable, and

                           (iv) contest such IRS Claim or prosecute  such Refund
                  Claim  (as   applicable)   to  a   determination   before  any
                  administrative  tribunal,  in a court of initial  jurisdiction
                  and in one or more appellate  courts,  as the Company may from
                  time to time determine in its discretion.

         The Company shall control all  proceedings in connection  with such IRS
         Claim or Refund Claim (as  applicable)  and in its discretion may cause
         Executive  to  pursue  or forego  any and all  administrative  appeals,
         proceedings,  hearings  and  conferences  with the IRS or other  taxing
         authority in respect of such IRS Claim or Refund Claim (as applicable);
         provided that (i) any extension of the statute of limitations  relating
         to payment of taxes for the taxable year of  Executive  relating to the
         IRS Claim is  limited  solely  to such IRS  Claim,  (ii) the  Company's
         control  of the IRS Claim or  Refund  Claim  (as  applicable)  shall be
         limited to issues  with  respect to which a Gross-Up  Payment  would be
         payable, and (iii) Executive shall be entitled to settle or contest, as
         the case may be,  any other  issue  raised  by the IRS or other  taxing
         authority.

                  (d)  The  Company  may at any  time in its  discretion  direct
         Executive to (i) contest the IRS Claim in any lawful manner or (ii) pay
         the  amount  specified  in an IRS  Claim  and  pursue a  Refund  Claim;
         provided,  however, that if the Company directs Executive to pay an IRS
         Claim and pursue a Refund  Claim,  the Company shall advance the amount
         of such  payment  to  Executive  on an  interest-free  basis  and shall
         indemnify  Executive,  on an  after-tax  basis,  for any Taxes,  Excise
         Taxes,  and any related  interest or penalties  imposed with respect to
         such advance.

                  (e) The Company shall pay directly all legal,  accounting  and
         other costs and expenses (including  additional interest and penalties)
         incurred by the Company or Executive in  connection  with any IRS Claim
         or Refund Claim, as applicable,  and shall indemnify  Executive,  on an
         after-tax basis,  for any Taxes,  Excise Taxes and related interest and
         penalties imposed on Executive as a result of such payment of costs and
         expenses.

                                       25
<PAGE>

         VIII.11 Limitation on Gross-Up Payments.

                  (a)  Notwithstanding any other provision of this Article VIII,
         if the aggregate  After-Tax  Amount (as defined below) of the Potential
         Parachute  Payments and  Gross-up  Payment  that,  but for this Section
         8.11,  would be  payable  to  Executive,  does not  exceed  110% of the
         After-Tax  Floor Amount (as defined  below),  then no Gross-Up  Payment
         shall  be made to  Executive  and the  aggregate  amount  of  Potential
         Parachute Payments payable to Executive shall be reduced (but not below
         the Floor Amount) to the largest  amount which would both (i) not cause
         any  Excise  Taxes to be payable  by  Executive  and (ii) not cause any
         Potential Parachute Payments to become  nondeductible by the Company by
         reason of Section 280G of the Code (or any  successor  provision) . For
         purposes of the  preceding  sentence,  Executive  shall be deemed to be
         subject to the highest effective after-tax marginal rate of Taxes.

                  (b) For purposes of this Section:

                           (i)  "After-Tax   Amount"  means  the  portion  of  a
                  specified  amount that would remain after payment of all Taxes
                  and Excise  Taxes paid or payable by  Executive  in respect of
                  such specified amount;

                           (ii) "Floor Amount" means the greatest pre-tax amount
                  of  Potential   Parachute  Payments  that  could  be  paid  to
                  Executive  without causing him to become liable for any Excise
                  Taxes in connection therewith; and

                           (iii)  "After-Tax  Floor  Amount" means the After-Tax
                  Amount of the Floor Amount.

         VIII.12  Refunds.  If, after the receipt by Executive of any payment or
advance of Excise  Taxes by the  Company  pursuant  to this  Article,  Executive
receives any refund with respect to such Excise Taxes,  Executive shall (subject
to the Company's  complying  with any applicable  requirements  of Section 8.10)
promptly pay the Company the amount of such refund  (together  with any interest
paid or credited thereon after Taxes applicable thereto).  If, after the receipt
by Executive of an amount  advanced by the Company  pursuant to Section  8.10, a
determination  is made that  Executive  shall not be entitled to any refund with
respect to such claim and the Company  does not notify  Executive  in writing of
its  intent to  contest  such  determination  within 30 days  after the  Company
receives  written  notice  of such  determination,  then such  advance  shall be
forgiven  and shall not be required to be repaid and the amount of such  advance
shall offset, to the extent thereof,  the amount of Gross-Up Payment required to
be paid. Any contest of a denial of refund shall be controlled by Section 8.10.

         VIII.13  No  Adverse  Effect on  Pooling  of  Interests.  Any  benefits
provided to Executive  under this Article VIII may be reduced or  eliminated  to
the extent necessary, in the reasonable judgment of the Company Board, to enable
the Company to account for a merger,  consolidation or similar  transaction as a
pooling of interests;  provided that (i) the Company Board shall have  exercised
such

                                       26
<PAGE>

judgment and given Executive written notice thereof prior to the Effective Date,
(ii) the  determination  of the Company  Board shall be  supported  by a written
certificate  of the  Company's  independent  auditors,  a copy of which shall be
provided to the Executive before the Effective Date, and (iii) if for any reason
the  Company  shall,  notwithstanding  such  exercise of judgment by the Company
Board, fail to account for such merger,  consolidation or other transaction as a
pooling of interests for any fiscal period that includes the  Termination  Date,
the Company shall,  as soon as  practicable  after the end of such fiscal period
and,  in any event,  within 10  business  days after the its  audited  financial
statements for such fiscal period first become  publicly  available,  provide to
Executive the excess, if any, of (x) each severance or other benefit  determined
pursuant to Article VIII  (without  giving effect to this Section 8.13) over (y)
each corresponding  severance or other benefit previously  provided to Executive
pursuant to Article VII or Article VIII.

                                   ARTICLE IX.
                              RESTRICTIVE COVENANTS

         IX.1     Confidential Information.

                  (1)  Executive  acknowledges  that  it is  the  policy  of the
         Company and its Affiliates to maintain as secret and  confidential  all
         Confidential  Information,  and that Confidential  Information has been
         and will be developed at substantial cost and effort to the Company and
         its  Affiliates.  Executive  acknowledges  that he will have  access to
         Confidential Information with respect to the Company and its Affiliates
         which information is a valuable and unique asset of the Company and its
         Affiliates and that disclosure of such  Confidential  Information would
         cause irreparable  damage to the business and operations of the Company
         and its Affiliates.

                  (2) Executive  acknowledges that the Confidential  Information
         is, as between  the  Company  and its  Affiliates  and  Executive,  the
         exclusive property of the Company and its Affiliates.

                  (3) Both during Executive's employment by the Company (whether
         during or after the Initial Term) and at any time after the Termination
         Date, Executive:

                           (1)  shall  not,  directly  or  indirectly,  divulge,
                  furnish or make  accessible  to any  Person  any  Confidential
                  Information (except (x) to the extent Executive reasonably and
                  in good faith  believes  that such actions are related to, and
                  required by, Executive's  performance of his duties under this
                  Agreement,  or (y) as may be  compelled by  applicable  law or
                  administrative  regulation;  provided that  Executive,  to the
                  extent  not  prohibited  from  doing so by  applicable  law or
                  administrative  regulation,  shall  give the  Company  written
                  notice  of the  information  to be so  disclosed  pursuant  to
                  clause  (y)  of  this  sentence  as  far  in  advance  of  its
                  disclosure as is practicable, shall cooperate with the Company
                  in its efforts to protect the information from disclosure, and
                  shall limit its disclosure of such  information to the minimum
                  disclosure required by law or administrative regulation unless
                  the  Company   agrees  in  writing  to  a  greater   level  of
                  disclosure);

                                       27
<PAGE>

                           (2) shall not use for his own  benefit in any manner,
                  any Confidential Information;

                           (3) shall not cause any such Confidential Information
                  to become publicly known; and

                           (4) shall take all reasonable steps to safeguard such
                  Confidential Information and to protect it against disclosure,
                  misuse, loss and theft.

                  (4) For purposes of this Agreement,  Confidential  Information
         represents  trade secrets subject to protection under the Uniform Trade
         Secrets Act, as adopted by the State of Illinois,  or to any comparable
         protection afforded by applicable laws.

         IX.2     Non-Competition.

                  (1) During  the period  beginning  on the  Agreement  Date and
         ending  two years  after the  Termination  Date,  Executive  shall not,
         directly or  indirectly,  in any capacity,  engage or  participate  in,
         become  employed  by,  serve as a director  of, or render  advisory  or
         consulting  or other  services  in  connection  with,  any  Competitive
         Business (as defined in Section 9.2(c)).

                  (2) During  the period  beginning  on the  Agreement  Date and
         ending two years after the Termination Date, Executive shall not at any
         time make any  financial  investment,  whether in the form of equity or
         debt, or own any interest,  directly or indirectly,  in any Competitive
         Business. Nothing in this subsection shall, however, restrict Executive
         from  making  an  investment  in  any  Competitive   Business  if  such
         investment  does not (i) represent  more than 1% of market value of the
         outstanding  capital stock or debt (as applicable) of such  Competitive
         Business,  (ii)  give  Executive  any  right or  ability,  directly  or
         indirectly,  to  control  or  influence  the  policy  decisions  of any
         Competitive  Business,  and (iii) create a conflict of interest between
         Executive's  duties  under  this  Agreement  and his  interest  in such
         investment.  In addition,  nothing in this  subsection  shall  restrict
         Executive's  ability to retain any interest  (including any interest in
         common  stock  held on March 10,  1998 or  subsequently  acquired  upon
         exercise  of options or similar  rights  held on March 10, 1998 or upon
         the conversion of convertible securities held on March 10, 1998) in New
         England Electric System or any of its successors  received by Executive
         as a result of his former employment relationship with such entity.

                  (3)  "Competitive  Business"  means as of any date  (including
         during the two-year  period  commencing  on the  Termination  Date) any
         Person (and any branch,  office or operation thereof) which engages in,
         or   proposes   to   engage  in  (i)  the   production,   transmission,
         distribution,  marketing  or sale of  electricity  or  (ii)  any  other
         business  engaged  in by the  Company  or its  Affiliates  prior to the
         Termination  Date which  represents  for any  calendar  year during the
         Contract  Term,  or is  projected  by the  Company (as  reflected  in a
         business  plan adopted by the Company or any Affiliate  thereof  before
         the  Termination  Date)  to yield  during  any year  during  the  first
         three-fiscal  year period  commencing on or after the Termination Date,
         more than 5% of the gross revenue of the Company,  and which is located
         (i)  anywhere in the United  States,  or (ii)  anywhere  outside of the
         United  States  where the

                                       28
<PAGE>

         Company or any  Affiliate  thereof is then  engaged  in, or proposes to
         engage in, any of such activities.

         IX.3  Non-Solicitation.  During the period  beginning on the  Agreement
Date and ending  two years  after the  Termination  Date,  Executive  shall not,
directly or indirectly:

                  (1)  other  than in  connection  with the  performance  of his
         duties as an officer of the  Company,  encourage  any Key  Employee  to
         terminate his or her employment;

                 (2) employ,  engage as a consultant or adviser, or solicit the
         employment  or  engagement  as a  consultant  or  adviser  of,  any Key
         Employee  (other than by the Company or its  Affiliates),  or cause any
         Person to do any of the foregoing;

                  (3)  establish  a  business  with,  or  encourage   others  to
         establish a business with, any Key Employee; or

                  (4) interfere with the  relationship  of the Company or any of
         its  Affiliates  with, or endeavor to entice away from,  the Company or
         any of its  Affiliates  any Person who or which at any time  during the
         period  commencing  one year  prior to March  16,  1998 was a  material
         customer or material  supplier of, or  maintained  a material  business
         relationship with, the Company, Unicom or any of their Affiliates.

         IX.4     Reasonableness of Restrictive Covenants.

                  (1) Executive  acknowledges  that the  covenants  contained in
         Sections 9.1, 9.2 and 9.3 are reasonable in the scope of the activities
         restricted,  the geographic area covered by the  restrictions,  and the
         duration of the  restrictions,  and that such  covenants are reasonably
         necessary  to  protect  the  Company's   legitimate  interests  in  its
         Confidential  Information  and in  its  relationships  with  employees,
         customers and suppliers.  Executive further acknowledges such covenants
         are  essential  elements  of this  Agreement  and  that,  but for  such
         covenants, Unicom and ComEd would not have entered into this Agreement.

                  (2) Unicom and ComEd and Executive  have each  consulted  with
         their  respective  legal counsel and have been advised  concerning  the
         reasonableness and propriety of such covenants.  Executive acknowledges
         that his observance of the covenants contained in Sections 9.1, 9.2 and
         9.3 will not  deprive  him of the  ability to earn a  livelihood  or to
         support his dependents.

                                       29
<PAGE>

         IX.5     Right to Injunction; Survival of Undertakings.

                  (1)  In  recognition  of  the   confidential   nature  of  the
         Confidential  Information,  and in  recognition of the necessity of the
         limited  restrictions imposed by Sections 9.1, 9.2 and 9.3, the parties
         agree  that it would be  impossible  to  measure  solely  in money  the
         damages which the Company would suffer if Executive  were to breach any
         of his obligations under such Sections. Executive acknowledges that any
         breach of any provision of this such Sections would irreparably  injure
         the Company.  Accordingly,  Executive agrees that if he breaches any of
         the  provisions of such  Sections,  the Company  shall be entitled,  in
         addition  to any other  remedies  to which the  Company may be entitled
         under this  Agreement or otherwise,  to an injunction to be issued by a
         court of competent jurisdiction,  to restrain any breach, or threatened
         breach,  of such  provisions,  and Executive hereby waives any right to
         assert any claim or defense that the Company has an adequate  remedy at
         law for any such breach.

                  (2) If a court  determines that any of the covenants  included
         in this Article IX is unenforceable in whole or in part because of such
         covenant's  duration or geographical  or other scope,  such court shall
         have the power to reduce the  duration or scope of such  provision,  as
         the  case  may  be,  so as to  cause  such  covenant  to be  thereafter
         enforceable.

                  (3) All of the provisions of this Article IX shall survive any
         Termination  of Employment  without  regard to (i) the reasons for such
         termination or (ii) the expiration of the Contract Term.

         IX.6  Non-Disparagement.  During the two-year period  commencing on the
Termination  Date,  Executive  shall not (a) make any written or oral  statement
that brings the Company or any of its Affiliates or the  employees,  officers or
agents of the Company or any of its Affiliates into disrepute,  or tarnishes any
of their images or reputations or (b) publish,  comment upon or disseminate  any
statements  suggesting  or accusing  Company or any of its  Affiliates or any of
agents,  employees  or officers of the Company or any of its  Affiliates  of any
misconduct or unlawful behavior. This Section shall not be deemed to be breached
by testimony of Executive given in any judicial or governmental proceeding which
Executive  reasonably  believes to be truthful at the time given or by any other
action of Executive which he reasonably believes is taken in accordance with the
requirements of applicable law or administrative regulation.

                                   ARTICLE X.
                                  MISCELLANEOUS

         X.1  Required  Withholding.  The Company  may deduct or  withhold  from
payments  or other  benefits  otherwise  payable to  Executive  pursuant  to the
provisions of this Agreement any amounts that are required by applicable law.

         X.2  Remedies.  In the event of any  Termination  of  Employment or any
breach of this Agreement by the Company, Executive's exclusive remedies shall be
as specified in Article VII or to enforce any other  undertaking  of the Company
expressly  provided in this  Agreement;  provided that nothing herein shall deny
Executive  the right to seek a final  judicial  determination  (or, if Executive
reasonably determines,  based upon the advice of counsel, that it is more likely
than not that each of

                                       30
<PAGE>

the Circuit Court of Cook County,  Illinois and the United States District Court
for the Northern  District of Illinois will decline to adjudicate  the issue,  a
final decree in an arbitration proceeding conducted in accordance with the rules
of the American Arbitration Association,  with such arbitration proceeding to be
conducted in Chicago,  Illinois  before a panel of three  arbitrators)  that any
Termination of Employment  purportedly  made for Cause was, in fact, made not in
good faith or was made without  adherence to the  requirements or procedures set
forth in this Agreement.  If Executive obtains such a final judicial or arbitral
determination,  as applicable, the Termination of Employment shall be treated as
a Termination Without Cause for all purposes of this Agreement.

         X.3  Assignment;  Successors.  This Agreement shall be binding upon and
inure to the  benefit  of  Executive  and his  Beneficiaries  and estate and the
Company (as the surviving entity in the Merger and as successor to Unicom at the
Merger Effective Time) and its successors.

         X.4  Beneficiary.  If  Executive  dies  prior to  receiving  all of the
amounts  payable  hereunder  pursuant to Article IV, VI (except as may otherwise
expressly be provided in such Article or in the plans referenced  therein),  VII
or VIII,  such amounts  shall be paid in a lump-sum  payment to the  beneficiary
("Beneficiary")  designated  by Executive  in writing to the Company  during his
lifetime,  which Executive may change from time to time by new designation filed
in like manner without the consent of any Beneficiary; or if no such Beneficiary
is designated, to his estate.

         X.5  Nonalienation  of Benefits.  Benefits payable under this Agreement
shall not be subject in any manner to anticipation,  alienation, sale, transfer,
assignment, pledge, encumbrance,  charge, garnishment,  execution or levy of any
kind,  either  voluntary or  involuntary,  prior to actually  being  received by
Executive,  and any such  attempt to dispose  of any right to  benefits  payable
hereunder shall be void.

         X.6  Severability.  If all or any part of this Agreement is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness
or invalidity  shall not serve to invalidate  any portion of this  Agreement not
declared  to be unlawful or invalid.  Any  paragraph  or part of a paragraph  so
declared to be unlawful or invalid shall, if possible,  be construed in a manner
which will give effect to the terms of such  paragraph or part of a paragraph to
the fullest extent possible while remaining lawful and valid.

         X.7 Amendment;  Waiver. This Agreement shall not be amended or modified
except by a written  agreement  between (a) prior to the Merger  Effective Time,
Unicom,  ComEd and Executive and (b) on or after the Merger  Effective Time, the
Company and Executive.  A waiver of any term, covenant or condition contained in
this  Agreement  shall not  result in a waiver of any other  term,  covenant  or
condition,  and any  waiver of any  default  shall not result in a waiver of any
later default.

         X.8 Notices.  All notices  hereunder shall be in writing,  delivered by
hand,  nationally-recognized  courier service that guarantees overnight delivery
or by certified mail, return receipt requested,  postage prepaid,  and addressed
as follows:

                                       31
<PAGE>

                If to the Company: Newco
                                   Attn: Pamela B. Strobel
                                   Executive Vice President and General Counsel
                                   37th Floor
                                   One First National Plaza
                                   Chicago, Illinois 60690

                If to Executive:   John W. Rowe
                                   Unit 3306
                                   950 North Michigan Avenue
                                   Chicago, Illinois 60611

                With copy to:      Robert W. Kleinman, Esq.
                                   Ross & Hardies
                                   150 North Michigan Avenue
                                   Chicago, Illinois 60601-7567

Either party may from time to time  designate a new address by  accordance  with
this Section. Notices shall be effective when received by the addressee.

         X.9  Publicity.  Until this Agreement has been filed as an exhibit to a
filing by the Company or Unicom with the  Securities  and  Exchange  Commission,
neither  Executive nor the Company shall issue or cause the  publication  of any
press release or other public  announcement with respect to this Agreement,  nor
disclose the contents hereof to any third party,  without obtaining in each case
the consent of the other parties hereto,  which consent shall not be withheld or
delayed where such  release,  announcement  or  disclosure  shall be required by
applicable law or administrative regulation.

         X.10 Communications. Nothing in this Agreement, including Sections 9.1,
9.6 or 10.9, shall be construed to prohibit Executive from  communicating  with,
including  testifying  in any  administrative  proceeding  before,  the  Nuclear
Regulatory  Commission  or the  United  States  Department  of  Labor,  or  from
otherwise  addressing  issues related to nuclear safety with any party or taking
any other action protected under Section 211 of the Energy Reorganization Act.

         X.11 Legal Expenses.  The Company shall pay to Executive all reasonable
legal fees and  expenses  incurred by  Executive  in disputing in good faith any
termination of his employment hereunder or in seeking in good faith to obtain or
enforce any benefit or right under this Agreement, provided that Executive shall
have a reasonable basis for his position.

         X.12 Articles and  Sections.  Except where  otherwise  indicated by the
context,  any  reference to an "Article" or "Section"  shall be to an Article or
Section of this Agreement.

         X.13   Counterparts.   This  Agreement  may  be  executed  in  multiple
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together will constitute one and the same instrument.

                                       32
<PAGE>

         X.14 Effectiveness;  Prior Agreement;  Entire Agreement. This Agreement
shall be binding  immediately  upon its  execution  and shall  become  effective
immediately prior to the Merger Effective Time without further action of Unicom,
the Company,  ComEd or  Executive.  The Prior  Agreement  shall remain in effect
until as provided in the following  sentence.  At the Merger Effective Time this
Agreement forms the entire agreement  between the parties hereto with respect to
its subject  matter,  and shall  supersede  all prior  agreements,  promises and
representations  of the parties  regarding  employment or severance,  whether in
writing or  otherwise,  including but not limited to the Prior  Agreement  which
will be without further effect  immediately  prior to the Merger  Effective Time
(and upon the effectiveness of this Agreement) without further action of Unicom,
the Company,  ComEd or the Executive or liability to Unicom, the Company,  ComEd
or Executive thereunder.

         X.15  Applicable Law. This Agreement shall be interpreted and construed
in  accordance  with the laws of the State of  Illinois,  without  regard to its
choice of law principles.

         X.16  Survival.  All of  Executive's  rights  hereunder,  including his
rights to compensation and benefits prior to the Termination  Date, his right to
severance and other benefits  subject to the terms and conditions of Article VII
and VIII  after the  Termination  Date,  and his  obligations  under  Article IX
hereof,  shall survive a Termination of Employment  and the  termination of this
Agreement.

                                       33
<PAGE>

         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement on the
date first above written.

                      UNICOM CORPORATION

                      By:  /s/ Edward A. Brennan
                           -------------------------------------------------
                           Edward A. Brennan,
                           Chairman of the Compensation Committee
                           of the Board of Directors

                      By:  /s/ Donald P. Jacobs
                           -------------------------------------------------
                           Donald P. Jacobs,
                           Lead Non-employee Director

                      COMMONWEALTH EDISON COMPANY

                      By:  /s/ Edward A. Brennan
                           -------------------------------------------------
                           Edward A. Brennan,
                           Chairman of the Compensation Committee of
                           the Board of Directors

                      By:  /s/ Donald P. Jacobs
                           -------------------------------------------------
                           Donald P. Jacobs,
                           Lead Non-employee Director

                      EXECUTIVE:

                           /s/ John W. Rowe
                           -------------------------------------------------
                           John W. Rowe

                                       34

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