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ceg-20211231x10kxexh1025

  Page 1 of 9  277619342v.3  Constellation 2022 Long-Term Incentive Plan  Performance Share   Award Notice  [Name of Participant]  Award Number:  [Award #]  You have been granted a performance share award with respect to shares of common stock of  Constellation Energy Corporation, a Pennsylvania corporation (the “Company”), pursuant to the  terms and conditions of the Constellation 2022 Long-Term Incentive Plan (the “Plan”) and the  Performance Share Award Agreement (together with this Award Notice, the “Agreement”).  The  Performance Share Award Agreement is attached, and the Plan and the Performance Share  Award Agreement are available to you on the Plan’s administrative service provider’s site.   Capitalized terms not defined herein shall have the meanings specified in the Plan or the  Agreement.  Performance Share  Award:  You have been awarded a performance share award with respect to a  target of [●] shares of Common Stock, without par value, subject to  adjustment as provided in the Plan (the “Target Shares”).  Grant Date: [●]  Performance  Conditions and  Vesting Schedule:  Except as otherwise provided in the Plan, the Agreement or any other  agreement between the Company or any of its Subsidiaries and  Participant, the  number of shares of Common Stock earned under the  Award (the “Earned Shares”) or cash in lieu thereof shall be  determined by the Committee in its sole discretion as a percentage of  the number of Target Shares based on the achievement of the  performance goals set forth in this Award Notice over the  performance period beginning on [●] and ending on [●] (the  “Performance Period”), and shall vest if the Participant remains  continuously employed by the Company through the last day of the  Performance Period.  Form of Payment: The Award shall be payable 50% in shares of Common Stock and 50% in  cash in lieu of shares, except that if the Participant has achieved 200% of  his or her share ownership requirement as of [June 30], [●] (or, if earlier,  the [June 30] immediately preceding his or her termination of  employment), then the Award shall be payable 100% in cash.  If payment  is made in cash, the Fair Market Value of the Earned Shares shall be  determined as of an administratively practicable date preceding the date  the payment is made, as determined by the Company.    

 

      Page 2 of 9  277619342v.3  Performance Share Metrics1:    [●]    Performance Between Specified Levels  The percentage of Shares that become Earned Shares shall be determined using  interpolation  between performance levels as set forth above and none of the shares of common stock subject  to a performance goal shall be Earned Shares for performance below the threshold performance  level.  Adjustments to Target Levels and Payouts  In the event the Participant transfers between full- and part-time status during the Performance  Period, the Participant’s Award will be appropriately pro-rated based on each such period of  employment.  The Participant’s Award also will be pro-rated for any period of unpaid leave-of- absence equal to or exceeding 24 months during the Performance Period.  The Award is subject  to adjustment for any promotion or demotion occurring within the first six months of the  Performance Period.    The Committee, in its sole discretion, may amend or adjust either the target levels of  performance set forth herein or the applicable performance results in recognition of unusual or  nonrecurring events affecting the Company or its financial statements or changes in law or  accounting principles, and may adjust the final amount payable based on company-wide  performance or general market/economic conditions.  CONSTELLATION ENERGY CORPORATION      By:       Name:  [________]  Title:  [________]    1 NTD: Applicable Performance Share Metrics to be inserted.   

 

      Page 3 of 9  277619342v.3  Constellation 2022 Long-Term Incentive Plan  Performance Share Award Agreement  Constellation Energy Corporation, a Pennsylvania corporation (the “Company”), hereby  grants to the individual (the “Participant”) named in the award notice attached hereto (the  “Award Notice”) as of the date set forth in the Award Notice (the “Grant Date”), pursuant to the  provisions of the Constellation 2022 Long-Term Incentive Plan (the “Plan”), a performance share  award (the “Award”) with respect to the number of Target Shares of the Company’s Common  Stock, without par value (“Stock”), set forth in the Award Notice, upon and subject to the  restrictions, terms and conditions set forth in the Plan and this agreement (the “Agreement”).   Capitalized terms not defined herein shall have the meanings specified in the Plan.  1. Award Subject to Acceptance of Agreement.  The Award shall be subject  to the terms and conditions of this Agreement and shall be deemed to be accepted by the  Participant unless the Participant declines the Award in writing within 90 days after the Grant  Date.    2. Rights as a Stockholder.  The Participant shall not be entitled to any  privileges of ownership with respect to the shares of Stock subject to the Award unless and until,  and only to the extent, such shares become Earned Shares pursuant to the Award Notice and  become vested pursuant to Section 3 hereof and the Participant becomes a stockholder of record  with respect to such shares.    3. Restriction Period and Vesting.  3.1. Performance-Based Vesting Conditions.  Subject to the remainder of this  Section 3, the number of shares that become Earned Shares shall be determined in accordance  with the terms of this Agreement and the Plan based on the achievement of the performance  goals and adjustments set forth in the Award Notice (the “Performance Measures”) over the  performance period set forth in the Award Notice (the “Performance Period”), and shall vest if  the Participant remains in continuous employment with the Company through the last day of the  Performance Period.  Attainment of the Performance Measures shall be determined and  approved by the Committee prior to the settlement of the Award.  3.2. Termination of Employment.  (a) Termination Due to Retirement, Death or Disability.  If the Participant’s  employment with the Company and the Subsidiaries terminates by reason of Retirement,  Disability or death, and the Participant has not breached his or her obligations to the Company  or any of its affiliates under any Restrictive Covenant, then (i) if such event occurs within the first  12 months of the Performance Period, then the Participant shall become vested in a pro-rated  number of the Earned Shares (or cash in lieu thereof) based on the number of elapsed days in  such 12-month period as of the termination date (pro-ration determined by dividing the number  of elapsed days by 365), and (ii) if such event occurs after the first 12 months of the Performance  Period, then the Participant shall become fully vested in all Earned Shares (or cash in lieu thereof);  in each case based on the extent to which the applicable performance goals are attained at the  

 

      Page 4 of 9  277619342v.3  end of the Performance Period.  In either event, the Earned Shares shall be issued, or the cash in  lieu of such Earned Shares paid, within 2 1/2 months after the last day of the Performance Period.  (b) Termination Due to Involuntary Termination Without Cause.  If the  Participant’s employment with the Company and the Subsidiaries terminates prior to the end of  the Performance Period by reason of involuntary termination without Cause (or by the  Participant for “good reason,” if applicable under, and as defined in, an executive severance plan  in which such Participant participates), and the Participant timely executes a waiver and release  provided by the Company and has not breached his or her obligations to the Company or any of  its affiliates under any Restrictive Covenant, then (i) if the Participant is eligible for Retirement as  of the termination date, then the Participant shall become vested in a pro-rated number of the  Earned Shares (or cash in lieu thereof) as determined under the applicable provisions of  paragraph (a) above, and (ii) if the Participant is not eligible for Retirement as of the termination  date, then the Participant shall become vested in a pro-rated number of Earned Shares (or cash  in lieu thereof) based on the number of elapsed days in the Performance Period as of the  termination date (with such proration determined by dividing the number of elapsed days by the  total number of days in the Performance Period); in each case based on the extent to which the  applicable performance goals are attained at the end of the Performance Period.  In either event,  the Earned Shares shall be issued, or the cash in lieu of such Earned Shares paid, within 2  1/2 months after the last day of the Performance Period.  (c) Termination for any Other Reason.  If the Participant’s employment with  the Company and the Subsidiaries terminates prior to the end of the Performance Period for any  reason other than those specified in paragraphs (a) and (b) above, or if Participant breaches or  threatens to breach his or her obligations under any Restrictive Covenant or does not timely  execute any waiver and release as required by the Company, then the Award shall be  immediately forfeited by the Participant and cancelled by the Company.  3.3. Change in Control.  In the event of a Change in Control, the Board may, in  its discretion:  (i) require that (A) the Performance Period shall lapse in full or in part, and (B) the  Performance Measures shall be deemed to be satisfied at the target or any other level not  exceeding the maximum levels allowable under the Award; (ii) require that shares of capital stock  of the company resulting from such Change in Control, or the parent corporation thereof, be  substituted for some or all of the shares of Stock subject to the Award, with an appropriate and  equitable adjustment to the Award as determined by the Board; and/or (iii) require outstanding  Awards, in whole or in part, to be surrendered to the Company by the Participant, and to be  immediately cancelled by the Company, and to provide for the Participant to receive (A) a cash  payment in an amount equal to the number of shares of Stock then subject to the portion of the  Award surrendered, to the extent the Performance Period has lapsed or will lapse pursuant to  clause (i) of this Section 3.3, and to the extent that the Performance Measures have been  satisfied, multiplied by the Fair Market Value of a share of Stock as of the date of the Change in  Control; (B) shares of capital stock of the corporation resulting from such Change in Control, or a  parent corporation thereof, having a Fair Market Value not less than the amount determined in  clause (iii)(A) of this Section 3.3; or (C) a combination of a payment of cash pursuant to  clause (iii)(A) of this Section 3.3 and the issuance of shares pursuant to clause (iii)(B) of this  Section 3.3.  

 

      Page 5 of 9  277619342v.3  3.4. Definitions.  (a) Cause.  For purposes of this Award, “Cause” shall mean (A) with respect to  a Participant whose position is at least [salary band E09 (or its post-Spin-Off equivalent), the  meaning of such term as defined in the Constellation Senior Management Severance Plan as in  effect from time to time, or any successor plan thereto, or (B) with respect to any other  Participant, the meaning of such term as defined in the Constellation Severance Benefit Plan as  in effect from time to time, or any successor plan thereto, regardless of whether Participant is  eligible to participate in such plan.  (b) Disability.  For purposes of this Award, “Disability” shall have the meaning  specified in any long-term disability plan maintained by the Company in which Participant is  eligible to participate; provided that a Disability shall not be deemed to have occurred until the  Company and the Subsidiaries have terminated Participant’s employment in connection with  such disability, and Participant has commenced the receipt of long-term disability benefits under  such plan.  If Participant is not eligible to participate in a long-term disability plan maintained by  the Company, then Disability means a termination of Participant’s employment by the Company  and the Subsidiaries due to the inability of Participant to perform the essential functions of  Participant’s position, with or without reasonable accommodation, for a continuous period of at  least twelve months, as determined solely by the Committee.  (c) Restrictive Covenant.  For purposes of this Award, “Restrictive Covenant”  shall mean any non-competition, non-solicitation, confidentiality, intellectual property or other  restrictive covenant to which Participant is subject, required as a condition to receipt of this  Award or contained in any other agreement between Participant and the Company or any of its  affiliates.  (d) Retirement.  For purposes of this Award, “Retirement” shall mean the  retirement of the Participant from employment with the Company or Subsidiaries (other than a  termination upon death, disability or involuntary termination for Cause) on or after attaining at  least age 55 and completing at least ten years of service with the Company or Subsidiaries.  (e) Spin-Off.  For purposes of this Award, “Spin-Off” means the distribution of  shares of common stock of the Company to the stockholders of Exelon Corporation as of February  1, 2022 pursuant to the Separation Agreement between the Company and Exelon Corporation,  entered into in connection with such distribution.  4. Issuance or Delivery of Shares and Payment of Cash.  Subject to  Section 7.12 and except as otherwise provided for herein or in the Plan, the Company shall issue,  deliver or pay to the Participant, subject to the conditions of this Agreement, the vested portion  of any Earned Shares, or cash in lieu thereof, not later than March 15th of the year following the  completion of the Performance Period.  Any issuance or delivery of shares of Stock shall be  evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer  agent of the Company.  The Company shall pay all original issue or transfer taxes and all fees and  expenses incident to such issuance or delivery, except as otherwise provided in Section 7.  Prior  to the issuance to the Participant of the shares of Stock subject to the Award, the Participant shall  

 

      Page 6 of 9  277619342v.3  have no direct or secured claim in any specific assets of the Company or in such shares of Stock,  and will have the status of a general unsecured creditor of the Company.    5. Clawback of Proceeds.  5.1. Clawback of Proceeds.  If Participant breaches his or her obligations to the  Company or any Subsidiary under a Restrictive Covenant, the Award shall be cancelled as of the  date on which the Participant first breached such Restrictive Covenant and the Company  thereafter may require the repayment of any amounts received by Participant after such date in  connection with the Award, in accordance with Section 1.8 of the Plan.  In addition, the Award  and any Shares issued or cash paid pursuant to the Award shall be subject to clawback pursuant  to the Clawback Policy contained in the Company’s Corporate Governance Principles, as in effect  from time to time, including any amendments thereto or new clawback policies required under  the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing applicable  stock exchange listing standards or rules and regulations thereunder, or as otherwise required  by law or regulation.  5.2. Right of Setoff.  The Participant agrees that by accepting the Award the  Participant authorizes the Company and its affiliates, to the extent permitted under Section 409A  of the Code, to deduct any amount or amounts owed by the Participant pursuant to this Section 5  from any amounts payable by or on behalf of the Company or any affiliate to the Participant,  including, without limitation, any amount payable to the Participant as salary, wages, vacation  pay, bonus or the vesting or settlement of the Award or any stock-based award.  This right of  setoff shall not be an exclusive remedy and the Company’s or an affiliate’s election not to exercise  this right of setoff with respect to any amount payable to the Participant shall not constitute a  waiver of this right of setoff with respect to any other amount payable to the Participant or any  other remedy.  6. Transfer Restrictions and Investment Representation.  6.1. Nontransferability of Award.  The Award may not be transferred by the  Participant other than by will or the laws of descent and distribution.  Except to the extent  permitted by the foregoing sentence, the Award may not be sold, transferred, assigned, pledged,  hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise)  or be subject to execution, attachment or similar process.  Upon any attempt to so sell, transfer,  assign, pledge, hypothecate, encumber or otherwise dispose of the Award, the Award and all  rights hereunder shall immediately become null and void.  6.2. Investment Representation.  The Participant hereby covenants that (a) any  sale of any share of Stock acquired upon the vesting of the Award shall be made either pursuant  to an effective registration statement under the Securities Act of 1933, as amended (the  “Securities Act”), and any applicable state securities laws, or pursuant to an exemption from  registration under the Securities Act and such state securities laws and (b) the Participant shall  comply with all regulations and requirements of any regulatory authority having control of or  supervision over the issuance of the shares and, in connection therewith, shall execute any  documents which the Committee shall in its sole discretion deem necessary or advisable.  

 

      Page 7 of 9  277619342v.3    7. Additional Terms and Conditions of Award.  7.1. Withholding Taxes.  As a condition precedent to the issuance or delivery of  the Stock upon the vesting of the Award, at the Company’s discretion either (i) the Participant  shall pay to the Company such amount as the Company (or an affiliate) determines is required,  under all applicable federal, state, local, foreign or other laws or regulations, to be withheld and  paid over as income or other withholding taxes (the “Required Tax Payments”) with respect to  the Award or (ii) the Company or an affiliate may, in its discretion, deduct any Required Tax  Payments from any amount then or thereafter payable by the Company or an affiliate to the  Participant, which may include the withholding of whole shares of Stock which would otherwise  be delivered to the Participant having an aggregate Fair Market Value, determined as of the date  on which such withholding obligation arises, equal to the Required Tax Payments, in either case  in accordance with such terms, conditions and procedures that may be prescribed by the  Company.  Shares of Stock withheld may not have a Fair Market Value in excess of the amount  determined by applying the maximum individual statutory tax rate in the Participant’s  jurisdiction; provided that the Company shall be permitted to limit the number of shares so  withheld to a lesser number if necessary, as determined by the Company, to avoid adverse  accounting consequences or for administrative convenience; provided, however, that if a fraction  of a share of Stock would be required to satisfy the maximum individual statutory rate in the  Participant’s jurisdiction, then such fraction of a share of Stock shall be disregarded and the  remaining amount due shall be paid in cash by the Participant or paid in fractional form, as  determined by the Committee.  No certificate representing a share of Stock shall be delivered  until the Required Tax Payments have been satisfied in full.  Any determination by the Company  with respect to the withholding of shares of Stock to satisfy the Required Tax Payments shall be  made by the Committee if the Participant is subject to Section 16 of the Exchange Act.  To the  extent the Award is paid in cash, the Required Tax Payments shall be withheld from such  payment.  7.2. Compliance with Applicable Law.  The Award is subject to the condition  that if the listing, registration or qualification of the shares of Stock subject to the Award upon  any securities exchange or under any law, or the consent or approval of any governmental body,  or the taking of any other action is necessary or desirable as a condition of, or in connection with,  the delivery of shares hereunder, the shares of Stock subject to the Award shall not be delivered,  in whole or in part, unless such listing, registration, qualification, consent, approval or other  action shall have been effected or obtained, free of any conditions not acceptable to the  Company.  The Company agrees to use reasonable efforts to effect or obtain any such listing,  registration, qualification, consent, approval or other action.  7.3. Award Confers No Rights to Continued Employment.  In no event shall the  granting of the Award or its acceptance by the Participant, or any provision of the Agreement or  the Plan, give or be deemed to give the Participant any right to continued employment by the  Company, any Subsidiary or any affiliate of the Company or affect in any manner the right of the  Company, any Subsidiary or any affiliate of the Company to terminate the employment of any  person at any time.  

 

      Page 8 of 9  277619342v.3  7.4. Decisions of Board or Committee.  The Board or the Committee shall have  the right to resolve all questions which may arise in connection with the Award.  Any  interpretation, determination or other action made or taken by the Board or the Committee  regarding the Plan or this Agreement shall be final, binding and conclusive.  7.5. Successors.  This Agreement shall be binding upon and inure to the benefit  of any successor or successors of the Company and any person or persons who shall, upon the  death of the Participant, acquire any rights hereunder in accordance with this Agreement or the  Plan.  7.6. Notices.  All notices, requests or other communications provided for in this  Agreement shall be made, if to the Company, to Constellation Energy Corporation, [●], Attn:  [●]2,  and if to the Participant, to the last known mailing address of the Participant contained in the  records of the Company.  All notices, requests or other communications provided for in this  Agreement shall be made in writing either (a) by personal delivery, (b) by facsimile or electronic  mail with confirmation of receipt, (c) by mailing in the United States mails or (d) by express  courier service.  The notice, request or other communication shall be deemed to be received  upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission  or upon receipt by the party entitled thereto if by United States mail or express courier service;  provided, however, that if a notice, request or other communication sent to the Company is not  received during regular business hours, it shall be deemed to be received on the next succeeding  business day of the Company.  7.7. Governing Law.  This Agreement, the Award and all determinations made  and actions taken pursuant hereto and thereto, to the extent not governed by the laws of the  United States, shall be governed by the laws of the Commonwealth of Pennsylvania and  construed in accordance therewith without giving effect to principles of conflicts of laws, and, to  the extent applicable, Section 409A of the Code.  7.8. Agreement Subject to the Plan.  This Agreement is subject to the provisions  of the Plan and shall be interpreted in accordance therewith.  In the event that the provisions of  this Agreement and the Plan conflict, the Plan shall control.  The Participant hereby acknowledges  receipt of a copy of the Plan.  7.9. Entire Agreement.  This Agreement and the Plan constitute the entire  agreement of the parties with respect to the subject matter hereof and supersede in their  entirety all prior undertakings and agreements of the Company and the Participant with respect  to the subject matter hereof, and may not be modified adversely to the Participant’s interest  except by means of a writing signed by the Company and the Participant.  7.10. Partial Invalidity.  The invalidity or unenforceability of any particular  provision of this Agreement shall not affect the other provisions hereof and this Agreement shall  be construed in all respects as if such invalid or unenforceable provision was omitted.    2 NTD: Confirm address and contact person.   

 

      Page 9 of 9  277619342v.3  7.11. Amendment and Waiver.  The Company may amend the provisions of this  Agreement at any time; provided that an amendment that would adversely affect the  Participant’s rights under this Agreement shall be subject to the written consent of the  Participant.  No course of conduct or failure or delay in enforcing the provisions of this Agreement  shall affect the validity, binding effect or enforceability of this Agreement.  7.12. Compliance with Section 409A of the Code.  This Award is intended to be  exempt from or comply with Section 409A of the Code, and shall be interpreted and construed  accordingly.  To the extent this Agreement provides for the Award to become vested and be  settled upon the Participant’s termination of employment, the applicable shares of Stock shall be  transferred to the Participant or his or her beneficiary upon the Participant’s “separation from  service,” within the meaning of Section 409A of the Code; provided that if the Participant is a  “specified employee,” within the meaning of Section 409A of the Code, then to the extent the  Award constitutes nonqualified deferred compensation, within the meaning of Section 409A of  the Code, such shares of Stock shall be transferred to the Participant or his or her beneficiary  upon the earlier to occur of (i) the six-month anniversary of such separation from service and  (ii) the date of the Participant’s death.ceg-20211231x10kxexh1026

      SEPARATION AGREEMENT  THIS SEPARATION AGREEMENT (this “Agreement”) is entered into as of    , 20    between  Constellation Energy Corporation (“Constellation”),    (“Subsidiary”, and, collectively with Constellation,  the “Company”) and     (the “Executive”).  WITNESSETH:  WHEREAS, the Executive is separating from all positions with the Company and its respective affiliates.  NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the adequacy and  sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:   Resignation & Termination of Employment. The Executive’s employment will be terminated and  Executive hereby resigns, each effective as of the close of business on   , 20    (the “Termination Date”),  from his or her position as ____ and from all other positions as an officer or director of Constellation and its subsidiaries and  affiliates. During the period commencing on the date hereof and ending on the Termination Date, Executive shall cooperate  with and assist in the orderly transition of his or her duties, and shall diligently perform such other services reasonably  consistent with his or her position as may be requested from time to time. Executive’s current base salary and annual  incentive target shall remain in effect, and Executive (and his or her eligible dependents) shall also remain eligible to  participate in the Company’s applicable employee benefit plans, and shall remain subject to and comply with the Company’s  code of business conduct and other employment policies.   Payment of Accrued Amounts. The Company shall pay to the Executive the portion of his or her annual  salary that has accrued but is unpaid as of the Termination Date and an additional amount representing the Executive’s  accrued but unused vacation days as of the Termination Date, in each case not later than the second payroll date after the  Termination Date.   Severance Payments. The Company shall pay to the Executive:  (a) cash severance payments in an aggregate amount equal to $ [2.0 for named executive officers; 1.25 - 2.0 for  other officers] times the sum of (i) $ which is equal to the product of (representing the Executive’s annual base salary) and  (ii) $ (representing the Executive’s target annual incentive). For named executive officers and other “specified employees”  within the meaning of section 409A of the Code, payment shall commence in the form of a lump sum payment of $ to be  made as of the first payroll date occurring on or after the date that is six months after the Termination Date, followed by  substantially equal regular payroll installments of the remainder over a period of [eighteen for named executive officers;  twelve to eighteen for other officers] months; for other officers, payment shall commence not later than 45 days after the  Termination Date in substantially equal payroll installments over a period of [15 - 24 months]; and  (b) a pro-rated annual incentive award for [the year in which the Termination Date occurs] based on the  number of days elapsed during such year as of the Termination Date, the amount of which (if any) shall be determined based  on business performance measures in a manner consistent with that applied to active peer executives of Subsidiary (assuming  a meaningful impact performance rating) and payable at the time such awards are paid to such executives (but not later than  March 15 of the following year), and each such payment shall be considered a separate short-term deferral for purposes of  section 409A of the Internal Revenue Code (“Code”).   Tax Withholding. The Company shall deduct from the amounts payable to the Executive pursuant to this  Agreement the amount of all required federal, state and local withholding taxes in accordance with the Executive’s Form W-4  on file with the Company and all applicable social security and Medicare taxes.   Outplacement Assistance and Financial Counseling Services. During the twelve-month period following  the Termination Date, the Company shall reimburse the Executive for reasonable fees incurred for services rendered to the  Executive by a professional outplacement organization selected by the Executive and reasonably acceptable to the Company  to provide individual outplacement services, and Executive shall be eligible to receive financial counseling services  

 

      consistent with the terms and conditions applicable to active peer executives under Constellation’s executive perquisite  policy. Executive may apply for external positions via search firms which also recruit executives for the Company.   Long Term Incentive Awards.  (a) Executive shall remain eligible to receive long-term performance share awards under Constellation’s long- term incentive program for the performance cycles commencing in the year in which the Termination Date occurs and the  two preceding years to the extent provided under the terms and conditions of the program in effect at the time of grant, and  the respective payout amounts (if any) of which shall be determined in a manner consistent with that used to determine the  amounts of such awards payable to active executives for such respective periods, and each such award shall be payable at the  time or times such respective awards are paid to active executives and considered a separate, short-term deferral for purposes  of section 409A of the Code; and  (b) the non-vested portions of Executive’s restricted stock unit awards under Constellation’s long term  incentive program in effect on the date of grant shall vest to the extent provided under the terms and conditions of the  program as of the Termination Date [and, with respect to named executive officers and other “specified employees,” payable  six months after the Termination Date].  All such awards payable in shares shall be subject to the Company’s applicable resale restrictions, if any.   Supplemental Executive Retirement Benefits. The Executive shall be eligible for a retirement benefit under  the Company’s applicable supplemental non-qualified pension plan (the “SERP”), if any, in accordance with the terms and  conditions thereof, except that in determining such benefit, the Executive shall be subject to the Executive’s timely execution  of the Waiver and Release, be credited with [24 months for named executive officers; 15 -24 months for other officers]  additional service calculated as though he or she received the severance benefits specified in Section 3(a) as regular salary  and incentive pay over such period (and limited in its application to the amounts of such payments that exceed the  compensation limitations applicable to qualified pension plans under the Code) and any other service previously granted to  such Executive. Such benefit shall be paid as provided in Section 8(c).   Employee and Other Benefits.  (a) During the period commencing on the Termination Date and ending [24 months for named executive  officers; 15 - 24 months for other officers] after the Termination Date (the “Severance Period ”) and in satisfaction of  COBRA continuation coverage during such period with respect to healthcare benefits, (i) the Executive (and his or her  participating dependents) shall be eligible to participate in, and shall receive benefits under Constellation’s welfare benefit  plans (including medical, dental and vision) in which the Executive (and his or her eligible dependents) were participating  immediately prior to the Termination Date, and (ii) the Executive shall be eligible to participate in the life insurance  programs in which he or she was a participant immediately prior to the Termination Date, in each case on the same basis as if  the Executive had remained actively employed during the Severance Period.  (b) Following the Severance Period, if the Executive has attained at least age 50 and has completed at least 10  years of service as of the end of the Severance Period, including, with respect to Executives who were employed immediately  prior to the spin-off of Constellation Energy Corporation by Exelon Corporation or one of its Subsidiaries and employed  immediately after the spin-off by the Company or one of its Subsidiaries, years of service with Exelon Corporation and its  Subsidiaries, the Executive (and his or her eligible dependents) shall be eligible for retiree benefits in accordance with and  subject to the terms and conditions of the Company’s applicable health care plans, as in effect for employees of his or her  legacy business unit from time to time (including the Company’s right to amend or terminate such plans at any time). Such  benefits shall not duplicate any benefits that may then be available to the Executive from any other employer and shall be  secondary to Medicare.  (c) The Company shall pay to the Executive, in the time and manner specified in the terms and conditions of  such plans and any distribution elections by the Executive in effect thereunder, his or her account balances (if any) under  Constellation’s applicable deferred compensation plans, as adjusted by any applicable earnings and losses on such account  balances, and the Executive’s benefit under any applicable supplemental executive retirement plan.  

 

      (d) The Executive shall be entitled to purchase the laptop computer furnished by the Company for his or her  use, subject to removal of data and programs as determined by the Company. The Executive shall be responsible for payment  of expenses incurred after the Termination Date with respect to the Company-owned cellular phone furnished for his or her  use.  (e) If the Executive is entitled to any benefit under any employee benefit plan of the Company that is accrued  and vested on the Termination Date and that is not expressly referred to in this Agreement, such benefit shall be provided to  the Executive in accordance with the terms of such employee benefit plan.  (f) Notwithstanding Section 8(e) or anything else contained in this Agreement to the contrary, the Executive  acknowledges and agrees that he or she is not and shall not be entitled to benefits under any other severance or change in  control plan, program, agreement or arrangement, and that the benefits provided under this Agreement shall be the sole and  exclusive benefits to which the Executive may become entitled upon his or her termination of employment. In the event the  Executive dies prior to executing the Waiver and Release, neither he or she, his or her estate, nor any other person shall be  entitled to any further compensation or benefits under this Agreement, unless and until the executor of the Executive’s estate  (and/or such other heirs or representatives as may be requested by the Company) executes upon Company request and does  not revoke such a Waiver and Release.   Waiver and Release. Notwithstanding anything herein to the contrary, Executive’s right to the payments  and benefits under this Agreement shall be contingent upon (a) Executive having executed and delivered to the Company a  waiver and general release agreement in the form attached hereto (the “Waiver and Release”) not earlier than the Termination  Date but in no event more than 21 days [45 days if a group termination] after the Termination Date (the “Consideration  Period”), (b) Executive not revoking such release in accordance with the terms of the release and (c) Executive not violating  any of Executive’s on-going obligations under this Agreement; provided, however, that the Company has the discretion to  pay such benefits prior to receipt of the Waiver and Release and/or the expiration of the revocation period; provided further  that if Executive does not execute and deliver the Waiver and Release to the Company prior to the expiration of the  Consideration Period or if the Executive revokes the Waiver and Release in accordance with its terms, Executive shall pay to  the Company within 10 days following the expiration of the Consideration Period or the date such release was revoked, a  lump sum payment of all payments received by Executive to date hereunder.   Restrictive Covenants. The Executive acknowledges and agrees that he or she is bound by, and subject to,  the Non-Solicitation and Confidentiality Agreement dated as of _____ (the “Restrictive Covenants”) and the Waiver and  Release. The Executive shall comply with, and observe, the Restrictive Covenants including, without limitation, the  confidential information, non-solicitation and intellectual property provisions and related covenants contained therein, all of  which are hereby incorporated by reference. In the event that Executive has breached any of the Restrictive Covenants or the  Waiver and Release or has engaged in conduct during his or her employment with the Company that would constitute  grounds for termination for Cause (as defined in the Constellation Senior Management Severance Plan), benefits under this  Agreement shall terminate immediately, and Executive shall reimburse Constellation for any benefits received.   Certain Tax Matters.  (a) If it is determined by Constellation’s independent auditors that any severance payment, benefit or  enhancement provided to the Executive pursuant to the terms of the this Agreement is or will become subject to any excise  tax under section 4999 of the Code, or any similar tax payable under any United States federal, state, local, foreign or other  law (“Excise Taxes”), then such payment, benefit or enhancement shall be reduced to the largest amount which would not  cause any such Excise Tax to by payable be the Executive and not cause a loss of the related income tax deduction by the  Company.  (b) The parties intend for this Agreement to comply with section 409A of the Code. In the event the timing of  any payment or benefit under this Agreement would result in any tax or penalty under section 409A of the Code, the  Company may reasonably adjust the timing of such payment or benefit if doing so will eliminate or materially reduce such  tax or penalty and amend this Agreement accordingly. Executive acknowledges that Executive has been advised to consult  Executive’s personal tax advisor concerning this Agreement, and has not relied on the Company for tax advice.   Non-disparagement. The Executive shall not publish, comment upon or disseminate any public statements  suggesting or accusing the Company or any of its affiliates, employees, officers, directors or agents of any misconduct or  

 

      unlawful behavior, or that brings the Company or any of its affiliates or the employees, officers, directors or agents of the  Company or any of its affiliates into disrepute, or tarnish any of their images or reputations. The provisions of this Section 12  shall not apply to truthful testimony as a witness, compliance with other legal obligations, assertion of or defense against any  claim of breach of this Agreement, or any activity that otherwise may be required or permitted by the lawful order of a court  or agency of competent jurisdiction, and shall not require the Executive to make false statements or disclosures.   Publicity. Executive shall not issue or cause the publication of any press release or other announcement  with respect to the terms or provisions of this Agreement, nor disclose the contents hereof to any third party (other than to  members of his or her immediate family or to tax, financial and legal advisors), without obtaining the consent of  Constellation, except where such release, announcement or disclosure shall be required by applicable law or administrative  regulation or agency or other legal process.   Other Employment; Other Plans. The Executive shall not be obligated to seek other employment or take  any other action by way of mitigation of the amounts payable to the Executive under any provision of this Agreement. The  amounts payable hereunder shall not be reduced by any payments received by the Executive from any other employer;  provided, however, that any continued welfare benefits provided for by Section 8(a) shall not duplicate any benefits that are  provided to the Executive and his or her family by such other employer and shall be secondary to any coverage provided by  Medicare.   Cooperation by the Executive. During the Severance Period, the Executive shall (a) be reasonably available  to the Company to respond to requests by them for information pertaining to or relating to matters which may be within the  knowledge of the Executive and (b) cooperate with the Company in connection with any existing or future litigation or other  proceedings brought by or against the Company, its subsidiaries or affiliates, to the extent Constellation reasonably deems the  Executive’s cooperation necessary, including truthful testimony in any related proceeding.   Successors; Binding Agreement. This Agreement shall inure to the benefit of and be binding upon the  Company and its successors, and by the Executive, his or her spouse, personal or legal representatives, executors,  administrators and heirs. This Agreement, being personal, may not be assigned by Executive.   Governing Law; Validity. This Agreement shall be interpreted, construed and enforced in accordance with  the terms of the Constellation Senior Management Severance Plan, and the applicable provisions of the Employee Retirement  Income Security Act of 1974, as amended (“ERISA”) and section 409A of the Code.   Entire Agreement. This Agreement and the Waiver and Release constitute the entire agreement and  understanding between the parties with respect to the subject matter hereof and supersede and preempt any other  understandings, agreements or representations by or between the parties, written or oral, which may have related in any  manner to the subject matter hereof. Executive acknowledges that the Company has made no representations regarding the  tax consequences of payments under this Agreement and has had the opportunity to consult Executive’s tax advisor.   Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed to be  an original and both of which together shall constitute one and the same instrument.   Miscellaneous. No provision of this Agreement may be modified or waived unless such modification or  waiver is agreed to in writing and executed by the Executive and by a duly authorized officer of the Company. No waiver by  either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of  this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions  at the same or at any prior or subsequent time. Failure by the Executive or the Company to insist upon strict compliance with  any provision of this Agreement or to assert any right which the Executive or the Company may have hereunder shall not be  deemed to be a waiver of such provision or right or any other provision or right of this Agreement.   Beneficiary. If the Executive dies prior to receiving all of the amounts payable hereunder (other than  amounts payable under any plan referenced in Section 8, which shall be governed by any beneficiary designation in effect  thereunder) but after executing the Waiver and Release, such amounts shall be paid, except as may be otherwise expressly  provided herein or in the applicable plans, to the beneficiary (“Beneficiary”) designated with respect to this Agreement by  the Executive in writing to the Vice President, Corporate Compensation of the Company during his or her lifetime, which the  

 

      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 or her surviving spouse, and if there be none, to his or her estate.   Nonalienation of Benefits. Benefits payable under this Agreement shall not be subject in any manner to  anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, prior to actually being received by the  Executive, and any such attempt to dispose of any right to benefits payable hereunder shall be void.   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, except that in the event a determination is made that the Restrictive Covenants as applied to the  Executive are invalid or unenforceable in whole or in part, then this Agreement shall be void and the Company shall have no  obligation to provide benefits hereunder. 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.   Communications. Nothing in this Agreement or the Waiver and Release shall be construed to prohibit or  limit the Executive from filing a charge with, or reporting possible violations of law or regulation to any governmental  agency or entity, including but not limited to the National Labor Relations Board, Nuclear Regulatory Commission, U.S.  Equal Opportunity Commission, the Department of Labor, the Department of Justice, the Securities Exchange Commission,  the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower  provisions of applicable law or regulation, or taking any other action protected under section 211 of the Energy  Reorganization Act. The Executive does not need the prior authorization of the Company to make any such charges, reports  or disclosures, and is not required to notify the Company that Executive has made such charges reports or disclosures, and no  such report or disclosure shall be considered a violation of Section 12 of this Agreement or the Waiver and Release. In  addition, neither this Agreement nor the Waiver and Release limits the Executive’s ability to receive a monetary award from  a government-administered whistleblower award program for providing any such reports or disclosures directly to a  governmental agency. Executive acknowledges, however, that the Waiver and Release requires Executive to specifically  waive all rights to recover any monetary damages from the Company, including but not limited to lost wages and benefits,  lost pay, damages for emotional distress, punitive damages, reinstatement, and attorneys’ fees and costs.   Sections. Except where otherwise indicated by the context, any reference to a “Section” shall be to a  Section of this Agreement.  IN WITNESS WHEREOF, Constellation and Subsidiary have caused this Agreement to be executed by their duly authorized  officers and the Executive has executed this Agreement as of the day and year first above written.    CONSTELLATION ENERGY CORPORATION  By: __________________________  Name:   ___________________________  Title: ___________________________    SUBSIDIARY  By: ____________________________  Name:    ____________________________  Title: ____________________________  

 

        EXECUTIVE  By:     ____________________________  Name: ____________________________     

 

      WAIVER AND RELEASE UNDER SEPARATION AGREEMENT  In consideration for the Executive’s receiving severance benefits under the Separation Agreement (as defined below), (the  “Executive”) hereby agrees as follows:   Release. Except with respect to the Company’s obligations under the Separation Agreement by and  between Constellation Energy Corporation, [Executive’s employing subsidiary] (collectively, the “Company”) and the  Executive dated as of _______(“Separation Agreement”), the Executive, on behalf of Executive and his or her heirs,  executors, assigns, agents, legal representatives and personal representatives, hereby releases, acquits and forever discharges  the Company, its agents, the subsidiaries, affiliates, and their respective officers, directors, agents, servants, employees,  attorneys, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of  action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or  otherwise, known and unknown, foreseen or unforeseen, disclosed and undisclosed, suspected and unsuspected, arising out of  or in any way related to agreements, events, acts or conduct at any time prior to the day of execution of this Waiver and  Release, including but not limited to any and all such claims and demands directly or indirectly arising out of or in any way  connected with the Executive’s employment or other service with the Company, or any of its Subsidiaries or affiliates; the  Executive’s termination of employment and other service with the Company or any of its subsidiaries or affiliates; claims or  demands related to salary, bonuses, commissions, stock, stock options, restricted stock or any other ownership interests in the  Company or any of its subsidiaries and affiliates, vacation pay, fringe benefits, expense reimbursements, sabbatical benefits,  severance, change in control or other separation benefits, or any other form of compensation or equity; and claims pursuant to  any federal, state, local law, statute, ordinance, common law or other cause of action including but not limited to, the federal  Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended; the federal  Americans with Disabilities Act of 1990; the Employee Retirement Income Security Act of 1974, as amended, tort law;  contract law; wrongful discharge; discrimination; fraud; defamation; harassment; emotional distress; or breach of the  covenant of good faith and fair dealing. This Waiver and Release does not apply to (a) the payment of any benefits to which  the Executive may be entitled under the terms of a Company-sponsored tax qualified retirement or savings plan or (b)  Executive’s entitlement to indemnification, and coverage as an insured, with respect to his service as an officer, director,  employee or agent in accordance with the terms and conditions of Article VII of the Constellation Energy Corporation  Amended and Restated Bylaws.   No Inducement. The Executive agrees that no promise or inducement to enter into this Waiver or Release  has been offered or made except as set forth in this Waiver and Release and the Separation Agreement, that the Executive is  entering into this Waiver and Release without any threat or coercion and without reliance on any statement or representation  made on behalf of the Company or any of its subsidiaries or affiliates, or by any person employed by or representing the  Company or any of its subsidiaries or affiliates, except for the written provisions and promises contained in this Waiver and  Release and the Separation Agreement.   Advice of Counsel; Time to Consider; Revocation. The Executive acknowledges the following:  (a) The Executive has read this Waiver and Release, and understands its legal and binding effect,  including that by signing and not revoking this Waiver and Release the Executive waives and releases any and all  claims under the Age Discrimination in Employment Act of 1967, as amended, including but not limited to the Older  Workers Benefits Protection Act. The Executive is acting voluntarily and of the Executive’s own free will in executing  this Waiver and Release.  (b) The Executive has been advised to seek and has had the opportunity to seek legal counsel in  connection with this Waiver and Release.  (c) The Executive was given at least [twenty-one (21) / forty-five (45)] days to consider the terms of this  Waiver and Release before signing it.  (d) [At the time Executive was given this Waiver and Release, Executive was informed that his or her  termination was not part of a group separation.]  

 

      The Executive understands that, if the Executive signs the Waiver and Release, the Executive may revoke it within  seven (7) days after signing it, provided that Executive will not receive any severance benefits under the Separation  Agreement. The Executive understands that this Waiver and Release will not be effective until after the seven-day  period has expired and no consideration will be due the Executive.   Severability. If all or any part of this Waiver and Release is declared by any court or governmental  authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any other portion of this Waiver and  Release. Any Section or a part of a Section declared to be unlawful or invalid shall, if possible, be construed in a manner  which will give effect to the terms of the Section to the fullest extent possible while remaining lawful and valid.   Amendment. This Waiver and Release shall not be altered, amended, or modified except by written  instrument executed by the Company and the Executive. A waiver of any portion of this Waiver and Release shall not be  deemed a waiver of any other portion of this Waiver and Release.   Applicable Law. The provisions of this Waiver and Release shall be interpreted and construed in  accordance with the laws of the Commonwealth of Pennsylvania without regard to its choice of law principles.  IN WITNESS WHEREOF, the Executive has executed this Waiver and Release as of the date specified below.  [EXECUTIVE]  By: ____________________________    Name: ____________________________

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