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Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made effective October 1, 2021 (the “Effective Date”) by and between Ross Stores, Inc., a Delaware corporation, and Adam Orvos (the “Executive”).  References herein to the “Company” shall mean Ross Stores, Inc. and, where appropriate, Ross Stores, Inc. and each and any of its divisions, affiliates or subsidiaries.  
RECITALS
A.The Company wishes to employ the Executive, and the Executive is willing to accept such employment, as Executive Vice President, Chief Financial Officer.
B.It is now the mutual desire of the Company and the Executive to enter into a written employment agreement to govern the terms of the Executive’s employment by the Company as of and following the Effective Date on the terms and conditions set forth below.
TERMS AND CONDITIONS
In consideration for the promises of the parties set forth below, the Company and the Executive hereby agree as follows:
1.Term.  Subject to the provisions of Section 6 of this Agreement, the term of employment of the Executive by the Company under this Agreement shall be as follows: 
(a)Initial Term.  The initial term of employment of the Executive by the Company under this Agreement shall begin on the Effective Date and end on September 30, 2025 (the “Initial Term”), unless extended or terminated earlier in accordance with this Agreement.  The Initial Term plus any Extension (as defined in Section 1(c) hereof) thereof shall be the “Term of Employment.”
(b)Extension Intent Notice. By December 31, 2022, the Executive shall advise the CEO of the Company or his/her designee whether the Executive would like the Term of Employment extended. If the Executive does not timely notify the Company of his/her desire to extend (or not to extend) the Term of Employment, then such action shall be deemed to result in the Executive’s Voluntary Termination as of the Term of Employment end date unless the Company determines otherwise in its sole and absolute discretion.
(c)New Agreement.  Provided that, in accordance with Section 1(b) hereof, the Executive has timely notified the CEO of the Executive’s desire to extend the Executive’s employment, the Company will consider whether to offer the Executive an extension under this Agreement or a new Employment Agreement. If the Company decides in its sole and absolute discretion to offer the Executive an extension or a new Employment Agreement, the Company will notify the Executive accordingly (an "Extension Notice") not less than one hundred eighty (180) days prior to the expiration of the Term of Employment.  If the Company timely provides an Extension Notice and the Executive and the Company enter into such extension (or a new Employment Agreement), the Initial Term hereof will be extended by such additional period of time set forth in the Extension Notice (each an "Extension").   If the Company timely provides an 

Extension Notice and offers the Executive an extension or a new Employment Agreement providing at least comparable terms to the Executive’s then current Employment Agreement but the Executive does not agree to enter into such extension or new Employment Agreement, such action shall be deemed to result in Executive’s Voluntary Termination as of the Term of Employment end date unless the Company determines otherwise in its sole and absolute discretion.   
2.Position and Duties.   During the Term of Employment, the Executive shall serve as Executive Vice President, Chief Financial Officer.  During the Term of Employment, the Executive may engage in outside activities provided (i) such activities (including but not limited to membership on boards of directors of not-for-profit and for-profit organizations) do not conflict with the Executive’s duties and responsibilities hereunder and (ii) the Executive obtains  written approval from the Company’s Chief Executive Officer of any significant outside business activity in which the Executive plans to become involved, whether or not such activity is pursued for profit.
3.Principal Place of Employment.  The Executive shall be employed at the Company’s offices in Dublin, CA, except for required travel on the Company’s business to an extent substantially consistent with present business travel obligations of the Executive’s position.  
4.Compensation and Related Matters.
(a)Salary.  During the Term of Employment, the Company shall pay to the Executive a salary at a rate of not less than Seven Hundred Fifty Thousand Dollars ($750,000) per annum.  The Executive’s salary shall be payable in substantially equal installments in accordance with the Company’s normal payroll practices applicable to senior executives.  Subject to the first sentence of this Section 4(a), the Executive’s salary may be adjusted from time to time in accordance with normal business practices of the Company.
(b)Bonus.  During the Term of Employment, the Executive shall be eligible to receive an annual bonus paid under the Company’s existing incentive bonus plan under which the Executive is eligible (which is currently the Incentive Compensation Plan) or any replacement plan that may subsequently be established and in effect during the Term of Employment.  The current target annual bonus the Executive is eligible to earn upon achievement of 100% of all applicable performance targets under such incentive bonus plan is 70% of the Executive’s then effective annual salary rate.  Annual bonuses are not earned until the date any such bonus is paid in accordance with the terms of the applicable bonus plan.  As such, the Executive’s termination for Cause or Voluntary Termination (as described in Sections 6(c) and 6(f), respectively) prior to the Company’s payment of the bonus for a fiscal year of the Company will cause the Executive to be ineligible for any annual bonus for that fiscal year or any pro-rata portion of such bonus.  
             (c) Expenses.  During the Term of Employment, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in performing services hereunder, including, but not limited to, all reasonable expenses of travel and living while away from home, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company.

              (d) Benefits.  During the Term of Employment, the Executive shall be entitled to participate in all of the Company’s employee benefit plans and arrangements in which senior executives of the Company are eligible to participate.  The Company shall not make any changes in such plans or arrangements which would adversely affect the Executive’s rights or benefits thereunder, unless such change occurs pursuant to a program applicable to all senior executives of the Company and does not result in a proportionately greater reduction in the rights or benefits of the Executive as compared with any other similarly situated senior executive of the Company.  The Executive shall be entitled to participate in, or receive benefits under, any employee benefit plan or arrangement made available by the Company in the future to its senior executives, subject to, and on a basis consistent with, the terms, conditions and overall administration of such plans and arrangements.  Except as otherwise specifically provided herein, nothing paid to the Executive under any plan or arrangement presently in effect or made available in the future shall be in lieu of the salary or bonus otherwise payable under this Agreement.
              (e) Vacations.  During the Term of Employment, the Executive shall be entitled to twenty vacation days in each calendar year, determined in accordance with the Company’s vacation plan.  The Executive shall also be entitled to all paid holidays given by the Company to its senior executives.  Unused vacation days shall not be forfeited once they have been earned and, if still unused at the time of the Executive’s termination of employment with the Company, shall be promptly paid to the Executive at their then-current value, based on the Executive’s daily salary rate at the time of the Executive’s termination of employment.
           (f) Services Furnished.  The Company shall furnish the Executive with office space and such services as are suitable to the Executive’s position and adequate for the performance of the Executive’s duties during the Term of Employment.
5.Confidential Information and Intellectual Property.
(a)This Agreement is intended to supplement, and not to supersede, any rights the Company may have in law or equity with respect to the protection of trade secrets or confidential or proprietary information.
(b)Other than in the performance of the Executive’s duties hereunder, the Executive agrees not to use in any manner or disclose, distribute, publish, communicate or in any way cause to be used, disclosed, distributed, published, or communicated in any way or at any time, either while in the Company's employ or at any time thereafter, to any person not employed by the Company, or not engaged to render services to the Company, any Confidential Information (as defined below) obtained while in the employ of the Company.
(c)Confidential Information includes any non-public written or unwritten information which relates to and/or is used by the Company or its subsidiaries, affiliates or divisions, including, without limitation: (i) the Company’s compilation of the buying habits and other  proprietary information regarding past, present and potential customers, employees and suppliers of the Company as developed by or specifically for the Company  (including, but not limited to, under the direction of the Executive while employed by the Company) and not generally known to the public; (ii) customer and supplier contracts and transactions or price lists of the Company and suppliers;  (iii) the Company’s methods of distribution; (iv) all Company agreements, files, books, logs, charts, records, studies, reports, processes, schedules and 

statistical information that are specific to the Company’s business and/or strategy; (v) data, figures, projections, estimates, pricing data, customer lists (as described in this section), buying manuals or procedures, distribution manuals or procedures, and other policy and procedure manuals or handbooks; (vi) supplier information that the Company has devoted significant resources to develop and determine, tax records, personnel histories and records, sales information and property information; (vii) information regarding the present or future phases of the Company’s business; (viii) inventions, trademarks and the Company’s non-public business information processes, techniques, improvements, designs, redesigns, creations, discoveries, trade secrets, and developments; (ix) all computer software licensed or developed by the Company or its subsidiaries, affiliates or divisions, computer programs, computer-based and web-based training programs, and systems; and (x) the Company’s finances and financial information.  However, Confidential Information will not include information of the Company or its subsidiaries, affiliates or divisions that (1) became or becomes a matter of public knowledge through sources independent of the Executive, (2) has been or is disclosed by the Company or its subsidiaries, affiliates or divisions without restriction on its use, or (3) has been or is required or specifically permitted to be disclosed by law or governmental order or regulation, provided that the disclosure does not exceed the extent of disclosure required by such law, order or regulation.  The Executive shall provide prompt written notice of any such order to the Company’s CEO or his or her designee sufficiently in advance of making any disclosure to permit the Company to contest the order or seek confidentiality protections, as determined in the Company’s sole and absolute discretion. The Executive agrees that, if there is any reasonable doubt whether an item is public knowledge, the Executive will not regard the item as public knowledge until and unless the Company’s CEO confirms to the Executive that the information is public knowledge.
(d)The provisions of this Section 5 shall not preclude the Executive from disclosing such information to the Executive's professional tax advisor or legal counsel solely to the extent necessary to the rendering of their professional services to the Executive if such individuals agree to keep such information confidential.
(e)Notwithstanding the foregoing, the U.S. Defend Trade Secrets Act of 2016 (“DTSA”) provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (iii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, DTSA provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.
(f)The Executive agrees that upon leaving the Company’s employ, the Executive will remain reasonably available to answer questions from Company officers regarding the Executive’s former duties and responsibilities and the knowledge the Executive obtained in connection therewith.
(g)The Executive agrees that upon leaving the Company's employ the Executive will not communicate directly or indirectly with, or give statements to, any member of 

the media (including print, television, radio or social media) relating to any matter (including pending or threatened lawsuits or administrative investigations) about which the Executive has knowledge or information (other than knowledge or information that is not Confidential Information) as a result of employment with the Company.  The Executive further agrees to notify the CEO or his or her designee immediately after being contacted by any member of the media with respect to any matter affected by this section.
(h)The Executive agrees that all information, inventions and discoveries, whether or not patented or patentable, protected by a copyright or copyrightable, or registered as a trademark or eligible to be registered as a trademark, made or conceived by the Executive, either alone or with others, at any time while employed by the Company, which arise out of such employment or is pertinent to any field of business or research in which, during such employment, the Company, its subsidiaries, affiliates or divisions is engaged or (if such is known to or ascertainable by the Executive) is considering engaging (“Intellectual Property”) shall (i) be and remain the sole property of the Company and the Executive shall not seek a patent or copyright or trademark protection with respect to such Intellectual Property without the prior consent of an authorized representative of the Company and (ii) be disclosed promptly to an authorized representative of the Company along with all information the Executive possesses with regard to possible applications and uses.  Further, at the request of the Company, and without expense or additional compensation to the Executive, the Executive agrees to, during and after his or her employment, execute such documents and perform such other acts as the Company deems necessary to obtain, perfect, maintain, protect and enforce patents on such Intellectual Property in a jurisdiction or jurisdictions designated by the Company, and to assign and transfer to the Company or its designee all such Intellectual Property rights and all patent applications and patents relating thereto.  The Executive hereby irrevocably grants the Company power of attorney to execute and deliver any such documents on the Executive’s behalf in his or her name and to do all other lawfully permitted acts to transfer the work product to the Company and further the transfer, issuance, prosecution, and maintenance of all Intellectual Property rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate with the Company’s request (without limiting the rights the Company shall have in such circumstances by operation of law).  The power of attorney is coupled with an interest and shall not be affected by the Executive’s subsequent incapacity.
(i)Executive represents and warrants that, as of the Effective Date, there is no Intellectual Property that: (i) has been created by or on behalf of Executive, and/or (ii) is owned exclusively by Executive or jointly by Executive with others or in which Executive has an interest, and that relate in any way to any of the Company’s actual or proposed businesses, products, services, or research and development, and which are not assigned to the Company hereunder.  Executive understands further that the Intellectual Property will not include, and the provisions of this Agreement requiring assignment of inventions to the Company do not apply to, any invention that qualifies fully for exclusion under the provisions of Section 2870 of the California Labor Code.  
(j)The Executive and the Company agree that the Executive intends all original works of authorship within the purview of the copyright laws of the United States authored or created by the Executive in the course of the Executive’s employment with the Company will be works for hire within the meaning of such copyright law.

(k)Upon termination of the Executive’s employment, or at any time upon request of the Company, the Executive will (i) promptly return to the Company all Confidential Information and Intellectual Property, in any form, including but not limited to letters, memoranda, reports, notes, notebooks, books of account, drawings, prints, specifications, formulae, data printouts, microfilms, magnetic tapes, disks, recordings, documents, and all copies thereof, and (ii) delete or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive’s possession or control, including those stored on any non-Company devices, networks, storage locations, and media in the Executive’s possession or control. 
6.Termination.  The Executive’s employment may be terminated during the Term of Employment only as follows:
(a)Death.  The Executive’s employment shall terminate upon the Executive’s death.
(b)Disability.  If, as a result of the Executive’s Disability (as defined below), the Executive shall have been absent from the Executive’s duties hereunder on a full-time basis for the entire period of six consecutive months, and, within thirty days after written notice of termination is given by the Company (which may occur before or after the end of such six-month period), the Executive shall not have returned to the performance of the Executive’s duties hereunder on a full-time basis, the Executive’s employment shall terminate.  For purposes of this Agreement, the term “Disability” shall have the same meaning as ascribed to such term under the Company's long-term disability plan in which Executive is participating; provided that in the absence of such plan (or the absence of Executive's participation in such plan), Disability shall mean Executive’s inability to substantially perform his or her duties hereunder due to a medically determinable physical or mental impairment which has lasted for a period of not less than one hundred twenty (120) consecutive days. 
(c)For Cause.  The Company may terminate the Executive’s employment for Cause.  For this purpose, “Cause” means the occurrence of any of the following (i) the Executive’s repeated failure to substantially perform the Executive’s duties hereunder (unless such failure is a result of a Disability as defined in Section 6(b)); (ii) the Executive’s theft, dishonesty, breach of fiduciary duty for personal profit or falsification of any documents of the Company; (iii) the Executive’s material failure to abide by the applicable code(s) of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct) of the Company; (iv) knowing or intentional misconduct by the Executive as a result of which the Company is required to prepare an accounting restatement; (v) the Executive’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company (including, without limitation, the Executive’s improper use or disclosure of confidential or proprietary information of the Company); (vi) any intentional misconduct or illegal or grossly negligent conduct by the Executive which is materially injurious to the Company monetarily or otherwise; (vii) any material breach by the Executive of the provisions of Section 9 [Certain Employment Obligations] of this Agreement; or (viii) the Executive’s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which materially impairs the Executive’s ability to perform his or her duties with the Company.  A termination for Cause shall not take effect unless: (1) the Executive is given 

written notice by the Company of its intention to terminate the Executive for Cause; (2) the notice specifically identifies the particular act or acts or failure or failures to act which are the basis for such termination; and (3) where practicable, the notice is given within sixty days of the Company’s learning of such act or acts or failure or failures to act. 
(d)Without Cause. The Company may terminate the Executive’s employment at any time Without Cause.  A termination “Without Cause” is a termination by the Company of the Executive’s employment with the Company for any reasons other than the death or Disability of the Executive or the termination by the Company of the Executive for Cause as described in Section 6(c). 
(e)Termination by the Executive for Good Reason.  
(i)Termination Not in Connection with a Change in Control.  At any time during the Term of Employment, other than within the period commencing one month prior to and ending twelve months following a Change in Control (as defined below in Section 8(e)(ii)), the Executive may terminate the Executive’s employment with the Company for “Good Reason,” which shall be deemed to occur if, within sixty days after receipt of written notice to the Company by the Executive of the occurrence of one or more of the following conditions, any of the following conditions have not been cured: (i) a failure by the Company to comply with any material provision of this Agreement (including but not limited to the reduction of the Executive’s salary or the target annual bonus opportunity set forth in Section 4(b)); (ii) a significant diminishment in the nature or scope of the authority, power, function or duty attached to the position which the Executive currently maintains without the express written consent of the Executive; provided, that the Executive’s employment may be transferred, assigned, or re-assigned to Ross Stores, Inc. or a division, affiliate or subsidiary of Ross Stores, Inc.; the division, affiliate or subsidiary with respect to which the Executive is performing services may be reorganized; and the Executive’s direct reports or the person or title of the person to whom the Executive reports may be changed; and no such transfer, assignment, re-assignment, reorganization or change shall constitute “Good Reason” for the Executive’s termination of employment under this Section 6(e)(i); or (iii) the relocation of the Executive’s Principal Place of Employment as described in Section 3 to a location that increases the regular one-way commute distance between the Executive’s residence and Principal Place of Employment by more than 25 miles without the Executive’s prior written consent.  In order to constitute a termination of employment for Good Reason, the Executive must provide written notice to the Company of the existence of the condition giving rise to the Good Reason termination within sixty days of the initial existence of the condition, and in the event such condition is cured by the Company within sixty days from its receipt of such written notice, the termination shall not constitute a termination for Good Reason.
(ii)Termination in Connection with a Change in Control.  Within the period commencing a month prior to and ending twelve months following a Change in Control, the Executive may terminate the Executive’s employment with the Company for “Good Reason,” which shall be deemed to occur if, within sixty days after receipt of written notice to the Company by the Executive of the occurrence of one or more of the following conditions, any of the following conditions have not been cured: (i) a failure by the Company to comply with any provision of this Agreement (including, but not limited to, the reduction of the Executive’s salary, the target annual bonus opportunity or any other incentive opportunity, in each case, as of 

immediately prior to the Change in Control); (ii) a change in title, the nature or scope of the authority, power, function, responsibilities, reporting relationships or duty attached to the position which the Executive currently maintains without the express written consent of the Executive; (iii) the relocation of the Executive’s Principal Place of Employment as described in Section 3 to a location that increases the regular one-way commute distance between the Executive’s residence and Principal Place of Employment by more than 25 miles without the Executive’s prior written consent; (iv) a change in the benefits to which the Executive is entitled to immediately prior to the Change in Control; or (v) the failure of the Company to assign this Agreement to any successor to the Company.  In order to constitute a termination of employment for Good Reason, the Executive must provide written notice to the Company of the existence of the condition giving rise to the Good Reason termination within sixty days of the initial existence of the condition, and in the event such condition is cured by the Company within sixty days from its receipt of such written notice, the termination shall not constitute a termination for Good Reason.
(f)Voluntary Termination.  The Executive may voluntarily resign from the Executive’s employment with the Company at any time (a “Voluntary Termination”). A voluntary resignation from employment by the Executive for Good Reason pursuant to Section 6(e) shall not be deemed a Voluntary Termination. 
(g)Non-Renewal Termination.  If the Company does not provide Executive an Extension Notice in accordance with Section 1(c), this Agreement shall automatically expire at the end of the then current Term of Employment (a “Non-Renewal Termination”).
7.Notice and Effective Date of Termination.
(a)Notice.  Any termination of the Executive’s employment by the Company or by the Executive during the Term of Employment (other than as a result of the death of the Executive or a Non-Renewal Termination described in Section 6(g)) shall be communicated by written notice of termination to the other party hereto.  Such notice shall indicate the specific termination provision in this Agreement relied upon and, except in the case of termination Without Cause and Voluntary Termination as described in Sections 6(d) and 6(f), respectively, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under that provision.
(b)Date of Termination. The date of termination of the Executive’s employment shall be:
(i)if the Executive’s employment is terminated due to the Executive’s death, the date of the Executive’s death;
(ii)if the Executive’s employment is terminated due to Disability pursuant to Section 6(b), the date of termination shall be the last to occur of the 31st day following delivery of the notice of termination to the Executive by the Company or the end of the consecutive six-month period referred to in Section 6(b);
(iii)if the Executive’s employment is terminated for any other reason by either party, the date on which a notice of termination is delivered to the other party or, in the 

event of the Company’s termination of the Executive, such date as the Company may specify in such notice; and
(iv)if the Agreement expires pursuant to a Non-Renewal Termination described in Section 6(g), the parties’ employment relationship shall terminate on the last day of the then current Term of Employment without any notice.
8.Compensation and Benefits Upon Termination.
(a)Termination Due To Disability, Without Cause or For Good Reason.  If the Executive’s employment terminates pursuant to Section 6(b) [Disability], Section 6(d) [Without Cause], or Section 6(e)(i) [Termination by Executive for Good Reason Not in Connection with a Change in Control], then, subject to Section 22 [Compliance with Section 409A], in addition to all salary, annual bonuses, expense reimbursements, benefits and accrued vacation days earned by the Executive pursuant to Section 4 through the date of the Executive’s termination of employment, the Executive shall be entitled to the compensation and benefits set forth in Sections 8(a)(i) through (vii), provided that within sixty days following the Executive’s termination of employment (i) the Executive has executed and delivered to the Company a general release of claims against the Company and its subsidiaries, affiliates, stockholders, directors, officers, employees, agents, successors and assigns in the current form approved by the Company and attached as Exhibit A (subject to any amendments required by law or regulation) (the “Release”), and (ii) the Release has become irrevocable: 
(i)Salary.  Commencing on the sixtieth day after the date of the Executive's termination of employment, the Company shall continue to pay to the Executive the Executive’s salary, at the rate in effect immediately prior to such termination of employment, through the remainder of the Term of Employment then in effect; provided, however, that any such salary otherwise payable during the 60-day period immediately following the date of such termination of employment shall be paid to the Executive sixty days following such termination of employment. 
(ii)Bonus.  The Company shall continue to pay to the Executive an annual bonus through the remainder of the Term of Employment then in effect; provided, however, that the amount of the annual bonus determined in accordance with this Section 8(a) (ii) for the fiscal year of the Company (“Fiscal Year”) in which such Term of Employment ends shall be prorated on the basis of the number of days of such Term of Employment occurring within such fiscal year.  The amount of each annual bonus payable pursuant to this Section 8(a)(ii), prior to any proration, shall be equal to the annual bonus that the Executive would have earned had no such termination under Section 8(a) occurred, contingent on the relevant annual bonus plan performance goals for the respective year having been obtained.  However, in no case shall any such annual bonus attributable to any Fiscal Year commencing on or after the first day of the Fiscal Year in which the Executive’s termination of employment occurs exceed 100% of the Executive's target bonus for the Fiscal Year in which the Executive's termination of employment occurs.  Such bonuses shall be paid on the later of the date they would otherwise be paid in accordance with the applicable Company bonus plan or sixty days after the date of the Executive's termination of employment.

(iii)Stock Options.  Stock options granted to the Executive by the Company and which remain outstanding immediately prior to the date of termination of the Executive’s employment, as provided in Section 7(b), shall remain outstanding until and shall immediately become vested in full upon the Release becoming irrevocable.
(iv)Restricted Stock.  Shares of restricted stock granted to the Executive by the Company, according to the terms of the Ross Stores, Inc. Restricted Stock Agreement, which have not become vested as of the date of termination of the Executive’s employment, as provided in Section 7(b), shall immediately become vested on a pro rata basis upon the Release becoming irrevocable.  The number of such additional shares of restricted stock that shall become vested as of the date of the Executive’s termination of employment shall be that number of additional shares that would have become vested through the date of such termination of employment at the rate(s) determined under the vesting schedule applicable to such shares had such vesting schedule provided for the accrual of vesting on a daily basis (based on a 365 day year).  The pro rata amount of shares vesting through the date of termination shall be calculated by multiplying the number of unvested shares scheduled to vest in each respective vesting year by the ratio of the number of days from the date of grant through the date of termination and the number of days from the date of grant through the original vesting date of the respective vesting tranche.  Any shares of restricted stock remaining unvested after such pro rata vesting shall automatically be reacquired by the Company in accordance with the provisions of the applicable restricted stock agreement, and the Executive shall have no further rights in such unvested portion of the restricted stock.  In addition, the Company shall waive any reacquisition or repayment rights for dividends paid on restricted stock prior to Executive’s termination of employment. 
(v)Performance Share Awards.  On the Performance Share Vesting Date (as defined in the Executive's Notice of Grant of Performance Shares and Performance Share Agreement from the Company (collectively the "Performance Share Agreement")) next following the Executive's date of termination of employment, the number of Performance Shares that shall become Vested Performance Shares (as defined in the Performance Share Agreement) shall be determined by multiplying (a) that number of shares of Company Common Stock subject to the Performance Share Agreement that would have become Vested Performance Shares had no such termination occurred; provided, however, in no case shall the number of Performance Shares that become Vested Performance Shares prior to proration exceed 100% of the Target Number of Performance Shares set forth in the Performance Share Agreement by (b) the ratio of the number of full months of the Executive's employment with the Company during the Performance Period (as defined in the Performance Share Agreement) to the number of full months contained in the Performance Period.   Vested Common Shares shall be issued in settlement of such Vested Performance Shares on the Settlement Date next following the date of the Executive’s termination of employment.        
(vi)Unvested Common Shares Issued in Settlement of Performance Share Awards.  If the Executive terminates employment pursuant to Sections 6(b), 6(d) or 6(e)(i) after the Performance Share Vesting Date, all Unvested Common Shares (as defined in the Performance Share Agreement) issued in settlement of the Performance Share Award shall become vested in full effective as of the date of such termination. 

 (vii)    Health Care Coverage.  The Company shall continue to provide Executive with medical, dental, vision and mental health care coverage at or equivalent to the level of coverage that the Executive had at the time of the termination of employment (including coverage for the Executive’s eligible dependents to the extent such dependents were covered immediately prior to such termination of employment) for the remainder of the Term of Employment, except coverage for dependent will end when dependent is no longer eligible for coverage, if earlier than the Term of Employment end date, provided, however that in the event such coverage may no longer be extended to Executive following termination of Executive’s employment either by the terms of the Company’s health care plans or under then applicable law, the Company shall instead reimburse Executive for Executive’s cost of substantially equivalent health care coverage available to Executive under ERISA Section 601 and thereafter and Section 4980B of the Internal Revenue Code (i.e., COBRA coverage) for a period not to exceed the lesser of (A) 18 months after the termination of Executive’s employment or (B) the remainder of the Term of Employment, and provided further that (1) any such health care coverage or reimbursement for health care coverage shall cease at such time that Executive becomes eligible for health care coverage through another employer and (2) any such reimbursement shall be made no later than the last day of the calendar year following the end of the calendar year with respect to which such coverage or reimbursement is provided. The Executive must notify the Company within five business days of becoming eligible for such other coverage and promptly repay the Company any benefits he or she received in error.
The Company shall have no further obligations to the Executive as a result of termination of employment described in this Section 8(a) except as set forth in Section 13.
(b)Termination for Cause or Voluntary Termination.  If the Executive’s employment terminates pursuant to Section 6(c) [For Cause] or Section 6(f) [Voluntary Termination], the Executive shall be entitled to receive only the salary, annual bonuses, expense reimbursements, benefits and accrued vacation days earned by the Executive pursuant to Section 4 through the date of the Executive’s termination of employment.  Annual bonuses are not earned until the date any such bonus is paid in accordance with the terms of the applicable bonus plan.  As such, the Executive shall not be entitled to any bonus not paid prior to the date of the Executive’s termination of employment, and the Executive shall not be entitled to any prorated bonus payment for the year in which the Executive’s employment terminates.  Any stock options granted to the Executive by the Company shall continue to vest only through the date on which the Executive’s employment terminates, and unless otherwise provided by their terms, any restricted stock, performance share awards or other equity awards that were granted to the Executive by the Company that remain unvested as of the date on which the Executive’s employment terminates shall automatically be forfeited and the Executive shall have no further rights with respect to such awards.  The Company shall have no further obligations to the Executive as a result of termination of employment described in this Section 8(b) except as set forth in Section 13. 
(c)Death.  If the Executive’s employment terminates pursuant to Section 6(a) [Death], (i) the Executive’s designated beneficiary or the Executive’s estate shall be entitled to receive only the salary, any unpaid annual bonus for the fiscal year of the Company occurring immediately prior to the fiscal year in which the Executive’s death occurred,  expense reimbursements, benefits, and accrued vacation earned by the Executive pursuant to Section 4 

through the date of the Executive’s death; (ii) at the time payable under the applicable Company bonus plan, an annual bonus shall be paid to the Executive’s designated beneficiary or the Executive’s estate for the fiscal year of the Executive’s death based on the annual bonus that the Executive would have earned under the Company’s bonus plan for such fiscal year had the Executive not died, contingent on the relevant annual bonus plan performance goals for said year having been obtained, capped at 100% of the Executive’s target bonus for such fiscal year and pro-rated for the number of days the Executive is employed during such fiscal year until the Executive’s death; (iii) any shares of restricted stock granted to the Executive by the Company at least 12 months prior to the Executive’s date of death that are unvested as of such date shall immediately become fully vested and any shares of restricted stock granted to the Executive by the Company within the 12-month period ending on the Executive’s date of death that are unvested as of such date shall automatically be forfeited and the Executive shall have no further rights with respect to such restricted stock; and (iv) the Company shall waive any reacquisition or repayment rights for dividends paid on restricted stock prior to the Executive’s death.   
(i)Performance Share Awards.  On the Performance Share Vesting Date next following the Executive's date of death, the number of Performance Shares that shall become Vested Performance Shares shall be determined by multiplying (a) that number of shares of Company Common Stock subject to the Performance Share Agreement that would have become Vested Performance Shares had no such  termination occurred; provided, however, in no case shall the number of Performance Shares that become Vested Performance Shares prior to proration exceed 100% of the Target Number of Performance Shares set forth in the Performance Share Agreement, by (b) the ratio of the number of full months of the Executive's employment with the Company during the Performance Period (as defined in the Performance Share Agreement) to the number of full months contained in the Performance Period.  Vested Common Shares shall be issued in settlement of such Vested Performance Shares on the Settlement Date next following the Executive’s date of death.  
(ii)Unvested Common Shares Issued in Settlement of Performance Share Awards.  If the Executive dies after the Performance Share Vesting Date, all Unvested Common Shares issued in settlement of the Performance Share Award shall become vested in full effective as of the date of such termination.
(d)Non-Renewal Termination.  If the Agreement expires as set forth in Section 6(g) [Non-Renewal Termination], then, subject to Section 22 [Compliance with Section 409A], in addition to all salary, annual bonuses, expense reimbursements, benefits and accrued vacation days earned by the Executive pursuant to Section 4 through the date of the Executive’s termination of employment, the Executive shall be entitled to the compensation set forth in Sections 8(d)(i) through (v), provided that within sixty days following the Executive’s termination of employment (i) the Executive has executed and delivered the Release to the Company, and (ii) the Release has become irrevocable:
(i)Bonus.  The Company shall pay the Executive an annual bonus for the fiscal year of the Company (“Fiscal Year”) in which the date of the Executive’s termination of employment occurs, which shall be prorated for the number of days of such Fiscal Year that the Executive is employed by the Company.  The amount of such annual bonus, prior to proration, shall be equal to the annual bonus that the Executive would have earned under the Company’s bonus plan for the Fiscal Year in which the Executive’s termination of employment 

occurs had the Executive remained in its employment, contingent on the relevant annual bonus plan performance goals for the year in which Executive terminates having been obtained.  However, in no case shall any such annual bonus attributable to any Fiscal year commencing on or after the first day of the Fiscal Year in which the Executive’s termination of employment occurs exceed 100% of the Executive's target bonus for the Fiscal Year in which the Executive's termination of employment occurs.  Such bonus shall be paid on the later of the date they would otherwise be paid in accordance with the applicable Company bonus plan or sixty days after the date of the Executive's termination of employment.  
(ii)Stock Options.  Stock options granted to the Executive by the Company and which remain outstanding immediately prior to the date of termination of the Executive’s employment, as provided in Section 7(b), shall remain outstanding until and shall immediately become vested in full upon the Release becoming irrevocable.
(iii)Restricted Stock.  Shares of restricted stock granted to the Executive by the Company which have not become vested as of the date of termination of the Executive’s employment, as provided in Section 7(b), shall immediately become vested on a pro rata basis upon the Release becoming irrevocable.  The number of such additional shares of restricted stock that shall become vested as of the date of the Executive’s termination of employment shall be that number of additional shares that would have become vested through the date of such termination of employment at the rate(s) determined under the vesting schedule applicable to such shares had such vesting schedule provided for the accrual of vesting on a daily basis (based on a 365-day year).  The pro rata amount of shares vesting through the date of non-renewal shall be calculated by multiplying the number of unvested shares scheduled to vest in each respective vesting year by the ratio of the number of days from the date of grant through the date of non-renewal, and the number of days from the date of grant through the original vesting date of the respective vesting tranche.  Any shares of restricted stock remaining unvested after such pro rata vesting shall automatically be reacquired by the Company in accordance with the provisions of the applicable restricted stock agreement, and the Executive shall have no further rights in such unvested portion of the restricted stock.  In addition, the Company shall waive any reacquisition or repayment rights for dividends paid on restricted stock prior to Executive’s termination of employment.  
(iv)Performance Share Awards.  On the Performance Share Vesting Date on or next following the Executive's date of termination of employment, the number of Performance Shares that shall become Vested Performance Shares shall be determined by multiplying (a) that number of shares of Company Common Stock subject to the Performance Share Agreement that would have become Vested Performance Shares had no such termination occurred; provided, however, in no case shall the number of Performance Shares that become Vested Performance Shares prior to proration exceed 100% of the Target Number of Performance Shares set forth in the Performance Share Agreement, by (b) the ratio of the number of full months of the Executive's employment with the Company during the Performance Period (as defined in the Performance Share Agreement) to the number of full months contained in the Performance Period.  Vested Common Shares shall be issued in settlement of such Vested Performance Shares on the Settlement Date next following the date of the Executive’s termination of employment.      

(v)Unvested Common Shares Issued in Settlement of Performance Share Awards.  If the Executive terminates employment pursuant to Section 6(g) after the Performance Share Vesting Date, all Unvested Common Shares issued in settlement of the Performance Share Award shall become vested in full effective as of the date of such termination.
(e)Special Change in Control Provisions.  
(i)Termination of Employment in Connection with a Change in Control.  If the Executive’s employment is terminated either by the Company Without Cause (as defined in Section 6(d)) or by the Executive for Good Reason (as defined in Section 6(e)(ii)), in either case within the period commencing one month prior to and ending twelve months following a Change in Control, then, subject to Section 22 [Compliance with Section 409A], the Executive shall be entitled to the compensation and benefits set forth in Sections 8(e)(i)(a) through (e) (in addition to any other payments or benefits provided under this Agreement), provided that within sixty days following the Executive’s termination of employment (i) the Executive has executed and delivered the Release to the Company, and (ii) the Release has become irrevocable: 
a.Salary.   The Executive shall be entitled to a cash payment equal to 2.99 times the Executive’s then-current annual base salary, which shall be paid to the Executive sixty days following such termination of employment.  The payment under this Section 8(e)(i)(a) shall take the place of any payment under Section 8(a)(i) and the Executive shall not be entitled to receive a payment under Section 8(a)(i) if the Executive is entitled to a payment under this Section 8(e)(i)(a).
b.Bonus.  The Executive shall be entitled to a cash payment equal to 2.99 times the Executive’s target annual bonus for the Company’s fiscal year then in effect on the date termination of employment occurs, which shall be paid to the Executive sixty days following such termination of employment.  The payment under this Section 8(e)(i)(b) shall take the place of any payment under Section 8(a)(ii) and the Executive shall not be entitled to receive a payment under Section 8(a)(ii) if the Executive is entitled to a payment under this Section 8(e)(i)(b).       
c.Equity.  All shares of restricted stock granted to the Executive by the Company shall become vested in full upon the termination.  Additionally, if the termination occurs prior to the Performance Share Vesting Date, 100% of the Target Number of Performance Shares shall be deemed Vested Performance Shares effective as of the date of the termination.  All Unvested Common Shares issued in settlement of the Performance Share Award shall become vested effective as of the date of such termination.  Except as set forth in this Section 8(e), the treatment of stock options, performance share awards and all other equity awards granted to the Executive by the Company that remain outstanding immediately prior to the date of such Change in Control shall be determined in accordance with their terms.
d.Estate Planning.  The Executive shall be entitled to reimbursement of the Executive’s estate planning expenses (including attorneys’ fees) on the same basis, if any, as to which the Executive was entitled to such reimbursements immediately 

prior to such termination of employment for the remainder of the Term of Employment then in effect.
e.Health Care Coverage.  The Company shall continue to provide Executive with medical, dental, vision, and mental health care coverage at or equivalent to the level of coverage which the Executive had at the time of the termination of employment (including coverage for the Executive’s eligible dependents to the extent such dependents were covered immediately prior to such termination of employment) for the remainder of the Term of Employment, except coverage for dependents will end when dependent is no longer eligible for coverage, if earlier than the Term of Employment end date; provided, however that in the event such coverage may no longer be extended to Executive following termination of Executive’s employment either by the terms of the Company’s health care plans or under then applicable law, the Company shall instead reimburse Executive for Executive’s cost of substantially equivalent health care coverage available to Executive under ERISA Section 601 and thereafter and Section 4980B of the Internal Revenue Code (i.e., COBRA coverage) for a period not to exceed 18 months after the termination of Executive’s employment; and provided further that (1) any such health care coverage or reimbursement for health care coverage shall cease at such time that Executive becomes eligible for health care coverage through another employer and (2) any such reimbursement shall be made by the last day of the calendar year following the end of the calendar year with respect to which such coverage or reimbursement is provided. The Executive must notify the Company within five business days of becoming eligible for such other coverage and promptly repay the Company any benefits he or she received in error.
(ii)Change in Control Defined.  “Change in Control” means the occurrence of any one or more of the following with respect to the Company: 
(1)any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”)) acquires during a twelve-month period ending on the date of the most recent acquisition by such person, in one or a series of transactions, “beneficial ownership” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the total combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of directors; provided, however, that a Change in Control shall not be deemed to have occurred if such degree of beneficial ownership results from any of the following: (A) an acquisition by any person who, on the Effective Date of the then current Equity Incentive Plan, is the beneficial owner of thirty-five percent (35%) or more of such voting power; (B) any acquisition directly from the Company, including, without limitation, pursuant to or in connection with a public offering of securities; (C) any acquisition by the Company; (D) any acquisition by a trustee or other fiduciary under an employee benefit plan of the Company; or (E) any acquisition by an entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the voting securities of the Company; or    
(2)any of the following events (“Ownership Change Event”) or series of related Ownership Change Events (collectively, a “Transaction”): (A) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of securities of the Company representing more than fifty percent (50%) of the 

combined voting power of the Company’s then outstanding securities then entitled to vote generally in the election of directors; (B) a merger or consolidation in which the Company is a party; or (C)  the sale, exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange, or transfer to one or more subsidiaries of the Company), provided that with respect to any such Transaction the stockholders of the Company immediately before the Transaction do not retain immediately after such Transaction direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally in the election of directors or, in the Ownership Change Event described in clause (C), the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or 
(3)a date specified by the Compensation Committee of the Board following approval by the stockholders of a plan of complete liquidation or dissolution of the Company. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or indirectly or through one or more subsidiary corporations or other business entities. The Committee shall determine whether multiple events described in clauses (1), (2), or (3) are related and to be treated in the aggregate as a single Change in Control, and its determination shall be final, binding and conclusive.
(iii)Excise Tax - Best After-Tax Result.   In the event that any payment or benefit received or to be received by Executive pursuant to this Agreement or otherwise (“Payments”) would (a) constitute a “parachute payment” within the meaning of Section 280G of the Code and (b) but for this section, be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax (“Excise Tax”), then, subject to the provisions of Section 8(e)(iv), such Payments shall be either (1) provided in full pursuant to the terms of this Agreement or any other applicable agreement, or (2) provided as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax (“Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by Executive, on an after-tax basis, of the greatest amount of payments and benefits provided for hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax.   If Executive’s payments or benefits are delivered to a lesser extent in accordance with this clause (2) above, then Executive’s aggregate benefits shall be reduced in the following order: (i) cash severance pay that is exempt from Section 409A; (ii) any other cash severance pay; (iii) reimbursement payments under Section 4(c), above; (iv) any restricted stock; (v) any equity awards other than restricted stock and stock options; and (vi) stock options.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section shall be made by an independent advisor designated by the Company and reasonably acceptable to Executive (“Independent Advisor”), whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required under this Section, Independent Advisor may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code; provided that Independent Advisor shall assume that Executive pays all 

taxes at the highest marginal rate. The Company and Executive shall furnish to Independent Advisor such information and documents as Independent Advisor may reasonably request in order to make a determination under this Section. The Company shall bear all costs that Independent Advisor may incur in connection with any calculations contemplated by this Section. In the event that this Section 8(e)(iii) applies, then based on the information provided to Executive and the Company by Independent Advisor, Executive may, in Executive’s sole discretion and within thirty days of the date on which Executive is provided with the information prepared by Independent Advisor, determine which and how much of the Payments (including the accelerated vesting of equity compensation awards) to be otherwise received by Executive shall be eliminated or reduced (as long as after such determination the value (as calculated by Independent Advisor in accordance with the provisions of Sections 280G and 4999 of the Code) of the amounts payable or distributable to Executive equals the Reduced Amount). If the Internal Revenue Service (the “IRS”) determines that any Payment is subject to the Excise Tax, then Section 8(e)(iv) hereof shall apply, and the enforcement of Section 8(e)(iv) shall be the exclusive remedy to the Company.      
(iv)Adjustments.  If, notwithstanding any reduction described in Section 8(e)(iii) (or in the absence of any such reduction), the IRS determines that Executive is liable for the Excise Tax as a result of the receipt of one or more Payments, then Executive shall be obligated to surrender or pay back to the Company, within 120 days after a final IRS determination, an amount of such payments or benefits equal to the “Repayment Amount.” The Repayment Amount with respect to such Payments shall be the smallest such amount, if any, as shall be required to be surrendered or paid to the Company so that Executive’s net proceeds with respect to such Payments (after taking into account the payment of the excise tax imposed on such Payments) shall be maximized. Notwithstanding the foregoing, the Repayment Amount with respect to such Payments shall be zero if a Repayment Amount of more than zero would not eliminate the Excise Tax imposed on such Payments or if a Repayment Amount of more than zero would not maximize the net amount received by Executive from the Payments. If the Excise Tax is not eliminated pursuant to this Section, Executive shall pay the Excise Tax.

(v)Acquirer Does Not Assume Performance Share Award.  In the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquirer”), may, without the consent of the Executive, assume or continue in full force and effect the Company’s rights and obligations under a Performance Share Award or substitute for the Award a substantially equivalent award for the Acquirer’s stock.  For purposes of this Section, a Performance Share Award shall be deemed assumed if, following the Change in Control, the Award confers the right to receive, subject to the terms and conditions of the applicable Company incentive plan and this Agreement, for each Performance Share or Unvested Common Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Stock on the effective date of the Change in Control was entitled.  Notwithstanding any other provision of this Agreement to the contrary, if the Acquirer elects not to assume, continue or substitute for the outstanding Performance Share Awards in connection with a Change in Control prior to the Performance Share Vesting Date, (i) the Target Number of Performance Shares shall become fully vested and such Performance Shares shall be deemed Vested Performance Shares and one Vested Common Share shall be issued to the Executive for each such Vested Performance Share 

immediately prior to the Change in Control and (ii) any Unvested Common Shares issued in settlement of Performance Share Awards shall become fully vested effective immediately prior to the Change in Control, provided that the Executive’s employment with the Company has not terminated immediately prior to the Change in Control.  The vesting of Performance Shares and settlement of Awards that were permissible solely by reason of this Section shall be conditioned upon the consummation of the Change in Control.    

(vi)Acquirer Does Not Assume Restricted Stock Award.  In the event of a Change in Control, the Acquirer, may, without the consent of the Executive, assume or continue in full force and effect the Company’s rights and obligations under a Restricted Stock Award or substitute for the Award a substantially equivalent award for the Acquirer’s stock.  For purposes of this Section, a Restricted Stock Award shall be deemed assumed if, following the Change in Control, the Award confers the right to receive, subject to the terms and conditions of the applicable Company incentive plan and this Agreement, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Stock on the effective date of the Change in Control was entitled.  Notwithstanding any other provision of this Agreement to the contrary, if the Acquirer elects not to assume, continue or substitute for the outstanding Stock Award in connection with a Change in Control, all of the Shares shall become vested immediately prior to the Change in Control, provided that the Executive’s employment with the Company has not terminated immediately prior to the Change in Control.  The vesting of Shares and settlement of Awards that were permissible solely by reason of this Section shall be conditioned upon the consummation of the Change in Control.
 
9.Certain Employment Obligations.
(a)Employee Acknowledgement. The Company and the Executive acknowledge that (i) the Company has a special interest in and derives significant benefit from the unique skills and experience of the Executive; (ii) as a result of the Executive’s service with the Company, the Executive will use and have access to some of the Company’s proprietary and valuable Confidential Information during the course of the Executive’s employment; (iii) the Confidential Information has been developed and created by the Company at substantial expense and constitutes valuable proprietary assets of the Company, and the Company will suffer substantial damage and irreparable harm which will be difficult to compute if, during the term of the Executive’s employment or thereafter,  the Executive should disclose or improperly use such Confidential Information in violation of the provisions of this Agreement; (iv) the Company will suffer substantial damage which will be difficult to compute if, the Executive solicits or interferes with the Company’s employees; (v) the provisions of this Agreement are reasonable and necessary for the protection of the business of the Company; and (vi) the provisions of this Agreement will not preclude the Executive from obtaining other gainful employment or service.
(b)Non-Solicitation of Employees.  During the period of the Executive’s employment with the Company and for a period of 24 months following the Executive’s termination of that employment with the Company, the Executive shall not, without the written permission of the Company or an affected affiliate, directly or indirectly (i) solicit, recruit, attempt to recruit or raid, or have or cause any other person or entity to solicit, recruit, attempt to recruit or raid, or otherwise induce the termination of employment of any person who is employed by the Company; or (ii) encourage any such person not to devote his or her full 

business time to the Company.  Executive also shall not use any of the Company’s trade secrets to directly or indirectly solicit the employees of the Company.
(c)Non-Solicitation of Third Parties.  During the period of the Executive’s employment with the Company for a period of 24 months following the Executive’s termination of employment with the Company, the Executive shall not in any way use any of the Company’s trade secrets to directly or indirectly solicit or otherwise influence any entity with a business arrangement with the Company, including, without limitation, suppliers, sales representatives, lenders, lessors, and lessees, to discontinue, reduce, or otherwise materially or adversely affect such relationship.
(d)Non-Disparagement.  The Executive acknowledges and agrees that the Executive will not defame or criticize the services, business, integrity, veracity, or personal or professional reputation of the Company or any of its directors, officers, employees, affiliates, or agents of any of the foregoing in either a professional or personal manner either during the term of the Executive’s employment or thereafter.
10. Company Remedies for Executive’s Breach of Certain Obligations.
(a)The Executive acknowledges and agrees that in the event that the Executive breaches or threatens to breach Sections 5 or 9 of this Agreement, all compensation and benefits otherwise payable pursuant to this Agreement and the vesting and/or exercisability of all stock options, restricted stock, performance shares and other forms of equity compensation previously awarded to the Executive, notwithstanding the provisions of any agreement evidencing any such award to the contrary, shall immediately cease.
(b)The Company shall give prompt notice to the Executive of its discovery of a breach by the Executive of Sections 5 or 9 of this Agreement.  If it is determined by a vote of not less than two-thirds of the members of the Board that the Executive has breached Sections 5 or 9 of this Agreement and has not cured such breach within ten business days of such notice, then:
(i)the Executive shall forfeit to the Company (A) all stock options, stock appreciation rights, performance shares and other equity compensation awards (other than shares of restricted stock, restricted stock units, common shares issued in settlement of performance share awards or similar awards) granted to the Executive by the Company which remain outstanding and unexercised or unpaid as of the date of such determination by the Board (the “Breach Determination Date”) and (B) all shares of restricted stock, restricted stock units, common shares issued in settlement of performance share awards and similar awards granted to the Executive by the Company which continue to be held by the Executive as of the Breach Determination Date to the extent that such awards vested during the Forfeiture Period (as defined below); and
(ii)the Executive shall pay to the Company all gains realized by the Executive upon (A) the exercise by or payment in settlement to the Executive on and after the commencement of the Forfeiture Period of stock options, stock appreciation rights, performance shares and other equity compensation awards (other than shares of restricted stock, restricted stock units or similar awards) granted to the Executive by the Company and (B) the sale on and 

after the commencement of the Forfeiture Period of shares or other property received by the Executive pursuant to awards of restricted stock, restricted stock units or similar awards granted to the Executive by the Company and which vested during the Forfeiture Period.
(c)For purposes of this Section, the gain realized by the Executive upon the exercise or payment in settlement of stock options, stock appreciation rights, performance shares and other equity compensation awards shall be equal to (A) the closing sale price on the date of exercise or settlement (as reported on the stock exchange or market system constituting the principal market for the shares subject to the applicable award) of the number of vested shares issued to the Executive upon such exercise or settlement, reduced by the purchase price, if any, paid by the Executive to acquire such shares, or (B) if any such award was settled by payment in cash to the Executive, the gain realized by the Executive shall be equal to the amount of cash paid to the Executive.  Further, for purposes of this Section, the gain realized by the Executive upon the sale of shares or other property received by the Executive pursuant to awards of restricted stock, restricted stock units or similar awards shall be equal to the gross proceeds of such sale realized by the Executive.  Gains determined for purposes of this Section shall be determined without regard to any subsequent increase or decrease in the market price of the Company’s stock or taxes paid by or withheld from the Executive with respect to such transactions.
(d)For the purposes of this Section, the “Forfeiture Period” shall be the period ending on the Breach Determination Date and beginning on the earlier of (A) the date six months prior to the Breach Determination Date or (B) the business day immediately preceding the date of the Executive’s termination of employment with the Company.
(e)The Executive agrees to pay to the Company immediately upon the Breach Determination Date the amount payable by the Executive to the Company pursuant to this Section.
(f)The Executive acknowledges that money will not adequately compensate the Company for the substantial damages that will arise upon the breach or threatened breach of Sections 5 or 9 of this Agreement and that the Company will not have any adequate remedy at law.  For this reason, such breach or threatened breach will not be subject to the arbitration clause in Section 19; rather, the Company will be entitled, in addition to other rights and remedies, to specific performance, injunctive relief, and other equitable relief to prevent or restrain such breach or threatened breach.  The Company may obtain such relief from an arbitrator pursuant to Section 19 hereof, or by simultaneously seeking arbitration under Section 19 and a temporary injunction from a court pending the outcome of the arbitration.  It shall be the Company’s sole and exclusive right to elect which approach to use to vindicate its rights.  The Executive further agrees that in the event of a breach or threatened breach, the Company shall be entitled to obtain an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach, without posting a bond or having to prove irreparable harm or damages, and to obtain all costs and expenses, including reasonable attorneys’ fees and costs.  In addition, the existence of any claim or cause of action by the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the restrictive covenants in this Agreement.

(g)Recoupment.   Executive hereby understands and agrees that the Executive is subject to the Company’s recoupment policy.  Under the current policy applicable to the Company’s senior executives, subject to the discretion and approval of the Board, the Company may, to the extent permitted by governing law, require reimbursement of any cash payments and reimbursement and/or cancellation of any Performance Share or Common Shares issued in settlement of a Performance Share to the Executive where all of the following factors are present: (1) the award was predicated upon the achievement of certain financial results that were subsequently the subject of a material restatement, (2) the Board determines that the Executive engaged in fraud or intentional misconduct that was a substantial contributing cause to the need for the restatement, and (3) a lower award would have been made to the Executive based upon the restated financial results. In each instance, the Company may seek to recover the Executive’s entire gain received by the Executive within the relevant period, plus a reasonable rate of interest.      

11. Exercise of Stock Options Following Termination. If the Executive's employment terminates, Executive (or the Executive's estate) may exercise the Executive's right to purchase any vested stock under the stock options granted to Executive by the Company as provided in the applicable stock option agreement or Company plan.  All such purchases must be made by the Executive in accordance with the applicable stock option plans and agreements between the parties.
12. Successors; Binding Agreement. This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive should die while any amounts would still be payable to the Executive hereunder, all such amounts shall be paid in accordance with the terms of this Agreement and applicable law to the Executive’s beneficiary pursuant to a valid written designation of beneficiary, as determined by the Compensation Committee in its discretion, or, if there is no effective written designation of beneficiary by the Executive, to the Executive’s estate.
13. Insurance and Indemnity.  The Company shall, to the extent permitted by law, include the Executive during the Term of Employment under any directors and officers’ liability insurance policy maintained for its directors and officers, with coverage at least as favorable to the Executive in amount and each other material respect as the coverage of other officers covered thereby.  The Company’s obligation to provide insurance and indemnify the Executive shall survive expiration or termination of this Agreement with respect to proceedings or threatened proceedings based on acts or omissions of the Executive occurring during the Executive’s employment with the Company.  Such obligations shall be binding upon the Company’s successors and assigns and shall inure to the benefit of the Executive’s heirs and personal representatives.
14. Notice.  For the purposes of this Agreement, notices, demands and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows:

    If to the Executive:    Adam Orvos
5130 Hacienda Drive
Dublin, CA  94568-7579

    If to the Company:    Ross Stores, Inc.
        5130 Hacienda Drive
                Dublin, CA 94568-7579
        Attention: General Counsel 
or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
15. Complete Agreement; Modification, Waiver; Entire Agreement.  This Agreement, along with any compensation and benefits summary, stock option, restricted stock, performance share or other equity compensation award agreements between the parties, represents the complete agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, promises or representations of the parties, including any prior employment agreement or similar agreement between the parties,  except those relating to repayment of signing and related bonuses, or relocation expense reimbursements.  To the extent that the bonus payment provisions (i.e., post-termination bonus payments) provided in this Agreement differ from the provisions of the Company’s incentive bonus plans (currently the Incentive Compensation Plan) or any replacement plans, such bonus payments shall be paid pursuant to the provisions of this Agreement except to the extent expressly prohibited by law.  Except as provided by Section 22 [Compliance with Section 409A], no provision of this Agreement may be amended or modified except in a document signed by the Executive and such person as may be designated by the Company.  No waiver by the Executive or the Company of any breach of, or lack of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or the same condition or provision at another time.  To the extent that this Agreement is in any way deemed to be inconsistent with any prior or contemporaneous compensation and benefits summary, stock option, restricted stock, performance share or other equity compensation award agreements between the parties, or term sheet referencing such specific awards, the terms of this Agreement shall control.  No agreements or representations, oral or otherwise, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement.  This Agreement shall be modified to comply with any federal securities law or rule or any NASDAQ listing rule adopted to comply therewith.
16. Governing Law - Severability.  The validity, interpretation, construction, performance, and enforcement of this Agreement shall be governed by the laws of the state in which the Executive’s principal place of employment described in Section 3 is located without reference to that state’s choice of law rules.  If any provision of this Agreement shall be held or deemed to be invalid, illegal, or unenforceable in any jurisdiction, for any reason, the invalidity of that provision shall not have the effect of rendering the provision in question unenforceable in any other jurisdiction or in any other case or of rendering any other provisions herein unenforceable, but the invalid provision shall be substituted with a valid provision which most closely approximates the intent and the economic effect of the invalid provision and which would be enforceable to the maximum extent permitted in such jurisdiction or in such case.

17. Mitigation.  In the event the Executive’s employment with the Company terminates for any reason, the Executive shall not be obligated to seek other employment following such termination.  However, any amounts due the Executive under Sections 8(a)(i), 8(a)(ii), 8(a)(vii), 8(e)(i)(a), 8(e)(i)(b), 8(e)(i)(d) or 8(e)(i)(e) (collectively, “Mitigable Severance”) shall be offset by any cash remuneration, health care coverage and/or estate planning reimbursements (collectively, “Mitigable Compensation”) attributable to any subsequent employment or consulting/independent contractor arrangement that the Executive may obtain during the period of payment of compensation under this Agreement following the termination of the Executive’s employment with the Company.  For any calendar quarter, the Executive shall not be entitled to any Mitigable Severance unless the Executive certifies in writing to the Company on or before the first day of any such calendar quarter the amount and nature of Mitigable Compensation the Executive expects to receive during such quarter. In addition, the Executive must notify the Company within five business days of any increase in the amount and/or nature of Mitigable Compensation not previously reported in the most recent quarterly certification. The Executive shall repay to the Company any Mitigable Severance the Executive received in error within ten days of the receipt of such Mitigable Severance.
18. Withholding.  All payments required to be made by the Company hereunder to the Executive or the Executive’s estate or beneficiaries shall be subject to the withholding of such amounts as the Company may reasonably determine it should withhold pursuant to any applicable law.  To the extent permitted, the Executive may provide all or any part of any necessary withholding by contributing Company stock with value, determined on the date such withholding is due, equal to the number of shares contributed multiplied by the closing price per share as reported on the securities exchange constituting the primary market for the Company’s stock on the date preceding the date the withholding is determined.
19. Arbitration.  Except as otherwise provided by applicable law, the Company and Executive shall resolve all disputes or claims relating to or arising out of the parties' employment relationship or this Agreement (including, but not limited to, any claims of breach of contract, wrongful termination, discrimination, harassment, retaliation, failure to accommodate, or wage and hour violations), pursuant to the Federal Arbitration Act and, as applicable, in accordance with the Company's then-current Dispute Resolution Agreement ("Arbitration Agreement").  The Executive and the Company hereby mutually agree that all such disputes shall be fully, finally, and exclusively resolved by binding arbitration in the city in which the Executive’s principal place of employment is located. Notwithstanding the Arbitration Agreement, arbitration shall be conducted by JAMS arbitration services pursuant to its Employment Arbitration Rules and Procedures (“JAMS Arbitration Rules”) by an arbitrator mutually agreed upon by the parties hereto or, in the absence of such agreement, by an arbitrator selected in accordance with  JAMS’ then-current Arbitration Rules. To the extent permitted by law, the Company and Executive agree that each may file claims against the other only in their individual capacities, and may not file claims as a named plaintiff, or participate as a class member, in any class or collective action against the other. Nothing in this arbitration provision or the Arbitration Agreement shall prevent either the Executive or the Company from seeking interim or temporary injunctive or equitable relief from a court of competent jurisdiction pending arbitration. This provision fully incorporates the Arbitration Agreement provided, however, that in the event of any conflict between this provision and the Arbitration Agreement, this provision shall govern.      

If there is termination of the Executive’s employment with the Company followed by a dispute as to whether the Executive is entitled to the benefits provided under this Agreement, then, during the period of that dispute the Company shall pay the Executive 50% of the amount specified in Section 8 hereof (except that the Company shall pay 100% of any insurance premiums provided for in Section 8), if, and only if, the Executive agrees in writing that if the dispute is resolved against the Executive, the Executive shall promptly refund to the Company all such payments received by, or made by the Company on behalf of, the Executive.  If the dispute is resolved in the Executive’s favor, promptly after resolution of the dispute the Company shall pay the Executive the sum that was withheld during the period of the dispute plus interest at the rate provided in Section 1274(d) of the Code. 
20. Attorney’s Fees.  Except as otherwise provided herein, each party shall bear its own attorney’s fees and costs incurred in any action or dispute arising out of this Agreement.
21. Miscellaneous.  No right or interest to, or in, any payments shall be assignable by the Executive; provided, however, that the Executive shall not be precluded from designating in writing one or more beneficiaries to receive any amount that may be payable after the Executive’s death and the legal representative of the Executive’s estate shall not be precluded from assigning any right hereunder to the person or persons entitled thereto.  This Agreement shall be binding upon and shall inure to the benefit of the Executive, the Executive’s heirs and legal representatives and, the Company and its successors.
22. Compliance with Section 409A.  Notwithstanding any other provision of this Agreement to the contrary, the provision, time and manner of payment or distribution of all compensation and benefits provided by this Agreement that constitute nonqualified deferred compensation subject to and not exempted from the requirements of Code Section 409A (“Section 409A Deferred Compensation”) shall be subject to, limited by and construed in accordance with the requirements of Code Section 409A and all regulations and other guidance promulgated by the Secretary of the Treasury pursuant to such Section (such Section, regulations and other guidance being referred to herein as “Section 409A”), including the following:
(a)Separation from Service. Payments and benefits constituting Section 409A Deferred Compensation otherwise payable or provided pursuant to Section 8 upon the Executive’s termination of employment shall be paid or provided only at the time of a termination of the Executive’s employment that constitutes a Separation from Service.  For the purposes of this Agreement, a “Separation from Service” is a separation from service within the meaning of Treasury Regulation Section 1.409A-1(h).
(b)Six-Month Delay Applicable to Specified Employees.  If, at the time of a Separation from Service of the Executive, the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) (a “Specified Employee”), then any payments and benefits constituting Section 409A Deferred Compensation to be paid or provided pursuant to Section 8 upon the Separation from Service of the Executive shall be paid or provided commencing on the later of (i) the date that is six months after the date of such Separation from Service or, if earlier, the date of death of the Executive (in either case, the “Delayed Payment Date”), or (ii) the date or dates on which such Section 409A Deferred Compensation would otherwise be paid or provided in accordance with Section 8.  All such amounts that would, but for this Section 22(b), become 

payable prior to the Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date.
(c)Health Care and Estate Planning Benefits.  In the event that all or any of the health care or estate planning benefits to be provided pursuant to Sections 8(a)(vii); 8(e)(i)(d) or 8(e)(i)(e) as a result of a Participant’s Separation from Service constitute Section 409A Deferred Compensation, the Company shall provide for such benefits constituting Section 409A Deferred Compensation in a manner that complies with Section 409A.  To the extent necessary to comply with Section 409A, the Company shall determine the health care premium cost necessary to provide such benefits constituting Section 409A Deferred Compensation for the applicable coverage period and shall pay such premium cost which becomes due and payable during the applicable coverage period on the applicable due date for such premiums; provided, however, that if the Executive is a Specified Employee, the Company shall not pay any such premium cost until the Delayed Payment Date.  If the Company’s payment pursuant to the previous sentence is subject to a Delayed Payment Date, the Executive shall pay the premium cost otherwise payable by the Company prior to the Delayed Payment Date, and on the Delayed Payment Date the Company shall reimburse the Executive for such Company premium cost paid by the Executive and shall pay the balance of the Company’s premium cost necessary to provide such benefit coverage for the remainder of the applicable coverage period as and when it becomes due and payable over the applicable period.
(d)Stock-Based Awards.  The vesting of any stock-based compensation awards which constitute Section 409A Deferred Compensation and are held by the Executive, if the Executive is a Specified Employee, shall be accelerated in accordance with this Agreement to the extent applicable; provided, however, that the payment in settlement of any such awards shall occur on the Delayed Payment Date.  Any stock based compensation which vests and becomes payable upon a Change in Control in accordance with Section 8(e) shall not be subject to this Section 22(d).
(e)Change in Control. Notwithstanding any provision of this Agreement to the contrary, to the extent that any amount constituting Section 409A Deferred Compensation would become payable under this Agreement by reason of a Change in Control, such amount shall become payable only if the event constituting a Change in Control would also constitute a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A.
(f)Installments.  Executive’s right to receive any installment payments payable hereunder shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment for purposes of Section 409A.
(g)Reimbursements.  To the extent that any reimbursements payable to Executive pursuant to this Agreement are subject to the provisions of Section 409A of the Code, such reimbursements shall be paid to Executive no later than December 31 of the year following the year in which the cost was incurred; the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year; and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

(h) Rights of the Company; Release of Liability.  It is the mutual intention of the Executive and the Company that the provision of all payments and benefits pursuant to this Agreement be made in compliance with the requirements of Section 409A.  To the extent that the provision of any such payment or benefit pursuant to the terms and conditions of this Agreement would fail to comply with the applicable requirements of Section 409A, the Company may, in its sole and absolute discretion and without the consent of the Executive, make such modifications to the timing or manner of providing such payment and/or benefit to the extent it determines necessary or advisable to comply with the requirements of Section 409A; provided, however, that the Company shall not be obligated to make any such modifications.  Any such modifications made by the Company shall, to the maximum extent permitted in compliance with the requirements of Section 409A, preserve the aggregate monetary face value of such payments and/or benefits provided by this Agreement in the absence of such modification; provided, however, that the Company shall in no event be obligated to pay any interest or other compensation in respect of any delay in the provision of such payments or benefits in order to comply with the requirements of Section 409A.  The Executive acknowledges that (i) the provisions of this Section 22 may result in a delay in the time at which payments would otherwise be made pursuant to this Agreement and (ii) the Company is authorized to amend this Agreement, to void or amend any election made by the Executive under this Agreement and/or to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by the Company, in its discretion, to be necessary or appropriate to comply with Section 409A (including any transition or grandfather rules thereunder) without prior notice to or consent of the Executive.  The Executive hereby releases and holds harmless the Company, its directors, officers and stockholders from any and all claims that may arise from or relate to any tax liability, penalties, interest, costs, fees or other liability incurred by the Executive as a result of the application of Code Section 409A.
23. Future Equity Compensation.  The Executive understands and acknowledges that all awards, if any, of stock options, restricted stock, performance shares and other forms of equity compensation by the Company are made at the sole discretion of the Board or such other committee or person designated by the Board. The Executive further understands and acknowledges, however, that unless the Executive has executed this Agreement and each successive amendment extending the Term of Employment as may be agreed to by the Company and the Executive, it is the intention of the Board and the Executive that, notwithstanding any continued employment with the Company, (a) the Company shall have no obligation to grant any award of stock options, restricted stock, performance shares or any other form of equity compensation which might otherwise have been granted to the Executive on or after the intended commencement of the Initial Term or any Extension thereof for which the Executive has failed to sign the Agreement or the applicable Extension amendment and (b) any such award which is nevertheless granted to the Executive after the intended commencement of the Initial Term or any Extension thereof for which the Executive has failed to sign such Agreement or applicable Extension amendment shall not vest unless and until the Executive has executed the Agreement or applicable Extension amendment, notwithstanding the provisions of any agreement evidencing such award to the contrary.

IN WITNESS WHEREOF, the parties have executed this Executive Employment Agreement effective as of the date and year first above written.
									
	ROSS STORES, INC. and Subsidiaries		EXECUTIVE
			
	/s/Barbara Rentler		/s/Adam Orvos
	By:  Barbara Rentler		Adam Orvos
	Chief Executive Officer		Executive Vice President, 
			Chief Financial Officer
			

CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE

This is an Agreement between ______________ (“Executive”) and Ross Stores, Inc. and its subsidiaries (collectively “Ross”).  The parties agree to the following terms and conditions:

1.Executive ______________ employment with Ross effective ______________ (the “Separation Date”).
2.Any inquiries by prospective employers or others should be referred to Ross’ third party provider The Work Number, phone number 1-800-367-5690 or http://www.theworknumber.com.
3.Executive understands that the Executive Employment Agreement, effective _______ (“Executive Agreement”), requires Executive to execute this General Release as a condition to receiving cash payments, benefits and equity as may be provided under the terms of the Executive Agreement.

4.In consideration for Ross’ promises herein, Executive knowingly and voluntarily releases and forever discharges Ross, and all parent corporations, affiliates, subsidiaries, divisions, successors and assignees, as well as the current and former employees, attorneys, officers, directors and agents thereof (collectively referred to throughout the remainder of this Agreement as “Releasees”), of and from any and all claims, judgments, promises, agreements, obligations, damages, losses, costs, expenses (including attorneys’ fees) or liabilities of whatever kind and character, known and unknown, which Executive may now have, has ever had, or may in the future have, arising from or in any way connected with any and all matters from the beginning of time to the date hereof, including but not limited to any alleged causes of action for: 

•Title VII of the Civil Rights Act of 1964, as amended
•The National Labor Relations Act, as amended
•The Civil Rights Act of 1991
•Sections 1981 through 1988 of Title 42 of the United States Code, as amended
•The Employee Retirement Income Security Act of 1974, as amended
•The Immigration Reform and Control Act, as amended
•The Americans with Disabilities Act of 1990, as amended
•The Age Discrimination in Employment Act of 1967, as amended
•The Federal Workers Adjustment and Retraining Notification Act, as amended
•The Occupational Safety and Health Act, as amended
•The Sarbanes-Oxley Act of 2002
•The United States Equal Pay Act of 1963
•California Family Rights Act - Cal. Govt. Code § 12945.2 et seq.
•California Fair Employment and Housing Act - Cal. Gov't Code § 12900 et seq.
•Statutory Provisions Regarding Retaliation/Discrimination for Filing a Workers
									
	Executive’s Initials		Ross’ Initials

•Compensation Claim - Cal. Lab. Code §132a (1) to (4)
•Statutory Provision Regarding Representations and Relocation of Employment (Cal. Lab. Code §970 et seq.)
•California Unruh Civil Rights Act - Civ. Code § 51 et seq.
•California Sexual Orientation Bias Law - Cal. Lab. Code §1101 et seq.
•California AIDS Testing and Confidentiality Law - Cal. Health & Safety Code §199.20 et seq.
•California Confidentiality of Medical Information - Cal. Civ. Code §56 et seq.
•California Smokers' Rights Law - Cal. Lab. Code §96
•California Parental Leave Law - Cal. Lab. Code §230.7 et seq.
•California Apprenticeship Program Bias Law - Cal. Lab. Code §3070 et seq.
•California Equal Pay Law - Cal. Lab. Code §1197.5 et seq.
•California Whistleblower Protection Law - Cal. Lab. Code § 1102-5(a) to (c)
•California Military Personnel Bias Law - Cal. Mil. & Vet. Code §394 et seq.
•California Family and Medical Leave - Cal. Lab. Code §233
•California Parental Leave for School Visits Law - Cal. Lab. Code §230.7 et seq.
•California Electronic Monitoring of Employees - Cal. Lab. Code §435 et seq.
•Cal/OSHA law, as amended
•California Consumer Reports: Discrimination Law - Cal. Civ. Code §1786.10 et seq.
•California Political Activities of Employees Act - Cal. Lab. Code §1101 et seq.
•California Domestic Violence Victim Employment Leave Act - Cal. Lab. Code §230.1
•California Voting Leave Law - Cal. Elec. Code §14350 et seq.
•California Court Leave Law - Cal. Lab. Code §230 
•California Consumer Reports: Discrimination Law - Cal. Civ. Code §1786.10 et seq.
•California Political Activities of Employees Act - Cal. Lab. Code §1101 et seq.
•California Domestic Violence Victim Employment Leave Act - Cal. Lab. Code §230.1
•California Labor Code §§ 2698 and 2699 
•Any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance
•Any public policy, contract, tort, or common law, or
•Any claim for costs, fees, or other expenses including attorneys’ fees incurred in these matters

In granting the release herein, you understand that this Agreement includes a release of all claims known or unknown.  In giving this release, which includes claims which may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code which reads as follows: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."  You hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to the release of any unknown or unsuspected claims you may have against the Company.
                       									
	Executive’s Initials	2
	Ross’ Initials

5.Executive agrees to release and discharge Ross not only from any and all claims which he or she could make on his or her own behalf but also specifically waive any right to become, and promise not to become, a member of any class in any proceeding or case in which a claim or claims against Ross may arise, in whole or in part, from any event which occurred as of the date of this Agreement.  Executive agrees to pay for any legal fees or costs incurred by Ross as a result of any breach of the promises in this paragraph.  The parties agree that if Executive, by no action of his or her own, becomes a mandatory member of any class from which he or she cannot, by operation of law or order of court, opt out, Executive shall not be required to pay for any legal fees or costs incurred by Ross as a result.  Notwithstanding the above, this Agreement does not prevent Executive from filing (i) a charge of discrimination with the Equal Employment Opportunity Commission, although by signing this Agreement Executive waives his or her right to recover any damages or other relief in any claim or suit brought by or through the Equal Employment Opportunity Commission or any other state or local agency on his or her behalf under any federal or state discrimination law, except where prohibited by law, (ii) an application to the Securities and Exchange Commission for whistleblower awards and obtaining such awards under Section 21F of the Securities Exchange Act, or (iii) a claim with a government agency and recovering damages or other relief related to such claim, where preventing an employee from filing such a claim and receiving such damages or relief is prohibited by law.

6.Executive affirms that he or she has been paid and/or has received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he or she may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to him or her, except as provided in this Agreement.  Executive furthermore affirms that he or she has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested, including any under the Family and Medical Leave Act, California Family Rights Act or any other leaves authorized by federal, state or local law, and that Executive has not reported any purported improper, unethical or illegal conduct or activities to any supervisor, manager, executive human resources representative or agent of Ross Stores and has no knowledge of any such improper, unethical or illegal conduct or activities.  Executive additionally represents and affirms that during the course of employment at Ross, Executive has taken no actions contrary to or inconsistent with Executive’s job responsibilities or the best interests of Ross’ business.

7.The parties expressly acknowledge that those certain employment obligations set forth in the Executive Agreement, including but not limited to all obligations set forth in Paragraph 9 of the Executive Agreement, shall remain in full force and effect for the time period(s) specified in the Executive Agreement. 

8.Executive agrees that this is a private agreement and that he or she will not discuss the fact that it exists or its terms with anyone else except with his or her spouse, attorney, accountant, 
                       									
	Executive’s Initials	3
	Ross’ Initials

or as required by law.  Further, Executive agrees not to defame, disparage or demean Ross in any way (excluding actions or communications expressly required or permitted by law). This Section 8 does not in any way restrict or impede Executive from disclosing the underlying facts or circumstances giving rise to a claim by Executive of sexual harassment and/or discrimination, failure to prevent harassment or discrimination, or an act of retaliation for reporting sexual harassment or discrimination, if any, in violation of laws prohibiting such harassment and discrimination, or as otherwise provided by law. 

9.Any party to this Agreement may bring an action in law or equity for its breach.  Unless otherwise ordered by the Court, only the provisions of this Agreement alleged to have been breached shall be disclosed.  

10.This Agreement has been made in the State of California and the law of said State shall apply to it.  If any part of this Agreement is found to be invalid, the remaining parts of the Agreement will remain in effect as if no invalid part existed.  

11.This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any prior agreements or understandings between the parties, except for any confidentiality, trade secrets and inventions agreements previously entered into with the company (which will remain in full force and effect), and may not be modified except in a writing agreed to and signed by both parties, providing however that Employer may modify this form of agreement from time to time solely as needed to comply with federal, state or local laws in effect that the time this Agreement is to be executed.  Executive acknowledges that he or she has not relied on any representations, promises, or agreements of any kind made to him or her in connection with his or her decision to accept this Agreement except for those set forth in this Agreement.

12.Executive further agrees to make him or herself available as needed and fully cooperate with Ross in defending any anticipated, threatened, or actual litigation that currently exists, or may arise subsequent to the execution of this Agreement.  Such cooperation includes, but is not limited to, meeting with internal Ross employees to discuss and review issues which Executive was directly or indirectly involved with during employment with Ross, participating in any investigation conducted by Ross either internally or by outside counsel or consultants, signing declarations or witness statements, preparing for and serving as a witness in any civil or administrative proceeding by both depositions or a witness at trial, reviewing documents and similar activities that Ross deems necessary. Executive further agrees to make him or herself available as needed and cooperate in answering questions regarding any previous or current project Executive worked on while employed by Ross so as to insure a smooth transition of responsibilities and to minimize any adverse consequences of Executive’s departure.

                       									
	Executive’s Initials	4
	Ross’ Initials

FOR 40+
13.Waiver:  By signing this Agreement, Executive acknowledges that he or she:
(a)Has carefully read and understands this Agreement;
(b)Has been given a full twenty-one (21) days within which to consider the terms of this Agreement and consult with an attorney of his or her choice, and to the extent he or she executes this Agreement prior to expiration of the full twenty-one (21) days, knowingly and voluntarily waives that period following consultation with an attorney of his or her choice;
(c)Is, through this Agreement, releasing Ross from any and all claims he or she may have against it that have arisen as of the date of this Agreement, including but not limited to, rights or claims arising under the Age Discrimination in Employment Act of 1967 (29 U.S.C. §62l, et seq.);
(d)Knowingly and voluntarily agrees to all of the terms set forth in this Agreement;
(e)Knowingly and voluntarily intends to be legally bound by the same;
(f)Is hereby advised in writing to consider the terms of this Agreement and to consult with an attorney of his or her choice prior to executing this Agreement;
(g)Has consulted with an attorney of his or her choosing prior to signing this Agreement;
(h)Understands that rights or claims under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621, et seq.) that may arise after the date of this Agreement are not waived;
(i)    Has a full seven (7) days following the execution of this Agreement to revoke this Agreement (the “Revocation Period") in writing and hereby is advised that this Agreement shall not become effective or enforceable until the Revocation Period has expired.

14.Executive fully understands the final and binding effect of the Agreement.  Executive acknowledges that he or she signs this Agreement voluntarily of his or her own free will.

The parties hereto knowingly and voluntarily executed this Agreement as of the date set forth below:

																		
	Dated:			By:		
					[INSERT EXECUTIVE NAME]	
						
	Dated:			By:		
					ROSS STORES INC. and Subsidiaries ("ROSS")	

                       									
	Executive’s Initials	5
	Ross’ InitialsExhibit
10.1 

 

TRANSITION
SERVICES AGREEMENT

 

By
and Between

 

EXELON
CORPORATION

 

and

 

CONSTELLATION
ENERGY CORPORATION

 

Dated
as of

 

[●],
2022

 

     

     

    

 

TABLE
OF CONTENTS

 

Page

 

	ARTICLE
    I DEFINITIONS	2
	 	 	 
	Section
    1.1	Certain
    Definitions	2
	 	 	 
	Section
    1.2	Interpretation	5
	 	 	 
	ARTICLE
    II SERVICES	6
	 	 	 
	Section
    2.1	Services	6
	 	 	 
	Section
    2.2	Services
    Modifications	8
	 	 	 
	Section
    2.3	Third
    Party Providers	9
	 	 	 
	Section
    2.4	No
    Violations	10
	 	 	 
	Section
    2.5	Independent
    Contractor	10
	 	 	 
	Section
    2.6	Employment,
    Employees and Representatives	10
	 	 	 
	Section
    2.7	Access	11
	 	 	 
	Section
    2.8	Practice
    Area Leaders; TSA Oversight Committee	11
	 	 	 
	Section
    2.9	Disputes	12
	 	 	 
	ARTICLE
    III PAYMENT	12
	 	 	 
	Section
    3.1	Pricing	12
	 	 	 
	Section
    3.2	Taxes	12
	 	 	 
	Section
    3.3	Billing
    and Payment.	13
	 	 	 
	Section
    3.4	Budgeting
    and Accounting	14
	 	 	 
	Section
    3.5	Credits,
    Rebates and Refunds	14
	 	 	 
	Section
    3.6	True-Up	14
	 	 	 
	ARTICLE
    IV DISCLAIMER OF REPRESENTATIONS AND WARRANTIES	14
	 	 	 
	Section
    4.1	Disclaimer	14
	 	 	 
	Section
    4.2	As
    Is; Where Is	15
	 	 	 
	ARTICLE
    V INDEMNIFICATION; LIMITATION OF LIABILITY	15
	 	 	 
	Section
    5.1	Indemnification
    by the Service Providing Party	15
	 	 	 
	Section
    5.2	Limitation
    of Liability	15
	 	 	 
	Section
    5.3	Indemnification
    Procedure; Other Rights	16

 

    i

     

    

 

	ARTICLE
    VI FORCE MAJEURE	16
	 	 	 
	Section
    6.1	General	16
	 	 	 
	Section
    6.2	Notice	16
	 	 	 
	Section
    6.3	Subcontractors;
    Fees	17
	 	 	 
	Section
    6.4	Limitations	17
	 	 	 
	ARTICLE
    VII TERM, TERMINATION AND EXIT	17
	 	 	 
	Section
    7.1	Term
    and Termination of Services	17
	 	 	 
	Section
    7.2	Effect
    of Termination	18
	 	 	 
	ARTICLE
    VIII CONFIDENTIALITY	19
	 	 	 
	Section
    8.1	Confidentiality	19
	 	 	 
	Section
    8.2	System
    Security	19
	 	 	 
	Section
    8.3	Joint
    Defense Agreements	19
	 	 	 
	ARTICLE
    IX MISCELLANEOUS	20
	 	 	 
	Section
    9.1	Further
    Assurances	20
	 	 	 
	Section
    9.2	Amendments
    and Waivers	20
	 	 	 
	Section
    9.3	Entire
    Agreement	20
	 	 	 
	Section
    9.4	Third-Party
    Beneficiaries	20
	 	 	 
	Section
    9.5	Notices	21
	 	 	 
	Section
    9.6	Counterparts;
    Electronic Delivery	21
	 	 	 
	Section
    9.7	Severability	21
	 	 	 
	Section
    9.8	Assignability;
    Binding Effect	21
	 	 	 
	Section
    9.9	Governing
    Law	21
	 	 	 
	Section
    9.10	Construction	21
	 	 	 
	Section
    9.11	Performance	22
	 	 	 
	Section
    9.12	Title
    and Headings	22
	 	 	 
	Section
    9.13	Exhibits	22
	 	 	 
	Section
    9.14	Effective
    Time	22
	 	 	 
	Section
    9.15	Export
    Controls	22
	 	 	 
	Section
    9.16	Utility
    Services	22
	 	 	 
	Section
    9.17	Incorporation
    by Reference	22

 

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

 

    ii

     

    

 

TRANSITION
SERVICES AGREEMENT

 

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

 

RECITALS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    1

     

    

 

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

 

ARTICLE
I

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    2

     

    

 

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

 

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

 

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

 

“Effective
Time” means 12:01 a.m. (Eastern time) on [●], 2022.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Practice
Area Leader” has the meaning set forth in Section 2.8(a).

 

    3

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    4

     

    

 

“TSA
Oversight Committee” has the meaning set forth in Exhibit B.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    5

     

    

 

ARTICLE
II

SERVICES

 

Section
2.1            Services.

 

(a)              
Exelon Services

 

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

 

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

 

(b)              
Constellation Services

 

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

 

    6

     

    

 

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

 

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

 

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

 

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

 

    7

     

    

 

Section
2.2            Services Modifications.

 

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

 

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

 

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

 

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

 

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

 

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

 

    8

     

    

 

Section
2.3            Third
Party Providers.

 

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

 

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

 

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

 

    9

     

    

 

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

 

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

 

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

 

Section
2.6            Employment, Employees and Representatives.

 

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

 

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

 

    10

     

    

 

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

 

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

 

Section
2.8            Practice Area Leaders; TSA Oversight Committee.

 

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

 

(b)              
Each Party shall appoint members of the TSA Oversight Committee as set forth in Exhibit B. The TSA Oversight Committee shall meet
in person or by telephone on a regular basis to expeditiously address any matters that are necessary or appropriate for determination
or resolution under this Agreement.

 

    11

     

    

 

(c)              
Exhibit B sets forth the guiding principles and governance for the management of the Services and the TSA Oversight Committee.

 

Section
2.9            Disputes. Any dispute that is not resolved by the TSA Oversight
Committee within thirty (30) calendar days shall be deemed a Dispute under the Separation Agreement and shall be submitted to the
Dispute Committee and resolved in accordance with the dispute resolution procedures set forth in Article X of the Separation
Agreement. When a disputed amount has been resolved, either by mutual agreement of the Parties or by a final decision by an arbitration
panel under Article X of the Separation Agreement, the Party owing any amount to another Party shall pay such amount owed to such
other Party within five (5) Business Days following such resolution.

 

ARTICLE
III

PAYMENT

 

Section
3.1            Pricing.

 

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

 

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

 

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

 

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

 

    12

     

    

 

Section
3.3            Billing
and Payment.

 

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

 

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

 

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

 

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

 

    13

     

    

 

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

 

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

 

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

 

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

 

ARTICLE
IV

DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

 

Section
4.1            Disclaimer.

 

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

 

    14

     

    

 

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

 

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

 

ARTICLE
V

INDEMNIFICATION; LIMITATION OF LIABILITY

 

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

 

Section
5.2            Limitation of Liability.

 

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

 

    15

     

    

 

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

 

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

 

ARTICLE
VI

FORCE MAJEURE

 

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

 

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

 

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

 

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

 

ARTICLE
VII

TERM, TERMINATION AND EXIT

 

Section
7.1            Term and Termination of Services.

 

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

 

(b)              
Except as otherwise set forth in Exhibit A (as amended or otherwise supplemented), the provision of a Service under this
Agreement shall terminate upon the earlier of (a) the cessation of all Services pursuant to Section 7.1(a), or (b) the
24 month anniversary of the Effective Time. Either Party may request the TSA Oversight Committee approve the extension of the period
for such Service (i) for up to an additional two (2) months, on the same terms and conditions (including with respect to fees)
as such Service was provided during the initial term for such Service, and (ii) thereafter, for up to an additional three (3) months,
on the same terms and conditions as previously provided, except the Service Cost for such Service provided during such extension period
may be increased as mutually agreed by the Parties.

 

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Thereafter,
any extension to the term for a Service shall be at the sole discretion of the Party who did not request the extension, with no liability
to the requesting Party for such lack of extension.

 

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

 

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

 

Section
7.2            Effect of Termination.

 

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

 

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

 

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

 

    18

     

    

 

ARTICLE
VIII

CONFIDENTIALITY

 

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

 

Section
8.2            System Security.

 

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

 

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

 

Section
8.3            Joint Defense or Common Interest Privilege Agreements.

 

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

 

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

 

    19

     

    

 

ARTICLE
IX

MISCELLANEOUS

 

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

 

Section
9.2            Amendments and Waivers.

 

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

 

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

 

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

 

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

 

    20

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    21

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

[Signature
Page Follows]

 

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

 

	 	EXELON
    CORPORATION
	 	 
	 	By:	 
	 	 	Name:  	 
	 	 	Title:	 
	 	 
	 	CONSTELLATION
    ENERGY CORPORATION
	 	 
	 	By:	 
	 	 	Name:	             
	 	 	Title:	 

 

[Transition
Services Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}]]