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Exhibit 10(e)  

 
 

GRANTOR TRUST AGREEMENT
  DATED AS OF APRIL 25, 2003
  BETWEEN
  CONSTELLATION ENERGY GROUP, INC.
  AND
  T. ROWE PRICE TRUST COMPANY    
    

        This Agreement made the 25th day of April, 2003, by and between Constellation Energy Group, Inc., a Maryland Corporation, or its successor
("CEG") and T. Rowe Price Trust Company ("Trustee"); 

WITNESSETH THAT: 

        WHEREAS,
effective with the April 30, 1999 share exchange between CEG and the common stockholders of Baltimore Gas and Electric Company
("BGE"), BGE transferred to CEG the former BGE Nonqualified Deferred Compensation Plan and BGE's rights and obligations under the Grantor Trust
Agreement dated as of June 1, 1996, between BGE and T. Rowe Price Trust Company. 

        WHEREAS,
this Agreement has been amended effective April 25, 2003, to conform the definition of Change in Control under this Agreement to the definition under CEG's management
benefit plans. 

        WHEREAS,
CEG has adopted the Constellation Energy Group, Inc. Nonqualified Deferred Compensation Plan (formerly the Baltimore Gas and Electric Company Nonqualified Deferred
Compensation Plan) ("Plan"); 

        WHEREAS,
CEG has incurred or expects to incur liability under the terms of such Plan with respect to the individuals participating in such Plan; 

        WHEREAS,
CEG wishes to establish a trust ("Trust") and to contribute to the Trust assets that shall be held therein, subject to the claims
of CEG's creditors in the event of CEG's Insolvency, as defined in Section 3(a) hereof, until paid to Plan participants and their beneficiaries in such manner and at such times as specified in
the Plan; 

        WHEREAS,
it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan maintained for the
purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of 1974; 

        WHEREAS,
it is the intention of CEG to make contributions to the Trust to provide a source of funds to assist it in the meeting of its liabilities under the Plan; and 

        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.    

        (a)   CEG
hereby adopts and establishes with Trustee the Trust consisting of such sums of cash (the "principal") that currently
constitute the Trust and as from time to time shall be paid 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. 

        (b)   The
Trust hereby established shall be irrevocable. 

        (c)   The
Trust is intended to be a grantor trust, of which CEG 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. 

 

        (d)   The
Trust Assets shall be held separate and apart from other funds of CEG and shall be used exclusively for the uses and purposes of Plan participants and general
creditors as herein set forth. Plan participants and their beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any Trust Assets. Any rights created under the Plan
and this Trust Agreement shall be mere unsecured contractual rights of Plan participants and their beneficiaries against CEG. Any Trust Assets will be subject to the claims of CEG's general creditors
under federal and state law in the event of Insolvency, as defined in Section 3(a) herein. 

        (e)   As
soon as practicable, but no later than the last business day, which for purposes of this Trust Agreement shall be defined as any day the New York Stock Exchange is
open for business ("Business Day"), of the month following the month in which a payment of compensation subject to a deferral election under the Plan
would otherwise have been paid, CEG shall be required to irrevocably contribute cash to the Trust in an amount equal to such Deferred Compensation, plus any Matching Contributions related thereto, to
the extent the Plan requires such funding. Trustee shall have no obligation to compute or compel such contribution(s). 

        (f)    The
Board of Directors of CEG may at any time by resolution amend the contribution requirements of Section 1(e) hereof such that CEG will not be required to make
additional contributions of cash to the Trust or will be required to make only a stated percentage of the contributions otherwise required under Section 1(e) hereof. If Section 1(e) is
so amended, contributions of cash to the Trust over and above the amounts required under Section 1(e) if amended, will be in the sole discretion of CEG pursuant to Section 1(g) hereof.
Trustee shall have no obligation to compute or compel such contribution(s). 

        (g)   CEG,
in its sole discretion, may at any time or from time to time, make additional deposits of cash in trust with Trustee 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 beneficiary shall have any right or obligation to compel such additional
deposits. 

        Section 2.    Payments to Plan Participants and Their Beneficiaries.    

        (a)   CEG
shall deliver or cause to be delivered to Trustee a schedule (the "Payment Schedule") that indicates the amounts
payable in respect of each Plan participant (or his or her beneficiaries), that provides a formula or other instructions acceptable to Trustee for determining the amounts so payable, the form in which
such amount is to be paid (as provided for or available under the Plan), and the time of commencement for payment of such amounts. Except as otherwise provided herein, Trustee shall make payments to
the Plan participants and their beneficiaries in accordance with such Payment Schedule. If so instructed by CEG, the Trustee shall withhold federal and state taxes from each payment under this
agreement at the rate(s) designated by CEG and shall report and pay such amounts to the appropriate federal and state taxing authorities. 

        (b)   The
entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by CEG or such party as it shall designate under the
Plan and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan. Trustee shall have no right or duty to inquire into CEG's decisions with respect to
entitlement to benefits. 

        (c)   CEG
may make payment of benefits directly to Plan participants or their beneficiaries as they become due under the terms of the Plan. CEG shall notify Trustee in writing
of its decision to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. CEG shall provide to the Trustee documentation substantiating that
such payments were made under the terms of the Plan. If such documentation is not provided, Trustee shall make such payments in accordance with the Payment Schedule directly to Plan participants and
their beneficiaries. In addition, if the Trust Assets are not sufficient to make such payments of benefits in accordance with the terms of the Plan, CEG shall make the balance of each such payment as
it falls due. Trustee shall notify CEG 

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where
Trust Assets are not sufficient to make benefit payments, however, Trustee shall have no duty to require any contributions to be made, or to determine that any of the contributions received
comply with the conditions and limitations of the Plan. 

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

        Section 3.    Trustee Responsibility Regarding Payments to Trust Beneficiary When CEG is Insolvent.    

        (a)   Upon
receipt of notification issued in accordance with Section 3(b)(1) hereof, Trustee shall cease payment of benefits to Plan participants and their
beneficiaries if CEG is Insolvent. CEG shall be considered "Insolvent" for purposes of this Trust Agreement if (1) CEG makes a voluntary filing under the United States Bankruptcy Code, or
(2) CEG is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 

        (b)   At
all times during the continuance of this Trust, as provided in Section 1(d) hereof, the Trust Assets shall be subject to claims of general creditors of CEG
under federal and state law as set forth below. 

        (1)   The
Board of Directors of CEG and the Chief Executive Officer of CEG shall have the duty to inform Trustee in writing of CEG's Insolvency. When so informed or when the
Trustee is in receipt of a copy of a bankruptcy petition relating to CEG or a court order determining CEG to be Insolvent, Trustee shall discontinue payment of benefits to Plan participants or their
beneficiaries. 

        (2)   Unless
Trustee has received written notification in accordance with Section 3(b)(1) of this Trust Agreement, Trustee may in all events rely on such evidence
concerning CEG's solvency as may be furnished by CEG to Trustee. 

        (3)   If
at any time Trustee has received written notification in accordance with Section 3(b)(1), Trustee shall discontinue payments to Plan participants or their
beneficiaries and shall hold the Trust Assets for the benefit of CEG's general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of Plan participants or their
beneficiaries to pursue their rights as general creditors of CEG with respect to benefits due under the Plan or otherwise. 

        (4)   Trustee
shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Trust Agreement only after Trustee
has received a copy of a court order determining CEG to be no longer Insolvent or evidencing that such bankruptcy proceeding is dismissed in connection with any notification made in accordance with
Section 3(b)(1). 

        (c)   Provided
that there are sufficient assets, if Trustee discontinues the payment of benefits from the Trust pursuant to Section 3(b) hereof and subsequently resumes
such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Plan participants or their beneficiaries under the terms of the Plan for the
period of such discontinuance, less the aggregate amount of any payments made to Plan participants or their beneficiaries by CEG in lieu of the payments provided for hereunder during any period of
discontinuance. 

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        Section 4.    Payments to CEG.    

        (a)   Except
as provided in Section 3 and Section 4(b) hereof, CEG shall have no right or power to direct Trustee to return to CEG or to divert to others any of
the Trust Assets before all payment of benefits have been made to Plan participants and their beneficiaries pursuant to the terms of the Plan and of this Trust Agreement. 

        (b)   In
the event (1) CEG makes payment of benefits directly to Plan participants or their beneficiaries in accordance with Section 2(c) hereof, or
(2) if for any other reason Trust Assets exceed the market value of the aggregate balances of Plan participant accounts, then CEG may in its sole discretion, direct Trustee in writing to
distribute the amount of such payment or excess, in whole or in part, to CEG provided such distribution does not contravene any provision of law. 

        (c)   Notwithstanding
Section 4(b)(2) hereof, CEG 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(e) hereof except to reimburse CEG for any payment it makes directly to participants in accordance with Section 2(c) hereof. 

        Section 5.    Investment Authority.    

        (a)   In
no event may Trustee invest in securities (including stock or rights to acquire stock) or obligations issued by CEG, other than a de
minimis amount held in common investment vehicles in which Trustee invests. All rights associated with assets of the Trust shall be exercised, solely upon the direction of CEG,
by Trustee or the person designated by Trustee and shall in no event be exercisable by or rest with Plan participants and their beneficiaries. 

        (b)   Trustee
shall invest and reinvest the Trust Assets and keep the Trust invested, without distinction between principal and income, in such investments as directed in
writing by CEG or its designee, which instruction may be modified from time to time by CEG or its designee. Trustee shall have no duty to question any action or direction of CEG or its designee or any
failure to give directions, or to make any suggestion to CEG as to the investment, reinvestment, disposition or distribution of, such assets. 

        (c)   CEG
shall have the right, at anytime, and from time to time in its sole discretion, and with Trustee's approval, to substitute assets of equal fair market value for any
asset held by the Trust. 

        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.    

        (a)   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 CEG and Trustee. Within 60 days following the close of each calendar year and within 60 days after the removal or resignation of
Trustee, Trustee shall deliver to CEG a written account of its administration of the Trust 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 receivables being shown separately), and showing all cash, 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. 

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        (b)   CEG
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 except for
IRS Form 1041 which shall be prepared and filed by the Trustee. 

        Section 8.    Responsibility of Trustee.    

        (a)   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, costs or expense to any person, for any action
taken pursuant to a direction, request or approval given by CEG which is contemplated by, and in conformity with, the terms of this Trust Agreement and is given in writing by CEG. Trustee shall also
be reimbursed by CEG for reasonable expenses or fees incurred in connection with governmental or regulatory inquiries related to this Trust.

        (b)   If
Trustee undertakes or defends any litigation arising in connection with this Trust, unless such litigation results in a determination that Trustee breached its duties
undertaken pursuant to this Trust Agreement, CEG agrees to indemnify Trustee against Trustee's reasonable costs, expenses and liabilities (including, without limitation, reasonable attorneys' fees and
expenses) relating thereto and to be primarily liable for such payments. If CEG does not pay such costs, expenses and liabilities in a reasonably timely manner, Trustee may obtain payment from the
Trust. 

        (c)   Trustee
may consult with legal counsel (who may also be counsel for CEG generally) with respect to any of its duties or obligations hereunder. In the event that Trustee
anticipates charging legal fees to the Trust, Trustee must obtain CEG's prior written consent for such legal counsel, which consent will not be unreasonably withheld. 

        (d)   Trustee
may hire agents, accountants, actuaries, investment advisors, financial consultants or other professionals to assist it in performing any of its duties or
obligations hereunder. In the event that Trustee anticipates charging fees for such services to the Trust, Trustee must obtain CEG's prior written consent for such legal counsel, which consent will
not be unreasonably withheld. 

        (e)   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.    

        CEG
shall pay all reasonable administrative and Trustee's fees and expenses. If not so paid, the fees and expenses shall be paid from the Trust. 

        Section 10.    Resignation and Removal of Trustee.    

        (a)   Trustee
may resign at any time by written notice to CEG, which shall be effective 30 days after receipt of such notice unless CEG and Trustee agree otherwise. 

        (b)   Except
as provided in Section 10(c), Trustee may be removed by CEG on 30 days written notice unless CEG and Trustee agree otherwise. 

        (c)   Upon
written notification by CEG that a Change of Control, as defined in Section 13(e) hereof has occurred, Trustee may not be removed by CEG for 2 years
from the date a Change of Control is deemed to occur under Section 13(e) hereof. 

        (d)   If
Trustee resigns within 2 years after a Change of Control, as defined herein, CEG shall apply to a court of competent jurisdiction for the appointment of
successor Trustee or for instructions. 

        (e)   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 

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later
of (1) 30 days after receipt of notice of resignation or removal of Trustee or (2) appointment of successor Trustee. 

        (f)    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
paragraphs (a) or (b) of this section. 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 reasonable expenses of Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust. 

        Section 11.    Appointment of Successor.    

        (a)   If
Trustee resigns or is removed in accordance with Section 10(a) or (b) hereof, CEG 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 CEG or the successor Trustee (in which case former Trustee shall have received a copy of successor Trustee's acceptance) to evidence the transfer of the Trust Assets. 

        (b)   If
Trustee resigns pursuant to the provisions of Section 10(d) hereof, 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. 

        (c)   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 CEG 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. 

        (d)   In
the event of such removal or resignation, Trustee shall duly file with CEG a written account as provided in Section 7(a) hereof. 

        Section 12.    Amendment or Termination.    

        (a)   Except
as provided in Section 12(d), this Trust Agreement may be amended by a written instrument executed by Trustee and CEG. Notwithstanding the foregoing, no
such amendment shall conflict with the terms of the Plan or shall make the Trust revocable. 

        (b)   The
Trust shall not terminate until the date on which Plan participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan or
have received payment of all benefits to which they are entitled under the terms of this Trust Agreement. Upon termination of the Trust any assets remaining in the Trust shall be returned to CEG. 

        (c)   Upon
written approval of all Plan participants or beneficiaries entitled to payment of benefits pursuant to the terms of the Plan and this Trust Agreement, CEG may
terminate this Trust prior to the time all benefit payments under the Plan and this Trust Agreement have been made. All Trust Assets at termination shall be returned to CEG. 

        (d)   This
Trust Agreement may not be amended by CEG for 2 years following a Change of Control, unless CEG determines that such amendment does not adversely affect the
rights of the Plan participants and their beneficiaries entitled to payment of benefits pursuant to terms of the Plan on the date a Change of Control is deemed to occur. 

6

 

        Section 13.    Miscellaneous.    

        (a)   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. 

        (b)   Benefits
payable to Plan participants and their beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated,
pledged, encumbered or subjected to attachment, garnishment, levy, 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. 

        (c)   This
Trust Agreement shall be governed by and construed in accordance with the laws of the State of Maryland and applicable federal law. 

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

        (e)   For
a Change of Control to be effective with respect to this Trust Agreement, CEG must issue written notification of Change of Control to Trustee. Trustee has no
obligation to make any independent determination or verification that a Change of Control has occurred. 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 CEG (the "Incumbent Directors") cease
for any reason to constitute at least a majority of the Board of Directors of CEG (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 CEG 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 CEG 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 CEG representing 20% or more of the combined voting power of CEG'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 CEG or any corporation with respect to
which CEG 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 CEG 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)    CEG
shareholder approval of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving CEG or any of its Subsidiary
Companies, whether for such transaction or the issuance of securities in the transaction (a "Business Combination"), 

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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 CEG approve a plan of complete liquidation or dissolution of CEG, or the consummation of a sale of all or substantially all of CEG's assets. 

Notwithstanding
the foregoing, a Change in Control of CEG 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 CEG which reduces the number of Company Voting Securities outstanding; provided,  that if after
such acquisition by CEG 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 CEG shall then occur. 

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

        Trustee
may rely upon any certificate, schedule, notice or direction of CEG which Trustee in good faith believes to be genuine, executed and delivered by a duly authorized officer or
agent of CEG. 

        Communications
to Trustee shall be sent in writing to Trustee at the address specified in Section 13(h) 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 CEG shall be sent in writing to CEG's principal offices at the address specified in Section 13(h) hereof or to such other address as CEG may specify in writing.
No communication shall be binding upon CEG until it is received by CEG and unless it is in writing and signed by Trustee. 

        (g)   In
the event of any conflict between the provisions of the Plan document and this Trust Agreement, the provisions of this Trust Agreement shall
prevail. 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. 

8

 

        (h)   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 CEG: 

Constellation
Energy Group, Inc.

750 East Pratt Street, 5th Floor

Baltimore, MD 21202 

Attention:

Director—Compensation 

If
to Trustee: 

T.
Rowe Price Trust Company

4555 Painters Mill Road

Owings Mills, MD 21117

Attention: CEG Client Manager 

If
to a participant or beneficiary: 

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

        (i)    In
the event of insufficiency of Trust assets and to the extent CEG does not make payments directly to Plan participants or their beneficiaries, as provided in
Section 2(c) hereof, or if CEG as provided in Section 1(f) hereof fails to contribute cash to the Trust to restore such insufficiency, such insufficiency shall be allocated by the record
keeper among all Plan Accounts subject to funding on a proportionate basis according to the market value of the Plan Account subject to funding. Trustee shall have no obligation to determine or
calculate such insufficiency, the amount of timing of any additional funding or the allocation of any insufficiency among Plan Accounts. 

        Section 14.    Effective Date.    

        The
effective date of this Trust Agreement shall be April 25, 2003. 

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        IN
WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be executed by their respective officers thereunto duly authorized as of the Effective Date indicated
above.

	WITNESS:	 	 	 	T. ROWE PRICE TRUST COMPANY
 
	

/s/
	
 	

By:	
 	

/s/
	
 	

(Seal)
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

WITNESS:	
 	

 	
 	
CONSTELLATION ENERGY GROUP, INC.
 
	

/s/
	
 	

By:	
 	

/s/
	
 	

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

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GRANTOR TRUST AGREEMENT DATED AS OF APRIL 25, 2003 BETWEEN CONSTELLATION ENERGY GROUP, INC. AND T. ROWE PRICE TRUST COMPANYQuickLinks
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Exhibit 10(f)  

 
 

CONSTELLATION ENERGY GROUP, INC.    
    
    SUPPLEMENTAL PENSION PLAN    
    

        1.    Objective.    The objective of this Plan is to enhance the benefits provided to certain officers and key
employees of Constellation Energy Group and its subsidiaries in order to attract and retain talented executive personnel. 

        2.    Definitions.    All words beginning with an initial capital letter and not otherwise defined herein shall have
the meaning set forth in the Pension Plan. All singular terms defined in this Plan will include the plural and vice versa. As used herein, the following
terms will have the meaning specified below: 

        "Annual
Base Salary" means an amount determined by adding the monthly base rate of pay amounts (i.e., the types of such pay that are includable in the computation of Pension Plan
benefits) earned over the twelve calendar months immediately preceding the month that includes the date of the computation. 

        "Average
Incentive Award" (or "Average Award") means generally the product of the percentage equal to an average of the two highest of the participant's five immediately prior year award
percentages earned under Constellation Energy Group's Executive Annual Incentive Plan, Constellation Energy Group's Senior Management Annual Incentive Plan and/or other Incentive Awards Program
multiplied by the participant's annualized base rate of pay amount (i.e., the types of such pay that are includable in the computation of Pension Plan benefits) in effect at the end of the prior year. 

        "Benefit
Start Date" means the date as of which the participant's benefits, if any, under this Plan commence. 

        "Cause"
means the participant's (a) failure to comply with Constellation Energy Group policy, (b) deliberate and continual refusal to satisfactorily perform employment
duties on substantially a full-time basis, (c) deliberate and continual refusal to act in accordance with any specific instructions of a majority of Constellation Energy Group's
Board of Directors, (d) disclosure, without the consent of a majority of Constellation Energy Group's Board of Directors, of confidential information or trade secrets concerning Constellation
Energy Group which could be materially damaging to Constellation Energy Group, or (e) deliberate misconduct which could be materially damaging to Constellation Energy Group without reasonable
good faith belief by the participant that such conduct was in the best interest of Constellation Energy Group. 

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

        (i)    individuals
who, on January 24, 2003, constitute the Board of Directors of Constellation Energy Group (the "Incumbent
Directors") cease for any reason to constitute at least a majority of the Board of Directors of Constellation Energy Group (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 of Directors of Constellation Energy Group. 

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

2

 

        "Constellation
Energy Group's Executive Annual Incentive Plan" means such plan or other incentive plan or arrangement designated in writing by the Plan Administrator. 

        "Constellation
Energy Group's Senior Management Annual Incentive Plan" means such plan or other incentive plan or arrangement designated in writing by the Plan Administrator. 

        "Demotion"
means a transfer to a position with Constellation Energy Group or a subsidiary of Constellation Energy Group that either (a) is substantially below the position in
which the participant was employed on the date of transfer, or (b) results in a substantial reduction in pay when compared to the participant's pay on the date of the transfer. Whether a
position is a substantially below another position shall be determined in the reasonable discretion of the Committee, with reference to factors including whether the participant retains principal
responsibility for a department or division, and whether the participant remains eligible for the perquisites enjoyed by the participant before the position change. 

        "Early
Receipt Reduction Factor" means 100% less .25% for each month that the participant is less than age 62 on the participant's Benefit Start Date. 

        "Interest
Rate" means the rate equal to the average monthly 30-year Treasury bond rate for the second calendar quarter preceding the computation date, less 50 basis points. 

        "Internal
Revenue Code Limitations" means the limitations under Sections 415 and/or 401(a)(17) of the Internal Revenue Code. 

        "LTD
Plan" means the Constellation Energy Group, Inc. Disability Insurance Plan as may be amended from time to time, or any successor plan. 

        "Mortality
Table" means the mortality table used to convert annuities to lump sums in the Pension Plan. 

        "Nonqualified
Deferred Compensation Plan" means the Constellation Energy Group, Inc. Nonqualified Deferred Compensation Plan. 

        "Other
Incentive Awards Program" means the program(s) designated in writing by the Plan Administrator applicable to certain employees that provides awards; but includes only the types of
awards that are includable in the computation of Pension Plan benefits. 

        "Pension
Plan" means the Pension Plan of Constellation Energy Group, Inc. as may be amended from time to time, or any successor plan. 

        "Plan"
means this Constellation Energy Group, Inc. Supplemental Pension Plan. 

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

        "Rabbi
Trust" means the trust adopted by Constellation Energy Group pursuant to the Grantor Trust Agreement Dated as of January 1, 2001, between Constellation Energy Group and
Citibank, N.A. 

        "Survivor
Annuity Percentage" means 50%, unless the participant elects in the timing and manner established by the Plan Administrator, a higher percentage (in multiples of 5% to a total
percentage not to exceed 100%). 

        "Termination
From Employment With Constellation Energy Group" means a participant's separation from service with Constellation Energy Group or a subsidiary of Constellation Energy Group;
however, a participant's retirement, disability, or transfer of employment to or from a subsidiary of Constellation Energy Group shall not constitute a Termination From Employment With Constellation
Energy Group. 

        3.    Plan Administration.    The Committee is the Plan Administrator and has sole authority (except as specified
otherwise herein) to interpret the Plan and, in general, to make all other 

3

 

determinations
advisable for the administration of the Plan to achieve its stated objective. Appeals of written decisions by the Plan Administrator may be made to the Board of Directors of
Constellation Energy Group. Decisions by the Board shall be final and not subject to further appeal. The Plan Administrator shall have the power to delegate all or any part of its duties to one or
more designees, and to withdraw such authority, by written designation. 

        4.    Eligibility.    The officers or key employees of Constellation Energy Group or its subsidiaries designated in
Appendix A are participants under the Plan. Participation shall continue until such designation is withdrawn at the discretion and by written order of the Plan Administrator, provided, however,
that such withdrawal may not be made for benefits provided pursuant to Sections 5 and 6 with respect to a participant who has satisfied the eligibility requirements to retire (as set forth in
Section 5(b)(i)). Notwithstanding the foregoing, any participant while classified as disabled under the LTD Plan shall continue to participate in this Plan while classified as disabled
and, for purposes of the supplemental pension benefit provided by this Plan, while classified as disabled, shall be deemed to continue to accrue Credited Service until no later than his/her Normal
Retirement Date. 

        5.    Supplemental Pension Benefit.

        (a)    Generally.    A participant shall be eligible for supplemental pension benefits and supplemental survivor
annuity benefits under this Plan only if the participant's supplemental pension benefits under this Plan are greater than the supplemental pension benefits computed under the Senior Executive
Supplemental Plan based on the participant's age, service, and eligible compensation on the date as of which benefits become payable. 

        (b)    Retirement benefits. 

        (i)    Eligibility for retirement benefits.    A participant shall be eligible to retire under this Plan on or after
the participant's Normal Retirement Date, or on the first day of any month preceding his/her Normal Retirement Date, if on his/her Severance From Service Date and while a participant he/she has
attained (1) age 55 and has accumulated at least 10 years of Credited Service; or (2) age 60 and has accumulated at least one year of Credited Service. 

        (ii)    Computation of retirement benefits.    A participant who is eligible to retire under this Plan will be
entitled to supplemental pension retirement benefits under this Plan, which will be calculated as set forth below on the participant's Benefit Start Date: 

        (1)    add
the Annual Base Salary and the Average Incentive Award, 

        (2)    divide
the sum by 12, 

        (3)    multiply
this dollar amount by the appropriate percentage, determined as follows: Chairman of the Board of Constellation Energy Group - 60%; all other
participants (by completed years of Credited Service) 1 through 9 - 3% per year; 10 through 19 - 40%; 20 through
24 - 45%; 25 through 29 - 50%; and 30 or more - 55%, 

        (4)    multiply
this dollar amount by the Early Receipt Reduction Factor; provided, however, if the participant is age 62 or older, such factor shall be one (1), 

        (5)    subtract
from this dollar amount the charges relating to coverage for a preretirement survivor annuity in excess of 50%, and for a post-retirement survivor
annuity in excess of 50%, and 

        (6)    subtract
from the remainder the net amount payable to the participant under the Pension Plan on the participant's Benefit Start Date, assuming a 50% spousal joint and
survivor annuity for a married participant(if the participant is not eligible to commence monthly Pension Plan payments on the participant's Benefit Start Date, the participant's benefit will be
unreduced for Pension Plan payments until the date the participant is first 

4

 

eligible
to commence monthly Pension Plan payments), or, if the participant elects a lump sum under the PEP provisions of the Pension Plan, the monthly
amount that would have been payable under the Pension Plan as a life annuity for a single participant or as a 50% spousal joint and survivor annuity for a married participant, as of the Benefit Start
Date under this Plan. 

        (iii)    Form of payout of retirement benefits.    Each participant entitled to supplemental pension retirement
benefits will receive his/her supplemental pension retirement benefits payout in the form of a monthly payment, unless the participant makes a valid election to receive his/her supplemental pension
retirement benefits payout in the form of a lump sum. 

        A
participant may elect to receive his/her supplemental pension retirement benefits payout in the form of a lump sum by submitting to the Plan Administrator a signed Lump Sum Election
Form. On such Form, the participant may elect to rollover such payout directly to the Nonqualified Deferred Compensation Plan. The Form must be received by the Plan Administrator before the beginning
of the calendar year during which the participant's Severance From Service Date occurs. The election to receive a payout in the form of a lump sum, or to rollover such payment to the Nonqualified
Deferred Compensation Plan, may be revoked at any time before the beginning of the calendar year during which the participant's Severance From Service Date occurs, by submitting to the Plan
Administrator a signed Lump Sum Revocation Form. 

        (iv)    Amount, timing, and source of monthly retirement benefit payout.    A participant entitled to monthly
supplemental pension retirement benefits will receive monthly payments equal to the amount determined under paragraph (b)(ii). Such payments shall commence effective with the first of the month
following the participant's Severance From Service Date. If such participant receives (or would have received but for the Internal Revenue Code Limitations) cost of living adjustment(s) under the
Pension Plan, the monthly payments hereunder will be automatically increased based on the percentage of, and at the same time as, such adjustment(s). Monthly payments hereunder shall permanently cease
upon the death of the participant, effective with the monthly payment for the month following the month of the participant's death. Monthly payments hereunder shall be made in accordance with the
provisions of the Rabbi Trust and, to the extent not paid under the terms of the Rabbi Trust, from general corporate assets. 

        (v)    Amount, timing, and source of lump sum retirement benefit payout.    A participant entitled to a lump sum
supplemental pension retirement benefit will receive a lump sum payment. This lump sum payment will be calculated by a certified actuary and will be equal to the present value of an immediate annuity
including the estimated present value of post-retirement supplemental survivor annuity benefits described in Section 6, and reflecting the present value of any deferred Pension Plan
payments using (1) the supplemental pension retirement benefit amount calculated under paragraph (b)(ii), which is expressed as a monthly amount, (2) the Interest Rate computed on
the participant's Benefit Start Date, and (3) the Mortality Table. Such lump sum payment shall be made within 60 days after the participant's Severance From Service Date, and shall
either be paid to the participant, or rolled over to the Nonqualified Deferred Compensation Plan pursuant to the participant's election under (b)(iii). The lump sum payment shall be made in accordance
with the provisions of the Rabbi Trust and, to the extent not paid under the terms of the Rabbi Trust, from general corporate assets. A participant who receives or rolls over a lump sum payment shall
not be entitled to any cost of living or other pension payment adjustments or to post-retirement survivor annuity coverage under the Plan. 

        (vi)    Death of participant entitled to lump sum payout.    In the event of the death of a participant after his/her
Severance From Service Date and before the participant receives or rolls over the lump sum payment under paragraph (b)(v), such lump sum payment shall be made to the participant's surviving
spouse (as defined in Section 6(i)). The lump sum payment shall be the 

5

 

same
amount and made at the same time and from the same sources as set forth in paragraph (b)(v). If there is no surviving spouse at the date of the participant's death, no payments shall be
made pursuant to Sections 5 or 6. A surviving spouse who receives a lump sum benefit under this paragraph (b)(vi) shall not be entitled to any cost of living or other pension payment
adjustments or to post-retirement survivor annuity coverage under the Plan. 

        (c)    Entitlement to benefit upon happening of certain events. 

        (i)    Computation of gross accrued benefit.    The computation of the gross accrued supplemental pension benefit for
a participant as of the date of the computation will be made as follows: 

        (1)    add
the Annual Base Salary and the Average Incentive Award, 

        (2)    divide
the sum by 12, and 

        (3)    multiply
this dollar amount by the appropriate percentage, determined as follows: Chairman of the Board of Constellation Energy Group - 60%; all other
participants (by completed years of Credited Service as of the date of the computation) 1 through 9 - 3% per year; 10 through 19 - 40%; 20 through
24 - 45%; 25 through 29 - 50%; and 30 or more - 55%. 

        (ii)    Computation of net accrued benefit.    The computation of the net accrued supplemental pension benefit for a
participant as of the date of the computation will be made by subtracting from the gross accrued benefit determined under paragraph (c)(i) the amount of the participant's Gross Pension
under the Pension Plan determined as of the date of the computation and assuming that monthly payments of such Gross Pension begin on the first of the month after the later of reaching age 62 or the
date of the computation. If the participant is not eligible for payment of a Gross Pension under the Pension Plan, the participant's Accrued Gross Pension determined as of the date of the computation
shall be substituted for the Gross Pension described above, with the appropriate reduction for early receipt applied as if the participant were eligible to begin payment of his Accrued Gross Pension
on the first of the month after the later of reaching age 62 or the date of the computation. 

        (iii)    Satisfaction of requirements.    A participant who has satisfied the age and Credited Service requirements
set forth in Section 5(b)(i) while eligible as set forth in Section 4, but who the Committee determines does not retire under the Plan due to Demotion, Termination From Employment
With Constellation Energy Group, or the withdrawal of a participant's eligibility to participate under Section 5, shall be entitled to his/her net accrued supplemental pension benefit. The
effective date of the Demotion, Termination From Employment With Constellation Energy Group, or eligibility withdrawal event shall be the date of such Demotion, Termination From Employment With
Constellation Energy Group, or eligibility withdrawal. 

        (iv)    Other events.    A participant, regardless of his/her age and years of Credited Service, shall be entitled to
his/her net accrued supplemental pension benefit upon the happening of any of the following entitlement events, but only if such entitlement event occurs while a participant and before a participant
retires under this Plan: 

        (1)    Change in Control.    A Change in Control, followed within two years by the participant's Demotion, a
participant's Termination From Employment With Constellation Energy Group, or the withdrawal of the participant's eligibility to participate under the Plan, is an entitlement event. The effective date
of the entitlement event shall be the date of the Demotion, Termination From Employment With Constellation Energy Group, or eligibility withdrawal. 

        (2)    Plan amendment.    A Plan amendment that has the effect of reducing a participant's gross accrued supplemental
pension benefit is an entitlement event. In determining whether 

6

 

such
a reduction has occurred, the participant's gross accrued supplemental pension benefit calculated on the day immediately preceding the effective date of the amendment shall be compared to the
participant's gross accrued supplemental pension benefit calculated on the effective date of the amendment. An amendment that has the effect of reducing future benefit accruals is not an entitlement
event. It is intended that an entitlement event under this paragraph (c)(iv)(2) will occur only with respect to those amendments that are substantially similar to amendments that are prohibited
by Internal Revenue Code section 411(d)(6) with respect to qualified pension plans. The effective date of the entitlement event shall be the effective date of the Plan amendment. 

        (3)    Involuntary Demotion, Termination From Employment With Constellation Energy Group, or eligibility withdrawal without
Cause.    A participant's involuntary Demotion or involuntary Termination From Employment With Constellation Energy Group without Cause, or the withdrawal of a
participant's eligibility to participate under Sections 5 or 6 of the Plan without Cause, is an entitlement event. The effective date of the entitlement event shall be the effective date of the
participant's involuntary Demotion or involuntary Termination From Employment With Constellation Energy Group without Cause, or the eligibility withdrawal without Cause. 

        (v)    Form of benefit payout.    Each participant entitled to a payout under this paragraph (c) will receive
such payout in the form of a lump sum payment. 

        (vi)    Amount, timing, and source of benefit payout.    A participant entitled to a payout of his/her net accrued
benefit, as a result of the occurrence of an event described in paragraphs (c)(iii), (c)(iv)(1), (2), or (3) will be entitled to a lump sum benefit. This lump sum benefit will be calculated by
a certified actuary as the present value, determined as of the date of payment, of an annuity beginning at age 62 (or the participant's actual age, if the participant is older than age 62 on the date
the lump sum benefit is payable), including the estimated present value of post-retirement survivor annuity benefits described in Section 7, using (1) the net accrued benefit
amount calculated under paragraph (d)(ii) on the effective date of the entitlement event, which is expressed as a monthly amount, (2) the Interest Rate computed on the date the
lump sum benefit is payable, and (3) the Mortality Table. The lump sum benefit shall be payable as of the participant's Severance From service Date, and shall be made within 60 days
after such date in accordance with the provisions of the Rabbi Trust and, to the extent not paid under the terms of the Rabbi Trust, from general corporate assets. A participant who receives a lump
sum benefit under this paragraph (c)(vi) shall not be entitled to any cost of living or other pension payment adjustments or to preretirement or post-retirement survivor
annuity coverage. 

        (vii)    Death of participant entitled to lump sum payout.    In the event of the death of a participant after the
occurrence of an event described in paragraphs (c)(iii), (c)(iv)(1), (2), or (3) and before the participant receives the lump sum payment under paragraph (c)(v), such lump sum payment
shall be made to the participant's surviving spouse (as defined in Section 6(i)). The lump sum payment will be calculated by a certified actuary and will be equal to 100% of the lump sum that
would have been paid to the participant under paragraph (vi), as of the date on which the lump sum is payable under this paragraph (vii), provided that the participant's date of death is
on or after his/her Severance From Service Date. If the participant's date of death is before his/her Severance From Service Date, 50% shall be substituted for 100% in the preceding sentence. The lump
sum benefit shall be payable as of the earlier of the participant's Severance From Service Date or date of death, and shall be made within 60 days after such date in accordance with the
provisions of the Rabbi Trust and, to the extent not paid under the terms of the Rabbi Trust, from general corporate assets. If there is no surviving spouse at the date of the participant's death, no
payments shall be made pursuant to Sections 5 or 6. A surviving spouse who receives a lump sum benefit under this paragraph (c) (vii) shall not be entitled to any cost of living or other
pension 

7

 

payment
adjustments or to preretirement or post-retirement survivor annuity coverage under the Plan. 

        6.    Supplemental Survivor Annuity Benefit. 

        (a)    Survivor annuity benefit. 

        (i)    Eligibility for survivor annuity benefit.    Following the death of a participant who is fully vested under the
Pension Plan, a supplemental survivor annuity may be paid to the participant's surviving spouse until the death of that spouse, using the Survivor Annuity Percentage. The participant will not bear the
cost of up to a 50% survivor annuity benefit, but will bear the cost of a survivor annuity benefit in excess of 50%. For purposes of this Section 6(a), a participant's surviving spouse is the
individual married to the participant on the date of the participant's death. If there is no surviving spouse, or if the participant or the participant's spouse previously received or is entitled to
receive either a lump sum payment under Section 5, or a benefit under the Senior Executive Supplemental Plan, no supplemental survivor annuity will be payable. 

        (ii)    Computation of survivor annuity benefit.    The amount of the supplemental survivor annuity will be determined
as follows: 

        (1)    if
the participant's Benefit Start Date occurred prior to the date of death: 

        (a)    begin
with the monthly pension benefit (under Section 5(b) of this Plan) that the participant was receiving prior to the date of death, and 

        (b)    multiply
this dollar amount by the Survivor Annuity Percentage. 

        (2)    otherwise:

        (a)    Unless
the participant elected the alternative in-service death benefit in section (b) below: 

        (1)    begin
with the monthly Early Retirement pension benefit (under both the Pension Plan and Section 5(b) of this Plan) to which the participant would have been
entitled to receive if: 

the
participant had been retired at the later of age 60 or his/her actual age on the date of death for purposes of computing the Early Receipt Reduction Factor, 

        (2)    multiply
this dollar amount by the Survivor Annuity Percentage, 

        (3)    subtract
from the product the net amount, if any, of the survivor annuity provided on behalf of the participant under the Pension Plan if the participant is
participating in the Traditional Pension Plan, or the monthly annuity that would have been provided to the participant's spouse assuming that he or she had been designated as the participant's
beneficiary and had chosen to receive a survivor benefit in the form of a monthly annuity, if the participant is participating in the PEP, and 

        (4)    subtract
from this dollar amount the charges relating to coverage (under both the Pension Plan and this Plan) for a preretirement survivor annuity in excess of 50%. 

        (b)    If
the participant was a participant in the Pension Equity Plan option of the Pension Plan and elected this alternative in-service death benefit by
December 31 of the year prior to his/her death or during the 2001 initial election period established by the Plan Administrator 

8

 

        (1)    calculate
the benefit under the Constellation Energy Group Benefits Restoration Plan that would have been payable to the surviving spouse if the participant were a
participant in that plan and 

        (2)    that
dollar amount will be paid to the surviving spouse only in the form of a lump sum from this Plan. 

        (iii)    Form of payout of survivor annuity benefits.    Unless the participant made a valid election by
December 31 of the year prior to his/her death or during the 2001 initial election period established by the Plan Administrator, to have the survivor benefits paid in a lump sum, each surviving
spouse entitled to a supplemental survivor annuity benefit will receive his/her survivor annuity benefit payout in the form of a monthly payment. 

        (iv)    Amount, timing, and source of monthly survivor annuity benefit payout.    A surviving spouse entitled to
monthly supplemental survivor annuity benefits will receive a monthly payment equal to the amount determined under (ii) above. Such payments shall commence effective with the first day of the
month following the month of the participant's death. If such surviving spouse receives (or would have received but for the Internal Revenue Code Limitations) cost of living adjustment(s) under the
Pension Plan, the monthly payments hereunder will be automatically increased based on the percentage of, and at the same time as, such adjustment(s). Monthly payments hereunder shall permanently cease
upon the death of the surviving spouse, effective with the monthly payment for the month following the month of the surviving spouse's death. Monthly payments hereunder shall be made in accordance
with the provisions of the Rabbi Trust and, to the extent not paid under the terms of the Rabbi Trust, from general corporate assets. 

        (v)    Amount, timing, and source of lump sum survivor benefit payout.    A surviving spouse entitled to a lump sum
supplemental survivor benefit will receive a lump sum payment. This lump sum payment will be calculated by a certified actuary and will be equal to the present value of an immediate annuity. Such lump
sum payment shall be made within 60 days after the participant's death. The lump sum payment shall be made in accordance with the provisions of the Rabbi Trust and, to the extent not paid under
the terms of the Rabbi Trust, from general corporate assets. A surviving spouse who receives a lump sum payment shall not be entitled to any cost of living or other pension payment adjustments. 

        (vi)    Death of surviving spouse entitled to lump sum payout.    In the event of the death of a surviving spouse
before the spouse receives the lump sum payment under section 6(a)(v) no payment shall be made. 

        7.    Miscellaneous.    None of the benefits provided under this Plan shall be subject to alienation or assignment by
any participant or beneficiary nor shall any of them be subject to attachment or garnishment or other legal process except (i) to the extent specially mandated and directed by applicable State
or Federal statute; or (ii) as requested by the participant or beneficiary to satisfy income tax withholding or liability. 

        This
Plan may be amended from time to time, or suspended or terminated at any time, provided, however, that no amendment or termination shall reduce any previously accrued supplemental
pension benefit under this Plan or impair the rights of any participant or beneficiary entitled to receive current or future payment hereunder at the time of such action. All amendments to this Plan
may be made at the written direction of the Committee. Notwithstanding anything else in this Plan to the contrary, the Constellation Energy Group Board of Directors may authorize a Participant to be
eligible for benefits or may increase benefit payments. 

        Participation
in this Plan shall not constitute a contract of employment between Constellation Energy Group or any of its subsidiaries and any person and shall not be deemed to be
consideration for, or a condition of, continued employment of any person. 

9

 

        The
Plan, notwithstanding the creation of the Rabbi Trust, is intended to be unfunded for purposes of Title I of the Employee Retirement Income Security Act of 1974. Constellation Energy
Group shall make contributions to the Rabbi Trust in accordance with the terms of the Rabbi Trust. Any funds which may be invested and any assets which may be held to provide benefits under this Plan
shall continue for all purposes to be a part of the general funds and assets of Constellation Energy Group and no person other than Constellation Energy Group shall by virtue of the provisions of this
Plan have any interest in such funds and assets. 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. 

        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. 

        This
Plan shall be governed in all respects by Maryland law. 

10

 
 
 

Amendments to the Constellation Energy Group, Inc.
  Supplemental Pension Plan (Plan)    
    

        1.    Notwithstanding
anything in Section 5(b)(iii) of the Plan to the contrary, any participant who terminates employment in connection with the management
restructuring announced late in 2001, and who wants to receive a lump sum payout of his/her Plan benefit in 2002, must irrevocably elect by December 31, 2001 to rollover the present value of
his/her accrued benefit under the Plan to the Nonqualified Deferred Compensation Plan effective December 31, 2001. Any additional benefit accruals under the Plan during 2002 and prior to
employment termination will automatically be paid in a lump sum from the Plan within 60 days after employment termination. 

        2.    Notwithstanding
anything in Section 5(b)(ii) to the contrary, participants designated by the Plan Administrator who are at least age 55 with 10 or more
years of service as of January 31, 2002 and who make an irrevocable election in the time and manner established by the Plan Administrator to voluntarily retire on February 1, 2002 (or
such later date on or before July 1, 2002 as required in the sole discretion of management), is entitled to an enhanced early retirement benefit conditioned on such participants' execution of a
waiver releasing Constellation Energy Group, Inc. and its affiliates from certain claims. The enhanced benefit is expressed as a lump sum amount equal to three weeks of pay (using Average
Annual Base Salary and Average Incentive Award) per year of Credited Service (as defined under the Pension Plan). Participants who receive such enhanced benefits are not eligible for benefits under
any severance plan or arrangement. 

11

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CONSTELLATION ENERGY GROUP, INC. SUPPLEMENTAL PENSION PLAN

Amendments to the Constellation Energy Group, Inc. Supplemental Pension Plan (Plan)

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