Document:

waiverofwarrantexercisea

WAIVER OF CERTAIN RIGHTS     WHEREAS, the undersigned is a holder (the “Holder”) of certain warrants of Clever  Leaves Holdings Inc., a corporation organized under the laws of British Columbia, Canada (the  “Company”);    WHEREAS, the Holder was issued 4,150,000 warrants (each a “Warrant” and  collectively, the “Warrants”), each Warrant entitling the Holder to purchase one share of  common stock, par value $0.0001 per share, of Schultze Special Purpose Acquisition Corp. (the  “SPAC” and “SPAC Common Stock”) pursuant to the Warrant Purchase Agreement, dated  December 10, 2018, between the SPAC and the Holder;    WHEREAS, the Holder was issued 750,000 Warrants, each Warrant entitling the Holder  to purchase one share of SPAC Common Stock prior to the closing of the Business Combination,  as defined below, in satisfaction of the Sponsor Loans (as defined in the Business Combination  Agreement (as defined below)) and that certain Promissory Note, dated September 13, 2018,  issued to Holder in the principal amount of $250,000;     WHEREAS, the transactions contemplated by the Amended and Restated Business  Combination Agreement, dated November 9, 2020, by and among the SPAC, Clever Leaves  International Inc., the Company and Novel Merger Sub Inc. (the “Business Combination  Agreement”; capitalized terms used and not otherwise defined herein shall have the meanings  given to them in the Business Combination Agreement) were completed on December 18, 2020,  with the Company surviving the business combination (the “Business Combination”) as the  going forward company;     WHEREAS, pursuant to the Business Combination Agreement, the Assignment,  Assumption and Amendment Agreement, dated December 18, 2020 by and among the SPAC,  the Company and Continental Stock Transfer & Trust Company (“Continental”) (the “Warrant  Assumption Agreement”) and Section 4.5 of the Warrant Agreement, dated December 10, 2018  between the SPAC and Continental (as amended through the date hereof, the “Warrant  Agreement”), effective as of the Merger Effective Time (as defined in the Business Combination  Agreement), each of the issued and outstanding warrants issued to the Holder were no longer  exercisable for shares of SPAC Common Stock but instead became exercisable for the  Company’s common shares, having no par value (the “Common Shares”);     WHEREAS, in connection with the Business Combination the Holder received  2,248,844 Common Shares in exchange for SPAC Common Stock, on a one-for-one basis;    WHEREAS, pursuant to and subject to the terms and conditions of Section 3.3 of the  Warrant Agreement, the Holder may exercise all or any portion of the Warrants (not including  fractions thereof) in exchange for Common Shares;     WHEREAS, in connection with the Business Combination the Company granted the  Holder certain rights pursuant to the Investors’ Rights Agreement, dated December 18, 2020, by  and among the Company, the Holder and certain investors named therein (the “Investors’ Rights  

 

Agreement”), including the right, pursuant to and subject to the terms and conditions of Section  6 thereof, the Holder to nominate one person to the board of directors of the Company (the  “Board”) until the first such time that the investors party to the Investors’ Rights Agreement  (together with their respective Affiliates) cease to Beneficially Own (as defined in the Investors’  Rights Agreement) collectively a number of Common Shares equal to or greater than: (i) 50% of  the total number of Common Shares held by the Investors on the date thereof (as the same may  be adjusted by share splits, reverse splits, share dividends, recapitalizations or other similar  events) and (ii) 2.0% of the then-issued and outstanding Common Shares, as determined on a  fully diluted basis, including the Earn-Out Shares for so long as the Earn-Out Target Conditions  pertaining to such Earn-Out Shares remain capable of being satisfied;   WHEREAS, the Common Shares are registered pursuant to Section 12(b) of the  Securities Exchange Act of 1934, as amended (the “Exchange Act”), and listed on the Nasdaq  Stock Market LLC;    WHEREAS, Gary Julien, a current employee of the Holder, currently serves on the  Board, and the Company desires for Mr. Schultze to be appointed to the Board and to the audit  committee of the Board (the “Audit Committee”);    WHEREAS, the Holder desires to waive its rights to exercise its Warrants for Common   Shares, on the terms and subject to the conditions contained herein;   WHEREAS, the Holder desires to waive its right to nominate any Board members  pursuant to the Investors’ Rights Agreement, on the terms and subject to the conditions  contained herein;    WHEREAS, the Company and Holder desire to prohibit the Holder from acquiring or  disposing of its Common Shares, or securities convertible into, or exercisable, or exchangeable  for Common Shares (including the Warrants), on the terms and subject to the conditions  contained herein;    WHEREAS, for good and valuable consideration, the parties desire to enter into this  waiver agreement (the “Waiver Agreement”).    NOW, THEREFORE, the Holder and the Company hereby agree as follows, effective  as of the date hereof:    1. Waiver of Warrant Exercise.   (a) Subject to Section 1(b) below, the Holder hereby waives its rights pursuant to  Section 3 of the Warrant Agreement to exercise its Warrants for Common Shares (the “Exercise  Waiver”).     (b) The Holder shall have the right upon at least 61 days’ prior written notice to the  Company to terminate the Exercise Waiver, at which time this Section 1 shall be of no further  force and effect (the effective date of such termination, the “Lapse Date”).  

 

  2. Waiver of Director Nomination Rights.  (a) Subject to Section 2(b) below, the Holder hereby waives its rights pursuant to  Section 6 of the Investors’ Rights Agreement to nominate a member to the Board (the  “Nomination Right Waiver”).     (b) The Nomination Right Waiver will terminate when George J. Schultze is no  longer a member of the Audit Committee or ceases to be eligible to be member of the Audit  Committee under the rules and regulations of the Nasdaq Stock Market LLC (“Nasdaq”),  whichever occurs earlier (the period commencing on the date hereof and ending on such date, the  “Restricted Period”).    3. Limitation on Purchases and Lock-Up of Sales of Common Shares. (a) Limitations on Purchases of Common Shares.  During the Restricted Period, the  Holder agrees that it shall not, directly or indirectly (and shall cause (i) its controlled affiliates  not to, (ii) its and their respective employees, directors, officers, partners, members, agents,  affiliates, family members and any other representatives (the “Representatives”) acting on its and  their respective behalf not to and (iii) any individuals or entities with which the Holder would be  deemed to form a “group” for purposes of Exchange Act Rule 13d-5 not to) (the individuals or  entities listed in the foregoing clauses (i) through (iii), the “Covered Persons”), in any manner  acting alone or in concert with others, acquire, agree to acquire or make any proposal to acquire,  directly or indirectly, by means of purchase or in any other manner, beneficial or economic  ownership of any securities of the Company, direct or indirect rights to acquire any securities of  the Company (including any derivative securities with economic equivalents of ownership of any  of such securities), or any right to vote or to direct the voting of any securities of the Company  (collectively, “Purchases”), provided that, notwithstanding the foregoing, the Holder may acquire  beneficial ownership of up to 9.99% of the issued and outstanding Common Shares.     (b) Lock-Up of Sales of Common Shares. The Holder agrees, without the prior  written consent of the Board, it will not, and will cause the Covered Persons not to, directly or  indirectly, (x) offer, sell, contract to sell, pledge or otherwise dispose of (or enter into any  transaction that is designed to, or might reasonably be expected to, result in the disposition  (whether by actual disposition or effective economic disposition due to cash settlement or  otherwise), directly or indirectly, including the filing (or participation in the filing) of a  registration statement with the Securities and Exchange Commission (the “SEC”) in respect of,  or establish or increase a put equivalent position or liquidate or decrease a call equivalent  position within the meaning of Section 16 of the Exchange Act with respect to, any Common  Shares, Warrants or any securities convertible into, or exercisable, or exchangeable for, Common  Shares or publicly announce an intention to effect any such transaction (collectively, “Sales”)  during the period commencing on the date hereof and ending twelve (12) months after the date of  this Waiver Agreement.        

 

4. Notice of Securities Transactions.   (a) The Holder represents and warrants for the benefit of the Company that, as of the  date hereof, the Covered Persons collectively beneficially own 2,248,844 Common Shares and  4,900,000 Warrants.  The Holder agrees to inform the Company from time to time during the  Restricted Period, upon the request of the Company, the number of Warrants and Common  Shares owned by it.      (b) The Holder agrees it will give prompt notice to the Company (no later than two  business days after such event) in the event of any Purchases or Sales by it or any Covered  Persons of any Common Shares, Warrants or any securities convertible into, or exercisable, or  exchangeable for, Common Shares during the Restricted Period.    5. Notices.  All notices and other communications provided for herein and all legal process  in regard hereto shall be in writing (including electronic transmission) at the address specified in  this subsection: If to the Company:    Clever Leaves Holdings Inc.  6501 Congress Ave, Suite 240  Boca Raton, Florida 33487  Attention: Kyle Detwiler, Chief Executive Officer; David Kastin, General Counsel  Email: kyle.detwiler@cleverleaves.com; david.kastin@cleverleaves.com With a copy to (which shall not constitute notice):    Freshfields Bruckhaus Deringer US LLP  601 Lexington Avenue  New York, NY 10022  Attention: Pamela L. Marcogliese; Sebastian L. Fain  Email: pamela.marcogliese@freshfields.com; sebastian.fain@freshfields.com If to Holder:     Schultze Special Purpose Acquisition Sponsor, LLC 800 Westchester Avenue, Suite 632  Rye Brook, NY 10573  Attention: George J. Schultze  Email: GSchultze@samco.net    Notices shall be deemed validly given, made or served, (a) if sent by email, on the Business  Day on which the email was sent (provided no “bounce back” or notice of non-delivery is  received) or (b) if given by any other means, when actually received during normal business  hours. For purposes of this Agreement, “Business Day” shall mean any day on which the  

 

Principal Trading Market and commercial banks in the city of New York are open for  business.   6. Specific Performance. The parties hereto acknowledge and agree that irreparable damage  may occur in the event that any of the provisions of this Waiver were not performed in  accordance with their specific terms or were otherwise breached. It is accordingly agreed that the  parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the  provisions of this Waiver and to enforce specifically the terms and provisions of this Waiver  (without the necessity of posting any bond), this being in addition to any other remedy to which  they may be entitled by law or equity. 7. Further Assurances.  The Holder shall use its reasonable best efforts to cause the Covered  Persons to comply in all respects with the provisions of this Waiver applicable to the Holder to  the same extent as if such Covered Persons were original parties hereto. 8. Counterparts. This Waiver may be executed in two or more counterparts, each of which  shall be deemed an original, and all of which together shall constitute one and the same  instrument. 9. Governing Law. This Waiver will be construed and interpreted in accordance with the  laws of the State of New York (without regard to the conflicts of laws provisions thereof).  10. Entire Agreement; Amendments. This Waiver contains the entire understanding of the  parties with respect to the matters covered hereby and thereby. This Waiver may be amended  only by an agreement in writing executed by the parties hereto. The parties hereto may amend  this Waiver without notice to or the consent of any third party, including any Covered Person. 11. No Third-Party Beneficiaries. This Waiver is intended for the benefit of the parties hereto  and their respective permitted successors and assigns and is not for the benefit of, nor may any  provision of this Waiver be enforced by, any other person. 

 

IN WITNESS WHEREOF, the undersigned has executed this Waiver of Certain Rights  as of the date first set forth below.    Dated: February 2, 2022 HOLDER:     SCHULTZE SPECIAL PURPOSE ACQUISITION  SPONSOR, LLC  By: Schultze Asset Management, LP  By: Schultze Asset Management GP, LLC By:  ____________________________________  Name:    Title:  COMPANY:    By:  ____________________________________  Name: Kyle Detwiler    Title: Chief Executive OfficerExhibit 10.1

 

EXECUTION VERSION

 

TRANSITION SERVICES AGREEMENT

 

By and Between

 

EXELON CORPORATION

 

and

 

CONSTELLATION ENERGY CORPORATION

 

Dated as of

 

January 31, 2022

 

    

     

    

 

TABLE OF CONTENTS

 

Page

 

	ARTICLE I DEFINITIONS	2
	Section 1.1	Certain Definitions	2
	Section 1.2	Interpretation	5
	ARTICLE II SERVICES	6
	Section 2.1	Services	6
	Section 2.2	Services Modifications	8
	Section 2.3	Third Party Providers	9
	Section 2.4	No Violations	10
	Section 2.5	Independent Contractor	10
	Section 2.6	Employment, Employees and Representatives	10
	Section 2.7	Access	11
	Section 2.8	Practice Area Executive Leaders; Separation Oversight Committee	11
	Section 2.9	Disputes	11
	ARTICLE III PAYMENT	12
	Section 3.1	Pricing	12
	Section 3.2	Taxes	12
	Section 3.3	Billing and Payment	12
	Section 3.4	Budgeting and Accounting	14
	Section 3.5	Credits, Rebates and Refunds	14
	Section 3.6	True-Up	14
	ARTICLE IV DISCLAIMER OF REPRESENTATIONS AND WARRANTIES	14
	Section 4.1	Disclaimer	14
	Section 4.2	As Is; Where Is	15
	ARTICLE V INDEMNIFICATION; LIMITATION OF LIABILITY	15
	Section 5.1	Indemnification by the Service Providing Party	15
	Section 5.2	Limitation of Liability	15
	Section 5.3	Indemnification Procedure; Other Rights	16
	ARTICLE VI FORCE MAJEURE	16
	Section 6.1	General	16
	Section 6.2	Notice	16
	Section 6.3	Subcontractors; Fees	16

 

    i

     

    

 

	Section 6.4	Limitations	17
	ARTICLE VII TERM, TERMINATION AND EXIT	17
	Section 7.1	Term and Termination of Services	17
	Section 7.2	Effect of Termination	18
	ARTICLE VIII CONFIDENTIALITY	19
	Section 8.1	Confidentiality	19
	Section 8.2	System Security	19
	Section 8.3	Joint Defense Agreements or Common Interest Privilege	19
	ARTICLE IX MISCELLANEOUS	20
	Section 9.1	Further Assurances	20
	Section 9.2	Amendments and Waivers	20
	Section 9.3	Entire Agreement	20
	Section 9.4	Third-Party Beneficiaries	20
	Section 9.5	Notices	21
	Section 9.6	Counterparts; Electronic Delivery	21
	Section 9.7	Severability	21
	Section 9.8	Assignability; Binding Effect	21
	Section 9.9	Governing Law	21
	Section 9.10	Construction	21
	Section 9.11	Performance	22
	Section 9.12	Title and Headings	22
	Section 9.13	Exhibits	22
	Section 9.14	Effective Time	22
	Section 9.15	Export Controls	22
	Section 9.16	Utility Services	22
	Section 9.17	No Duplication of Charges	22
	Section 9.18	Incorporation by Reference	23

 

	Exhibit A	TSA Services	A-1
	 	 	 
	Exhibit B	TSA Governance	B-1

 

    ii

     

    

 

TRANSITION SERVICES AGREEMENT

 

THIS TRANSITION SERVICES AGREEMENT (as the same
may be amended or supplemented from time to time, this “Agreement”) is entered into as of January 31, 2022,
by and between Exelon Corporation, a Pennsylvania corporation (“Exelon”), and Constellation Energy Corporation,
a Pennsylvania corporation (“Constellation”). Exelon and Constellation are sometimes referred to herein individually
as a “Party,” and collectively as the “Parties.” Capitalized terms used but not otherwise
defined herein shall have the respective meanings ascribed to such terms in the Separation Agreement.

 

RECITALS

 

WHEREAS, Exelon conducts (i) a business involving
the regulated transmission, supply, and distribution of electricity and natural gas, principally through Exelon Energy Delivery Company,
LLC and its Subsidiaries (the “Exelon Business”) and (ii) a business involving the competitive power generation
and marketing and trading of electricity and gas, principally through Exelon Generation Company, LLC and its Subsidiaries (the “Constellation
Business”);

 

WHEREAS, Exelon and Constellation have entered
into a Separation Agreement, dated as of the date hereof (the “Separation Agreement”), pursuant to which Exelon
will contribute the Constellation Business to Constellation and then distribute the Constellation shares that it receives in exchange
to Exelon’s shareholders, thereby causing Constellation to become a publicly-traded company;

 

WHEREAS, the Separation Agreement sets forth certain
covenants and agreements made in connection with the contribution and distribution, including the transfer of assets and assumption of
liabilities;

 

WHEREAS, in connection with the transactions contemplated
by the Separation Agreement, (a) Constellation desires to procure certain services from Exelon, and Exelon is willing to provide
such services to Constellation, (b) Exelon desires to procure certain services from Constellation, and Constellation is willing to
provide such services to Exelon, and (c) the Parties desire to work together to provide certain limited services for their mutual
benefit, in each case during a transition period and on the terms and subject to the conditions set forth in this Agreement;

 

WHEREAS, each Party recognizes the provision of
these transition services are necessary to operating their respective business and therefore to delivering the economic benefits anticipated
by Exelon and Constellation shareholders;

 

WHEREAS, each Party desires to set forth in this
Agreement the principal terms and conditions pursuant to which it will, as applicable, provide or receive such services; and

 

WHEREAS, the execution of this Agreement by the
Parties is a condition precedent to the consummation of the transactions contemplated by the Separation Agreement.

 

    1

     

    

 

NOW, THEREFORE, in consideration of the foregoing
premises and the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1             Certain
Definitions. As used in this Agreement, (i) capitalized terms used herein without definition shall have the meanings assigned
to such terms in the Separation Agreement and (ii) the following capitalized terms shall have the following meanings, applicable
both to the singular and the plural forms of the terms described:

 

“Additional Interest”
has the meaning set forth in Section 3.3(b).

 

“Additional Services”
has the meaning set forth in Section 2.2(a).

 

“Additional Constellation Third Party
Providers” has the meaning set forth in Section 2.4(c).

 

“Additional Exelon Third Party Providers”
has the meaning set forth in Section 2.4(b).

 

“Adjustment Amount”
has the meaning set forth in Section 3.6.

 

“Agreement” has the
meaning set forth in the preamble to this Agreement and includes all Exhibits and Schedules attached hereto or delivered pursuant hereto.

 

“Bankruptcy Code” means
11 U.S.C. §§ 101 et seq., as amended.

 

“Constellation” has
the meaning set forth in the preamble to this Agreement.

 

“Constellation Business”
has the meaning set forth in the Recitals to this Agreement.

 

“Constellation Known Third Party Providers”
has the meaning set forth in Section 2.4(c).

 

“Constellation Service Costs”
means the amounts to be paid by Exelon to Constellation for Constellation Services provided pursuant to this Agreement.

 

“Constellation Services”
means the services identified in Exhibit A to be provided by Constellation.

 

“Contract”
means any written, oral, implied or other contract, agreement, covenant, lease, license, guaranty, indemnity, representation,
warranty, option, assignment, sales order, purchase order, power of attorney, instrument or other commitment, assurance, undertaking
or arrangement that is binding on any Person or entity or any part of its property under applicable Law.

 

“CTA” means those costs
identified by the Parties as costs necessary to achieve and to effect the transaction referenced in the Separation Agreement and to transition
the organizations, policies, processes and systems.  CTA reflect costs related to the transaction that would otherwise not have
been incurred but for the transaction.

 

    2

     

    

 

“Data Separation Principles”
has the meaning set forth in the Separation Agreement.

 

“Deliverables” means
all documents, work product, and other materials that are delivered to Service Receiving Party from Service Providing Party under this
Agreement.

 

“Dispute Committee”
has the meaning set forth in the Separation Agreement.

 

“Effective Time” means
12:01 a.m. (Eastern time) on February 1, 2022.

 

“Exelon” has the meaning
set forth in the preamble to this Agreement.

 

“Exelon Business” has
the meaning set forth in the Recitals to this Agreement.

 

“Exelon Known Third Party Providers”
has the meaning set forth in Section 2.4(b).

 

“Exelon Service Costs”
means the amounts to be paid by Constellation to Exelon for the Exelon Services provided pursuant to this Agreement.

 

“Exelon Services” means
the services identified in Exhibit A to be provided by Exelon.

 

“Exelon Utility” means
each of the following entities: Atlantic City Electric Company, a New Jersey corporation, Baltimore Gas and Electric Company, a Maryland
corporation, Commonwealth Edison Company, an Illinois corporation, Delmarva Power & Light Company, a Delaware and Virginia corporation,
PECO Energy Company, a Pennsylvania corporation and Potomac Electric Power Company, a District of Columbia and Virginia corporation.

 

“Intellectual Property Rights”
all intellectual property rights, including copyrights, patents, patent disclosures and inventions (whether patentable or not), trade
secrets, know-how, and other confidential information, but excluding trademarks, service marks, trade dress, trade names, and logos.

 

“Losses” has the meaning
set forth in the Separation Agreement.

 

“Known Third Party Providers”
means the Exelon Known Third Party Providers and the Constellation Known Third Party Providers collectively.

 

“Parties” has the meaning
set forth in the preamble to this Agreement.

 

“Party” has the meaning
set forth in the preamble to this Agreement.

 

“Payment Date” has the
meaning set forth in Section 3.3(b).

 

“Practice Area” has
the meaning set forth in Exhibit A.

 

“Practice Area Executive Leader”
has the meaning set forth in Section 2.8.

 

    3

     

    

 

“Restricted
Confidential Information” is information that is protected by law, regulation or policy that requires the highest
level of access control and security protection as further defined in Exelon LE-AC-301 in effect immediately prior to the Effective Date.

  

“Sales Taxes” has the
meaning set forth in Section 3.2.

 

“Security Regulations”
has the meaning set forth in Section 8.3(a).

 

“Separation Agreement”
has the meaning set forth in the Recitals to this Agreement.

 

“Separation Oversight Committee”
has the meaning set forth in the Separation Agreement.

 

“Service
Cost” is the cost of each Exelon Service and Constellation Service as set forth in Exhibit A. The Service
Cost does not include the TSA Administrative Fee, which shall be billed as a separate line item.

 

“Service Providing Party”
means either Exelon or Constellation, or their respective designee, as applicable, providing the applicable Services to the Service Receiving
Party.

 

“Service Providing Party Group”
means the Service Providing Party and the Subsidiaries of the Service Providing Party (including its or their contractors), other than
the other Party and the other Party’s Subsidiaries.

 

“Service Receiving Party”
means either Exelon or Constellation, or their respective designee, as applicable, receiving the applicable Services from the Service
Providing Party.

 

“Service Receiving Party Group”
means the Service Receiving Party and the Subsidiaries of the Service Receiving Party, other than the other Party and the other Party’s
Subsidiaries.

 

“Service Receiving Party’s Indemnitee”
means, if the Service Receiving Party is Exelon, the Exelon Indemnitee, or if the Service Receiving Party is Constellation, the Constellation
Indemnitee.

 

“Services” means the
Exelon Services and Constellation Services collectively.

 

“Systems” has the meaning
set forth in Section 8.3(a).

 

“Term” means the period
from the Effective Time to the second anniversary of the Effective Date or as otherwise provided in Section 7.1(b) or
(c).

 

“Terminated
Services” has the meaning set forth in Section 2.2(a).

 

“Third Party Products and Services”
has the meaning set forth in Section 2.3(a).

 

“Third Party Providers”
has the meaning set forth in Section 2.3(a).

 

“TSA Administrative Fee”
has the meaning set forth in Section 3.1(c).

 

    4

     

    

 

“TSA Designated Personnel”
has the meaning set forth in Section 2.6(c).

 

Section 1.2             Interpretation.
In this Agreement, unless the context clearly indicates otherwise:

 

(a)           words
used in the singular include the plural and words used in the plural include the singular;

 

(b)           the
words “include,” “includes” and “including” shall be deemed to be followed by the words “without
limitation”;

 

(c)           the
word “or” shall have the inclusive meaning represented by the phrase “and/or”;

 

(d)           relative
to the determination of any period of time, “from” means “from and including,” “to” means “to
but excluding” and “through” means “through and including”;

 

(e)           accounting
terms used herein shall have the meanings historically ascribed to them by Exelon and its Subsidiaries in its and their internal accounting
and financial policies and procedures in effect immediately prior to the date of this Agreement;

 

(f)             reference
to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified
from time to time to the extent permitted by the provisions thereof and by this Agreement;

 

(g)           reference
to any Law means such Law (including any and all rules and regulations promulgated thereunder) as amended, modified, codified or
reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

 

(h)           references
to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted
by this Agreement; a reference to such Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates
following the Distribution under the Separation Agreement and any reference to a third party shall be deemed to mean a Person who is
not a Party or an Affiliate of a Party;

 

(i)             if
there is any conflict between the provisions of the main body of this Agreement and an Exhibit, the provisions of the main body of this
Agreement shall control unless explicitly stated otherwise in such Exhibit;

 

(j)             if
there is any conflict between the provisions of this Agreement and the Separation Agreement, the provisions of this Agreement shall control
(but only with respect to the subject matter hereof) unless explicitly stated otherwise herein; and

 

(k)           any
portion of this Agreement obligating a Party to take any action or to refrain from taking any action, as the case may be, shall mean
that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or to refrain from taking such action,
as the case may be.

 

    5

     

    

 

ARTICLE II

SERVICES

 

Section 2.1             Services.

 

(a)            Exelon
Services

 

(i)             Exelon
shall provide the services for which it is identified as the Service Providing Party in Exhibit A. Except as set forth in
Exhibit A, Exelon shall use commercially reasonable efforts to provide (or to cause another applicable member of the Exelon
Group to provide) to Constellation (or another applicable member of the Constellation Group) the Exelon Services in a manner, scope,
nature, timeliness and quality materially consistent with the manner, scope, nature, timeliness and quality in which such Exelon Services
(i) were provided to Constellation (or such other applicable member of the Constellation Group) immediately prior to the Effective
Time by Exelon (or such other applicable member of the Exelon Group) and (ii) are provided after the Effective Time by Exelon (or
such other applicable member of the Exelon Group) for its own business. In its capacity as the Service Providing Party, Exelon shall
act in a professional, workmanlike and competent manner and, except as specifically provided on Exhibit A, in a manner with
substantially the same degree of skill, quality and care utilized (or which would have been utilized) immediately prior to the Effective
Time. Subject to this Section 2.1(a), Exelon shall have control over assignment of its personnel, contractors, employees
or other service providers to be assigned to provide such Exelon Services.

 

(ii)           For
those Exelon Services provided to Constellation, Constellation shall use the Exelon Services for substantially the same purposes and
in substantially the same manner (including as to volume, amount, level or frequency, as applicable) as such Exelon Services have been
used immediately prior to the Effective Time and Exelon shall have no obligation to provide, or cause to be provided, such Exelon Services
within a greater scope or in a greater volume than, or at a different location than, such Exelon Services were provided by Exelon or
a member of Exelon Group to Constellation immediately prior to the Effective Time; provided that Exhibit A shall control
the scope of and any limitation on the Exelon Services to be provided (to the extent set forth therein) including any Exelon Services
that were not previously provided to Constellation prior to the Effective Time, unless otherwise agreed in writing pursuant to Section 2.2(a).

 

    6

     

    

 

(b)           Constellation
Services

 

(i)             Constellation
shall provide the services for which it is identified as the Service Providing Party in Exhibit A. Except as set forth in
Exhibit A, Constellation shall use commercially reasonable efforts to provide (or to cause another applicable member of the
Constellation Group to provide) to Exelon (or another applicable member of the Exelon Group) the Constellation Services in a manner,
scope, nature, timeliness and quality materially consistent with the manner, scope, nature, timeliness and quality in which such Constellation
Services (i) were provided to Exelon (or such other applicable member of the Exelon Group) immediately prior to the Effective Time
by Constellation (or such other applicable member of the Constellation Group) and (ii) are provided after the Effective Time by
Constellation (or such other applicable member of the Constellation Group) for its own business. In its capacity as the Service
Providing Party, Constellation shall act in a professional, workmanlike and competent manner and, except as specifically provided on
Exhibit A, in a manner with substantially the same degree of skill, quality and care utilized (or which would have been utilized)
immediately prior to the Effective Time. Subject to this Section 2.1(b), Constellation shall have control over assignment
of its personnel, contractors or other service providers to be assigned to provide such Constellation Services.

 

(ii)           For
those Constellation Services provided to Exelon prior to the Effective Time, Exelon shall use the Constellation Services for
substantially the same purposes and in substantially the same manner (including as to volume, amount, level or frequency, as
applicable) as such Constellation Services have been used immediately prior to the Effective Time and Constellation shall have no
obligation to provide, or cause to be provided, such Constellation Services within a greater scope or in a greater volume than, or
at a different location than, such Constellation Services were provided by Constellation or a member of Constellation Group to
Exelon immediately prior to the Effective Time; provided that Exhibit A shall control the scope of and any
limitation on the Constellation Services to be provided (to the extent set forth therein) including any Constellation Services that
were not previously provided to Exelon prior to the Effective Time, unless otherwise agreed in writing pursuant to Section 2.2(a).

 

(c)           The
Parties acknowledge the transitional nature of the Services and agree to cooperate in good faith and to use commercially reasonable efforts
to effectuate a smooth transition of the Services from the Service Providing Party to the Service Receiving Party.

 

(d)           Service
Providing Party hereby grants to Service Receiving Party a limited, irrevocable, perpetual, fully paid-up, royalty-free, non-transferable,
non-sublicenseable, worldwide license to use, perform, display, execute, reproduce, distribute, transmit, modify (including to create
derivative works), import, make, have made, sell, offer to sell, and otherwise exploit any Intellectual Property Rights of the Service
Providing Party to the extent incorporated in, combined with or otherwise necessary for the use of the Exelon Services or Constellation
Services, as applicable, solely to the extent reasonably required in connection with Service Receiving Party’s receipt or use of
any Deliverables or the Exelon Services or Constellation Services, as applicable.

 

(e)           The
Parties agree that unless otherwise specifically stated in Exhibit A, any Exelon Services or Constellation Services, or any
part thereof, may be used by both the Service Providing Party and Service Receiving Party.

 

    7

     

    

 

Section 2.2             Services
Modifications.

 

(a)           If
the Service Receiving Party reasonably determines that additional transition services not listed in Exhibit A are necessary
after the Effective Time or that certain services are no longer required, the Service Receiving Party shall provide written notice of
the change to the Service Providing Party and the Separation Oversight Committee requesting the Service Providing Party:

 

(i)             to
provide additional (including as to volume, amount, level or frequency, as applicable) or different services that the Service Providing
Party is not expressly obligated to provide under this Agreement, if such services are of the type and scope provided by any member of
the Service Providing Party Group (including any employee of any member of the Service Providing Party Group) for the Service Receiving
Party prior to the Effective Time, or to expand the scope of any applicable Service (such additional, different or expanded services
being referred to as the “Additional Services”) or

 

(ii)           to
delete from the applicable Exhibit, and to cease all work on, one or more Services that is no longer required (such deleted services
being referred to as “Terminated Services”) in accordance with the proviso to Section 7.1(a).

 

No request for modification of an Exhibit will be effective unless
approved or acknowledged in writing by the Separation Oversight Committee. Modifications include any renewal, change order or other amendment
of a procurement contract related to the transition services that requires payment in excess of the amount set forth in the original
budget for such transition service.

 

(b)           The
Service Providing Party shall notify the Separation Oversight Committee within ten (10) calendar days of receipt of a request
by a Service Receiving Party for Additional Services under Section 2.2(a) as to whether it can or cannot provide
the Additional Services or needs additional time for such determination. In providing its response to the Separation Oversight
Committee, to the extent the Additional Service is consistent with those services provided immediately prior to the Effective Date,
the Service Providing Party shall consider such request in good faith and shall use commercially reasonable efforts to provide any
such Additional Service; provided that no member of the Service Providing Party Group shall be obligated to perform any
Additional Services if such member, in its reasonable judgment, does not have adequate resources to perform such Additional
Services; or if the provision of such Additional Services would interfere with the operation of the Exelon Business or Constellation
Business, as applicable; or if the required volume, amount, level, or frequency materially exceeds that provided immediately prior
to the Effective Time. If the Service Providing Party agrees to provide the Additional Services and the Separation Oversight
Committee approves such Additional Services pursuant to this Section 2.2, then the Parties shall in good faith negotiate
the terms of a supplement to Exhibit A, which will describe in reasonable detail the Additional Services, project scope,
term, price and payment terms to be charged for such Additional Services.

 

(c)           Once
approved by the Separation Oversight Committee, the supplement to Exhibit A, shall be deemed part of this Agreement as of
such date, the Additional Services shall be deemed the applicable “Services” provided hereunder, in each case, subject to
the terms and conditions of this Agreement; and once terminated as provided in Section 7.1(a), the Terminated Services shall
be deemed removed from this Agreement.

 

    8

     

    

 

Section 2.3             Third
Party Providers.

  

(a)           The
Service Providing Party shall use commercially reasonable efforts to obtain any required consents, licenses or approvals of the providers
(“Third Party Providers”) of any products or services required to be used in providing any applicable Services
pursuant to this Agreement (“Third Party Products and Services”). The Parties understand and agree that provision
of any applicable Services requiring the use of any Third Party Products and Services shall be subject to receipt of any required consents,
licenses or approvals of the applicable Third Party Providers; provided that if any third-party consents, licenses or approvals
are not obtained pursuant to the foregoing, the Service Providing Party will, to the extent reasonably practicable, continue to use commercially
reasonable efforts to provide (or to cause another applicable member of the Exelon Group or Constellation Group, as applicable, to provide)
services that are substantially similar to the applicable Services for which such consent, license or approval was sought but not obtained,
subject to Section 2.4. For the avoidance of doubt, nothing in this provision shall require the Service Providing Party to
be out of compliance with any Contract. The Service Receiving Party shall indemnify and hold harmless the Service Providing Party from
and against any and all Losses arising out of or resulting from such arrangements or services provided for which such consent, license
or approval was sought but not obtained.

 

(b)           With
respect to the Exelon Services, (i) Constellation hereby consents to Exelon’s use of any Third Party Provider(s) with
respect to such Exelon Services (“Exelon Known Third Party Providers”) and (ii) if, after the date of
this Agreement, Exelon reasonably determines that it requires the use of Third Party Providers in addition to the Exelon Known Third
Party Providers (“Additional Exelon Third Party Providers”) in providing such Exelon Services, the use of such
Additional Exelon Third Party Providers shall require the written consent of Constellation’s Practice Area Executive Leader and,
subject to Section 2.3(d), such consent will not be unreasonably withheld, conditioned or delayed. If consent is not provided
by Constellation’s Practice Area Executive Leader and is determined by Exelon to be reasonably necessary, then Exelon may, to the
extent it reasonably determines as necessary and after notice to the Separation Oversight Committee, pause or stop providing such Exelon
Services that would otherwise require an Additional Exelon Third Party Provider.

 

(c)           With
respect to the Constellation Services, (i) Exelon hereby consents to Constellation’s use of any Third Party Provider(s) with
respect to such Constellation Services (“Constellation Known Third Party Providers”) and (ii) if, after
the date of this Agreement, Constellation reasonably determines that it requires the use of Third Party Providers in addition to the
Constellation Known Third Party Providers (“Additional Constellation Third Party Providers”) in providing such
Constellation Services, the use of such Additional Constellation Third Party Providers shall require the written consent of Exelon’s
Practice Area Executive Leader and, subject to Section 2.3(d), such consent will not be unreasonably withheld, conditioned
or delayed. For the avoidance of doubt, if consent is not provided by Exelon’s Practice Area Executive Leader and is determined
by Constellation to be reasonably necessary, then Constellation may, to the extent it reasonably determines as necessary and after notice
to the Separation Oversight Committee, pause or stop providing such Constellation Services that would otherwise require an Additional
Constellation Third Party Provider.

 

    9

     

    

 

(d)           Notwithstanding
the foregoing, in those instances in which the use of Third Party Products and Services will require payment of additional consideration
by a Service Receiving Party and the payment of such additional consideration is not contemplated by this Agreement (including Exhibit A)
or has not been previously agreed by the Parties, then (i) the Service Providing Party will provide the Service Receiving Party
and the Separation Oversight Committee with thirty (30) calendar days’ prior written notice detailing the amount of such additional
consideration and (ii) the Service Receiving Party will then have the option to (A) procure its own Third Party Products and
Services at its own expense or (B) upon approval by the Separation Oversight Committee, authorize the Service Providing Party to
incur the required additional consideration either pursuant to the billing methodology set forth in Exhibit A  or on its
behalf and at the Service Receiving Party’s expense and such additional consideration will be deemed an applicable Service Cost
under this Agreement.

  

Section 2.4             No
Violations; Regulatory Approvals. Notwithstanding anything to the contrary in this Agreement, no Service Providing Party (nor any
member of its respective Group) shall be required to perform the applicable Services hereunder or to take any actions relating thereto
that conflict with or violate any applicable Law or material contract, sublicense, authorization, certification or permit; or to secure
additional regulatory approvals, or renew or extend the terms of any regulatory approval that would otherwise expire to provide Services
or to take any actions relating thereto that conflict with or violate any applicable Law or any material contract, sublicense, authorization,
certification or permit, in the absence of such additional regulatory approval.

 

Section 2.5             Independent
Contractor. Each Service Providing Party hereto (and each applicable member of the Service Providing Party Group) shall act under
this Agreement solely as an independent contractor, and unless otherwise set forth herein or in an Exhibit, not as an agent, of the other
Party (and each applicable member of the Service Providing Party Group).

 

Section 2.6             Employment,
Employees and Representatives.

 

(a)           Unless
otherwise agreed in writing, each employee and representative of the Service Providing Party (or a member of the Service Providing Party
Group) that provides Services to the Service Receiving Party (or a member of the Service Receiving Party Group) pursuant to this Agreement
(i) shall be deemed for all purposes to be an employee or representative of Service Providing Party (or a member of the Service
Providing Party Group) and not an employee or representative of Service Receiving Party (or a member of the Service Receiving Party Group)
and (ii) shall be under the direction, control and supervision of the Service Providing Party (or such member of the Service Providing
Party Group), and Service Providing Party (or a member of the Service Providing Party Group) shall have the sole right to exercise all
authority with respect to the employment (including termination of employment) and assignment of such employee or representative and
shall have the sole responsibility to pay for all personnel and other related expenses, including salary or wages, of such employee or
representative.

 

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(b)           Employees
from both Exelon and Constellation shall work together to jointly deliver the Services. The commitment of resources to perform the work
between Parties for the associated labor costs will be addressed by the Parties by the Practice Area Executive Leaders. For the avoidance
of doubt, Service Receiving Party is solely responsible for establishing all necessary capabilities to become self-sufficient; provided
that the Practice Area Executive Leaders agree to cause the respective Service Providing Party to use reasonable efforts to facilitate
such knowledge transfer, consistent with Exhibit B. Under no circumstances will the joint effort to deliver the Services
be construed or considered by either Party as co-employment of employees, a joint venture or partnership.

 

(c)           Employees
and Representatives who require access to view confidential, Restricted Confidential Information or data belonging to the other company
in the delivery of Services will be classified as “TSA Designated Personnel” and shall be subject to the Data Separation
Principles. Such TSA Designated Personnel will be required to enter into an attestation consistent with the Data Separation Principles
and other provisions consistent with employment status.

 

Section 2.7             Access.
The Service Receiving Party shall provide (or cause any applicable member of the Service Receiving Party to provide) the Service Providing
Party (or any applicable member of the Service Providing Party Group) such reasonable access to the employees, representatives, facilities
and books and records of the Service Receiving Party (or such member of the Service Receiving Party Group) as the Service Providing Party
(or such member of the Service Providing Party Group) shall reasonably request in order to enable the Service Providing Party (or such
member of the Service Receiving Party Group) to provide any applicable Services required under this Agreement. Any member of the Service
Providing Party Group receiving access pursuant to this Section 2.7 must conform with and abide by the confidentiality and
security provisions in Article VIII, as applicable.

 

Section 2.8             Practice
Area Executive Leaders; Separation Oversight Committee. Each Party shall appoint a representative to act as the primary contact with
respect to the provision of the Services for each Practice Area (each such person, a “Practice Area Executive Leader”).
The Practice Area Executive Leaders shall be responsible for all aspects of the day-to-day management (including, for the avoidance of
doubt, any necessary delegation) of their Practice Area and achieving the exit date for each Service as set forth in Exhibit A or otherwise modified pursuant to this Agreement. The initial Practice Area Executive Leaders for Constellation and Exelon shall
be set forth in Exhibit B. The Practice Area Executive Leaders shall meet in person or by telephone on a regular basis to
address any arising matters within their Practice Area and as expeditiously as possible to resolve any dispute under this Agreement (including
any disputes relating to payments under Article III). Should the Practice Area Executive Leaders be unable to resolve their
dispute, either may bring the dispute to the Separation Oversight Committee. The Service Providing Party shall continue to provide the
Service during the course of the dispute resolution. Each Party may treat an act of the other Party’s Practice Area Executive Leader
as being authorized by such other Party without inquiring whether such Practice Area Executive Leader had authority to so act; provided that no Practice Area Executive Leader shall have authority to amend this Agreement.

 

Section 2.9             Disputes.
Any dispute that is not resolved by the Separation Oversight Committee shall be deemed a Dispute under the Separation Agreement and shall
be submitted to the Dispute Committee and resolved in accordance with the dispute resolution procedures set forth in Article X
of the Separation Agreement. When a disputed amount has been resolved, either by mutual agreement of the Parties or by a final decision
by an arbitration panel under Article X of the Separation Agreement, the Party owing any amount to another Party shall pay
such amount owed to such other Party within five (5) Business Days following such resolution.

 

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ARTICLE III

PAYMENT

 

Section 3.1             Pricing.

 

(a)           All
Exelon Services provided by Exelon (or another applicable member of the Exelon Group) shall be charged to Constellation at the fees for
such Exelon Services determined in accordance with Exhibit A, and the Exelon Service Costs shall be payable by Constellation
in the manner set forth in Section 3.3.

 

(b)           All
Constellation Services provided by Exelon (or another applicable member of the Exelon Group) shall be charged to Exelon at the fees for
such Constellation Services determined in accordance with Exhibit A, and the Constellation Service Costs shall be payable
by Exelon in the manner set forth in Section 3.3.

 

(c)            Pricing
of the Services fees shall be based on actual cost to provide the service plus a mutually agreed upon “TSA Administrative
Fee” which will be of fair market value. The TSA Administrative Fee will be billed as a line-item in the TSA billing process.

 

Section 3.2             Taxes.
The Parties acknowledge that fees charged for Services may be subject to goods and service taxes, gross receipts taxes, value added taxes,
excise taxes, sales taxes or similar taxes (collectively, “Sales Taxes”). With respect to all Services provided
under this Agreement, (a) the Service-Providing Party shall be responsible for collecting as required under the law, reporting and
paying the Sales Taxes imposed on fees received for providing such Services and (b) the Service- Receiving Party shall reasonably
promptly reimburse the Service-Providing Party for the amount of such taxes paid on fees received for providing such Services to the
extent that the pricing of the fees does not already include such taxes. To the extent Sales Taxes are not collected from Service-Receiving
Party due to such party’s presentation of a valid direct payment permit or exemption certificate to the Service-Providing Party,
the Service-Receiving Party shall then be liable for any applicable use taxes imposed on the applicable Services received. Upon the reasonable
request by the Service-Receiving Party, the Service-Providing Party shall provide evidence of payment of the taxes that are presented
for reimbursement.

 

Section 3.3             Billing
and Payment.

 

(a)           With
respect to Constellation as the Service Providing Party, within seven (7) Business Days after the end of each month, and with respect
to Exelon as the Service Providing Party, within seven (7)  Business Days after the end of each month, the Service Providing Party
will invoice the Service Receiving Party for the applicable Service Costs and the TSA Administrative Fee on a monthly basis, in arrears,
for the prior month just ended. The invoice shall be materially consistent with the invoice process immediately prior to the Effective
Date and set forth in reasonable detail for the period covered by such invoice (i) the Services rendered, (ii) the Service
Costs for each type of Service provided, (iii) Sales Taxes or any other applicable taxes imposed on the fees unless the Service
Receiving Party provides a valid direct payment permit or exemption certificate; (iv) identification of the charges that are CTA
or non-CTA; and (v) such additional information as may be reasonably requested by the Service Receiving Party. For administrative
purposes, invoices may be presented at a summary level with respect to the Services rendered and separately reference a detached report
in which detail will be provided by Service, including taxable Services and the Sales Tax therefore, separated from non-taxable Services.

 

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(b)           The
Service Receiving Party agrees to pay all of the applicable undisputed TSA Administrative Fee and Service Costs that are not settled
pursuant to an offset against amounts owed pursuant to Section 3.3(d) on or before  thirty (30) calendar days after
the date on which an invoice for the TSA Administrative Fee and Service Costs is delivered to the Service Receiving Party (the “Payment
Date”) by check or wire transfer of immediately available funds to an account designated in writing from time to time by
the Service Providing Party. If the Service Receiving Party fails to pay any monthly payment on or before the Payment Date, the Service
Providing Party shall provide written notice to the Service Receiving Party of such failure promptly following the Payment Date and if
the Service Receiving Party fails to pay any monthly payment within fifteen (15) calendar days of delivery of such written notice,
the Service Receiving Party shall be obligated to pay, in addition to the amount due pursuant to such invoice, interest on such amount
at a rate of the higher of the Fed Funds Rate or the Money Market Fund per day calculated from the Payment Date (“Additional
Interest”). Unless otherwise agreed in writing between the Parties, all payments made pursuant to this Agreement shall
be made in U.S. dollars.

 

(c)           Notwithstanding
the foregoing, if the Service Receiving Party in good faith disputes any invoiced charge, the Service Receiving Party shall pay the undisputed
portion of the invoice and payment of the disputed charge shall be made only after mutual resolution of such dispute pursuant to Section 2.9.
The Service Receiving Party agrees to notify the Service Providing Party promptly, and in no event later than the relevant Payment Date,
of any disputed charge. Additional Interest shall not accrue on any amount in dispute, and no default shall be alleged until after the
relevant Payment Date.

 

(d)           Prior
to the Service Receiving Party making a payment of any amounts due pursuant to this Section 3.3, the Service Receiving Party
may elect to offset against such payment any amounts owed by the Service Providing Party to the Service Receiving Party that has not
been disputed pursuant to Section 3.3(c).

 

(e)           During
the term of this Agreement and for a period ending on the sixth (6th) anniversary of the termination of the applicable Service,
each Party shall keep such books, records and accounts as are reasonably necessary to verify the calculation of the fees and related
expense for Services provided hereunder. The Service Providing Party shall provide documentation supporting any amounts invoiced pursuant
to this Section 3.3 as the Service Receiving Party may from time to time reasonably request. The Service Receiving Party
shall have the right to review such books, records and accounts at any time during normal business hours upon reasonable written notice,
and the Service Receiving Party agrees to conduct any such review in a manner so as not to unreasonably interfere with the Service Providing
Party’s normal business operations.

 

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Section 3.4             Budgeting
and Accounting. Upon reasonable request, each Party will cooperate with the other Party with respect to budgeting and accounting
matters relating to the Services. Either Party can notify the Separation Oversight Committee at any time it deems such a matter to be
material in nature and such matter shall be resolved consistent with Exhibit B.

  

Section 3.5             Credits,
Rebates and Refunds. All Third Party Provider credits, rebates, refunds or other final pricing adjustments to products and services
used in the delivery of the Services will be allocated to the Service Receiving party in a manner that is consistent with the allocation
of the costs charged to the Service Receiving Party, unless the contract with the Third Party Provider stipulates otherwise.

 

Section 3.6             True-Up.
Each Service Providing Party shall deliver to the Service Receiving Party a cost adjustment report within ninety (90) days after the
end of the Term. Such cost adjustment report shall specify (i) the total charges incurred by the Service Receiving Party under the
Agreement, as determined by the fees and other charges set forth in Exhibit A; (ii) the Service Providing Party’s
costs for the Services provided to the Service Receiving Party under the Agreement, together with a reasonably specific itemization of
such costs, subject to Section 3.5; and (iii) the “Adjustment Amount”, which is defined as
the aggregate costs incurred by the Service Providing Party to provide such Services (as described in (ii) above) less the aggregate
fees and other charges calculated in accordance with the Agreement (as described in (i) above). If the Adjustment Amount is positive,
then the Service Providing Party shall include an invoice with such report for such Adjustment Amount, which amount shall be due and
payable within thirty (30) calendar days after receipt of such invoice, as well as subject to contention in accordance with the provisions
of Section 3.3. If the Adjustment Amount is negative, then the Service Providing Party shall credit the Service Receiving
Party for the Adjustment Amount against the next payment(s) due to the Service Providing Party by the Service Receiving Party under
this Agreement, and to the extent any such Services are no longer being provided, the Service Providing Party shall remit payment for
such negative amount to the Service Receiving Party together with the cost adjustment report. For the avoidance of doubt, the mutually
agreed TSA Administrative Fee shall not be subject to this Section 3.6. The Parties agree to use commercially reasonable
efforts to agree to a process to resolve any other adjustments necessary following the end of the Term.

 

ARTICLE IV

DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

 

Section 4.1             Disclaimer.

 

(a)           EXCEPT
AS EXPRESSLY PROVIDED IN SECTION 2.1, CONSTELLATION ACKNOWLEDGES AND AGREES THAT EXELON (AND EACH MEMBER OF THE EXELON GROUP)
MAKES NO REPRESENTATIONS OR WARRANTIES (INCLUDING WARRANTIES OF MERCHANTABILITY, ADEQUACY OR FITNESS FOR A PARTICULAR PURPOSE) OR GUARANTIES
OF ANY KIND, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO ANY SERVICES PROVIDED HEREUNDER.

 

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(b)           EXCEPT
AS EXPRESSLY PROVIDED IN SECTION 2.1, EXELON ACKNOWLEDGES AND AGREES THAT CONSTELLATION (AND EACH MEMBER OF THE CONSTELLATION
GROUP) MAKES NO REPRESENTATIONS OR WARRANTIES (INCLUDING WARRANTIES OF MERCHANTABILITY, ADEQUACY OR FITNESS FOR A PARTICULAR PURPOSE)
OR GUARANTIES OF ANY KIND, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO ANY SERVICES PROVIDED HEREUNDER.

 

Section 4.2             As
Is; Where Is. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES (AND ANY RELATED PRODUCTS) TO BE PROVIDED UNDER THIS
AGREEMENT ARE FURNISHED AS IS, WHERE IS, WITH ALL FAULTS. NEITHER PARTY WARRANTS TO THE OTHER THAT THE SERVICES PROVIDED UNDER THIS AGREEMENT
WILL BE SUFFICIENT TO ALLOW THE OTHER PARTY TO SUCCESSFULLY TRANSITION, MANAGE OR OPERATE ITS BUSINESS.

 

ARTICLE V

INDEMNIFICATION; LIMITATION OF LIABILITY

 

Section 5.1             Indemnification
by the Service Providing Party. The Service Providing Party hereby agrees to indemnify, defend and hold harmless the Service Receiving
Party Indemnitees from and against any and all Losses relating to, arising out of or resulting from the Service Providing Party’s
Group gross negligence or willful misconduct in the performance of its obligations hereunder, or material breach of this Agreement, other
than to the extent such Losses are attributable to the gross negligence, willful misconduct or material breach of this Agreement by any
member of the Service Receiving Party’s Group.

 

Section 5.2             Limitation
of Liability.

 

IN NO EVENT SHALL ANY MEMBER OF THE SERVICE PROVIDING PARTY’S
GROUP, NOR ANY DIRECTOR, OFFICER, MANAGER, EMPLOYEE OR AGENT THEREOF, BE LIABLE, WHETHER IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE
AND STRICT LIABILITY) OR OTHERWISE TO THE SERVICE RECEIVING PARTY (OR ANY SERVICE RECEIVING PARTY’S INDEMNITEES) FOR ANY EXEMPLARY,
PUNITIVE, INDIRECT, REMOTE OR SPECULATIVE DAMAGES AS A RESULT OF ANY BREACH, PERFORMANCE OR NON-PERFORMANCE BY SUCH PERSON UNDER
THIS AGREEMENT, WHETHER OR NOT SUCH PERSON HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, EXCEPT TO THE EXTENT ANY SUCH AMOUNT
IS PAID TO A THIRD PARTY BY THE SERVICE RECEIVING PARTY OR ANY OF ITS AFFILIATES.

 

THE SERVICE PROVIDING PARTY’S TOTAL LIABILITY
TO THE SERVICE RECEIVING PARTY UNDER THIS AGREEMENT FOR ANY CLAIM SHALL NOT EXCEED, IN THE AGGREGATE, AN AMOUNT EQUAL TO THE TOTAL
AMOUNT PAID BY THE SERVICE RECEIVING PARTY FOR THE APPLICABLE SERVICES UNDER THIS AGREEMENT. FOR PURPOSES OF THE PRECEDING SENTENCE,
 “TOTAL AMOUNT PAID” SHALL BE INCLUSIVE OF OFFSETS PERMITTED IN SECTION 3.3 AND EXCLUDE AMOUNTS PAID OR REIMBURSED
BY THE SERVICE RECEIVING PARTY TO THE SERVICE PROVIDING PARTY FOR PAYMENTS BY THE SERVICE PROVIDING PARTY TO ANY THIRD PARTY PROVIDERS.

 

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Section 5.3             Indemnification
Procedure; Other Rights. All claims for indemnification pursuant to Section 5.1 shall be made in accordance with the
procedures set forth in Section 9.4 and 9.5 of the Separation Agreement and shall be subject to Sections 9.6 through 9.9 of the Separation Agreement.

 

ARTICLE VI

FORCE MAJEURE

 

Section 6.1             General.
If the Service Providing Party (or any member of the Service Providing Party Group) is prevented from or delayed in complying, in whole
or in part, with any of the terms or provisions of this Agreement by reason of fire, flood, storm, earthquake, strike, walkout, lockout
or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel or energy sources, power, raw materials
or components, equipment failure, any law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any Governmental
Authority, riot, civil commotion, acts of war (declared or undeclared), rebellion, act of terrorism, nuclear or other accident, explosion,
casualty, pandemic, act of God, or act, omission or delay in acting by any Governmental Authority or by the Service Receiving Party (or
any member of the Service Receiving Party Group) or any other cause, whether or not of a class or kind listed in this sentence, which
is beyond the reasonable control of Service Providing Party (or any other applicable member of the Service Providing Party Group), then
upon notice to Service Receiving Party pursuant to Section 6.2, the affected provisions and/or other requirements of this
Agreement shall be suspended during the period of such disability and, unless otherwise set forth herein to the contrary, Service Providing
Party (and any applicable member of the Service Providing Party Group) shall have no liability to Service Receiving Party (or any member
of the Service Receiving Party Group) in connection therewith. The Service Receiving Party shall not be required to pay any fees applicable
to any period during which the Service Providing Party’s performance is excused pursuant to this Section 6.1 and the
applicable Services contemplated to be provided hereunder are not actually performed. Each Party shall use commercially reasonable efforts
to minimize the effect of any such event. The applicable end date for any affected Service set forth in Exhibit A, shall
be automatically extended for a period of time equal to the time lost by reason of the suspension.

 

Section 6.2             Notice.
Upon becoming aware of a cause of delay in the performance or preventing performance of any Services to be provided by Service Providing
Party (or another member of the Service Providing Party Group) under this Agreement, Service Providing Party shall promptly notify Service
Receiving Party in writing of the existence of such disability and the anticipated duration of the disability, if then known.

 

Section 6.3             Subcontractors;
Fees. The Service Receiving Party shall have the right, but not the obligation, to hire or engage one or more subcontractors to perform
the applicable Services affected by the disability for the duration of the period during which such disability delays or prevents the
performance of such Services by the Service Providing Party, it being agreed that the fees paid or payable under this Agreement with
respect to the applicable Services affected by the disability shall be reduced (or refunded, if applicable) on a dollar-for-dollar basis
for all amounts paid by the Service Receiving Party to such subcontractors; provided that the Service Providing Party shall not
be responsible for the amount of fees charged by any such subcontractors to perform such Services to the extent they exceed the fees
payable under this Agreement for such Services.

 

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Section 6.4             Limitations.
Each Party shall use its commercially reasonable efforts to promptly remove any cause under Section 6.1 as soon as possible;
provided that nothing in this Article VI will be construed to require the settlement of any lawsuit or other legal
proceeding, strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary
to its interest. It is understood that the settlement of a lawsuit or other legal proceeding, strike, walkout, lockout or other labor
dispute will be entirely within the discretion of the affected Party.

 

ARTICLE VII

TERM, TERMINATION AND EXIT

 

Section 7.1             Term
and Termination of Services.

 

(a)             Subject
to Section 7.1(d), Section 6.1 and except as otherwise set forth in Exhibit A, a Service shall be
provided for the term specified in Section 7.1(b); provided that the Service Receiving Party shall have the right
to terminate one or more of the applicable Services that it receives under this Agreement at the end of a designated quarter by giving
the Service Providing Party and the Separation Oversight Committee the longer of (a) at least sixty (60) calendar days’
prior written notice of such termination or (b) in the case of any Service that the Service Providing Party incurs an expense from
an unrelated third-party, the period of time required to terminate such third-party expense, but in no event longer than ninety (90) days
unless the Service Providing Party, in its reasonable judgment, determines that a longer period of time is commercially reasonable. The
Parties shall cooperate with each other in good faith in their efforts to reasonably effect early termination of such Services, including,
where applicable, partial termination, and to agree in good faith upon appropriate reduction of the charges hereunder in connection with
such early termination.

 

(b)           Except
as otherwise set forth in Exhibit A (as amended or otherwise supplemented), the provision of a Service under this Agreement
shall terminate upon the earlier of (a) the cessation of all Services pursuant to Section 7.1(a), or (b) the 24 month
anniversary of the Effective Time. Either Party may request the Separation Oversight Committee approve the extension of the period for
such Service (i) for up to an additional three (3) months, on the same terms and conditions (including with respect to fees)
as such Service was provided during the initial term for such Service, and (ii) thereafter, for up to an additional three (3) months,
on the same terms and conditions as previously provided, except (A) the Service Cost for such Service provided during such extension
period may be increased as mutually agreed by the Parties, and (B) the TSA Administrative Fee during such extension period will
be determined by the Separation Oversight Committee, and unless determined otherwise by the Separation Oversight Committee, will be as
set forth in Exhibit A. Thereafter, any extension to the term for a Service shall be at the sole discretion of the Party
who did not request the extension, with no liability to the requesting Party for such lack of extension.

 

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(c)           This
Agreement, except for Section 2.1 and Section 2.2, shall survive the termination of Services, and any such termination
shall not affect any payment obligation for Services rendered prior to termination.

  

(d)           Notwithstanding
the foregoing: (i) the Parties may terminate the provision of one or more Services under this Agreement by approval of the Separation
Oversight Committee and mutual written consent and (ii) the Parties each reserve the right to immediately terminate the provision
of the applicable Services under this Agreement by written notice to the other Party in the event that such other Party shall have (A) applied
for or consented to the appointment of a receiver, trustee or liquidator; (B) admitted in writing an inability to pay debts as they
mature; (C) made a general assignment for the benefit of creditors; or (D) filed a voluntary petition, or have filed against
it a petition, for an order of relief under the Bankruptcy Code.

 

Section 7.2             Effect
of Termination.

 

(a)           Termination
or expiration of a Service under this Agreement shall not release a Party from any liability or obligation which already has accrued
as of the effective date of such termination or expiration, and shall not constitute a waiver or release of, or otherwise be deemed to
adversely affect, any rights, remedies or claims, which a Party may have hereunder at law, equity or otherwise or which may arise out
of or in connection with such termination or expiration.

 

(b)           As
promptly as practicable following termination of any Service, and the payment by the Service Receiving Party of all amounts owing hereunder,
the Service Providing Party shall return all reasonably available material, inventory and other property of the Service Receiving Party
Group held by the Service Providing Party Group and shall deliver copies of all of the Service Receiving Party Group’s records
maintained by the Service Providing Party Group with regard to such Service in the Service Providing Party’s standard format and
media. The Service Providing Party shall deliver such property and records to such location or locations as reasonably requested by the
Service Receiving Party. Arrangements for shipping, including the cost of freight and insurance, and the reasonable cost of packing incurred
by the Service Providing Party shall be borne by the Service Receiving Party.

 

(c)           Other
than pursuant to its document retention policies or applicable Law and unless specifically agreed upon by the Parties, upon termination
of a Service, the Service Providing Party is no longer required to retain or store any materials, Systems or data related to the Terminated
Service, nor shall it be obligated to provide any such materials, Systems or data to the Service Receiving Party with respect to such
Terminated Service; provided, that if either Party determines that records in its possession belong to the other Party, the Party
in possession may arrange for the transfer of those records to the other Party by providing written notice to the other Party, and the
Party not in possession shall respond to any such notice within thirty (30) Business Days that either it shall accept that transfer or
it shall permit the destruction of those records (with a non-response within thirty (30) Business Days being deemed an election by the
Party not in possession to permit the destruction of records that are the subject of the notice from the Party in possession).

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ARTICLE VIII

CONFIDENTIALITY

 

Section 8.1             Confidentiality.
Each Party agrees that the specific terms and conditions of this Agreement and any information conveyed or otherwise received by or on
behalf of a Party in conjunction herewith shall be Confidential Information subject to the confidentiality provisions (and exceptions
thereto) set forth in Section 8.7 of the Separation Agreement, including causing its respective directors, officers, employees,
agents, consultants and advisors to hold, in strict confidence, and not disclose or release or use, without the prior written consent
of such member of the other Party.

 

Section 8.2             System
Security.

 

(a)           If
the Service Providing Party (or a member of the Service Providing Party Group) is given access to the computer systems, data, or software
(collectively, “Systems”) of the Service Receiving Party (or a member of the Service Receiving Party Group)
in connection with the provision of any Services, the Service Providing Party shall comply (or cause such member of the Service Providing
Party Group to comply) with all of the system security policies, procedures and requirements (collectively, “Security Regulations”)
of the Service Receiving Party (or such member of the Service Receiving Party Group), and shall not (or shall cause such member the Service
Providing Party Group not to) tamper with, compromise or circumvent any security or audit measures employed by the Service Receiving
Party (or such member of the Service Receiving Party Group). The Service Providing Party shall (or shall cause such member of the Service
Providing Party Group to) access and use only those Systems of the Service Receiving Party (or such member of the Service Receiving Party
Group) for which it has been granted the right to access and use.

 

(b)             The
Service Providing Party shall use commercially reasonable efforts to ensure that only those of its personnel (or the personnel of such
member of the Service Providing Party Group) who are specifically authorized to have access to the Systems of the Service Receiving Party
(or such member of the Service Receiving Party Group) gain such access, and use commercially reasonable efforts to prevent unauthorized
access, use, destruction, alteration or loss of information contained therein, including notifying its personnel (or the personnel of
such member of its Group) of the restrictions set forth in this Agreement and of the Security Regulations.

 

Section 8.3             Joint
Defense Agreements or Common Interest Privilege.

 

(a)           In
connection with any matter contemplated by this Agreement, the Parties agree to, and shall cause the applicable members of their Group
to, use commercially reasonable efforts to maintain their respective separate and joint privileges and immunities, including by executing
joint defense and/or common interest agreements where necessary or useful for this purpose.

 

(b)           The
Parties recognize and agree that, under this Agreement, employees of one Party in certain circumstances may provide services to the other
Party at the direction of counsel for the other Party, subject to attorney-client privilege. In such instances, the employees providing
such services will treat their communications and work product as privileged and protected.

 

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ARTICLE IX

MISCELLANEOUS

 

Section 9.1             Further
Assurances. Subject to the limitations or other provisions of this Agreement, (a) each Party shall, and shall cause the other
members of its Group to, use commercially reasonable efforts (subject to, and in accordance with applicable Law) to take promptly, or
cause to be taken promptly, all actions, and to do promptly, or cause to be done promptly, and to assist and cooperate with the other
Party in doing, all things reasonably necessary, proper or advisable to carry out the intent and purposes of this Agreement, including
using commercially reasonable efforts to perform all covenants and agreements herein applicable to such Party or any member of its Group
and (b) neither Party will, nor will either Party allow any other member of its Group to, without the prior written consent of the
other Party, take any action which would reasonably be expected to prevent or materially impede, interfere with or delay the provision
of any Services hereunder during the Term. Without limiting the generality of the foregoing, where the cooperation of third parties would
be necessary in order for a Party to completely fulfill its obligations under this Agreement, such Party shall use commercially reasonable
efforts to cause such third parties to provide such cooperation.

 

Section 9.2             Amendments
and Waivers.

 

(a)           Subject
to Section 11.1 of the Separation Agreement and Section 2.2 of this Agreement, this Agreement may not be amended
except by an agreement in writing signed by both Parties.

 

(b)           Any
term or provision of this Agreement may be waived by the Party entitled to the benefit thereof and any such waiver shall be validly and
sufficiently given for the purposes of this Agreement if it is in writing signed by an authorized representative of such Party. No delay
or failure in exercising any right, power or remedy hereunder shall affect or operate as a waiver thereof; nor shall any single or partial
exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power or remedy preclude any further exercise
thereof or of any other right, power or remedy. The rights and remedies hereunder are cumulative and not exclusive of any rights or remedies
that either Party would otherwise have.

 

Section 9.3             Entire
Agreement. This Agreement, the Separation Agreement, the other Ancillary Agreements, and the Exhibits and Schedules referenced herein
and therein and attached hereto or thereto, constitute the entire agreement and understanding between the Parties with respect to the
subject matter hereof and supersede all prior negotiations, agreements, commitments, writings, courses of dealing and understandings
with respect to the subject matter hereof.

 

Section 9.4             Third-Party
Beneficiaries. Except as provided in Article V relating to Service Receiving Party’s Indemnitees, this Agreement
is solely for the benefit of the Parties and shall not be deemed to confer upon third parties any remedy, claim, liability, reimbursement,
cause of action or other right in excess of those existing without reference to this Agreement.

 

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Section 9.5             Notices.
All notices, requests, permissions, waivers and other communications hereunder shall be provided in accordance with the provisions of
Section 12.8 of the Separation Agreement.

 

Section 9.6             Counterparts;
Electronic Delivery. This Agreement may be executed in multiple counterparts, each of which when executed shall be deemed to be an
original, but all of which together shall constitute one and the same agreement. Execution and delivery of this Agreement or any other
documents pursuant to this Agreement by facsimile or other electronic means shall be deemed to be, and shall have the same legal effect
as, execution by an original signature and delivery in person.

 

Section 9.7             Severability.
If any term or other provision of this Agreement or the Exhibits attached hereto is determined by a nonappealable decision by a court,
administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator shall
interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end
that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as
to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

 

Section 9.8             Assignability;
Binding Effect. The rights and obligations of each Party under this Agreement shall not be assignable, in whole or in part, directly
or indirectly, whether by operation of law or otherwise, by such Party without the prior written consent of the other Party (such consent
not to be unreasonably withheld, conditioned or delayed) and any attempt to assign any rights or obligations under this Agreement without
such consent shall be null and void. Notwithstanding the foregoing, either Party may assign its rights and obligations under this Agreement
to any of their respective Affiliates, provided that no such assignment shall release such assigning Party from any liability
or obligation under this Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors
and permitted assigns.

 

Section 9.9             Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the substantive laws of the State of Delaware,
without regard to any conflicts of law provisions thereof that would result in the application of the laws of any other jurisdiction.

 

Section 9.10           Construction.
This Agreement shall be construed as if jointly drafted by the Parties and no rule of construction or strict interpretation shall
be applied against either Party. The Parties are not relying upon any representations or statements made by the other Party regarding
this Agreement.

 

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Section 9.11           Performance.
Each Party shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein
to be performed by any Subsidiary or Affiliate of such Party.

 

Section 9.12           Title
and Headings. Titles and headings to Sections and Articles are inserted for the convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement.

 

Section 9.13           Exhibits.
The Exhibits attached hereto are incorporated herein by reference and shall be construed with and as an integral part of this Agreement
to the same extent as if the same had been set forth verbatim herein.

 

Section 9.14           Effective
Time. This Agreement shall be effective as of the Effective Time.

 

Section 9.15           Export
Controls. The Parties agree to fully comply with the applicable Laws relating to the exportation of commodities or technical data
and economic and trade sanctions, including but not limited to: 15 CFR Parts 730 et seq., 10 CFR Part 110, and 10 CFR Part 810,
15 CFR Parts 700-799, and the U.S. Office of Foreign Assets Control Sanctions Lists, as issued from time to time, or any successor
Laws. In the event of any ambiguity or inconsistency between the provisions of this Section 9.15 and any other Section of
these Terms and Conditions or the Separation Agreement, this Section 9.15 will be controlling.  The receiving Party
agrees to: (1) ensure that all receiving Party individuals who may have access to technical data that is controlled for export by
the regulations noted above are generally or specifically authorized or licensed under such regulations; (2) report to the Party
sharing export-controlled information the nationality of any recipients of such information where required for purposes of reports to
governmental agencies; and (3) not retransfer any export-controlled information without the prior authorization of the sharing Party. 
The receiving Party also agrees to contractually obligate any third-party recipients of such information to comply with such regulations.
In the event that Contractor’s Services will involve physical or logical access to nuclear information or technology that is controlled
for export by the DOE under 10 CFR Part 810, Exelon standard procurement form Exhibit O (Nuclear Information and Technology
Export Control Special Terms and Conditions) will apply.

 

Section 9.16           Utility
Services. Notwithstanding anything to the contrary in this Agreement, no Exelon Utility shall be a member of a Service Providing
Party Group, nor shall it be required to provide any services under this Agreement, without such Exelon Utility’s express consent.

 

Section 9.17           No
Duplication of Charges. Any amounts payable pursuant to the terms of this Agreement will be paid without duplication and in no event
will Constellation or Exelon be entitled to recover against the other Party more than once to the extent such amounts were already paid
under any other agreement between the Parties in connection with the consummation of the Distribution.

 

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Section 9.18           Incorporation
by Reference. The following sections of the Separation Agreement are hereby incorporated in this Agreement by reference to the extent
not inconsistent with any of the provisions set forth in this Agreement: Section 8.7 (Confidentiality); Section 8.8 (Privileged
Matters); Section 12.3 (Amendments and Waivers); Section 12.4 (Entire Agreement); Section 12.5 (Survival of Agreements);
Section 12.9 (Counterparts; Electronic Delivery); Section 12.10 (Severability); Section 12.11 (Assignability; Binding
Effect); Section 12.12 (Governing Law); Section 12.13 (Construction); Section 12.14 (Performance); Section 12.15
(Title and Headings); and Section 12.16 (Schedules and Exhibits).

  

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties
have caused this Agreement to be executed by their respective officers as of the date first set forth above.

 

	 	EXELON CORPORATION
	 	 
	 	By:	/s/ Christopher Crane
	 	 	Name: Christopher Crane
	 	 	Title: President and Chief Executive Officer
	 	 
	 	CONSTELLATION ENERGY CORPORATION
	 	 
	 	By:	/s/ Joseph Dominguez
	 	 	Name: Joseph Dominguez
	 	 	Title: President and Chief Executive Officer

 

[Transition
Services Agreement]

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