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Exhibit 10(c)  

 
  Constellation Energy Group, Inc.
  Deferred Compensation Plan
  For Non-Employee Directors    
    

        1.    Objective.    The objective of this Plan is to offer a portion of the Compensation of non-employee
Directors of Constellation Energy Group in the form of Stock Units, thereby promoting a greater identity of interest between Constellation Energy Group's non-employee Directors and its
stockholders, and to enable such Directors to defer receipt of their Compensation that is payable in cash. 

        2.    Definitions.    As used herein, the following terms will have the meaning specified below: 

        "Annual Retainer" means the amount payable by Constellation Energy Group to a Director as annual compensation for performance of services
as a Director, and includes Committee Chair retainers. All other amounts (including without limitation Board/committee meeting fees, and expense reimbursements) shall be excluded in calculating the
amount of the Annual Retainer. 

        "Board" means the Board of Directors of Constellation Energy Group. 

        "Cash Account" means an account by that name established pursuant to Section 7. The maintenance of Cash Accounts is for bookkeeping
purposes only. 

        "Change in Control" means the occurrence of any one of the following events: 

        (i)    individuals
who, on January 24, 2003, constitute the Board (the "Incumbent Directors") cease for any reason to
constitute at least a majority of the Board, provided that any person becoming a director subsequent to January 24, 2003, whose election or nomination for election was approved by a vote of at
least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of Constellation Energy Group (the
"Company") in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director;  provided,
however, that no individual initially elected or nominated as a director of the Company as a
result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board
shall be deemed to be an Incumbent Director; 

        (ii)   any
"person" (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act") and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company's then outstanding securities eligible to vote for the election of the
Board (the "Company Voting Securities"); provided,  however, that the event described in this paragraph 
(ii) shall not be deemed to be a Change in Control by virtue of any of the following
acquisitions: (A) by the Company or any corporation with respect to which the Company owns a majority of the outstanding shares of common stock or has the power to vote or direct the voting of
sufficient securities to elect a majority of the directors (a "Subsidiary Company"), (B) by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary Company, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, (D) pursuant to a
Non-Qualifying Transaction (as defined in paragraph (iii)), or (E) pursuant to any acquisition by Plan participant or any group of persons including Plan participant (or any
entity controlled by Plan participant or any group of persons including Plan participant); 

        (iii)  Company
shareholder approval of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its
Subsidiary Companies, whether for such transaction or the issuance of securities in the transaction (a "Business Combination"), unless immediately
following such Business Combination: (A) more than 60% of 

 

the
total voting power of (x) the corporation resulting from such Business Combination (the "Surviving Corporation"), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 95% of the voting securities eligible to elect directors of the Surviving Corporation (the
"Parent Corporation"), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if
applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any
employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 20% or more of
the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at
least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business
Combination were Incumbent Directors at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all
of the criteria specified in (A), (B), and (C) above shall be deemed to be a "Non-Qualifying Transaction"); or 

        (iv)  the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or the consummation of a sale of all or substantially all of the
Company's assets. 

Notwithstanding
the foregoing, a Change in Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 20% of the Company Voting Securities
as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided,  that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the
percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur. 

        "Committee" means the Committee on Management of the Board. 

        "Common Stock" means the common stock, without par value, of Constellation Energy Group. 

        "Compensation" means any Annual Retainer and meeting fees payable by Constellation Energy Group to a participant in his/her capacity as a
Director. Compensation excludes expense reimbursements paid by Constellation Energy Group to a participant in his/her capacity as a Director. 

        "Constellation Energy Group" means Constellation Energy Group, Inc., a Maryland corporation, or its successor. 

        "Deferred Cash Compensation" means any cash Compensation that is voluntarily deferred by a participant pursuant to Section 6. 

        "Director" means a member of the Board who is not an employee of Constellation Energy Group or any of its subsidiaries/ affiliates. 

        "Disability" or "Disabled" means that the Plan Administrator has determined that the
participant is unable to fulfill his/her responsibilities of Board membership because of illness or injury. For purposes of this Plan, a participant's eligibility to participate shall be deemed to
have terminated on the date he/she is determined by the Plan Administrator to be Disabled. 

        "Earnings" means, with respect to the Cash Account, hypothetical interest credited to the Cash Account. 

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        "Earnings" means, with respect to the Stock Account, hypothetical dividends credited to the Stock Account. 

        "Fair Market Value" means, as of any specified date, the average closing price of a share of Common Stock, reported in "New York Stock
Exchange Composite Transactions" as published in the Eastern Edition of The Wall Street Journal averaged for the most recent 20 days during which
Common Stock was traded on the New York Stock Exchange (including such valuation date if a trading date). 

        "Plan Accounts" means a participant's Cash Account and/or Stock Account. The maintenance of Plan Accounts is for bookkeeping purposes
only. 

        "Plan Administrator" means, as set forth in Section 3, the Board. 

        "Stock Account" means an account by that name established pursuant to Section 8. The maintenance of Stock Accounts is for
bookkeeping purposes only. 

        "Stock Unit(s)" means the share equivalents credited to a Participant's Stock Account pursuant to Section 8. The use of Stock Units
is for bookkeeping purposes only; the Stock Units are not actual shares of Common Stock. Constellation Energy Group will not reserve or otherwise set aside any Common Stock for or to any Stock
Account. 

        3.    Plan Administration.    

        (i)    Plan Administrator—The Plan is administered by the Board, who has sole authority to interpret the Plan, and,
in general, to make all other determinations advisable for the administration of the Plan to achieve its stated objective. Decisions by the Plan Administrator shall be final and binding upon all
persons for all purposes. The Plan Administrator shall have the power to delegate all or any part of its non-discretionary duties to one or more designees, and to withdraw such authority,
by written designation. 

        (ii)    Amendment—This Plan may be amended from time to time or suspended or terminated at any time, at the written
direction of the Plan Administrator. However, amendments required to keep the Plan in compliance with applicable laws and regulations may be made by the Vice President—Human Resources of
Constellation Energy Group (or other vice president succeeding to that function) on advice of counsel. Nothing herein creates a vested right. 

        (iii)    Indemnification—The Plan Administrator (and its designees), Chairman of the Board, Chief Executive Officer,
President, and Vice President-Human Resources of Constellation Energy Group and all other employees of Constellation Energy Group or its subsidiaries/affiliates whose assigned duties include matters
under the Plan, shall be indemnified by Constellation Energy Group or its subsidiaries /affiliates or from proceeds under insurance policies purchased by Constellation Energy Group or its
subsidiaries/affiliates, against any and all liabilities arising by reason of any act or failure to act made in good faith pursuant to the provisions of the Plan, including expenses reasonably
incurred in the defense of any related claim. 

        4.    Eligibility and Participation.    

        (i)    Mandatory participation—A Director, at the discretion of the Board, may be required at such times designated
by the Board to participate in this Plan with respect to the receipt of all or part of his/her Compensation in the form of Stock Units under Section 5 of the Plan. 

        (ii)    Voluntary participation—A Director is eligible to participate in the Plan by electing to defer all or
certain portions of the participant's Compensation, that is payable in cash, under Section 6 of the Plan, while so classified. 

        (iii)    Termination of participation—Eligibility to participate shall terminate on the date the participant ceases
to be a Director. Notwithstanding termination of eligibility, such person with 

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Plan
Accounts will remain a participant of the Plan, solely for purposes of the administration of existing Plan Accounts, and no additional Stock Units will be granted and no further deferrals of cash
Compensation under the Plan will be permitted. 

        5.    Mandatory Stock Units.    To the extent designated from time to time by the Board as set forth in
Section 4(i), the Stock Account of a participant will be credited on January 1 of each applicable calendar year with Stock Units equal to the number of shares of Common Stock (including
fractions of a share) that could have been purchased, with the applicable percentage (as designated by the Board) of the participant's Annual Retainer for such calendar year, at Fair Market Value on
such January 1. 

        If
a participant initially becomes eligible to participate in the Plan during such applicable calendar year, the Stock Account of the participant for such calendar year will be credited,
on the date that is the first day of the calendar month after the participant initially becomes eligible to participate in the Plan, with Stock Units equal to the number of shares of Common Stock
(including fractions of a share) that could have been purchased at Fair Market Value on such date, with an amount equal to (i) the applicable percentage (as designated by the Board) of the
participant's Annual Retainer multiplied by (ii) a fraction the numerator of which is the number of full calendar months in the calendar year on and after such date, and the denominator of
which is 12. 

        The
Stock Account will be maintained pursuant to Section 8. 

        6.    Cash Compensation Deferral Election.    A participant may elect to defer none, all, fifty percent (50%), or
seventy-five percent (75%) of his/her other Compensation that is payable in cash (i.e., one hundred percent (100%) of all other Compensation that is not subject to any mandatory Stock
Units). A participant's cash Compensation deferral election with respect to the Annual Retainer shall specify whether the deferred Annual Retainer is to be credited to the Cash Account or to the Stock
Account. All other Cash Compensation that a participant elects to defer will be credited to the Cash Account. 

        Such
election shall be made by written notification to the Vice President-Human Resources of Constellation Energy Group (or other vice president succeeding to that function). Such
election shall be made prior to the calendar year during which the applicable cash Compensation is payable, and shall be effective as of the first day of such calendar year. If a participant initially
becomes eligible to participate in the Plan during a calendar year, the election for such calendar year must be made within thirty (30) calendar days after the date the participant initially
becomes eligible to participate in the Plan, and shall be effective with respect to Compensation earned after the date the election is received
by the Vice President-Human Resources of Constellation Energy Group (or other vice president succeeding to that function). Elections under this Section shall remain in effect for all succeeding
calendar years until revoked. Elections may be revoked by written notification to the Vice President-Human Resources of Constellation Energy Group (or other vice president succeeding to that
function), and shall be effective as of the first day of the calendar year following the calendar year during which the revocation is received by such Vice President. 

        Notwithstanding
anything herein contained to the contrary, the Plan Administrator shall have the right in its sole discretion to permit a participant to defer other percentages of
his/her Annual Retainer and/or other Compensation that is payable in cash. 

        7.    Cash Accounts.    The Board may specify that cash Compensation that consists of the Annual Retainer that a
participant has elected to defer into the Cash Account is credited to the participant's Cash Account on January 1 (or if later, the date the participant's initial election to participate in the
Plan becomes effective). All other cash Compensation that a participant has elected to defer is credited to the participant's Cash Account on each date such cash Compensation would otherwise have been
paid to the Director. A participant's Cash Account shall be credited with earnings at the rate earned by the Interest Income Fund under the Constellation Energy Group, Inc. Employee Savings
Plan, and 

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computed
in the same manner as under such plan. Earnings are credited to the Cash Account commencing on the date the applicable Deferred Cash Compensation is credited to the Cash Account. 

        8.    Stock Accounts.    The Board may specify that cash Compensation that consists of the Annual Retainer that a
participant has elected to defer into the Stock Account is credited to the participant's Stock Account on January 1 (or if later, the date the participant's initial election to participate in
the Plan becomes effective). All other cash Compensation that a participant has elected to defer into the Stock Account is credited to the participant's Stock Account on each date such cash
Compensation would otherwise have been paid to the Director. A participant's Stock Account shall be credited with Stock Units equal to the number of shares of Common Stock (including fractions of a
share) that could have been purchased with such Deferred Cash Compensation, at Fair Market Value on such date. Grants of mandatory Stock Units are credited to the Stock Account as set forth in
Section 5. 

        As
of any dividend distribution date for the Common Stock, the participant's Stock Account shall be credited with additional Stock Units equal to the number of shares of Common Stock
(including fractions of a share) that could have been purchased, at the closing price of a share of Common Stock on such date as reported in "New York Stock Exchange Composite Transactions" as
published in the Eastern Edition of The Wall Street Journal, with the amount which would have been paid as dividends on that number of shares (including
fractions of a share) of Common Stock which is equal to the number of Stock Units then credited to the participant's Stock Account. 

        In
the event of any change in the outstanding shares of Common Stock by reason of any stock dividend or split, recapitalization, combination or exchange of shares or other similar
changes in the Common Stock, then appropriate adjustments shall be made in the number of Stock Units in each participant's Stock Account. Such adjustments shall be made effective on the date of the
change related to the Common Stock. 

        9.    Distributions of Plan Accounts.    Distributions of Plan Accounts shall be made in cash only, from the general
assets of Constellation Energy Group. 

        A
participant may elect (by notification in the form and manner established by the Vice President—Human Resources of Constellation Energy Group (or other Vice President
succeeding to that function) from time to time) to begin distributions (i) in the calendar year following the calendar year that eligibility to participate terminates, (ii) in the
calendar year following the calendar year in which a participant attains age 70, if later, or (iii) any calendar year between (i) and (ii). Such election must be made prior to the end of
the calendar year in which eligibility to participate terminates. Alternatively, a participant who reaches age 70 while still eligible to participate may elect to begin distributions, in the calendar
year following the calendar year that the participant reaches age 70, of amounts in his/her Plan Accounts as of the end of the calendar year the participant reaches age 70. Such election must be made
prior to the end of the calendar year in which the participant reaches age 70, and a distribution election to receive any subsequently deferred amounts beginning in the calendar year following the
calendar year that eligibility to participate terminates, must be made prior to the end of the calendar year in which eligibility to participate terminates. 

        A
participant may elect (by notification in the form and manner established by the Vice President-Human Resources of Constellation Energy Group (or other vice President succeeding to
that function) from time to time) to receive distributions in a single payment or in annual installments during a period not to exceed fifteen years. The single payment or the first installment
payment, whichever is applicable, shall be made within the first sixty (60) calendar days of the calendar year elected for distribution. Subsequent installments, if any, shall be made within
the first sixty (60) calendar days of each succeeding calendar year until the participant's Cash Account has been paid out. 

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        In
the event applicable elections are not timely made, a participant shall receive a distribution in a single payment within the first sixty (60) calendar days of the calendar
year following the calendar year that eligibility to participate terminates. 

        The
value of the Stock Account, which is equal to the number of Stock Units in the Stock Account multiplied by the Fair Market Value on the date on which the participant's eligibility to
participate terminates (or, the date that is the last day of the calendar year during which the participant reaches age 70, for a participant who elects to begin distributions while still eligible to
participate), is
transferred to the Cash Account on such date. Earnings are credited to the Cash Account through the date of distribution, and amounts held for installment payments shall continue to be credited with
Earnings. The value of the Cash Account that is payable in cash on the date of the single payment distribution is equal to the balance in the Cash Account on the date that is no earlier than five
(5) calendar days prior to the day of such distribution ("Distribution Valuation Date"). The amount of any cash distribution to be made in installments from the Cash Account will be determined
by multiplying (i) the balance in such Cash Account on the Distribution Valuation Date by (ii) a fraction, the numerator of which is one and the denominator of which is the number of
installments in which distributions remain to be made (including the current distribution). 

        If
a participant dies or becomes Disabled, the entire unpaid balance of his/her Plan Accounts shall be paid to the beneficiary(ies) designated by the participant by notification in the
form and manner established by the Vice President-Human Resources of Constellation Energy Group (or other vice president succeeding to that function) from time to time or, if no designation was made,
in the event of death, to the estate of the participant, and in the event of Disability, to the participant. Payment shall be made within sixty (60) calendar days after notice of death or
Disability is received by such Vice President, unless prior to the participant's death or Disability, the participant elected (in the form and manner established by the Vice President-Human Resources
of Constellation Energy Group (or other vice president succeeding to that function) from time to time) a delayed and/or installment distribution option for such beneficiary(ies); provided, however
that (i) such a distribution option election shall be effective only if the value of the participant's Plan Accounts is more than $50,000 on the date of the participant's death or Disability;
and (ii) the final distribution must be made to such beneficiary(ies) no later than 15 years after the participant's death or Disability. After the end of the calendar year that a
participant's eligibility to participate terminates, a distribution option election for a particular beneficiary is irrevocable; provided, however, that the participant may make a distribution option
election for a new beneficiary who is initially designated after the participant's eligibility to participate terminates, and such election is irrevocable with respect to the new beneficiary. 

        The
value of the Stock Account, which is equal to the number of Stock Units in the Stock Account multiplied by the Fair Market Value on the date of the participant's death or Disability,
is transferred to the Cash Account on such date. Earnings are credited to the Cash Account through the date of distribution, and amounts held for installment payments shall continue to be credited
with Earnings. The value of the Cash Account that is payable in cash on the date of the single payment distribution is equal to the balance in the Cash Account on the date that is no earlier than five
(5) calendar days prior to the day of such distribution ("Beneficiary Distribution Valuation Date"). The amount of any cash distribution to be made in installments from the Cash Account will be
determined by multiplying (i) the balance in such Cash Account on the Beneficiary Distribution Valuation Date by (ii) a fraction, the numerator of which is one and the denominator of
which is the number of installments in which distributions remain to be made (including the current distribution). 

        Upon
the death of a participant's beneficiary for whom a delayed and/or installment distribution option was elected, the entire unpaid balance of the participant's Cash Account shall be
paid to the beneficiary(ies) designated by the participant's beneficiary by notification in the form and manner established by the Vice President-Human Resources of Constellation Energy Group (or
other vice president succeeding to that function) from time to time or, if no designation was made, to the estate 

6

 

of
the participant's beneficiary. Payment shall be made within sixty (60) calendar days after notice of death is received by such Vice President. The value of the Cash Account that is payable
in cash is equal to the balance in the Cash Account on the date that is no earlier than five (5) calendar days prior to the day of such distribution. 

        Notwithstanding
anything herein contained to the contrary, the Plan Administrator shall have the right in its sole discretion to (i) vary the manner and timing of distributions of
a participant or beneficiary entitled to a distribution under this Section 9, and may make such distributions in a single payment or over a shorter or longer period of time than that elected by
a participant; and (ii) vary the period during which the closing price of Common Stock is referenced to determine the value of the Stock Account that is transferred to the Cash Account on the
date on which the participant's eligibility to participate terminates. Any affected participants will not participate in exercising such discretion. 

        10.    Beneficiaries.    A participant shall have the right to designate, change or rescind a beneficiary(ies) who is
to receive a distribution(s) pursuant to Section 9 in the event of the death or Disability of the participant. A participant's beneficiary(ies) for whom a delayed and/or installment
distribution option was elected shall have the right to designate a beneficiary(ies) who is to receive a distribution pursuant to Section 9 in the event of the death of the participant's
beneficiary(ies). 

        Any
designation, change or recision of the designation of beneficiary shall be made by notification in the form and manner established by the Vice President-Human Resources of
Constellation Energy Group (or other vice president succeeding to that function) from time to time. The last designation of beneficiary received by such Vice President shall be controlling over any
testamentary or purported disposition by the participant (or, if applicable, the participant's beneficiary(ies)), provided that no designation, recision or change thereof shall be effective unless
received by such Vice President prior to the death or Disability (whichever is applicable) of the participant (or, if applicable, the death of the participant's beneficiary(ies)). 

        If
the designated beneficiary is the estate, or the executor or administrator of the estate, of the participant (or, if applicable, the participant's beneficiary(ies)), a distribution
pursuant to Section 9 may be made to the person(s) or entity (including a trust) entitled thereto under the will of the participant (or, if applicable, the participant's beneficiary(ies)), or,
in the case of intestacy, under the laws relating to intestacy. 

        11.    Valuation of Plan Accounts.    The Plan Administrator shall cause the value of a participant's Plan Accounts to
be determined and reported to Constellation Energy Group and the participant at least once per year as of the last business day of the calendar year. The value of the Stock Account will equal the
number of Stock Units in the Stock Account multiplied by the closing price of a share of Common Stock on the last business day of the calendar year as reported in "New York Stock Exchange Composite
Transactions" as published in the Eastern Edition of The Wall Street Journal. The value of the Cash Account will equal the balance in the Cash Account
on the last business day of the calendar year. 

        12.    Withdrawals.    No withdrawals of Plan Accounts may be made, except a participant may at any time request a
hardship withdrawal from his/her Plan Accounts if he/she has incurred an unforeseeable financial emergency. An unforeseeable financial emergency is defined as severe financial hardship to the
participant resulting from a sudden and unexpected illness or accident of the participant (or of his/her dependents), loss of the participant's property due to casualty, or other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control of the participant. The need to send a child to college or the desire to purchase a home are not considered to be
unforeseeable emergencies. The circumstance that will constitute an unforeseeable emergency will depend upon the facts of each case. 

7

 

        A
hardship withdrawal will be permitted by the Plan Administrator only as necessary to satisfy an immediate and heavy financial need. A hardship withdrawal may be permitted only to the
extent reasonably necessary to satisfy the financial need. Payment may not be made to the extent that such hardship is or may be relieved (i) through reimbursement or compensation by insurance
or otherwise, (ii) by liquidation of the participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or (iii) by cessation of
deferrals under the Plan. 

        The
request for hardship withdrawal shall be made by notification in the form and manner established by the Plan Administrator from time to time. Such hardship withdrawal will be
permitted only with approval of the Plan Administrator. The participant will receive a lump sum payment after the Plan Administrator has had reasonable time to consider and then approve the request. 

        The
value of the Stock Account for purposes of processing a hardship cash withdrawal is equal to the number of Stock Units in the Stock Account multiplied by the Fair Market Value on the
date on which the hardship withdrawal is processed. The value of the Cash Account for purposes of processing a hardship cash withdrawal is equal to the balance in the Cash Account on the date on which
the hardship withdrawal is processed. 

        13.    Change in Control.    The terms of this Section 13 shall immediately become operative, without further
action or consent by any person or entity, upon a Change in Control, and once operative shall supersede and control over any other provisions of this Plan. Upon the occurrence of a Change in Control
followed within one year of the date of such Change in Control by the participant's cessation of Board membership for any reason, such participant shall be paid the value of his/her Plan Accounts in a
single, lump sum cash payment. The value of the Stock Account, which is equal to the number of Stock Units in the Stock Account multiplied by the Fair Market Value on the date of the participant's
cessation of Board membership, is transferred to the Cash Account on such date. Earnings are credited to the Cash Account through the date of distribution. The value of the Cash Account that is
payable in cash on the date of the single lump sum cash payment is equal to the balance in the Cash Account on the date that is no earlier than five (5) calendar days prior to the day of such
distribution. Such payment shall be made as soon as practicable, but in no event later than thirty (30) calendar days after the date of the participant's cessation of Board membership. On or
after a Change in Control, no action, including, but not by way of limitation, the amendment, suspension or termination of the Plan, shall be taken which would affect the rights of any participant or
the operation of this Plan with respect to the balance in the participant's Plan Accounts. 

        14.    Withholding.    Constellation Energy Group may withhold to the extent required by law all applicable income and
other taxes from amounts deferred or distributed under the Plan. 

        15.    Copies of Plan Available.    Copies of the Plan and any and all amendments thereto shall be made available to
all participants during normal business hours at the office of the Plan Administrator. 

        16.    Miscellaneous.    

        (i)    Inalienability of benefits—Except as may otherwise be required by law or court order, the interest of each
participant or beneficiary under the Plan cannot be sold, pledged, assigned, alienated or transferred in any manner or be subject to attachment or other legal process of whatever nature; provided,
however, that any applicable taxes may be withheld from any cash benefit payment made under this Plan. 

        (ii)    Controlling law—The Plan and its administration shall be governed by the laws of the State of Maryland,
except to the extent preempted by federal law. 

        (iii)    Gender and number—A masculine pronoun when used herein refers to both men and women and words used in the
singular are intended to include the plural, and vice versa, whenever appropriate. 

8

 

        (iv)    Titles and headings—Titles and headings to articles and sections in the Plan are placed herein solely for
convenience of reference and in any case of conflict, the text of the Plan rather than such titles and headings shall control. 

        (v)    References to law—All references to specific provisions of any federal or state law, rule or regulation shall
be deemed to also include references to any successor provisions or amendments. 

        (vi)    Funding and expenses—Benefits under the Plan are not vested or funded, and shall be paid out of the general
assets of Constellation Energy Group. To the extent that any person acquires a right to receive payments from Constellation Energy Group under this Plan, such rights shall be no greater than the right
of any unsecured general creditor of Constellation Energy Group. The expenses of administering the Plan will be borne by Constellation Energy Group. 

        (vii)    Not a contract—Participation in this Plan shall not constitute a contract of employment or Board membership
between Constellation Energy Group and any person and shall not be deemed to be consideration for, or a condition of, continued employment or Board membership of any person. 

        (viii)    Successors—In the event Constellation Energy Group becomes a party to a merger, consolidation, sale of
substantially all of its assets or any other corporate reorganization in which Constellation Energy Group will not be the surviving corporation or in which the holders of the common stock of
Constellation Energy Group will receive securities of another corporation (in any such case, the "New Company"), then the New Company shall assume the rights and obligations of Constellation Energy
Group under this Plan. 

9

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Exhibit 10(d)  

GRANTOR TRUST AGREEMENT  

 Dated as of April 25, 2003  

 between  

 CONSTELLATION ENERGY GROUP, INC.  

 and  

 CITIBANK, N.A.  

  

 
 

GRANTOR TRUST AGREEMENT    
    
    CONTENTS    
    

	Section 1.	 	Establishment of Trust.	 	1
	 	1.1	 	Trust is established with Trustee.	 	1
	 	1.2	 	Trust is irrevocable.	 	1
	 	1.3	 	Trust is a grantor trust .	 	2
	 	1.4	 	Assets subject to claims of creditors.	 	2
	 	1.5	 	Due date of Trust contributions.	 	2
	 	1.6	 	Discretionary contributions.	 	2
	 	1.7	 	Eligibility for Trust benefits.	 	2
	 	1.8	 	Definition of "Required Contribution."	 	2
	 	1.9	 	Responsibility for Required Contribution calculation.	 	3
	 	1.10	 	Notification upon failure to made Required Contribution.	 	3
	

Section 2.	
 	

Payments to Plan Participants and Their Surviving Spouses.	
 	

3
	 	2.1	 	Constellation Energy required to provide Payment Schedule to Trustee.	 	3
	 	2.2	 	Failure by Constellation Energy to provide Payment Schedule.	 	4
	 	2.3	 	Tax withholding.	 	4
	 	2.4	 	Determination entitlement to benefits.	 	5
	 	2.5	 	Payment of benefits directly by Constellation Energy.	 	5
	 	2.6	 	Authorization for Trustee to defer payments.	 	5
	 	2.7	 	Determination of insufficient assets.	 	5
	 	2.8	 	Notification of insufficiency.	 	6
	 	2.9	 	Restoration of discontinued or reduced payments.	 	6
	 	2.10	 	Determination of immediate taxation.	 	6
	 	2.11	 	Reduction of future benefits following immediate taxation.	 	6
	

Section 3.	
 	

Trustee Responsibility Regarding Payments to Trust Beneficiary When Constellation Energy Is Insolvent.	
 	

6
	 	3.1	 	Payments cease when Constellation Energy is Insolvent.	 	6
	 	3.2	 	Assets subject to claims of creditors.	 	6
	 	3.2(a)	 	Duty to inform Trustee of Constellation Energy's Insolvency.	 	7
	 	3.2(b)	 	Trustee's responsibility to cease payments.	 	7
	 	3.2(c)	 	Trustee reliance on Insolvency evidence.	 	7
	 	3.2(d)	 	Trustee holds assets for general creditors.	 	7
	 	3.2(e)	 	Authority to resume payments.	 	7
	 	3.3	 	Restoration of discontinued payments.	 	7
	

Section 4.	
 	

Payments to Constellation Energy.	
 	

7
	 	4.1	 	Return or diversion of Trust assets.	 	7
	 	4.2	 	Distribution of excess Trust assets to Constellation Energy.	 	8
	 	4.3	 	Distribution of excess Trust assets following a Change of Control.	 	8
	

Section 5.	
 	

Investment Authority.	
 	

8
	 	5.1	 	No investment in Constellation Energy stock.	 	8
	 	5.2	 	Acknowledgement of investment guidelines.	 	8
	 	5.3	 	Constellation Energy may appoint investment advisor.	 	8
	 	5.4	 	Constellation Energy may transfer life insurance to Trust.	 	8
	

Section 6.	
 	

Disposition of Income.	
 	

9
	 	 	 	 	 

i

 

	

Section 7.	
 	

Accounting by Trustee.	
 	

9
	 	7.1	 	Trustee provides monthly accounting to Constellation Energy.	 	9
	 	7.2	 	Deemed approval of accounting by Constellation Energy.	 	9
	 	7.3	 	Tax returns.	 	9
	 	7.4	 	Right of Trustee to judicial settlement of accounts.	 	9
	

Section 8.	
 	

Responsibility of Trustee.	
 	

10
	 	8.1	 	Prudency standard for Trustee.	 	10
	 	8.2	 	Indemnification of Trustee.	 	10
	 	8.3	 	Powers of Trustee.	 	10
	 	8.4	 	Additional powers of Trustee.	 	10
	 	8.5	 	Trustee prohibited from carrying on business through Trust.	 	11
	

Section 9.	
 	

Compensation and Expenses of Trustee.	
 	

11
	 	9.1	 	Trustee's fees.	 	11
	 	9.2	 	Taxes on Trust income.	 	11
	

Section 10.	
 	

Resignation and Removal of Trustee.	
 	

11
	 	10.1	 	Resignation of Trustee.	 	11
	 	10.2	 	Removal of Trustee.	 	11
	 	10.3	 	Removal of Trustee after Change of Control.	 	12
	 	10.4	 	Resignation of Trustee after Change of Control.	 	12
	 	10.5	 	Transfer of assets after resignation or removal of Trustee.	 	12
	 	10.6	 	Appointment of successor Trustee.	 	12
	

Section 11.	
 	

Appointment of Successor.	
 	

12
	 	11.1	 	Appointment of successor after removal or resignation of Trustee.	 	12
	 	11.2	 	Appointment of successor Trustee following Change of Control.	 	12
	 	11.3	 	Responsibility of successor Trustee.	 	12
	 	11.4	 	Trustee provides written account after removal or resignation.	 	12
	

Section 12.	
 	

Amendment or Termination.	
 	

12
	 	12.1	 	Amendments to Trust.	 	12
	 	12.2	 	Termination date of Trust.	 	12
	 	12.3	 	Trust termination after participant approval.	 	13
	 	12.4	 	Amendment following Change of Control.	 	13
	

Section 13.	
 	

Miscellaneous.	
 	

13
	 	13.1	 	Provisions prohibited by law.	 	13
	 	13.2	 	Alienation clause.	 	13
	 	13.3	 	Trust under New York law.	 	13
	 	13.4	 	Definitions and plurals.	 	13
	 	13.5	 	Definition of Change of Control.	 	13
	 	13.6	 	Certification of authority to act.	 	14
	 	13.7	 	Indemnification of Trustee.	 	15
	 	13.8	 	Authority of Trust Agreement.	 	15
	 	13.9	 	Addresses for Trustee and Constellation Energy.	 	15
	

Section 14.	
 	

Effective Date.	
 	

16

ii

 
 

GRANTOR TRUST AGREEMENT
  Dated as of April 25, 2003
  between
  Constellation Energy Group, Inc.
  and
  Citibank, N.A.    
    

        THIS AGREEMENT dated as of April 25, 2003, by and between Constellation Energy Group, Inc., a Maryland corporation, or its successor ("Constellation
Energy") and Citibank, N. A., a national banking association as trustee for the trust created hereby ("Trustee"). 

WITNESSETH THAT:  

        WHEREAS, Constellation Energy has adopted and amended the Constellation Energy Group, Inc. Senior Executive Supplemental Plan and the Constellation Energy
Group, Inc. Supplemental Pension Plan (formerly the Constellation Energy Group, Inc. Executive Benefits Plan) ("Plans"); and 

        WHEREAS,
Constellation Energy has incurred or expects to incur liability under the terms of such Plans for nonqualified supplemental pension retirement benefits with respect to the
individuals participating in such Plans; and 

        WHEREAS,
Baltimore Gas and Electric Company adopted the trust ("Trust") effective July 31, 1994 for the purpose of contributing to the Trust assets to be held therein, subject to
the claims of the company's creditors in the event of the company's Insolvency, as defined in Section 3.1 hereof, until paid to Plan participants and their surviving spouses, as defined in
Section 6 of the Plans, in such manner and at such times as specified in the Plans; and 

        WHEREAS,
the Trust has been subsequently amended as follows: (i) effective April 30, 1999 to reflect the transfer of Baltimore Gas and Electric Company's rights and
obligations under the Grantor Trust Agreement Dated as of July 31, 1994 between Baltimore Gas and Electric Company and Citibank, N.A. to Constellation Energy; (ii) effective
January 1, 2001 to reflect the change in designation of Constellation Energy Group, Inc. from "CEG" to "Constellation Energy", to change the required contribution date from
April 20th to May 31st, and to conform the names of the nonqualified plans funded under the Trust; and (iii) effective April 23, 2003 to conform
the definition of Change in Control under the Trust to the definition under the Plans. 

        WHEREAS,
it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plans as unfunded plans maintained for the
purpose of providing nonqualified supplemental pension retirement benefits for a select group of management or highly compensated employees, for purposes of Title I of the Employee Retirement Income
Security Act of 1974; and 

        WHEREAS,
it is the intention of Constellation Energy to make contributions to the Trust to provide a source of funds to assist in meeting Constellation Energy's liabilities under the
Plans; 

        NOW,
THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows: 

Section 1.    Establishment of Trust.  

        1.1    Constellation Energy hereby adopts and establishes with Trustee the Trust consisting of such sums of cash and other property, including
collateral assignments of interests in certain split dollar life insurance policies, (the "principal"), that currently constitute the Trust and as from time to time shall be paid or delivered to
Trustee to be held, administered, and disposed of by Trustee as provided in this Trust Agreement. The principal of the Trust and any earnings thereon (the "Trust assets") shall be held by Trustee and
shall be dealt with in accordance with the provisions of this Trust Agreement until all payments required by this Trust Agreement have been made. 

        1.2    The
Trust hereby established shall be irrevocable. 

 

        1.3    The
Trust is intended to be a grantor trust, of which Constellation Energy is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly. 

        1.4    The
Trust assets shall be held separate and apart from other funds of Constellation Energy and shall be used exclusively for the uses and purposes of Plan participants,
their surviving spouses, and Constellation Energy's general creditors as herein set forth. Plan participants and their surviving spouses shall have no preferred claim on, or any beneficial ownership
interest in, any Trust assets. Any rights created under the Plans and this Trust Agreement shall be mere unsecured contractual rights of Plan participants and their surviving spouses against
Constellation Energy. Any Trust assets will be subject to the claims of Constellation Energy's general creditors under federal and state law in the event of Insolvency, as defined in
Section 3.1 hereof. 

        1.5    By
August 31, 1994, for the Plan year 1993, BGE was required to irrevocably contribute cash or other property to the Trust in an amount equal to 50% of the
Required Contribution, as defined in Section 1.9 hereof. By April 30 of the year following each of the Plan years 1994-1999, BGE was required to irrevocably contribute
additional cash or other property to the Trust in an amount equal to 100% of the Required Contribution. By May 31st of the year following each of the Plan years 2000-2002,
Constellation Energy shall be required to irrevocably contribute cash or other property to the Trust in an amount equal to 100% of the Required Contribution. 

        1.6    Constellation
Energy, in its sole discretion, may at any time, or from time to time, make additional contributions of cash or other property to the Trust to augment the
Trust assets to be held, administered and disposed of by Trustee as provided in this Trust Agreement. Neither Trustee nor any Plan participant or surviving spouse shall have any right to compel such
additional contributions. 

        1.7    Plan
participants or their surviving spouses shall be eligible to receive benefits under this Trust Agreement only if the Plan participant was an employee of
Constellation Energy or a subsidiary in Constellation Energy's controlled group ("Employee") as well as a Plan participant as of the end of any Plan year for which a contribution was required pursuant
to Section 1.5 hereof, or as of the end of any Plan year for which a contribution was made pursuant to Section 1.6, except that for the Plan year 1993, Plan participants or their
surviving spouses shall be eligible to receive benefits under this Trust Agreement only if the Plan participant was an Employee as well as a Plan participant as of the first day of 1993. 

        1.8    "Required
Contribution," for purposes of the contribution requirements as set forth in Section 1.5 hereof, means the sum of (1), (2), (3), (4) and
(5) below computed as indicated herein, less the fair market value of the Trust assets at the end of the Plan year for which the contribution is required. 

        (1)    For
Plan participants eligible to receive benefits under this Trust Agreement pursuant to Section 1.7 hereof, who were also Employees as of the end of the Plan
year for which the contribution is required (except Employees entitled to lump sum payments as indicated under Section 1.8(4) hereof) and who were not eligible for early retirement under the
Plans at the end of the Plan year for which the contribution is required, an amount equal to the present value of an annuity including the estimated present value of post retirement supplemental
survivor annuity benefits under the Plans commencing effective with the month in which the participant becomes age 65 using (i) the net accrued benefit as computed under the Plans (without
regard to age and Credited Service eligibility requirements),
expressed as a monthly amount, (ii) an interest rate equal to the lesser of 8% or 95% of the Interest Rate under the Plans, and (iii) the Mortality Table. 

        (2)    For
Plan participants eligible to receive benefits under this Trust Agreement pursuant to Section 1.7 hereof, who were also Employees as of the end of the Plan
year for which the 

2

 

contribution
is required (except Constellation Energy Employees entitled to lump sum payments as indicated under Section 1.8(4) hereof) and who were eligible for early retirement under the
Plans as of the end of the Plan year for which the contribution is required, an amount equal to the present value of an annuity including the present value of post retirement supplemental survivor
annuity benefits under the Plans commencing effective with the first month following the Plan year for which the contribution is required using (i) the net accrued benefit as computed under the
Plans, expressed as a monthly amount, (ii) an interest rate equal to the lesser of 8% or 95% of the Interest Rate under the Plans, and (iii) the Mortality Table. 

        (3)    For
Plan participants or their surviving spouses who are eligible to receive benefits under this Trust Agreement pursuant to Section 1.7 hereof who were also
receiving a retirement benefit under the Plans in the form of a monthly payment as of the end of the Plan year for which the contribution is required, an amount equal to the present value of an
annuity as computed under (2)(i), (ii), and (iii) above except that the interest rate used to compute the present value under (ii) shall be 8%. 

        (4)    For
all Plan participants eligible to receive benefits under this Trust Agreement pursuant to Section 1.7 hereof who are also entitled under Section 5 of
the Plans to receive a lump sum payment at the later of age 55 or upon separation from service as of the end of the Plan year for which the contribution is required, an amount equal to the present
value of an annuity as computed under (1) above. 

        (5)    In
the event there has been a reduction or discontinuance of payments pursuant to Sections 2.6, 2.7, or Section 3 hereof, an amount equal to the total amount of
any previously reduced or discontinued payments to Plan participants and their surviving spouses, less the aggregate amount of any payments made to Plan participants and their surviving spouses by
Constellation Energy or BGE in lieu of such payments, plus interest computed pursuant to Section 2.9 hereof on the net aggregate amount. 

        1.9    Constellation
Energy shall have sole responsibility for providing to Trustee the determination and calculation of the Required Contribution which shall be determined and
calculated by the actuary of the Pension Plan of Constellation Energy Group, Inc. Trustee shall have no responsibility with respect to such determination and calculation including the
responsibility to verify (i) the accuracy of such calculation or (ii) compliance by Constellation Energy with the terms of Section 1 hereof, except as provided in
Section 1.11 hereof. Trustee shall have no duty, obligation or responsibility to bring any action or proceeding to enforce the collection of the Required Contribution from Constellation Energy. 

        1.10    In
the event Constellation Energy fails to make the Required Contribution to the Trust by the dates specified in Section 1.5 hereof, Trustee shall notify
Constellation Energy of such failure by the 15th day of the month following the month in which the contribution was required. Such notification shall stipulate that Constellation Energy may correct
the failure to contribute by the last day of the month following the month in which the contribution was required (the "Required Contribution correction date"). Trustee shall notify the Plan
participants or their surviving spouses shown on the most recent Payment Schedule, as defined in Section 2.1 hereof, provided by Constellation Energy to Trustee, in the event Constellation
Energy fails to make the Required Contribution by the Required Contribution correction date. Trustee shall make such notification no later than 15 days following the Required Contribution
correction date. 

Section 2.    Payments to Plan Participants and Their Surviving Spouses.  

        2.1    By May 31 of the year following each Plan year until termination of the Trust under the provisions of Section 12 hereof, and at
other times as reasonably requested by Trustee including such times as Trustee is notified in writing of the death of a Plan participant or surviving spouse eligible to receive benefits under this
Trust Agreement, Constellation Energy shall deliver to Trustee a schedule, 

3

 

substantially
in the format of Exhibit A hereof, and any other necessary documentation (such schedule and other documentation being referred to for this purpose as the "Payment Schedule") that
indicates the Plan benefit amounts currently payable in respect of each Plan participant (and his or her surviving spouse), the form in which such amount is to be paid (as provided for or available
under the Plans), the time of commencement for payment of such amounts, whether the Plan participant is receiving such payment as a result of an entitlement event (as defined in Section 5(c) of
the Plans), the present value of the future benefits payable to Plan participants and their surviving spouses under the terms of this Trust Agreement computed as under Section 1.8 (1), (2),
(3), and (4) hereof, and the Required Contribution computed pursuant to Section 1.8 hereof. 

        Plan
participants or their surviving spouses shall be included on the Payment Schedule and shall be eligible for benefits under this Trust Agreement pursuant to Section 1.7 hereof
only to the extent contributions to the Trust were required under Section 1.5 hereof, or for which a contribution was made by Constellation Energy to the Trust pursuant to Section 1.6
hereof. A modified Payment Schedule shall be delivered by Constellation Energy to Trustee upon the occurrence of any event, such as early retirement of a Plan participant or an entitlement event, as
defined in Section 5(c) of the Plans, requiring a modification of the Payment Schedule or a modified Payment Schedule. 

        Constellation
Energy shall cause the Payment Schedule which Constellation Energy shall provide to Trustee to be prepared by the actuary for the Pension Plan of Constellation Energy
Group, Inc. 

        Except
as otherwise provided in Sections 2.5 through 2.11 hereof, Trustee shall make payments to Plan participants and their surviving spouses in accordance with such Payment Schedule,
and shall act only upon such written direction and shall have no duty to determine the rights of any person under this Trust Agreement or under the Plans or to inquire into the right or power of
Constellation Energy to direct or not direct any such payment and shall be authorized to rely on the Payment Schedule most recently provided to Trustee by Constellation Energy. 

        2.2    In
the event Constellation Energy fails to deliver the Payment Schedule to Trustee by the date specified in Section 2.1 hereof, Trustee shall notify Constellation
Energy of such failure by the 15th day of the month following the month in which the Payment Schedule was required to be delivered to Trustee. Such notification shall stipulate that Constellation
Energy may correct the failure by the last day of the month following the month in which the Payment Schedule was required to be delivered to Trustee (the "Payment Schedule correction date"). Trustee
shall notify the Plan participants or their surviving spouses shown on the most recent Payment Schedule provided by Constellation Energy to Trustee in the event Constellation Energy fails to deliver
the Payment Schedule to Trustee by the Payment Schedule correction date. Trustee shall make such notification no later than 15 days following the Payment Schedule correction date. If
Constellation Energy fails to deliver the Payment Schedule to Trustee by the date specified in Section 2.1 hereof, Trustee shall make payments to Plan participants and their surviving spouses,
except as otherwise provided in Sections 2.5 through 2.11 hereof, in accordance with the Payment Schedule most recently provided to Trustee by Constellation Energy (or prior to May 31, 2000, by
BGE). Within a reasonable period of time after Constellation Energy delivers the updated Payment Schedule to Trustee, Trustee shall pay all amounts due to the Plan participants and their surviving
spouses for the period during which Trustee relied on the previous Payment Schedule to the extent such amounts have not been paid by Trustee under the previous Payment Schedule or by Constellation
Energy pursuant to Sections 2.5 through 2.11 hereof. Such amounts paid by Trustee shall include interest computed at an 8% per annum rate from the date the payments were due under the Plans to the
first day of the month in which such amount was paid. 

        2.3    Trustee
shall make provision for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of
benefits from the Trust and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by Constellation Energy, provided,
however, that Constellation 

4

 

Energy
shall be required to provide Trustee with all information reasonably necessary for Trustee to perform such withholding. 

        2.4    The
entitlement of Plan participants and their surviving spouses to benefits under the Plans shall be determined by Constellation Energy or such party as it shall
designate under the Plans, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plans. Except as provided in Section 2.7 hereof, Trustee shall
have no responsibility to determine such entitlements or to verify the accuracy of their determination or to review or supervise the review of claims for benefits. 

        2.5    Constellation
Energy may make payment of benefits directly to Plan participants and their surviving spouses as they become due in accordance with the most recent Payment
Schedule provided by Constellation Energy to Trustee. Constellation Energy shall notify Trustee of its decision to make payment of benefits prior to the time amounts are payable to Plan participants
and their surviving spouses by indicating such intent on the Payment Schedule provided by Constellation Energy to Trustee pursuant to Section 2.1 or by separate written notification.
Constellation Energy shall provide Trustee with documentation substantiating that such payments were made no later than the last day of the month in which such payments were due in accordance with the
most recent Payment Schedule provided by Constellation Energy to Trustee. If such documentation is not provided, Trustee is authorized to make such payments directly to Plan participants and their
surviving spouses. In addition, if the Trust assets are insufficient to make payments of benefits in accordance with the most recent Payment Schedule provided by Constellation Energy to Trustee, or
are not available to make such payments because all or part of the Trust assets are invested in collateral assignments of certain split dollar life insurance policies, Constellation Energy shall pay
the balance of each such payment to the Plan participant or their surviving spouse as it falls due. Trustee shall notify Constellation Energy of such insufficiency or unavailability as specified in
Sections 2.6 and 2.8 hereof. 

        2.6    Where
Trustee is required to make payments from the Trust according to the most recent Payment Schedule and Constellation Energy does not make payments in lieu of such
payments as provided under Section 2.5 hereof, and Trustee is unable to make the required payments because all or part of the Trust assets are invested in the collateral assignment portion of
certain split dollar life insurance policies, Trustee is authorized to defer the required payments until cash is available to make the required payments under the terms of this Trust Agreement. 

        2.7    A
determination of insufficiency of Trust assets shall be made with respect to the end of each Plan year after receipt by the Trustee of the Payment Schedule prepared
with respect to such Plan year or the most recent Payment Schedule in the event Constellation Energy fails to deliver the Payment Schedule to Trustee by the date specified in Section 2.1
hereof. The Trust assets will be deemed to be insufficient to make payments of benefits in accordance with the terms of such Payment Schedule if the market value of the Trust assets at the end of the
Plan year for which the determination is being made plus the Required Contribution actually made with respect to such Plan year is less than the present value of the future benefits as shown on the
most recent Payment Schedule. In determining the market value of collateral assignments of interests in split dollar life insurance policies held by the Trust, Trustee may rely on the valuation
provided by the insurance carrier who issued such policies, or the broker administering such policies. 

        In
the event of such insufficiency and to the extent Constellation Energy does not make payments directly to Plan participants or their surviving spouses as provided under
Section 2.5 hereof, any payment made from the Trust will be reduced by multiplying such payment by a fraction, the numerator of which shall be the value of all cash and other property held by
the Trust and the denominator of which shall be the aggregate present value of all benefits under the Plans as shown on the most recent Payment Schedule. 

5

 

        2.8    If
the Trust assets are insufficient to make payments of benefits in accordance with the most recent Payment Schedule, Trustee shall notify Constellation Energy of such
insufficiency by May 15 of the year following the Plan year with respect to which the insufficiency has been determined. Such notification shall stipulate that Constellation Energy may correct
the insufficiency by May 31 of the year following the Plan year with respect to which the insufficiency has been determined (the "insufficiency correction date"). Trustee shall notify the
participants or their surviving spouses shown on the most recent Payment Schedule provided by Constellation Energy to Trustee in the event Constellation Energy fails to correct the insufficiency by
the insufficiency correction date. Trustee shall make such notification no later than 15 days following the insufficiency correction date and shall proceed to reduce any payment made from the
Trust in the manner specified in Section 2.7 hereof as soon as practicable. 

        2.9    If
Trustee reduces or discontinues the payment of benefits from the Trust pursuant to Section 2.6 and 2.7 hereof and the Trust assets subsequently become
sufficient to pay all or part of the previously reduced or discontinued benefits, the first payment following thereafter shall include the aggregate of all payments due to Plan participants and their
surviving spouses under the terms of this Trust Agreement for the period of such reduction or discontinuance to the extent Trust assets are available, less the aggregate amount of any payments made to
Plan participants and their surviving spouses by Constellation Energy in lieu of the payments provided for hereunder during any such period of reduction or discontinuance. In such event where Trust
assets are sufficient to pay only a part of the previously reduced or discontinued benefits, amounts relating to the earliest payments reduced or discontinued shall be paid before all other amounts
due under this Trust Agreement. Such payments shall also include interest computed at an 8% per annum rate on the net aggregate amount of all payment reductions from the date the payments were due
under the Plans to the first day of the month in which such net aggregate amount was paid. 

        2.10    In
the event there is a final judicial determination or a final determination by the Internal Revenue Service that the Plan participants and their surviving spouses are
subject to any tax with respect to any amounts held under the terms of the Trust, then Trustee shall make payments from the Trust to such Plan participants and their surviving spouses in such amounts
as set forth in such final determination for the purpose of paying federal taxes and interest and any penalties thereon which such Plan participants and their surviving spouses incur arising out of
such determination. Trustee's decision as to whether a final determination has occurred shall be binding and conclusive on all Plan participants and their surviving spouses. 

        2.11    Any
payment from the Trust, as provided in Section 2.10 hereof, excluding interest and penalties paid with respect to federal taxes, shall reduce the benefits
payable under the Plans of those participants and their surviving spouses on whose behalf such payments are made. It shall be the responsibility of Constellation Energy to determine or cause to be
determined by the actuary for the Pension Plan of Constellation Energy Group, Inc. the amount of such reduction and to provide Trustee with an updated Payment Schedule to reflect any such
reduction made hereunder. Trustee shall have no duty to verify any calculations provided by Constellation Energy under this Section 2.11. 

Section 3.    Trustee Responsibility Regarding Payments to Trust Beneficiary When Constellation Energy Is Insolvent.

        3.1    Trustee
shall cease payment of benefits to Plan participants and their surviving spouses if Constellation Energy is Insolvent. Constellation Energy shall be considered
Insolvent for purposes of this Trust Agreement if (i) Constellation Energy makes a voluntary filing under the United States Bankruptcy Code, or (ii) Constellation Energy is subject to a
pending involuntary proceeding as a debtor under the United States Bankruptcy Code. 

        3.2    At
all times during the continuance of this Trust, as provided in Section 1.4 hereof, the Trust assets shall be subject to claims of general creditors of
Constellation Energy under federal and state law as set forth below. 

6

   
        3.2(a)    The Board of Directors of Constellation Energy and the Chief Executive Officer of Constellation Energy shall have the duty to inform Trustee in writing of
Constellation Energy's Insolvency. If a person claiming to be a creditor of Constellation Energy alleges in writing to Trustee that Constellation Energy has become Insolvent, Trustee shall determine
whether Constellation Energy is Insolvent and, pending such determination, Trustee shall discontinue payment of benefits to Plan participants and their surviving spouses. 

        3.2(b)    Until
receipt of a notice of Insolvency as set forth above, Trustee shall be under no obligation and shall have no responsibility to suspend payments hereunder and
hold the Trust assets for the benefit of Constellation Energy's general creditors. Trustee shall not be deemed to have notice or knowledge of facts or events in public records or received by
departments or divisions of Trustee bank other than the Investor Services division of Trustee bank. Trustee shall not have any liability to any party for making any payments or withholding any
payments pursuant to court order or request from trustee in bankruptcy or receivership pursuant to notice of Insolvency as provided above. 

        3.2(c)    Unless
Trustee has actual knowledge of Constellation Energy's Insolvency, or has received notice from Constellation Energy or a person claiming to be a creditor
alleging that Constellation Energy is Insolvent, Trustee shall have no duty to inquire whether Constellation Energy is Insolvent. Trustee may in all events rely on such evidence concerning
Constellation Energy's solvency as may be furnished to Trustee and that provides Trustee with a reasonable basis for making a determination concerning Constellation Energy's solvency. 

        3.2(d)    If
at any time Trustee has determined that Constellation Energy is Insolvent, Trustee shall discontinue payments to Plan participants and their surviving spouses and
shall hold the Trust assets for the benefit of Constellation Energy's general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of Plan participants and their surviving
spouses to pursue their rights as general creditors of Constellation Energy with respect to benefits due under the Plans or otherwise. 

        3.2(e)    Trustee
shall resume the payment of benefits to Plan participants and their surviving spouses in accordance with Section 2 of this Trust Agreement only after
Trustee has determined that Constellation Energy is not Insolvent (or is no longer Insolvent). Where Constellation Energy is subject to a pending proceeding as a debtor under the United States
Bankruptcy Code, Trustee shall resume payment when such proceeding is dismissed. In all other cases, Trustee shall have no obligation to so resume payment until it shall have received an unqualified
opinion of a certified public accountant that Constellation Energy is no longer Insolvent and an opinion of counsel that there is no legal prohibition to resuming payment hereunder. 

        3.3    If
Trustee discontinues the payment of benefits from the Trust pursuant to Section 3.2 hereof and subsequently resumes such payments, the first payment following
such discontinuance shall include the aggregate amount of all payments due to Plan participants and their surviving spouses under the terms of this Trust Agreement for the period of such
discontinuance, less the aggregate amount of any payments made to Plan participants and their surviving spouses by Constellation Energy or BGE in lieu of the payments provided for hereunder during any
such period of discontinuance plus interest computed as under Section 2.9 hereof on the net aggregate amount of all payments from the date the payments were due under the Plans to the first day
of the month in which such net aggregate amount was paid. Constellation Energy shall cause to be determined and calculated by the actuary of the Pension Plan of Constellation Energy Group, Inc.
such net aggregate amount, which determination shall be conclusive for Constellation Energy, Trustee, and all Plan participants and their surviving spouses. 

Section 4.    Payments to Constellation Energy.  

        4.1    Except as provided in Sections 3.2 and 4.2 hereof, Constellation Energy shall have no right or power to direct Trustee to return to Constellation
Energy or to divert to others any of the Trust assets 

7

 

before
all payments of benefits have been made to Plan participants and their surviving spouses in accordance with the most recent Payment Schedule provided by Constellation Energy to Trustee and the
terms of this Trust Agreement. 

        4.2    In
the event the market value of Trust assets as of the end of a Plan year exceeds 120 percent of the present value of future benefits as shown on the Payment
Schedule for such Plan year, plus the amount of any payments as computed under Section 1.9(5) hereof as of the end of such Plan year, then Constellation Energy may, in its sole discretion,
direct Trustee in writing to distribute such excess Trust assets, in whole or in part, to Constellation Energy provided such distribution does not contravene any provision of law. Trustee shall have
no responsibility to determine the propriety of any such direction. 

        4.3    Notwithstanding
Section 4.2 hereof, Constellation Energy may not direct Trustee to distribute such excess Trust assets for 2 years from the date a Change
of Control is deemed to occur under Section 13.5 hereof. 

Section 5.    Investment Authority.  

        5.1    In no event may Trustee invest in securities (including stock or rights to acquire stock) or obligations issued by Constellation Energy or BGE,
other than a de minimis amount held in common investment vehicles in which Trustee invests. All rights associated with the Trust assets shall be
exercised by
Trustee, and shall in no event be exercisable by or rest with Plan participants and their surviving spouses; provided that Constellation Energy may at any time, upon delivery of written notice to
Trustee, terminate Trustee's authority over the Trust assets. 

        5.2    Constellation
Energy shall submit to Trustee investment guidelines which shall be acknowledged by Trustee in writing. The Trust assets shall be held, invested and
reinvested by Trustee upon written direction of Constellation Energy and only in accordance with the investment guidelines most recently acknowledged by Trustee. Constellation Energy shall direct
Trustee to invest or reinvest from time to time the Trust assets (taking into account, among other things, anticipated cash requirements for benefits under the Plans); provided, however, that pending
receipt of investment directions or guidelines from Constellation Energy or pending the acknowledgement by Trustee of such investment guidelines, the Trust assets may be held in interest bearing cash
accounts maintained by Trustee; and provided, however, that Trustee shall not be liable for any failure to maximize the income earned on the Trust assets, or for any loss suffered by the Trust, as a
result of its investment or reinvestment of the Trust assets in accordance with 1) directions received by Trustee from Constellation Energy, or 2) the investment guidelines as
acknowledged by Trustee. 

        5.3    Constellation
Energy may, in its sole discretion, appoint an investment manager or managers to manage (including the power to acquire and dispose of) any Trust assets.
Trustee may rely on direction of such investment manager upon receipt of written direction from Constellation Energy and shall be entitled to rely on such direction until revoked in writing by
Constellation Energy. Trustee shall not be liable for the acts or omissions of such investment manager or managers, unless Trustee participates knowingly in, or knowingly undertakes to conceal, an act
or omission of such investment manager, knowing that such act or omission is a breach of its or the investment manager's fiduciary duty. Trustee is under no obligation to review, inquire into or
examine the acts or omissions of any such investment manager. Trustee shall have the duty to inform Constellation Energy in the event Trustee becomes aware of any such acts or omissions. Trustee shall
not be under an obligation to invest or otherwise manage Trust assets which are subject to the management of the investment manager. 

        5.4    Constellation
Energy reserves the right to transfer to the Trust in satisfaction of the contribution requirements as set forth in Section 1.5 hereof, life
insurance, annuity policies or contracts on or for the life of any Plan participant, or to direct Trustee to purchase any such policies or contracts on or for the life of any such Plan participant out
of the Trust assets. Any such policy or contract shall be a Trust asset subject to the claims of Constellation Energy's creditors in the event of Insolvency, as 

8

 

defined
in Section 3.1 hereof. The proceeds, dividends, or distributions of cash value paid with respect to any life insurance policy or contract held in the Trust shall be paid to the Trust.
Trustee shall be under no duty to question any direction of Constellation Energy or to review the form of any policies or contracts or the selection of the issuer thereof, or to make suggestions to
Constellation Energy with respect to the form of such policies or contracts or to the issuer thereof. 

Section 6.    Disposition of Income.  

        During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested, until otherwise required for
disbursement under the terms of this Trust Agreement. 

Section 7.    Accounting by Trustee.  

        7.1    Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made,
including such specific records as shall be agreed upon in writing between Constellation Energy and Trustee. Within 15 days following the close of each calendar month and within 90 days
after the removal or resignation of Trustee, Trustee shall deliver to Constellation Energy a written account of its administration of the Trust pursuant to terms of this Trust Agreement during such
year or during the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected
by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown
separately), and showing all cash, and the cost and market value of all securities and other property held in the Trust at the end of such year or as of the date of such removal or resignation, as the
case may be. 

        In
the event the insurance carrier who issued the insurance policies which are held by or collaterally assigned to the Trust or the broker who administers such policies does not timely
provide Trustee with the market value of such insurance policies or collateral assignments, Trustee shall provide to Constellation Energy written accounts under this Section 7.1 containing all
valuations except such insurance valuations. As soon as practicable following the receipt of the market valuations from the carrier or the broker, Trustee shall provide Constellation Energy with
written accounts containing such insurance valuations. 

        7.2    Unless
Constellation Energy shall have filed with Trustee written exceptions to any such statement or account delivered by Trustee pursuant to Section 7.1 hereof
within 90 days after receipt of such statement or account, Constellation Energy shall be deemed to have approved such statement or account, and in such case or upon the written approval by
Constellation Energy of any such statement or account, Trustee shall be forever released and discharged with respect to all matters and things embraced in such statement or account as though it had
been settled by a decree of a court of competent jurisdiction in an action or proceeding to which Constellation Energy or persons having any beneficial interest in the Trust were parties. 

        7.3    Constellation
Energy shall prepare and file such tax returns and other reports as may be required for the Trust, with any taxing authority or any other government
authority and shall provide Trustee with copies of such returns and reports as soon as practicable following the date of filing. Trustee shall provide to Constellation Energy such information, to the
extent not already provided through written
accounts delivered to Constellation Energy pursuant to Section 7.1, as is necessary for Constellation Energy to prepare and file such tax returns and other reports. 

        7.4    Nothing
contained in this Trust Agreement or in the Plans shall deprive Trustee of the right to have a judicial settlement of its accounts. In any proceeding for a
judicial settlement of the accounts of Trustee or for instruction in connection with the Trust assets, the only necessary party thereto in 

9

 

addition
to Trustee shall be Constellation Energy. If Trustee so elects, it may bring in as a party any other person or persons. No person interested in the Trust assets, other than Constellation
Energy, shall have a right to compel an accounting, judicial or otherwise, by Trustee and each such person shall be bound by all accountings as herein provided, as if the account had been settled by
decree of a court of competent jurisdiction in an action or proceeding to which such person was a party. 

Section 8.    Responsibility of Trustee.  

        8.1    Trustee shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, provided, however, that Trustee shall incur no liability to any person for any
action taken pursuant to a direction, request or approval given by Constellation Energy (or investment manager designated pursuant to terms hereof) which is contemplated by, and in conformity with,
the terms of this Trust Agreement and is given in writing by Constellation Energy. 

        8.2    Trustee
need not engage in any litigation, arbitration or administrative proceeding related to this Trust Agreement unless first indemnified to its reasonable
satisfaction by Constellation Energy unless such litigation, arbitration or administrative proceeding is prompted by an allegation that Trustee has breached its duties undertaken pursuant to this
Trust Agreement. If Trustee proceeds to engage in any such litigation, arbitration or administrative proceeding and is not so indemnified, all reasonable costs of Trustee including reasonable
attorney's fees incurred pursuant to such action shall be charged against and paid from the Trust assets, except when the claim relates to an allegation that Trustee has breached its duties in which
case Trustee shall be responsible for such costs. 

        Trustee
may consult with any legal counsel, including, without limitation, counsel to Constellation Energy or Trustee's own independent counsel, to assist Trustee in the management and
administration of the Trust or with respect to (a) the meaning or construction of the terms of this Trust Agreement, (b) its obligations or duties hereunder, (c) any act which
Trustee should take or omit hereunder, (d) any action or proceeding, or (e) any question of law. In any action taken or omitted by Trustee in good faith pursuant to the advice of such
counsel, Constellation Energy shall indemnify and hold Trustee harmless against reasonable litigation expenses and attorney's fees occasioned by such action; except when Trustee acted or omitted to
act upon the advice of counsel other than counsel to Constellation Energy. 

        8.3    Trustee
shall have, without exclusion, all powers conferred on trustees by applicable law, unless expressly provided otherwise herein, provided, however, that if an
insurance policy is held as an asset of the Trust, Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy
to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy. Trustee, as assignee under split dollar life insurance policies, may
exercise the right to obtain policy loans in accordance with the terms of the collateral assignment document. 

        8.4    In
executing its duties, obligations and responsibilities as herein provided, and in addition to those powers given by law, Trustee shall have the power, in its sole
discretion: 

        (a)   to
collect and receive any and all money and other property due to the Trust and to give full discharge therefor; 

        (b)   to
settle, compromise or submit to arbitration any claims, debts or damages due to or owing to or from the Trust; to commence or defend suits or legal proceedings to
protect any interest of the Trust; and to represent the Trust in all suits or legal proceedings in any court or before any other body or tribunal; 

10

 

        (c)   if
specifically instructed by Constellation Energy, to provide benefits through the purchase of individual or group annuity or life insurance contracts issued by
insurance companies licensed to do business in the State of New York; 

        (d)   if
specifically instructed by Constellation Energy, to act as agent for Constellation Energy to perform multiple services for the Plans, its participants and
beneficiaries and to receive and withdraw from the Trust assets reasonable compensation therefor; 

        (e)   to
engage accountants or other advisors as Trustee may deem necessary to control and manage the Trust assets and to carry out the purposes of this Trust Agreement; 

        (f)    subject
to Section 5 hereof, to invest and reinvest the Trust assets without distinction between principal and income in any form of property not prohibited by
law including, without limitation on the
amount which may be invested therein, any common or group trust fund operated by Trustee or in demand deposits of Trustee; 

        (g)   to
hold cash uninvested in an amount considered necessary and practical for proper administration of the Trust and/or to deposit the same with any banking, savings or
similar financial institution supervised by the United States or any State, including Trustee's own banking department; and 

        (h)   to
perform all such acts and exercise all such rights and privileges consistent with applicable law and the terms of this Trust Agreement, although not specifically
mentioned herein, as Trustee may deem desirable or necessary to control and manage the Trust assets and to carry out the purposes of this Trust Agreement. 

        Except
as provided under Section 13.2, if all or any part of the Trust assets are at any time attached, garnished, or levied upon by any court order, or in case the payment,
assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by a court affecting
such property or any part thereof, then and in any of such events Trustee is authorized, in its sole discretion, to rely upon and comply with any such order, writ, judgment or decree, and it shall not
be liable to Constellation Energy (or any of its subsidiaries) or any participant by reason of such compliance even though such order, writ, judgment or decree subsequently may be reversed, modified,
annulled, set aside or vacated. 

        8.5    Notwithstanding
any powers granted to Trustee pursuant to this Trust Agreement or to applicable law, Trustee shall not have any power that could give this Trust the
objective of carrying on a business and dividing the gains therefrom, within the meaning of section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant
to the Internal Revenue Code. 

Section 9.    Compensation and Expenses of Trustee.  

        9.1    Constellation Energy shall pay all administrative and Trustee's fees and expenses (including, without limitation, reasonable fees of agents and
counsel). If not so paid, the fees and expenses shall be paid from the Trust; provided, however, that Constellation Energy may approve in writing the automatic payment of fees, compensation and
expenses from the Trust. Trustee shall have a lien on the Trust in the amount of such fees, expenses and compensation until the same have been paid. 

        9.2    Constellation
Energy shall pay any federal, state, local or other taxes imposed or levied with respect to the Trust assets under the existing or future laws. 

Section 10.    Resignation and Removal of Trustee.  

        10.1    Trustee may resign at any time by written notice to Constellation Energy, which shall be effective 30 days after receipt of such notice
unless Constellation Energy and Trustee agree otherwise in writing. 

        10.2    Accept
as provided in Section 10.3, Trustee may be removed by Constellation Energy on 30 days written notice or upon shorter notice accepted by Trustee. 

11

   
        10.3    Upon a Change of Control, as defined in Section 13.5 hereof, Trustee may not be removed by Constellation Energy for 2 years from the date a Change of
Control is deemed to occur under Section 13.5 hereof. 

        10.4    If
Trustee resigns within 2 years of a Change of Control, Trustee shall select a successor Trustee in accordance with the provisions of Section 11.2
hereof prior to the effective date of Trustee's resignation. 

        10.5    Upon
resignation or removal of Trustee and appointment of a successor Trustee, all Trust assets shall subsequently be transferred to the successor Trustee. The transfer
shall be completed at the later of (i) 90 days after receipt of notice of resignation or removal of Trustee, or (ii) appointment of successor Trustee, unless Constellation Energy
extends the time limit in writing. 

        10.6    If
Trustee resigns or is removed, a successor shall be appointed, in accordance with Section 11 hereof, by the effective date of resignation or removal under
Sections 10.1 or 10.2 hereof. If no such appointment has been made, Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions. All expenses of Trustee
in connection with the proceeding shall be allowed as administrative expenses of the Trust. 

Section 11.    Appointment of Successor.  

        11.1    If Trustee resigns or is removed in accordance with Sections 10.1 or 10.2 hereof, Constellation Energy may appoint any third party, such as a
bank trust department or other party that may be granted corporate trustee powers under state law, as a successor to replace Trustee upon resignation or removal. The appointment shall be effective
when accepted in writing by the successor Trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the Trust assets. The former Trustee shall execute
any instrument necessary or reasonably requested by Constellation Energy or the successor Trustee (in which case Trustee shall have received a copy of successor Trustee's acceptance) to evidence the
transfer of the Trust assets. 

        11.2    If
Trustee resigns pursuant to the provisions of Section 10.4 hereof, Trustee may appoint any third party such as a bank trust department or other party that may
be granted corporate trustee powers under state law. The appointment of a successor Trustee shall be effective when accepted in writing by the successor Trustee. The successor Trustee shall have all
the rights and powers of the former Trustee,
including ownership rights in Trust assets. The former Trustee shall execute any instrument necessary or reasonably requested by the successor Trustee to evidence the transfer of the Trust assets. 

        11.3    The
successor Trustee need not examine the records and acts of any prior Trustee and may retain or dispose of existing Trust assets, subject to Sections 7 and 8 hereof.
The successor Trustee shall not be responsible for and Constellation Energy shall indemnify and defend the successor Trustee from any claim or liability resulting from any action or inaction of any
prior Trustee or from any other past event, or any condition existing at the time it becomes successor Trustee. 

        11.4    In
the event of such removal or resignation, Trustee shall duly file with Constellation Energy a written account as provided in Section 7.1 hereof. 

Section 12.    Amendment or Termination.  

        12.1    Except as provided in Section 12.4, this Trust Agreement may be amended by a written instrument executed by Trustee and Constellation
Energy. Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plans or shall make the Trust revocable. 

        12.2    The
Trust shall not terminate until the earlier of the date on which Plan participants and their surviving spouses are no longer entitled to benefits pursuant to the
terms of the Plan or have 

12

 

received
payment of all benefits to which they are entitled under this Trust Agreement. Upon termination of the Trust any assets remaining in the Trust shall be returned to Constellation Energy. 

        12.3    Upon
written approval of all Plan participants and surviving spouses entitled to payment of benefits pursuant to the terms of the Plans and this Trust Agreement,
Constellation Energy may terminate this Trust prior to the time all benefit payments under the Plans and this Trust Agreement have been made. All Trust assets at termination shall be returned to
Constellation Energy. 

        12.4    This
Trust Agreement may not be amended by Constellation Energy for 2 years following a Change of Control, unless such amendment is by written agreement between
Constellation Energy and Trustee and such amendment does not adversely affect the rights of the Plan participants and their surviving spouses entitled to payment of benefits pursuant to terms of the
Plans on the date a Change of Control is deemed to occur. 

Section 13.    Miscellaneous.  

        13.1    Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof. 

        13.2    Benefits
payable to Plan participants and their surviving spouses under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated,
pledged, encumbered or subjected to attachment, garnishment, levies, execution or other legal or equitable process, and any attempt to so alienate, sell, transfer, assign, pledge, attach, charge or
otherwise encumber any such amount, whether presently or thereafter payable, shall be void. The Trust shall be in no manner liable for or subject to the debts or liabilities of any participant. 

        13.3    This
Trust Agreement shall be governed by and construed in accordance with the laws of the State of New York and Trustee shall be liable to account only in the courts
of that state. 

        13.4    All
words beginning with an initial capital letter and not otherwise defined herein shall have the meaning set forth in the Plans. All singular terms defined in this
Trust will include the plural and vice versa. 

        13.5    For
purposes of this Trust Agreement, Change of Control shall mean the occurrence of any one of the following events: 

        (i)    individuals
who, on January 24, 2003, constitute the Board of Directors of Constellation Energy (the "Incumbent
Directors") cease for any reason to constitute at least a majority of the Board of Directors of Constellation Energy (the
"Board"), provided that any person becoming a director subsequent to January 24, 2003, whose election or nomination for election was approved by
a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of Constellation Energy (the
"Company") in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director;  provided,
however, that no individual initially elected or nominated as a director of the Company as a
result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board
shall be deemed to be an Incumbent Director; 

        (ii)   any
"person" (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act") and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company's then outstanding securities eligible to vote for the election of the
Board (the "Company Voting Securities"); provided,  however, that the event described in this paragraph 
(ii) shall not be deemed to be a Change in Control by virtue of any of 

13

 

the
following acquisitions: (A) by the Company or any corporation with respect to which the Company owns a majority of the outstanding shares of common stock or has the power to vote or direct
the voting of sufficient securities to elect a majority of the directors (a "Subsidiary Company"), (B) by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Subsidiary Company,(C) by any underwriter temporarily holding securities pursuant to an offering of such securities, (D) pursuant to a
Non-Qualifying Transaction (as defined in paragraph (iii)), or (E) pursuant to any acquisition by Plan participant or any group of persons including Plan participant (or any
entity controlled by Plan participant or any group of persons including Plan participant); 

        (iii)  Company
shareholder approval of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its
Subsidiary Companies, whether for such transaction or the issuance of securities in the transaction (a "Business Combination"), unless immediately
following such Business Combination: (A) more than 60% of the total voting power of (x) the corporation resulting from such Business Combination (the "Surviving
Corporation"), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 95% of the voting securities
eligible to elect directors of the Surviving Corporation (the "Parent Corporation"), is represented by Company Voting Securities that were outstanding
immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business
Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial
owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board's approval of the execution of the initial agreement providing for such Business
Combination (any Business Combination which satisfies all of the criteria specified in (A), (B), and (C) above shall be deemed to be a "Non-Qualifying
Transaction"); or 

        (iv)  the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or the consummation of a sale of all or substantially all of the
Company's assets. 

Notwithstanding
the foregoing, a Change in Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 20% of the Company Voting Securities
as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided,  that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the
percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur. 

        13.6    Constellation
Energy shall certify to Trustee the name or names of any person or persons authorized to act for Constellation Energy under this Trust Agreement. Such
certification shall be signed by a Vice President of Constellation Energy. Until Constellation Energy notifies Trustee, in a similarly signed notice or certification, that any such person is no longer
authorized to act for Constellation Energy, Trustee may continue to rely upon the authority of such person. 

        Trustee
may rely upon any certificate, schedule, notice or direction of Constellation Energy which Trustee in good faith believes to be genuine, executed and delivered by a duly
authorized officer or agent of Constellation Energy. Trustee shall have no duty to verify any calculations provided by Constellation Energy in connection with such certificate, schedule, notice or
direction. 

14

 

        Communications
to Trustee shall be sent in writing to Trustee at the address specified in Section 13.9 hereof or to such other address as the Trustee may specify in writing. No
communication shall be binding upon the Trust or Trustee until it is received by Trustee and unless it is in writing and signed by an authorized person. 

        Communications
to Constellation Energy shall be sent in writing to Constellation Energy's principal offices at the address specified in Section 13.9 hereof or to such other
address as Constellation Energy may specify in writing. No communication shall be binding upon Constellation Energy until it is received by Constellation Energy and unless it is in writing and signed
by Trustee. 

        13.7    Constellation
Energy shall pay and shall protect, indemnify and save harmless Trustee and its officers, employees and agents from and against any and all losses,
liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs and expenses of any nature arising from or relating to any action by or any failure to act by
Trustee (and its officers, employees and agents) in accordance with the terms of this Trust Agreement, or the transactions contemplated by this Trust Agreement (including any action by Trustee on the
direction or instruction of Constellation Energy or any failure to act on the part of Trustee in the absence of directions or instructions by Constellation Energy), except to the extent that any such
loss, liability, action, suit, judgment, demand, damage or expense has been determined by final judgement of a court of competent jurisdiction to be the result of
the negligence or willful misconduct of Trustee, its officers, employees or agents. To the extent that Constellation Energy has not fulfilled its obligations under the foregoing provisions of this
Section 13.7, Trustee shall be reimbursed out of the Trust assets or may set up reasonable reserves for the payment of such obligations. To the maximum extent permitted by applicable law, no
personal liability whatsoever shall attach to or be incurred by any employee, officer or director of Constellation Energy, as such, under or by reason of the terms or conditions contained in or
implied from this Trust Agreement. 

        Trustee
assumes no obligation or responsibility with respect to any action required by this Trust Agreement on the part of Constellation Energy and shall have those responsibilities only
as expressly set forth herein. 

        13.8    This
Trust Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof and supersedes any and all prior agreements,
arrangements and understandings relating thereto. 

        13.9    Any
notice, report, demand, waiver or communication required or permitted hereunder shall be in writing and shall be given personally or by prepaid registered or
certified mail, return receipt requested, addressed as follows: 

If
to Constellation Energy Group, Inc.: 

Constellation
Energy Group, Inc.

750 East Pratt Street, 5th Floor

Baltimore, MD 21202

Attention: Director—Compensation 

If
to Trustee: 

Citibank,
N. A.

Client Services Division

111 Wall Street, 24th Floor

New York, NY 10005

Attention: Ed Flannery 

15

 

If
to a participant or to a

participant's surviving spouse: 

To
the address shown on the most recent Payment Schedule provided by Constellation Energy to Trustee. 

Section 14.    Effective Date.  

        The date of this Trust Agreement shall be July 31, 1994. 

16

 

        IN
WITNESS WHEREOF, and intending to be legally bound hereby, Constellation Energy Group, Inc. and Trustee sign and seal this Trust Agreement the day and year first above written. 

	WITNESS:	 	 	 	CITIBANK, N.A.:
	

	
 	

By:	
 	

/s/
	
 	

(Seal)
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

WITNESS:	
 	

 	
 	

CONSTELLATION ENERGY GROUP, INC.:
	

/s/
	
 	

By:	
 	

/s/
	
 	

(Seal)
	 	 	 	 	Name: Marc L. Ugol	 	 
	 	 	 	 	Title: Vice President Human Resources

17

QuickLinks

GRANTOR TRUST AGREEMENT CONTENTS

GRANTOR TRUST AGREEMENT Dated as of April 25, 2003 between Constellation Energy Group, Inc. and Citibank, N.A.

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