Document:

Document

LETTER OF CREDIT FACILITY AGREEMENT
This Letter of Credit Facility Agreement, dated as of February 9, 2022, is by and among CONSTELLATION ENERGY GENERATION, LLC, a Pennsylvania limited liability company (the “Applicant”), the financial institutions from time to time parties hereto, each in its capacity as the issuer of Letters of Credit issued by it hereunder (such financial institutions, together with their respective successors and permitted assigns, are referred to hereinafter each individually as an “Issuer” and collectively as the “Issuers”), Deutsche Bank Trust Company Americas, as administrative agent for the Issuers (in such capacity, the “Administrative Agent”) and as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”).
WHEREAS, each Issuer shall, subject to the terms and conditions set forth herein, issue one or more letters of credit denominated in U.S dollars, in a form reasonably satisfactory to such Issuer (each, as amended or otherwise modified from time to time, a “Letter of Credit”) for the account of the Applicant or for the account of any Subsidiary of the Applicant or any Minority Investment; provided that, in the case of a Subsidiary of the Applicant or any Minority Interest, (i) the Beneficiary of the Letter of Credit shall be Applicant, or (ii) such Subsidiary or Minority Interest shall have provided each applicable Issuer with “know your customer” or any other information or deliverables required by such Issuer in form and substance satisfactory to such Issuer and provided, further, that Applicant shall be a co-applicant, and be jointly and severally liable, with respect to each Letter of Credit issued for the account of a Subsidiary or Minority Investment) and for the benefit of one or more Persons (each, as defined below) (each, a “Beneficiary”);
WHEREAS, the Applicant will establish, and be the owner of, a securities account maintained with the Securities Intermediary (the “Constellation Securities Account”) and may elect to establish, and be the owner of, a deposit account holding cash maintained with the Securities Intermediary (the “Constellation Deposit Account” and, together with the Constellation Securities Account, the “Constellation Collateral Accounts”);
WHEREAS, the Applicant shall, pursuant to the terms and conditions set forth herein, grant a security interest to the Collateral Agent, for the benefit of the Secured Parties, in the Constellation Collateral Accounts and all Collateral on deposit therein or credited thereto;
WHEREAS, the Applicant has entered into a Facility Agreement, dated as of the date hereof (the “Facility Agreement”) with Fells Point Funding Trust, a Delaware statutory trust (the “Trust”), and Deutsche Bank Trust Company Americas, pursuant to which the Trust has agreed to act as an unconditional source of liquid assets for the Applicant on the terms and conditions set forth therein;
WHEREAS, the Trust has established, and is the owner of, a securities account, Account No. SF7148.2, maintained with the Securities Intermediary (such account the “Trust Collateral Account”);
WHEREAS, the Applicant shall, pursuant to the terms and conditions set forth herein, direct and cause the Trust to grant a security interest to the Collateral Agent, for the benefit of the Secured Parties, in the Trust Collateral Account and all Collateral on deposit therein or credited thereto; and 
WHEREAS, the Applicant and the Issuers desire to set forth the terms and conditions that shall apply to the foregoing Letters of Credit and certain related matters in connection therewith.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Applicant, the Collateral Agent and the Issuers hereby agree as follows:
1.Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

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“Administrative Agent” has the meaning specified in the preamble hereof.  
“Agents” has the meaning specified in Section 17.
“Agent-Related Persons” means each Agent, together with its affiliates, and the officers, directors, employees, counsel, representatives, agents and attorneys-in-fact of each Agent and such affiliates.
“Aggregate Availability” means, at any time, the lesser of (a) an amount equal to sum of (i) 97.18% of the Net Asset Value of the Eligible Treasury Assets credited to the Collateral Accounts at such time and (ii) 99% of the Net Asset Value of all cash on deposit in the Collateral Accounts at such time and (b) the Facility Amount.
“Aggregate Collateral Amount” has the meaning specified in Section 5(a).
“Agreement” means this Letter of Credit Facility Agreement, as amended, restated, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.
“Aggregate Collateral Amount” has the meaning specified in Section 5(a). 
“Amendment” has the meaning specified in Section 3.
“Amendment Request” has the meaning specified in Section 3.
“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Applicant or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.
“Applicant” has the meaning specified in the preamble hereof.
“Applicant Governing Body” has the meaning specified in Section 11(a)(ii). 
“Authorized Officer” has the meaning specified in Section 11(a)(ii).
“Base Rate” means, with respect to any amount payable hereunder, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 1/2 of 1.00% and (c) the Daily Simple SOFR Rate for such day, plus 1.00%.
The Base Rate is an index rate and is not necessarily intended to be the lowest or best rate of interest charged to other customers in connection with extensions of credit to customers or to other banks. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Rate shall be effective as of the opening of business on the day of such change in the Prime Rate or the Federal Funds Rate, respectively.
“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act. The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning.
“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230. 
“Beneficiary” has the meaning specified in the recitals hereto.
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“Board of Directors” means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; (b) with respect to a partnership, the board of directors of the general partner of the partnership; (c) with respect to a limited liability company, the managing member or members or any controlling committee of managing members thereof; and (d) with respect to any other Person, the board or committee of such Person serving a similar function.
“Business Day” means a day other than a Saturday, a Sunday or any other day on which banks are authorized or required by law to close in New York City.
“Calculation Agency Agreement” means that certain Calculation Agency Agreement, dated as of the date hereof, between the Applicant and Credit Suisse Securities (USA) LLC, as the calculation agent.
“Capital Stock” means (a) in the case of a corporation, corporate stock; (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (c) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and (d) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.
“Change of Control” means the occurrence of any of the following:
(a)the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Applicant and its Subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d) of the Exchange Act, but excluding any employee benefit plan of the Applicant or any of its Subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of such plan); or
(b)the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as defined above), other than a corporation owned directly or indirectly by the stockholders of the Applicant in substantially the same proportion as their ownership of stock of the Applicant prior to such transaction, becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Applicant, measured by voting power rather than number of shares.
“Change of Control Triggering Event” means (a) a Change of Control has occurred and (b) the P-Caps and/or the Senior Notes are downgraded by each of the Rating Agencies on any date during the 60-day period commencing after the earlier of (i) the occurrence of a Change of Control and (ii) public disclosure by the Applicant of the occurrence of a Change of Control or the Applicant’s intention to effect a Change of Control; provided that a particular reduction in rating will not be deemed to have occurred in respect of a particular Change of Control (and thus will not constitute a Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Administrative Agent in writing at the Applicant’s or the Administrative Agent’s request that such downgrade was the result of the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of such downgrade); provided, further, that no Change of Control Triggering Event shall occur if following such downgrade, (x)the P-Caps (or, in the event the P-Caps are not outstanding, the Senior Notes) are rated Investment Grade by each of the Rating Agencies or (y) the ratings of the P-Caps (or, in the event the P-Caps are not outstanding, the Senior Notes) by each of the Rating Agencies are equal to or better than their respective ratings on the issue date thereof.
“Code” means the Internal Revenue Code of 1986, as amended.
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“Collateral” has the meaning given to the term “LC Facility Collateral” in the Pledge Agreement.
“Collateral Accounts” means, collectively, the Constellation Collateral Accounts and the Trust Collateral Account.
“Collateral Agent” has the meaning specified in the preamble hereof.
“Collateral Valuation Date” means (a) each date on which the Applicant delivers a Request or an Amendment Request to an Issuer, (b) the date that is three (3) Business Days prior to each L/C Roll Determination Date, in the case of clause (b) only, to the extent requested by the applicable Issuer on or before such date, (c) each date on which the Collateral Agent withdraws cash and/or Eligible Treasury Assets from one or more Collateral Accounts pursuant to Section 4(b), (d) the effective date of a Commitment reduction pursuant to Section 32(b), to the extent requested by Constellation, and (e) on the last Business Day of each of March, June, September and December.
“Commitment” means, at any time with respect to an Issuer, the amount set forth beside such Issuer’s name under the heading “Commitment” on Schedule I attached to this Agreement (as such Schedule shall be completed in connection with the execution and delivery of the Issuer Joinder Agreement and may be amended from time to time with respect to any Issuer with the written consent of the Applicant and such Issuer, it being understood and agreed that no other consent will be required hereunder to establish, increase or decrease the commitment of an Issuer and only the consent of the Applicant and such Issuer will be required to establish, increase or decrease such commitment). 
“Commitments” means, collectively, the aggregate amount of the commitments of all the Issuers.
“Constellation Collateral Accounts” has the meaning specified in the recitals hereto.
“Constellation Deposit Account” has the meaning specified in the recitals hereto.
“Constellation Securities Account” has the meaning specified in the recitals hereto.
“Daily Simple SOFR Rate” means, for any day (a “SOFR Rate Day”), a rate per annum equal SOFR for the day (such day “SOFR Determination Date”) that is five (5) U.S. Government Securities Business Day prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website.  Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Applicant.
“Defaulting Issuer” means, at any time, any Issuer that, at such time, has (a) notified the Applicant or the Administrative Agent, in writing, or has made a public statement, to the effect that it does not intend or expect to comply with any of its Letter of Credit issuance, continuance or amendment obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Issuer’s good faith determination that a condition precedent thereto (specifically identified and, if available to such Issuer, supported by reasonable background information provided by such Issuer) cannot be satisfied) or generally its funding obligations under other agreements in which it commits to extend credit, (b) failed, within three Business Days after request by the Administrative Agent or Applicant, in each case, acting in good faith, to provide a certification in writing from an authorized officer of such Issuer that it will comply with its Letter of Credit issuance, continuance or amendment obligations, provided that such Issuer shall cease to be a Defaulting Issuer pursuant to this clause (b) upon receipt by the Administrative Agent or the Applicant of such written certification, or (c) taken any action or become the subject of an Issuer Insolvency Event with respect to such Issuer or its Parent Company; provided that an Issuer shall not be a Defaulting Issuer pursuant to this clause (c) solely by virtue of the ownership or acquisition of any equity interest in such Issuer or its Parent Company by a Governmental Authority or agency thereof. A determination, if any, by the Administrative Agent (it being understood 
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and agreed that (i) the Administrative Agent may, but shall be under no obligation to, make any such determination and (ii) a determination by the Administrative Agent shall not be required for an Issuer to become a Defaulting Lender if the requirements of this definition are otherwise satisfied) that an Issuer is a Defaulting Lender under any of clauses (a) through and including (c) above will be conclusive and binding absent manifest error, and, if any such a determination is made, such Issuer shall be deemed to be a Defaulting Lender upon notification of such determination by the Administrative Agent to the Applicant and the Issuers.
“Effective Date” has the meaning specified in Section 12.
“Eligible Treasury Assets” means a portfolio of principal and interest STRIPS of U.S. Government Obligations, each with a stated maturity date that is no later than January 31, 2027.
“Eligible Treasury Assets Cap” means, for each Issuer on any given date, with respect to each principal and interest STRIP, a face amount equal to (a) (i) the total face amount of such STRIP held in the Collateral Accounts on the Effective Date multiplied by (ii) a ratio equal to such Issuer’s Commitment on the Effective Date divided by the total Commitments on the Effective Date minus (b) the face amount of such STRIP previously withdrawn from the Collateral Accounts by the Collateral Agent to be monetized for such Issuer in accordance with Section 6(d).
“Event of Default” has the meaning specified in Section 16(a).
“Excess Eligible Treasury Assets” has the meaning given to such term in the Pledge Agreement. 
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Execution Date” has the meaning specified in Section 11. 
“Facility Agreement” has the meaning specified in the recitals hereto.
“Facility Amount” means (a) prior to the Effective Date, $971,000,000, and (b) at any time thereafter, the aggregate Commitments of the Issuers at such time (as such amount may be established, increased or reduced from time to time in accordance with the terms of Section 17 or 32); provided that, any such increase that will cause the Facility Amount to exceed $971,000,000 shall be subject to the consent requirement set forth in clause (vii) of Section 17.
“Facility Documents” means, collectively, (a) this Agreement, (b) Requests, (c) Amendment Requests, (d) the Issuer Joinder Agreement and (e) the Pledge Agreement, together with any modification of, or any waiver with respect to, any of the foregoing.
“Federal Funds Rate” means, for any day, a fluctuating interest rate per annum equal for such day to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by it; provided that, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“Governmental Authority” means any nation or government, any state, province, territory or other political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, or any governmental or non-governmental authority regulating the generation and/or transmission of energy, including the Electric Reliability Council of Texas or any other entity succeeding thereto.
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“Indebtedness” means with respect to the Applicant all obligations (a) in respect of money borrowed, (b) evidenced by notes, bonds, debentures or other similar instruments or letters of credit (or reimbursement agreements in respect thereof) and (c) in respect of banker’s acceptances, in each case, of the Applicant, and any guaranties by the Applicant of any of the foregoing of any other Person.
“Indemnified Parties” has the meaning specified in Section 10.
“Investment Company Act Event” has the meaning given to such term in the Facility Agreement.
“Issuance Period” means the period commencing on the Effective Date and ending on the Termination Date. 
“Issuer” and “Issuers” have the meanings specified in the preamble hereof.
“Issuer Costs” has the meaning specified in Section 8(a).
“Issuer Insolvency Event” means that (a) an Issuer or its Parent Company is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors, or (b) such Issuer or its Parent Company is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor or sequestrator or the like has been publicly appointed for such Issuer or its Parent Company, or such Issuer or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment.
“Issuer Joinder Agreement” means the joinder agreement dated on or prior to the Effective Date, in form and substance reasonably satisfactory to the Applicant, the Administrative Agent and the Issuers party thereto, executed by each Issuer party thereto, the Administrative Agent, the Collateral Agent, the Applicant and the Trust, pursuant to which the Issuer(s) establish the initial Commitments hereunder.
“L/C Fee” has the meaning specified in Section 8(b)(i).
“L/C Fee Payment Date” means the first day of each fiscal quarter (or, if such date is not a Business Day, the immediately succeeding Business Day), and the Termination Date.
“L/C Outstandings” means, at any time, an aggregate amount equal to the sum of (a) the Stated Amount of all outstanding Letters of Credit and (b) the aggregate amount of all unpaid L/C Reimbursement Amounts, in each case, at such time.
“L/C Reimbursement Amount” has the meaning specified in Section 4(a). 
“L/C Roll Determination Date” has the meaning specified in Section 3(d). 
“Letter of Credit” has the meaning specified in the recitals hereto.
“Lien” means, with respect to any asset, any mortgage, deed of trust, deed to secure debt, lien (statutory or otherwise), pledge, hypothecation, encumbrance, restriction, collateral assignment, charge or security interest in, on or of such asset.
“Majority Issuers” means at any date of determination Issuers whose Pro Rata Shares aggregate more than 50.0%.
“Minimum Collateral Base” means, on any date as of which it is determined hereunder, the quotient obtained by dividing (a) the Facility Amount on such date, divided by (b) Minimum Collateral Percentage.
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“Minimum Collateral Percentage” means a number, expressed as a percentage, equal to the sum of (a) the product of (i) a fraction, the numerator of which is the Net Asset Value of all cash on deposit in the Collateral Accounts and the denominator of which is the Net Asset Value of all Collateral on deposit in or credited to the Collateral Accounts, in each case, as determined in accordance with Section 6(a) and (ii) 99% and (b) the product of (i) a fraction, the numerator of which is the Net Asset Value of all Eligible Treasury Assets credited to the Collateral Accounts and the denominator of which the Net Asset Value of all Collateral on deposit in or credited to the Collateral Accounts, in each case, as determined in accordance with Section 6(a) and (ii) 97.18%.
“Minority Investment” shall mean any Person (other than a Subsidiary) in which the Applicant or any Subsidiary owns Capital Stock. 
“Moody’s” means Moody’s Investors Service, Inc. or any successor entity.
“Nationally Recognized Statistical Organization” means a nationally recognized statistical rating organization within the meaning of Section 3(a)(62) under the Exchange Act.
“Net Asset Value” has the meaning specified in Section 6(a). 
“Non-Excluded Taxes” has the meaning specified in Section 9. 
“Notice Date” has the meaning specified in Section 6(b).
“Obligations” means all of the Applicant’s obligations to pay fees, costs and expenses, to pay principal or interest and any L/C Reimbursement Amount, in each case, to any Agent or any Issuer under this Agreement and the other Facility Documents.
“OFAC” means the United States Treasury Department Office of Foreign Assets Control.
“Other Taxes” means any stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Agreement or any Facility Document, except with respect to an Issuer or the Administrative Agent, any such Taxes imposed with respect to an assignment (other than pursuant to a request by the Applicant under Section 9(c)) as a result of a present or former connection between such recipient and the jurisdiction imposing such Tax (other than connections arising from such recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced this Agreement or any Facility Document, or sold or assigned an interest in any Letter of Credit or Facility Document).
“Parent Company” shall mean, with respect to an Issuer, the bank holding company (as defined in Regulation Y of the Board of Governors of the Federal Reserve System of the United States of America), if any, of such Issuer, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Issuer.
“PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as the same has been, or shall hereafter be, renewed, extended, amended or replaced.
“P-Caps” means the pre-capitalized trust securities issued by the Trust on the date hereof.
“Permitted Liens” means Liens on cash deposits and other funds maintained with a depository institution, in each case arising in the ordinary course of business by virtue of any statutory or common law provision relating to banker’s liens, including Section 4-210 of the UCC, and/or arising from customary contractual fee provisions, the reimbursement of funds advanced by a depositary or 
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intermediary institution (and/or its Affiliates) on account of investments made or securities purchased, indemnity, returned check and other similar provisions “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof.
“Pledge Agreement” means that certain Pledge and Control Agreement, dated as of the date hereof, among the Applicant, the Collateral Agent, the Trust and the Securities Intermediary.
“Primary Eligible Treasury Assets” has the meaning given to such term in the Pledge Agreement.
“Prime Rate” means, for any day, mean the rate of interest per annum publicly announced from time to time by The Wall Street Journal as the “prime rate” (or, if The Wall Street Journal ceases quoting a base rate of the type described, the highest per annum rate of interest published by the Federal Reserve Board in Federal Reserve statistical release H.15 (519) entitled “Selected Interest Rates” as the Bank prime loan rate or its equivalent); each change in the Prime Rate shall be effective as of the opening of business on the date such change is publicly announced as being effective; provided that in no event shall the “Prime Rate” at any time be less than 0.00% per annum. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually available.
“Proceeding” has the meaning specified in Section 27.
“Pro Rata Share” means, with respect to an Issuer, a fraction (expressed as a percentage), the numerator of which is the amount of such Issuer’s Commitment and the denominator of which is the sum of the amounts of all of the Issuers’ Commitments, or if no Commitments are outstanding, a fraction (expressed as a percentage), the numerator of which is the amount of Obligations owed to such Issuer and the denominator of which is the aggregate amount of the Obligations owed to the Issuers.
“Rating Agency” means (a) each of Moody’s and S&P and (b) if any of Moody’s or S&P ceases to rate the P-Caps or fails to make a rating of the P-Caps publicly available, a Nationally Recognized Statistical Rating Organization selected by the Applicant which shall be substituted for Moody’s or S&P, as the case may be with respect to the P-Caps.
“Related Parties” means, with respect to any specified person, such Person’s affiliates and the respective directors, officers, employees, trustees, agents and advisors of such Person and such Person’s affiliates.
“Request” has the meaning specified in Section 3.
“Retained Eligible Treasury Assets” has the meaning given to such term in the Facility Agreement. 
“Retained Eligible Treasury Assets Account” has the meaning given to such term in the Pledge Agreement.
“S&P” means S&P Global Ratings, a division of S&P Global Inc., or any successor entity.
“Sanctioned Country” shall mean, at any time, a country, region or territory that is, or whose government is, subject to, or target of, Sanctions.
“Sanctioned Person” shall mean, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any 
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Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions. 
“Sanctions” means economic or financial sanctions or trade embargoes or restrictive measures imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom or any other relevant sanctions authority.
 “Secured Parties” means the Issuers, the Administrative Agent and the Collateral Agent. 
“Securities Intermediary” means Deutsche Bank Trust Company Americas in its capacities as a securities intermediary and a deposit bank, as applicable, in respect of the Collateral Accounts.
“Senior Notes” means the 3.046% Senior Notes due 2027 offered by Constellation Energy Generation, LLC.
“Shortfall Amount” has the meaning specified in Section 6(b). 
“Shortfall Date” has the meaning specified in Section 6(b). 
“Shortfall Notice” has the meaning specified in Section 6(b).
“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.
“SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).
“SOFR Administrator’s Website” means the NYFRB’s website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.
“SOFR Determination Date” has the meaning specified in the definition of “Daily Simple SOFR Rate”.
“SOFR Rate Day” has the meaning specified in the definition of “Daily Simple SOFR Rate”.
“Solvent” means, with respect to the Applicant on a particular date, that on such date, immediately after giving effect to all Letters of Credit (or any Amendment thereto) issued, continued or to be issued on such date, (a) the fair value of the property of the Applicant and its Subsidiaries, taken as a whole, at a fair valuation, taking into account the effect of any indemnities, contribution or subrogation rights, will exceed their debts and liabilities, subordinated, contingent or otherwise, (b) the present fair salable value of the assets of the Applicant and its Subsidiaries, taken as a whole, taking into account the effect of any indemnities, contribution or subrogation rights, will be greater than the amount that will be required to pay the probable liability of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured, (c) the Applicant and its Subsidiaries, taken as a whole, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, and (d) the Applicant and its Subsidiaries will not have unreasonably small capital with which to conduct the business in which they are engaged as such business is now conducted and is proposed to be conducted.
“Stated Amount” means, at any time, with respect to any Letter of Credit or Letters of Credit, the total amount then available to be drawn under such Letter of Credit or Letters of Credit.
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“STRIPS” means principal and interest strips of U.S. Treasury Securities created under the U.S. Treasury’s program for Separate Trading of Registered Interest and Principal of Securities (STRIPS) under 31 C.F.R. Section 356.31.
“Subsidiary” shall mean, with respect to any Person (herein referred to as the “parent”), any corporation, partnership, limited liability company, association or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or more than 50% of the general partnership interests are, at the time any determination is being made, owned, controlled or held by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. In no event will the Trust constitute a Subsidiary of Constellation.
“Taxes” has the meaning specified in Section 9.
“Termination Date” has the meaning specified in Section 32(a).
“Total Assets” means the total consolidated assets of Constellation and its Subsidiaries determined on a consolidated basis in accordance with GAAP, as shown on the most recent balance sheet of Constellation.
“Total Unutilized L/C Commitment” means, at any time, an amount equal to the remainder of (a) the Facility Amount in effect at such time, less (b) the aggregate amount of all L/C Outstandings at such time.
“Trust” has the meaning specified in the recitals hereto.
“Trust Collateral Account” has the meaning specified in the recitals hereto. 
“Trust Governing Body” has the meaning specified in Section 11(a)(ii). 
“UCC” has the meaning specified in Section 14.
“U.S. Government Obligations” means U.S. Treasury securities that are direct obligations of the United States for payment of which its full faith and credit is pledged.
“U.S. Government Securities Business Day” means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.
“Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person.
2.Applicability of Agreement. This Agreement shall apply to each Letter of Credit (and any Amendments thereto) existing or requested by the Applicant and issued or continued pursuant to the terms and conditions hereof.
3.Issuance of Letters of Credit.
(a)During the Issuance Period and subject to the terms and conditions hereof, within three (3) Business Days (or such shorter period of time acceptable to the relevant Issuer) after receipt by an Issuer (with a copy to the Administrative Agent) of (i) the Applicant’s written request, submitted substantially in the form of Exhibit A attached hereto (a “Request”), that such Issuer issue (or continue) a Letter of Credit or Letters of Credit to one or more Beneficiaries, or (ii) the Applicant’s written request, submitted substantially in the form of Exhibit B attached hereto (an “Amendment Request”), for an amendment to an existing Letter of Credit (an “Amendment”), each Issuer severally agrees to issue (or 
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continue) such Letter of Credit or Letters of Credit (in each case, in a form reasonably satisfactory to such Issuer), or agree to such Amendment, as the case may be. If requested by the applicable Issuer, the Applicant also shall submit a letter of credit application on such Issuer’s standard form in connection with any request for a Letter of Credit. Each Issuer’s obligation to effect such issuance, continuance or Amendment shall be subject to the following conditions: (A) prior satisfaction by the Applicant of its obligations set forth in Section 5(a), (B) payment in full of the fees and expenses described in Section 8 hereof that are due and payable on or prior to the date of issuance (or continuance) or amendment of such Letter of Credit and (C) all representations and warranties contained in this Agreement being true and correct in all material respects as of the date of such issuance, continuance or Amendment, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects on and as of such earlier date (provided that, in each case, if any representation or warranty is already qualified by materiality, such representation or warranty must be true and correct in all respects) and that no Event of Default hereunder has occurred as of the date such Letter of Credit is issued (or continued) or amended, as applicable. Each issuance, continuance or Amendment of a Letter of Credit shall be deemed to constitute a representation and warranty by the Applicant on the date of such issuance, continuance or Amendment as to the matters specified in the preceding subclause (C). No Issuer shall be required or permitted to issue, continue, amend or renew any Letter of Credit (except to reduce the face amount thereof) if immediately after giving effect thereto, (x) the aggregate L/C Outstandings with respect to all Letters of Credit would exceed the Aggregate Availability or (y) the aggregate L/C Outstandings with respect to all Letters of Credit issued by such Issuer would exceed such Issuer’s Commitment. For the avoidance of doubt, no Issuer will be required to provide documentary, trade or commercial letters of credit without its prior written consent (in each Issuer’s sole discretion). However, documentary Letters of Credit calling for invoices or copies of invoices may be allowed, in each Issuer’s sole discretion.
(b)Notwithstanding the foregoing, no Issuer is under any obligation to issue any Letter of Credit or Amendment thereto if: (i) at the time of such issuance any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms enjoin or restrain such Issuer from issuing such Letter of Credit or any requirement of law applicable to such Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such Issuer shall prohibit, or request that such Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuer with respect to such Letter of Credit any restriction or reserve or capital requirement (for which such Issuer is not otherwise compensated hereunder) not in effect with respect to such Issuer on the Effective Date, or any unreimbursed loss, cost or expense that was not applicable or in effect with respect to such Issuer as of the Effective Date and which such Issuer reasonably and in good faith deems material to it, (ii) the proposed beneficiary is a Sanctioned Person or (iii) such issuance would violate any policies of such Issuer applicable to the issuance of letters of credit generally.
(c)Each Issuer, in its sole discretion, may issue (or continue) any Letter of Credit through one or more of its branches or affiliates.
(d)Notwithstanding anything to the contrary contained herein, in no event may a Request or Amendment Request be submitted to any Issuer, and no Letter of Credit (or Amendment thereto) shall be issued or continued, after the expiration of the Issuance Period unless expressly consented to in writing by the applicable Issuer. Furthermore, no Letter of Credit shall have an expiration date later than the earlier of (i) the date one year after the issuance of such Letter of Credit and (ii) the date that is five (5) Business Days prior to the last day of the Issuance Period; provided that a Letter of Credit may, upon the request of the Applicant, include a provision whereby such Letter of Credit shall be renewed automatically for additional consecutive periods of 12 months or less (but not beyond the date that is five (5) Business Days prior to the last day of the Issuance Period) unless the Issuer notifies the beneficiary thereof at least 30 days (or within such longer period as specified in such Letter of Credit) (the date on which any such notice is due, the “L/C Roll Determination Date”) prior to the then-applicable expiration date that such Letter of Credit will not be renewed. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Applicant to, or entered into by the Applicant with, an Issuer relating to any Letter of Credit, the terms and conditions of this Agreement shall control.
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(e)Unless otherwise expressly agreed by the applicable Issuer and the Applicant (including any such agreement applicable to an existing Letter of Credit), when a Letter of Credit is issued, the Letter of Credit shall be subject to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication Number 600 (“UCP 600”) and matters not governed by UCP 600 shall be governed and construed in accordance with the laws of New York.
(f)It is understood that (i) no Issuer shall be responsible for any failure by any other Issuer to perform its obligation to issue any Letter of Credit hereunder; nor shall any Commitment of any Issuer be increased or decreased as a result of any failure by any other Issuer to perform its obligation to issue any Letter of Credit hereunder, (ii) no failure by any Issuer to perform its obligation to issue any Letter of Credit hereunder shall excuse any other Issuer from its obligation to issue any Letter of Credit hereunder, and (iii) the obligations of each Issuer hereunder shall be several, not joint and several.
(g)As of the Business Day immediately preceding the requested issuance date of any Letter of Credit, the Administrative Agent shall determine the Total Unutilized L/C Commitment and Aggregate Availability and notify each Issuer thereof.
(h)Each Issuer shall promptly (i) notify the Administrative Agent in writing of the Stated Amount and expiry date of each Letter of Credit issued by it and (ii) provide the pertinent details of such Letter of Credit or amendment to the Administrative Agent. Each Issuer shall provide to the Administrative Agent, as per Administrative Agent’s request, an activity report in the form of Exhibit C attached hereto.
4.Reimbursement.
(a)The Applicant shall reimburse the applicable Issuer for the amount of any drawing honored under a Letter of Credit and paid by such Issuer (the “L/C Reimbursement Amount”). The Applicant shall reimburse the applicable Issuer under this Section 4(a) in immediately available funds (i) no later than 3:00 p.m. on the day (which shall be a Business Day) on which payment is made by such Issuer under a Letter of Credit; provided that the Issuer notifies the Applicant by 12:00 p.m. on such date that such Issuer has made such payment under such Letter of Credit and the full amount of the L/C Reimbursement Amount, or (ii) if the Issuer notifies the Applicant after 12:00 p.m. on the date of such payment, by 11:00 a.m. on the next Business Day following receipt of such notice by the Applicant; provided that the failure of the Issuer to so notify the Applicant, and any delay in so notifying the Applicant, shall not relieve, limit or otherwise affect any obligation of the Applicant under this Agreement or any related document. Each Issuer shall simultaneously provide a copy of each reimbursement notice provided to the Applicant under this Section 4(a) to the Administrative Agent and the Collateral Agent.
(b)If the Applicant fails to reimburse the Issuer on the date and at the time required in accordance with Section 4(a), the Collateral Agent shall, following notice to the Collateral Agent from the applicable Issuer and upon not less than one (1) Business Days’ prior written notice from the Collateral Agent to the Applicant, withdraw from the Constellation Collateral Accounts (to the extent established) an amount of cash and/or Eligible Treasury Assets (in accordance with Section 6(d)) equal to the L/C Reimbursement Amount due to such Issuer and shall apply such amounts to repay such L/C Reimbursement Amount; provided that if there is not a sufficient amount of cash and/or Eligible Treasury Assets on deposit in or credited to the Constellation Collateral Accounts on any such date, the Collateral Agent shall withdraw from the Trust Collateral Account (in accordance with Section 6(d)) an amount of Eligible Treasury Assets equal to the amount of such shortfall and shall apply such amounts to repay the L/C Reimbursement Amount due to such Issuer. The Applicant (i) authorizes and directs the Collateral Agent to charge the Constellation Collateral Accounts (A) upon and after the drawing of any Letter of Credit for the full amount of the L/C Reimbursement Amount, to the extent the Applicant has failed to reimburse the applicable Issuer in accordance with Section 4(a), and (B) from time to time for any other Obligations not paid within five (5) Business Days after the due date thereof and (ii) confirms that it has irrevocably directed and caused the Trust to authorize and direct the Collateral Agent to charge the Trust Collateral Account (A) upon and after the drawing of any Letter of Credit for the full amount of the L/C Reimbursement Amount, to the extent the Applicant has failed to reimburse the applicable Issuer in 
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accordance with Section 4(a), and (B) from time to time for any other Obligations not paid within five (5) Business Days after the due date thereof.
(c)The Applicant shall pay to each Issuer, promptly upon demand, all Issuer Costs as more specifically set forth in Section 8(a).
5.Covenants.
(a)The Applicant will, and will direct the Trust in accordance with the Facility Agreement to, enter into the Pledge Agreement with the Securities Intermediary and the Collateral Agent, pursuant to which the Applicant and the Trust will grant to the Collateral Agent a Lien on the Collateral Accounts to secure the Obligations owed to the Secured Parties and the Applicant will, and will direct the Trust to, enter into an amendment to the Pledge Agreement, if necessary, to perfect the Lien granted to the Collateral Agent upon the establishment of any Collateral Accounts after the date hereof. Prior to the issuance (or continuance) by any Issuer of any Letter of Credit (or any Amendment thereto) hereunder and as a condition precedent thereto, the Applicant shall confirm that the sum of (i) the aggregate Net Asset Value of cash and Eligible Treasury Assets deposited in or credited to the Constellation Collateral Accounts and (ii) the aggregate Net Asset Value of Eligible Treasury Assets credited to the Trust Collateral Account (such aggregate amount, the “Aggregate Collateral Amount”) is equal to or greater than the Minimum Collateral Base. In the event the Aggregate Collateral Amount exceeds the Minimum Collateral Base, upon the written request of Applicant, any such excess amount, as certified by the Applicant, shall be released from any Lien created under the Pledge Agreement and the Applicant shall be permitted to withdraw such excess funds from the Constellation Collateral Accounts, and shall be permitted to withdraw such excess assets from the Trust Collateral Account in connection with any permitted voluntary or mandatory exercise of issuance rights under the Facility Agreement (provided that any such release of Lien with respect to, and withdrawal of, Eligible Treasury Assets from the Trust Collateral Account shall be made pro rata across each interest and principal STRIP as determined in accordance with the Pledge Agreement), so long as no Event of Default has occurred and is continuing or would result therefrom; provided, further, that, in the case of any cancellation, termination or expiration of any Letter of Credit in connection therewith, the applicable Issuer shall have received reasonably satisfactory evidence of such cancellation, termination or expiration. The Applicant agrees to use commercially reasonable efforts to return such expired, terminated or cancelled Letter of Credit to the applicable Issuer within a reasonable period after such cancellation, termination or expiration. Upon release of any portion of the Collateral deposited by the Applicant in accordance with this Section 5(a), the Collateral Agent shall promptly execute and deliver to the Applicant, at the Applicant’s expense, such documents as the Applicant shall reasonably request to evidence the release of such Collateral from any Lien granted to the Collateral Agent. Notwithstanding anything to the contrary herein, the Applicant shall at all times be permitted to withdraw Eligible Treasury Assets from the Trust Collateral Account and deposit such Eligible Treasury Assets into the Constellation Collateral Accounts pursuant to a mandatory exercise of the issuance right under the Facility Agreement that is triggered by an Investment Company Act Event.
(b)The Applicant shall use commercially reasonable efforts to establish the Constellation Securities Account within 14 days after the date hereof.
(c)The Applicant will (i) comply in all material respects with all applicable U.S. and foreign laws, regulations (including foreign exchange control regulations, foreign asset control regulations and other trade-related regulations) and rules now or later applicable to any Letter of Credit or this Agreement and the transactions contemplated thereunder and hereunder, or the Applicant’s execution, delivery and performance under this Agreement, (ii) preserve and maintain in full force and effect its limited liability company existence and good standing under the laws of its jurisdiction of organization, and (iii) pay and discharge as the same shall become due and payable, all of its material Taxes, assessments and governmental levies, except as such are being contested in good faith by appropriate proceedings and for which adequate reserves are being maintained in accordance with U.S. generally accepted accounting principles or where failure to effect such payment is not adverse in any material respect to the Issuers.
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(d)The Applicant will comply, in all material respects, with the PATRIOT Act. The Applicant will not, directly or, to the knowledge of the Applicant, indirectly, use any Letter of Credit: (i) to fund any activities or business of or with any Person that, at the time thereof, is the subject of Sanctions or in any country or territory that, at the time thereof, is the subject of comprehensive Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the transactions contemplated hereby, whether as an issuer, underwriter, investor, or otherwise).
(e)The Applicant will furnish to the Administrative Agent for distribution to each Issuer:
(i)within forty-five (45) days after the end of each of the first three quarters of each fiscal year of the Applicant beginning with the fiscal quarter ending on March 31, 2022, its unaudited consolidated balance sheet and related statements of income, stockholders’ equity and cash flows showing the financial condition as of the close of such fiscal quarter of the Applicant and its consolidated Subsidiaries at such time and the results of its operations and the operations of such Subsidiaries during such fiscal quarter, certified by the chief financial officer or other responsible officer of the Applicant to the effect that such financial statements, while not examined by independent public accountants, reflect in the opinion of the Applicant all adjustments necessary to present fairly in all material respects the financial condition and results of operations of the Applicant and its consolidated Subsidiaries on a consolidated basis as of the end of and for such periods in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(ii)within ninety (90) days after the end of each fiscal year of the Applicant beginning with the fiscal year ending on December 31, 2022, the Applicant’s consolidated balance sheet and related statements of income, stockholders’ equity and cash flows showing the financial condition as of the close of such fiscal year of the Applicant and its consolidated Subsidiaries at such time and the results of its operations and the operations of such Subsidiaries during such year, all audited by PricewaterhouseCoopers LLP or other independent public accountants of recognized national standing and accompanied by an opinion of such accountants to the effect that such consolidated financial statements fairly present the financial condition and results of operations of the Applicant and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;
(iii)promptly upon the Applicant becoming aware of the occurrence of each Event of Default, a statement of the chief financial officer or other responsible officer of the Applicant setting forth details of such Event of Default and the action which the Applicant has taken and proposes to take with respect thereto;
(iv)information and documentation reasonably requested in writing by any Issuer for purposes of compliance with applicable “know your customer” requirements under the PATRIOT Act or other applicable anti-money laundering rules and regulations;
(v)prompt written notice of any change in the information provided in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified in parts (c) or (d) of such certification; and
(vi)such other information relating to the business, operations, assets, liabilities or condition, financial or otherwise, of the Applicant as any Issuer (acting through the Administrative Agent) may from time to time reasonably request promptly following such request.
    Documents required to be delivered pursuant to Section 5(e)(i) and (ii) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which such materials are publicly 
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available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such documents are posted on the Applicant’s behalf on an Internet or intranet website, if any, to which each Issuer and the Administrative Agent have access (whether a commercial, third-party website or whether made available by the Administrative Agent); provided that:  (A) upon written request by the Administrative Agent (or any Issuer through the Administrative Agent) to the Applicant, the Applicant shall deliver paper copies of such documents to the Administrative Agent or such Issuer until a written request to cease delivering paper copies is given by the Administrative Agent or such Issuer and (B) the Applicant shall notify the Administrative Agent and each Issuer (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Applicant with any such request by an Issuer for delivery, and each Issuer shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such document to it and maintaining its copies of such documents.

(f)The Applicant shall cause each established Collateral Account at all times to be under the sole dominion and control (within the meaning of Sections 8-106, 9-104 and/or 9-106 of the UCC, as applicable) of the Collateral Agent, and the Collateral Agent shall have the exclusive right of withdrawal over such account except as set forth in the Facility Agreement (as in effect on the date hereof).
6.Collateral Accounts Monitoring and Shortfalls; Withdrawal of Eligible Treasury Assets from Collateral Accounts.
(a)The Applicant agrees that the value of assets on deposit in the Collateral Accounts will be monitored by the Collateral Agent (or its sub-agent), and that the value of assets in the Collateral Accounts (the “Net Asset Value”) will be obtained according to the Collateral Agent’s (or its sub-agent’s) standard operating procedures on (i) each Collateral Valuation Date, and (ii) each other date as the Collateral Agent may be directed by the Majority Issuers in their discretion, in each case, in a commercially reasonable manner. For these purposes the value of any cash will be the face amount thereof and the value of any Eligible Treasury Assets will be obtained by reference to prices/quotes available on a reputable third party reporting or quotation service (such as Bloomberg, IDC or Reuters) or, if not so available, shall be their fair market value thereof as reasonably determined by the Collateral Agent or its sub-agent. The Collateral Agent shall have no liability for the value of any Eligible Treasury Assets obtained from a third party reporting service (or its sub-agent) and may, without further investigation, conclusively rely on such values. The Collateral Agent shall, no later than 12:00 p.m. on each Collateral Valuation Date, promptly provide notice to the Administrative Agent of the Net Asset Value.
(b)The Administrative Agent will, in the event that the aggregate Net Asset Value of the Collateral Accounts, as calculated on any Collateral Valuation Date, is less than the Minimum Collateral Base, on such day (a “Notice Date”), notify the Applicant and each Issuer of such shortfall by electronic mail transmission (a “Shortfall Notice”). If a Shortfall Notice is given prior to 10:00 a.m. on a Business Day, then such Business Day shall be the “Shortfall Date”; provided that if such notice is given after 10:00 a.m. on a Business Day or on a day that is not a Business Day, then the subsequent Business Day shall be the “Shortfall Date”. The Shortfall Notice shall include (i) the aggregate Net Asset Value in each Collateral Account as of the Notice Date, (ii) the aggregate L/C Outstandings as of the Notice Date and (iii) a calculation showing the amount of cash or Eligible Treasury Assets that the Applicant would be required to provide to the Collateral Agent for contribution to the Constellation Collateral Accounts, as set forth in Section 6(c), such that the Net Asset Value of the Collateral Accounts would be equal to the Minimum Collateral Base on any such Shortfall Date (such amount, the “Shortfall Amount”).
(c)On any Shortfall Date, the Applicant may, but shall not be required to, deposit an amount of cash in U.S. dollars and/or or Eligible Treasury Assets equal to the Shortfall Amount in the Constellation Collateral Accounts, with any such deposit to be made prior to 4:00 p.m. on the relevant Shortfall Date. If the Applicant has not made such deposit by such time, the Administrative Agent shall recalculate the Aggregate Availability and notify each Issuing Bank thereof. At any time thereafter, the 
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Applicant may in its sole discretion elect to deposit an additional amount of cash in U.S. dollars and/or Eligible Treasury Assets in the Constellation Collateral Accounts and shall provide the Administrative Agent notice of such deposit promptly after the deposit of such cash and/or Eligible Treasury Assets, and such amount shall be taken into account in the calculation of the Aggregate Net Asset Value of the Constellation Collateral Accounts on the following Collateral Valuation Date.
(d)In the event of any withdrawal by the Collateral Agent of Eligible Treasury Assets from any Collateral Account pursuant to Section 4(b), Section 16, or otherwise, the Collateral Agent and/or its sub-agent(s) shall (i) determine, in consultation with the Calculation Agent, the amount of Eligible Treasury Assets that would need to be monetized to satisfy the Obligations then due and payable, the selection of such Eligible Treasury Assets to be sold being at the sole discretion of the Collateral Agent (and its sub-agent) and in a manner consistent with the Pledge Agreement, (ii) sell such amount of Eligible Treasury Assets and (iii) apply the cash proceeds from such sale to satisfy the Obligations then due and payable in accordance with the terms hereof; provided that, in connection with the withdrawal by the Collateral Agent of Eligible Treasury Assets from the Collateral Accounts, the Collateral Agent shall use commercially reasonable efforts to select Eligible Treasury Assets to be monetized and sell such Eligible Treasury Assets on a pro rata basis across each principal and interest STRIP, selecting, to the extent practicable, (A) first from the Constellation Collateral Accounts (to the extent established), second from the Retained Eligible Treasury Assets Account and third from the Primary Eligible Treasury Assets, and (B) in each case, an equal percentage of each such principal and interest STRIP and, to the extent any such principal or interest STRIP to be selected would have a face amount less than $100, rounding such face amount to be selected up to the nearest $100. For the avoidance of doubt, in the event that a withdrawal by the Collateral Agent of Eligible Treasury Assets exceeds the amount necessary to satisfy the Obligations then due and payable, such excess proceeds from the monetization of the selected Eligible Treasury Assets will be deposited into the Constellation Collateral Account (or, if such account has not yet been established, into the Retained Eligible Treasury Assets Account, which proceeds shall be considered Retained Eligible Treasury Assets). 
(e)Notwithstanding anything to the contrary herein, the Collateral Agent shall not withdraw, and each Issuer agrees that it shall not instruct the Collateral Agent to withdraw, a portion of any principal or interest STRIP to monetize in order to satisfy Obligations due to an Issuer if such withdrawal would exceed such Issuer’s Eligible Treasury Assets Cap with respect to any such principal or interest STRIP; provided that, if each Issuer’s Eligible Treasury Assets Cap has been reduced to zero and the Collateral Agent is permitted to withdraw additional Eligible Treasury Assets from the Collateral Accounts pursuant to Section 16, the Collateral Agent may withdraw, and any Issuer may instruct the Collateral Agent to withdraw, Eligible Treasury Assets from the Collateral Accounts to be monetized for the Issuers on a pro rata basis based on each Issuer’s respective Commitment. The covenant set forth in this Section 6(e) is solely for the benefit of the respective Issuers, and the Applicant shall have no rights under, and agrees that it shall not take any action to enforce or object to, this Section 6(e).
7.Representations and Warranties. The Applicant represents and warrants to the Agents and the Issuers as follows on the date hereof and as of the date of issuance (or continuance) of each Letter of Credit (or as of the date of any Amendment thereto):
(a)(i) It is a limited liability company duly organized, validly existing and in good standing under the laws of the commonwealth of Pennsylvania and (ii) has (A) all the requisite powers and (B) all material government licenses, authorizations, consents and approvals required to carry on its business as now conducted, except, in the case of this clause (ii), to the extent the failure to do so could not reasonably be expected to result in a material adverse effect on the Applicant’s business, operations, property, assets, liabilities or financial condition.
(b)The (i) execution, delivery and performance by it of this Agreement, (ii) granting of the Liens granted by it (including the first priority nature thereof, subject to Permitted Liens) pursuant to the Pledge Agreement, (iii) perfection or maintenance of the Liens created pursuant to the Pledge Agreement, and (iv) granting of authority to the Agents and the Issuers with respect to the exercise of their respective rights hereunder or under any other Facility Document or remedies in respect of the Collateral Accounts, (A) are within its limited liability company powers, (B) have been duly authorized 
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by all necessary limited liability company action, (C) require no action by or in respect of, or filing with, any governmental body, agency or official, except for any immaterial actions, consents, approvals, registrations or filings or such as have been made or obtained and are in full force and effect, (D) do not contravene, or constitute a default under, any provision of applicable material law or regulation or of constituent documents of the Applicant, as the case may be, or of any material agreement, judgment, injunction, order, decree or other material instrument binding upon the Applicant, as the case may be, or any of its subsidiaries, and (E) do not result in the creation or imposition of any Lien on any asset of the Applicant or any of its subsidiaries, except the Liens created pursuant to the Pledge Agreement.
(c)This Agreement and each other Facility Document have each been duly executed and delivered by the Applicant. Each of this Agreement and each other Facility Document constitutes a legal, valid and binding agreement of the Applicant, enforceable against it in accordance with its terms, except to the extent such enforceability may be limited by the effect of applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The Applicant acknowledges that the Collateral Agent has control (within the meaning of Sections 8-106, 9-104 and/or 9-016, as applicable, of the UCC) over the Collateral Accounts now in existence and shall have control (within the meaning of Sections 8-106, 9-104 and/or 9-016, as applicable, of the UCC) over any Collateral Accounts established after the date hereof.
(d)The Collateral Agent, for the benefit of the Secured Parties, has a valid, first-priority perfected security interest in and lien on all of the Collateral granted by the Applicant, subject to no other Lien, other than Permitted Liens, securing all Obligations hereunder, and all filings and other actions necessary or desirable to perfect and protect such security interests granted by the Applicant have been duly taken. All funds, assets and property provided by the Applicant to the Collateral Agent pursuant to the Facility Documents are free and clear of any Lien, other than Permitted Liens, except for the liens and security interests created under the Pledge Agreement, and the Applicant was the legal and beneficial owner thereof at the time provided to the Collateral Agent.
(e)Both immediately before and immediately after the issuance (or continuance) of each Letter of Credit (or Amendment thereto), no Event of Default shall have occurred and be continuing.
(f)The Applicant is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended. Neither the issuance (or continuance) of the Letters of Credit (or any Amendment thereto) nor the transactions contemplated hereunder will violate any provision of such Act or any rule, regulation or order of the Securities and Exchange Commission thereunder.
(g)There is no action, suit, investigation, litigation or proceeding against the Applicant pending or, to the knowledge of the Applicant, threatened, before any court, tribunal, arbitrator or any other Governmental Authority or national securities exchange, that purports to affect the legality, validity or enforceability of this Agreement or as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, would reasonably be expected to result in a material adverse effect on the Applicant’s business, operations, property, assets, liabilities or financial condition.
(h)The Applicant is Solvent.
(i)The information included in the Beneficial Ownership Certification is true and correct in all material respects.
(j)None of the Applicant, any of its Subsidiaries, or any of their respective directors or officers or, to the knowledge of the Applicant, any affiliate, agent or employee of the Applicant or any of its subsidiaries, is a Sanctioned Person None of the Applicant, any of its Subsidiaries, or any of their respective directors or officers or, to the knowledge of the Applicant, any affiliate, agent or employee of the Applicant or any of its subsidiaries, have engaged in any activity or conduct which would violate any applicable Anti-Corruption Laws or any applicable Sanctions and the Applicant has implemented and 
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maintains in effect policies and procedures designed to ensure compliance by the Applicant, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.  No part of the proceeds of the Letters of Credit or payment or disbursement made pursuant thereto will be used directly or, to the knowledge of the Applicant, indirectly, in violation of Anti-Corruption Laws or violation of Section 5(c) hereof.
(k)The Facility Documents and the transactions contemplated thereby do not violate Regulations T, U or X of the Board of Governors of the Federal Reserve.
All representations and warranties made or deemed made in this Agreement shall survive the execution and delivery of this Agreement and the issuance (or continuance) of any Letter of Credit (or any Amendment thereto).
8.Issuance Fee / Issuer Costs; Application of Payments.
(a)The Applicant agrees to pay to the applicable Issuer, promptly upon demand, all reasonable and documented out-of-pocket costs and expenses (including attorney’s fees of a single external counsel for all Issuers and Agents) (collectively, the “Issuer Costs”) that the Issuer may pay or incur, or has already paid or incurred on or prior to the date hereof, in connection with the issuance (or continuance) of any Letter of Credit (or any Amendment thereto) and the negotiation, preparation, execution, performance and delivery of this Agreement and the transactions contemplated hereby and thereby, as well as in connection with the enforcement of, and preservation of the Issuer’s rights hereunder and thereunder, including, without limitation:
(i)increased costs to the Issuer or any entity controlling the Issuer arising from the imposition or modification or effectiveness after the date hereof of any reserve, special deposit, insurance, or similar requirement by any Governmental Authority or from Taxes (other than (A) Non-Excluded Taxes that are imposed on any payments made hereunder or under any Facility Document, (B) Other Taxes, and (C) Taxes described in clauses (i) through (iv) in paragraph (a) of Section 9), including charges with respect to any Letters of Credit issued (or continued) by the Issuer;
(ii)increased costs to the Issuer or any entity controlling the Issuer for issuing, continuing or maintaining any Letter of Credit or a reduction in the yield or amount received or receivable by the Issuer or any entity controlling the Issuer for issuing, continuing or maintaining any Letter of Credit, arising from any change in any applicable law, rule, regulation, guideline, request or directive, or any change in the interpretation of any of the foregoing (whether or not having the force of law) imposed or becoming effective after the date hereof by any Governmental Authority or agency imposing on the Issuer or such entity or any other condition affecting this Agreement or any Letter of Credit (or any Amendment thereto) or its issuance or continuance (including as to liquidity or capital adequacy), in each case imposed or becoming effective after the date hereof by any Governmental Authority or agency that has jurisdiction over the Issuer or any such entity controlling the Issuer (notwithstanding anything herein to the contrary, (A) the Dodd-Frank Wall Street Reform and Consumer Protection Act, and (B) all requests, rules, guidelines, requirements and directives promulgated thereunder, and all requests, rules, guidelines, requirements and directives promulgated by the Bank of International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, are deemed to have been introduced or adopted after the date hereof, regardless of the date enacted, adopted, issued or implemented); and
(iii)all documented out-of-pocket sums expended by the Agents and the Issuers, including, without limitation, reasonable and documented attorney’s fees, disbursements and court costs, in connection with the exercise of any right or remedy provided for herein, the preservation of the Collateral and the Issuer’s interest therein and the defense or prosecution of any actions, suits or proceedings arising out of or relating to the Collateral.
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(b)The Applicant shall pay the following fees:
(i)to the Administrative Agent, for the account of each Issuer, a fee (the “L/C Fee”) as follows:
(1)for the period from the Effective Date through and including June 30, 2022, in an amount equal to 0.40% of the Stated Amount of all outstanding Letters of Credit issued by such Issuer pursuant to this Agreement; and
(2)for the period from and after July 1, 2022 until the Termination Date, in an amount equal to 0.40% of such Issuer’s aggregate Commitment hereunder,
in each case, payable quarterly in arrears on each L/C Fee Payment Date; and
(ii)to the Administrative Agent, for its own account, an annual administration fee in the amount agreed in writing pursuant to that certain Fee Proposal dated as of January 25, 2022 by the Administrative Agent and accepted by the Applicant, or as otherwise agreed in writing from time to time between the Applicant and the Administrative Agent.
Once paid, none of the fees shall be refundable under any circumstances. For the avoidance of doubt, the fees shall be in addition to any reimbursements of the Issuer’s out-of-pocket expenses pursuant to Section 8. Notwithstanding anything contained herein to the contrary, during such period as an Issuer is a Defaulting Issuer, such Defaulting Issuer will not be entitled to any L/C Fee accruing during such period.
(c)If any Issuer becomes entitled to claim any additional amount pursuant to Section 8(a), it shall promptly notify the Applicant of the event by reason of which it has become so entitled. A certificate as to any additional amount payable pursuant to Section 8(a), showing in reasonable detail the determination of the additional amount claimed, submitted by the applicable Issuer to the Applicant shall be conclusive in the absence of manifest error. The agreements in this Section 8 shall survive the termination of this Agreement and the payment of all other amounts payable hereunder.
(d)Failure or delay on the part of any Issuer to demand compensation pursuant to Section 8(a) shall not constitute a waiver of such Issuer’s right to demand such compensation; provided that the Applicant shall not be under any obligation to compensate any Issuer under pursuant to Section 8(a)(i) or (ii) with respect to any period prior to the date that is 270 days prior to such request.
(e)Payments of the Obligations shall be apportioned ratably among the Issuers (according to the aggregate unpaid Obligations owing to each Issuer) and payments of the fees shall, as applicable, be apportioned ratably among the Issuers (according to the Pro Rata Shares of each Issuer), except for fees payable solely to the Agents. All payments shall be remitted to the Administrative Agent and all such payments not constituting payment of specific fees shall be applied, ratably, subject to the provisions of this Agreement, first, to pay any fees, indemnities or expense reimbursements then due to the Agents from the Applicant; second, to pay any fees or expense reimbursements then due to the Issuers from the Applicant; third, to pay unpaid reimbursement obligations in respect of Letters of Credit; fourth, to the payment of any other Obligation; and fifth, to the extent of any excess, to the Applicant or to whosoever the Applicant may lawfully direct.
9.Taxes.
(a)All payments made by or on account of the Applicant under any Facility Document shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, including interest and penalties with respect thereto (“Taxes”), except as required by 
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applicable law. If any Taxes, excluding the following Taxes (such non-excluded Taxes, “Non-Excluded Taxes”):
(i)net income taxes, franchise taxes (imposed in lieu of net income taxes), and branch profits taxes, in each case, imposed on the Administrative Agent or any Issuer as a result of (A) a present or former connection between the Administrative Agent or Issuer and the jurisdiction of the Governmental Authority imposing such Tax or political subdivision or taxing authority thereof or therein (other than any such connection arising from the Administrative Agent or any Issuer having executed, delivered or performed its obligations or received a payment under, received or perfected a security interest under, engaged in any other transaction pursuant to, or enforced, this Agreement, any Letter of Credit, or any Facility Document) or (B) as a result of the Administrative Agent or Issuer being organized under the laws of, or having its principal office or, in the case of any Issuer, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof);
(ii)in the case of an Issuer, U.S. federal withholding Taxes imposed on a Letter of Credit or any Facility Document pursuant to a law in effect on the date on which (A) such Issuer acquires such interest in the Letter of Credit or Facility Document (other than pursuant to an assignment request or requirement by the Applicant under Section 9(c)) or (B) such Issuer changes its lending office (other than pursuant to a request by the Applicant under Section 9(c));
(iii)with respect to amounts to be received by an Issuer, Taxes attributable to such Issuer’s failure to comply with Section 9(b), and with respect to amounts to be received by the Administrative Agent, Taxes attributable to Administrative Agent’s failure to comply with Section 9(b); and
(iv)any U.S. federal withholding tax imposed under Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code (“FATCA”),
are required by applicable law to be deducted or withheld from any amounts payable to or for the account of the Administrative Agent or any Issuer hereunder or under any Facility Document, the amounts so payable shall be increased to the extent necessary in order that the Administrative Agent or Issuer (after deduction or withholding of all Non-Excluded Taxes) receives an amount equal to the sum it would have received had no such deduction or withholding been made. Whenever any Taxes are payable by the Applicant pursuant to this Section 9, as promptly as possible the Applicant shall send to the Administrative Agent a certified copy of an original official receipt received by the Applicant showing payment thereof (or if such document is not reasonably available to the Applicant, other documentary evidence of payment). The Applicant shall indemnify the Administrative Agent and each Issuer for (x) any Non-Excluded Taxes imposed on or with respect to any payment made by or on account of the Applicant under this Agreement or any Facilities Document and (y) any Other Taxes, in each case, payable or paid by the Issuer or Administrative Agent, whether or not such Non-Excluded Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Applicant by an Issuer (with a copy to the Administrative Agent) shall be conclusive absent manifest error. The agreements in this Section 9 shall survive the termination of this Agreement and the payment of all other amounts payable hereunder.
(b)Each Issuer shall deliver to the Applicant and the Administrative Agent, at the time or times reasonably requested by the Applicant or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Applicant or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. The Administrative Agent shall deliver to the Applicant, at the time or times reasonably requested by the 
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Applicant, such properly completed and executed documentation reasonably requested by the Applicant as will permit any payments to be made to the Administrative Agent without withholding. In addition, the Administrative Agent and any Issuer, if reasonably requested by the Applicant or the Administrative Agent (as applicable), shall deliver such other documentation prescribed by applicable law or reasonably requested by the Applicant or the Administrative Agent as will enable the Applicant or the Administrative Agent to determine whether or not such Issuer is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in this Section 9(b), the completion, execution and submission of such documentation (other than (A) an IRS Form W-9, (B) an applicable Form W-8, or (C) any documentation prescribed by FATCA (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Applicant or the Administrative Agent as may be necessary for the Applicant and the Administrative Agent to comply with their obligations under FATCA and to determine that such Issuer has complied with such Issuer’s obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment (provided that, solely for purposes of this clause (C), “FATCA” shall include any amendments made to FATCA after the date of this Agreement), in each case to the extent the Issuer is legally entitled to complete, execute and submit such documentation) shall not be required if in an Issuer’s reasonable judgment such completion, execution or submission would subject such Issuer to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Issuer.
(c)If any Issuer requests compensation under Section 8(a)(i) or (ii), or requires the Applicant to pay any Non-Excluded Taxes or Other Taxes or additional amounts to any Applicant or any Governmental Authority for the account of any Issuer pursuant to Section 9, then such Issuer shall (at the request of the Applicant) use reasonable efforts to designate a different lending office for funding or booking its Letters of Credit hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Issuer, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 8(a)(i) or (ii) or Section 9, as the case may be, in the future, and (ii) would not subject such Issuer to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Issuer. If any such Issuer has declined or is unable to designate a different lending office in accordance with this Section 9(c), then the Applicant may, at its sole expense and effort, upon notice to such Issuer and the Administrative Agent, require such Issuer to assign and delegate, without recourse, all of its interests, rights and obligations under this Agreement and the related Facility Documents to a permitted assignee that shall assume such obligations.
(d)If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to Section 9 (including by the payment of additional amounts pursuant to this Section 9), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 9 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this Section 9(d) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this Section 9(d), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this Section 9(d) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This Section 9(d) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
10.Indemnity. The Applicant hereby agrees to indemnify and hold harmless each Agent, each Issuer and each Related Party of each Agent and each Issuer (“Indemnified Parties”), promptly upon demand and to the fullest extent legally permissible, and hold each of them harmless from and in respect of any and all losses, damages, liabilities, expenses (including, without limitation, expenses of investigation and defense and reasonable and documented out-of-pocket fees, charges and disbursements 
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of counsel), claims, liens or other obligations of any nature whatsoever (including, without limitation, the costs of enforcing this provision) that may arise out of any claim, litigation, investigation or proceeding in any connection whatsoever with this Agreement or a Letter of Credit, whether or not any Indemnified Parties are party to any such action and whether or not brought by third parties or the Applicant or its affiliates, other than losses, damages, liabilities, expenses, claims, liens or other obligations that (a)  arise out of such Indemnified Party’s gross negligence, bad faith or willful misconduct, as determined by a court of competent jurisdiction in a non-appealable final judgment or (b) arise out of any claim, litigation, investigation or proceeding brought by such Indemnified Party against another Indemnified Party (other than any claim, litigation, investigation or proceeding that is brought by or against an Agent, acting in its capacity as such) that does not involve any act or omission of the Applicant. The agreements in this Section 10 shall survive the termination of this Agreement and the payment of all other amounts payable hereunder.
11.Conditions to Effectiveness. The effectiveness of this Agreement is subject to the satisfaction or waiver of the following conditions precedent (such initial date of satisfaction of such obligations and receipt of such items being the “Execution Date”); provided that, the obligations of the Issuers to issue Letters of Credit hereunder shall be subject to the satisfaction or waiver of the conditions precedent set forth in Section 12 below:
(a)The Administrative Agent shall have received the following, each dated as of the Execution Date (unless otherwise specified) and in form and substance reasonably satisfactory to the Administrative Agent and the Issuers, in each case without reference to the Administrative Agent’s determination thereof:
(i)an executed counterpart of (i) this Agreement from the Applicant, the Administrative Agent and the Collateral Agent and (ii) the Pledge Agreement from the Applicant, the Collateral Agent, the Trust and the Securities Intermediary;
(ii)(A) a certificate of the Secretary or Assistant Secretary of the Applicant dated as of the Execution Date attaching a true and complete copy of the resolutions of the board of directors (or equivalent governing body) of the Applicant (the “Applicant Governing Body”) with respect to this Agreement, including, without limitation, (x) approving this Agreement and the transactions contemplated hereby and (y) authorizing each applicable officer of the Applicant (or each other responsible Person) (each, an “Authorized Officer”) during the Issuance Period to take all such actions, to arrange for, execute and deliver any Request or Amendment Request with respect to Letters of Credit in an aggregate amount of up to the Facility Amount, supplemental agreements, instruments, amendments, extensions or other modification in the name and on behalf of the Applicant, which the applicable Authorized Officer determines in his/her sole judgment to be necessary, proper or advisable in connection with or in order to perform the Applicant’s obligations under any Facility Document or in connection with this Agreement, with the performance of any such act by any Authorized Officer during the Issuance Period to be conclusive evidence that the same has been authorized and approved by the Applicant and the Applicant Governing Body in every respect and (B) a certificate of the Secretary, Assistant Secretary or another responsible officer of the Applicant, dated as of the Execution Date attaching a true and complete copy of the Amended and Restated Declaration of Trust, dated as of the date hereof, among Constellation Energy Generation, LLC, as Depositor and in its individual capacity, Deutsche Bank Trust Company Americas, as Trustee, and Deutsche Bank Trust Company Delaware, as Delaware Trustee, including, without limitation, (x) approving the transactions contemplated by this Agreement and (y) authorizing the Trustee to take all such actions, to arrange for, execute and deliver any supplemental agreements, instruments, amendments, extensions or other modification in the name and on behalf of the Trust, which the Trustee determines in its sole judgment to be necessary, proper or advisable in connection with or in order to perform the Trust’s obligations under any Facility Document to which it is a party, including in connection with this Agreement, with the performance of any such act by the Trustee during the Issuance Period to be conclusive evidence that the same has been authorized and approved by the Trust and the Trust Governing Body in every respect;
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(iii)true, complete and accurate copies of the constituent documents of the Applicant and the Trust and an incumbency certificate with respect to the Authorized Officers for the Applicant, in each case, certified by an Authorized Officer, as in effect on the Execution Date;
(iv)a certificate as to the good standing of each of the Applicant and the Trust, in each case, as of a recent date from the Secretary of State of the state of its organization;
(v)to the extent requested by the Administrative Agent or any potential Issuer at least five (5) Business Days prior to the Execution Date, documentation and other information required under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation, the PATRIOT Act and, to the extent the Applicant qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Applicant, in each case, at least two (2) Business Days prior to the Execution Date;
(vi)(A) a favorable written opinion of counsel to the Applicant, in form and substance reasonably satisfactory to the Administrative Agent, relating to such matters with respect to this Agreement and the transactions contemplated hereby as the Administrative Agent may reasonably request and which are customary for transactions of the type contemplated herein, (B) a favorable written opinion of counsel to the Trust, in form and substance reasonably satisfactory to the Administrative Agent, relating to such matters with respect to this Agreement and the transactions contemplated hereby as the Administrative Agent may reasonably request and which are customary for transactions of the type contemplated herein and (C) a favorable written opinion of counsel to the Trustee, in form and substance reasonably satisfactory to the Administrative Agent, relating to such matters with respect to this Agreement and the transactions contemplated hereby as the Administrative Agent may reasonably request and which are customary for transactions of the type contemplated herein;
(vii)a certificate of a responsible officer of the Applicant, dated as of the Execution Date, confirming compliance with the condition set forth in Section 11(c) below; and
(viii)an executed counterpart of the Pledge Agreement from each of the Applicant, the Trust, the Securities Intermediary and the Collateral Agent.
(b)The Trust shall have established the Trust Collateral Account, and substantially concurrently with the Execution Date, Eligible Treasury Assets in an aggregate face amount at least equal to the Minimum Collateral Base shall have been deposited in or credited to the Trust Collateral Account. All costs, fees, expenses (including, without limitation, reasonable and documented out-of-pocket legal fees and expenses) and other compensation, due and payable to the Agents and/or the Issuers shall have been paid to the extent due and invoiced at least one (1) Business Day prior to the Execution Date.
(c)The representations and warranties of the Applicant contained in each Facility Document to which it is a party shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the Execution Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects (or if applicable, in all respects) as of such earlier date).
12.Conditions to LC Issuances.  The obligations of the Issuers to issue Letters of Credit hereunder shall be subject to the satisfaction or waiver of the following conditions precedent (such initial date of satisfaction of such obligations being the “Effective Date”):
(a)The Administrative Agent shall have received an executed counterpart to the Issuer Joinder Agreement from each Issuer party thereto, the Applicant, the Administrative Agent, the Collateral Agent and the Trust.
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(b)Concurrently with the execution and delivery of the Issuer Joinder Agreement, the Administrative Agent shall have received (A) a favorable written opinion of counsel to the Applicant, in form and substance reasonably satisfactory to the Issuers, relating to such matters with respect to the Issuer Joinder Agreement and the transactions contemplated thereby as the Issuers or the Administrative Agent may reasonably request, (B) a favorable written opinion of counsel to the Trust, in form and substance reasonably satisfactory to the Issuers, relating to such matters with respect to the Issuer Joinder Agreement and the transactions contemplated thereby as the Issuers or the Administrative Agent may reasonably request and (C) a favorable written opinion of counsel to the Trustee, in form and substance reasonably satisfactory to the Issuers, relating to such matters with respect to the Issuer Joinder Agreement and the transactions contemplated thereby as the Issuers or the Administrative Agent may reasonably request.
(c)Eligible Treasury Assets in an aggregate face amount at least equal to the Minimum Collateral Base shall be deposited in or credited to the Trust Collateral Account.
(d)The representations and warranties of the Applicant contained in each Facility Document to which it is a party shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the Execution Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects (or if applicable, in all respects) as of such earlier date).
13.Obligation Absolute. To the fullest extent permitted by applicable law, the obligations of the Applicant under this Agreement shall be absolute, unconditional and irrevocable, and shall be paid or performed strictly in accordance with the terms of this Agreement under any and all circumstances, including, without limitation, the following circumstances:
(a)the use of any Letter of Credit;
(b)any lack of validity, correctness, genuineness, or enforceability of any Letter of Credit or any statement or other document relating to or presented under any Letter of Credit, even if such document should in fact prove to be invalid, insufficient, untrue, inaccurate, fraudulent or forged in any respect;
(c)any amendment or waiver of or any consent to departure from the terms of this Agreement or any Letter of Credit (except to the extent of such amendment, waiver, consent or departure);
(d)(i) the acts or omissions of the Beneficiary of any Letter of Credit, including the application of any payment made to such Beneficiary, and/or (ii) the existence of any claim, set-off, defense or other right which the Applicant, any other party guaranteeing, or otherwise obligated with, the Applicant, any Subsidiary or other affiliate thereof or any other Person may have at any time against any Beneficiary or any transferee of any Letter of Credit (or any Persons for whom such Beneficiary or any such transferee may be acting), the applicable Issuer, or any other Person, whether in connection with this Agreement or otherwise;
(e)payment by the Issuer under any Letter of Credit against presentation of a draft or certificate which does not conform to the terms of such Letter of Credit;
(f)the failure of any document or instrument to bear any reference or adequate reference to any Letter of Credit;
(g)any failure to note the amount of any draft on any Letter of Credit or on any related document or instrument;
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(h)the failure by the Issuer to honor any drawing under any Letter of Credit, or to make any payment demanded under such Letter of Credit, on the ground that the demand for such payment does not conform to the terms and conditions of such Letter of Credit; provided that such failure shall not have constituted the gross negligence or willful misconduct of the Issuer;
(i)any failure by the Issuer to make payment under any Letter of Credit as a result of any requirement of law, control or restriction rightfully or wrongfully exercised or imposed by any Governmental Authority;
(j)any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit or a related draft or documents, except for errors or omissions caused by the Issuer’s gross negligence or willful misconduct;
(k)any dispute or claim between or involving the Applicant and any Beneficiary;
(l)any failure of the Beneficiary of any Letter of Credit to meet the obligations of such Beneficiary to either the Applicant or to any other person;
(m)any lack of validity or enforceability of the obligation of the Applicant to any Beneficiary for which a Letter of Credit has been provided as security; or
(n)any other act or omission to act or delay of any kind of the Issuer or any other Person or any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 13, constitute a legal or equitable discharge of the Applicant’s obligations hereunder.
    The foregoing shall not be construed to excuse any Issuer from liability to the Applicant to the extent of any direct damages suffered by the Applicant that are caused by such Issuer’s gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and nonappealable judgment, in determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. It is understood that each Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary and, in making any payment under any Letter of Credit (x) the Issuer’s exclusive reliance on the documents presented to it under such Letter of Credit as to any and all matters set forth therein, including reliance on the amount of any draft presented under such Letter of Credit, whether or not the amount due to the Beneficiary thereunder equals the amount of such draft and whether or not any document presented pursuant to such Letter of Credit proves to be insufficient in any respect, if such document on its face appears to be in order, and whether or not any other statement or any other document presented pursuant to such Letter of Credit proves to be forged or invalid or any statement therein proves to be inaccurate or untrue in any respect whatsoever, and (y) any noncompliance in any immaterial respect of the documents presented under such Letter of Credit with the terms thereof shall, in each case, be deemed not to constitute bad faith, willful misconduct or gross negligence of the Issuer.
14.Standard of Care. Notwithstanding other provisions of this Agreement or applicable law, no Issuer shall be liable to the Applicant for any action taken or omitted by such Issuer under or in connection with this Agreement, any Letter of Credit (or any Amendment thereto) or a related draft or documents, if done in the absence of gross negligence and willful misconduct and in accordance with any mandatory standard of care applicable under the Uniform Commercial Code of the State of New York, as in effect from time to time (the “UCC”) and the International Standby Practices 1998 (ISP98), as in effect from time to time (provided that in the event of a conflict, the applicable provisions of the UCC shall govern to the extent of such conflict).
15.Payments.
(a)Any payments not made by the Applicant when due under this Agreement shall bear interest for each day until paid at a rate per annum equal to the sum of (i) the Base Rate plus 
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(ii) 2.00% per annum. All interest (as applicable) and fees shall be computed on the basis of the actual number of days elapsed in a year of 360 days, except with respect to interest (as applicable) or fees calculated based upon the Base Rate, which shall be computed on the basis of the actual number of days elapsed in a year of 365 days.
(b)All amounts due from the Applicant to any Issuer or Agent shall be paid to such Issuer or Agent by wire transfer in U.S. Dollars and in same day funds pursuant to wire transfer instructions delivered in writing to the Administrative Agent on or prior to the Effective Date, or pursuant to such other wire transfer instructions as each party may designate for itself by written notice to the Administrative Agent.
(c)If at any time or times any Issuer shall receive (i) by payment, foreclosure, setoff or otherwise, any proceeds of Collateral or any payments with respect to the Obligations of the Applicant to such Issuer arising under, or relating to, this Agreement or the other Facility Documents, except for any such proceeds or payments received by such Issuer from the Administrative Agent or the Applicant pursuant to the terms of this Agreement, or (ii) payments from any Agent in excess of such Issuer’s ratable portion of all such distributions by such Agent, such Issuer shall promptly turn the same over to such Agent, in kind, and with such endorsements as may be required to negotiate the same to the applicable Agent, or in same day funds, as applicable, for the account of all of the Issuers and for application to the Obligations in accordance with the applicable provisions of this Agreement.
16.Events of Default.
(a)Each of the following shall be an “Event of Default” hereunder:
(i)the Applicant shall fail to pay, or cause to be paid, any amount payable under Section 4(a) in full when due (provided that there shall be no Event of Default for failure to pay such amount if the Collateral Agent is able to satisfy such payment obligation pursuant to Section 4(b) within five (5) Business Days after such amount was due), or shall fail to pay, or cause to be paid, within five (5) Business Days after the due date thereof any other amount payable hereunder;
(ii)the Applicant shall fail to observe or perform its obligations pursuant to Section 5(a) of this Agreement and such failure shall continue unremedied for a period of three (3) Business Days from the earlier of (x) notice thereof from  and (y) the Applicant Borrower obtaining knowledge thereof;
(iii)the Applicant shall fail to observe or perform any term of any of its covenants or agreements contained in this Agreement (other than those covered by Section 16(a)(i) and (ii) above) and such failure shall continue unremedied for a period of 45 days after notice thereof from the Administrative Agent, the Collateral Agent, or any Issuer to the Applicant;
(iv)any representation, warranty, certification or statement made (or deemed made) by the Applicant in this Agreement shall prove to have been incorrect or misleading in any material respect when made (or deemed made);
(v)any Lien created pursuant to any Facility Document shall at any time for any reason not constitute a valid and perfected Lien, subject to no other Lien other than Permitted Liens, or the Applicant or the Trust shall so assert in writing, except as permitted by this Agreement or as a result of any action or inaction of the Collateral Agent;
(vi)a Change of Control Triggering Event shall occur;
(vii)(A) dissolution of the Applicant or failure to maintain and preserve its limited liability company existence, (B) commencement by the Applicant of a voluntary case in 
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bankruptcy or any other action or proceeding for any other relief under any law affecting creditors’ rights that is similar to a bankruptcy law or (C) consent by the Applicant, by answer or otherwise, to the commencement against it of an involuntary case in bankruptcy or any other such action or proceeding;
(viii)the Applicant shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or a court of competent jurisdiction enters an order for relief or a decree in an involuntary case in bankruptcy or any other such action or proceeding, or a receiver, trustee or similar official is appointed, in respect of the Applicant or any of its property, and such order or decree is not dismissed or stayed, and such appointment is not terminated, on or before the day that is sixty (60) days after the entry thereof or if any such dismissal or stay ceases to be in effect;
(ix)(A) the Applicant shall fail to pay any principal of or interest or premium, if any, in each case in excess of $100.0 million payable in respect of, any Indebtedness of the Applicant when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Indebtedness, or (B) any other default shall occur under any agreement or instrument relating to any Indebtedness of the Applicant outstanding in an aggregate principal amount in excess of $100.0 million and shall continue after the applicable grace period and receipt of any required notice, if any, specified in such agreement or instrument, if the effect thereof is to accelerate the maturity of such Indebtedness or otherwise to cause such Indebtedness to mature, or any such Indebtedness shall be declared to be due and payable or required to be prepaid or redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made, in each case prior to the stated maturity thereof and other than by a regularly scheduled required prepayment or redemption other than (1) pursuant to customary asset sale provisions or (2) delivery of a notice of voluntary prepayment or redemption; or
(x)any provision of this Agreement or any other Facility Document shall at any time for any reason cease to be valid and binding on the Applicant, or shall be declared to be null and void, or the validity or enforceability thereof shall be contested by the Applicant, or a final decision by a court, any governmental agency or other authority having jurisdiction over the Applicant shall establish the invalidity or unenforceability thereof, or the Applicant shall deny that it has any or further liability or obligation under this Agreement.
(b)Upon the occurrence and during the continuance of an Event of Default, and upon every such occurrence and during such continuance, in addition to all rights and remedies set forth in this Agreement and/or otherwise available under applicable law, (x) the unused Commitments of the Issuers hereunder shall automatically terminate and (y) the Agents may and, at the direction of any Issuer, shall:
(i)declare all amounts (whether direct or contingent) payable hereunder to be, and such amounts shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Applicant;
(ii)apply, sell or otherwise liquidate and realize upon any and all funds, assets or property in the Collateral Accounts in satisfaction of the Obligations;
(iii)do any acts which it deems proper to protect the Collateral as security hereunder, and collect and sue upon the Collateral and receive any payments due thereon or any damages thereunder, and apply all sums received in connection with the Collateral to the payment of the Obligations in such order as the Administrative Agent shall determine;
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(iv)require the Applicant to deliver to the Collateral Agent all documents in the possession of the Applicant relating to the Collateral, and the Applicant shall promptly take such actions and furnish to the Collateral Agent such documents as the Issuer deems necessary or appropriate, in its sole discretion, to enforce its rights with respect to the Collateral;
(v)direct the Securities Intermediary to make all payments and deliveries under the Collateral directly to the Collateral Agent or its designee, and the Applicant shall, and shall direct the Trust to, upon request by the Collateral Agent and as applicable, execute and consent to all notices and directions given by the Collateral Agent to the Securities Intermediary, including transferring all Collateral to accounts maintained solely in the name of the Collateral Agent. For avoidance of doubt, the Collateral Agent may exercise remedies against the Constellation Collateral Accounts (including any Collateral on deposit therein or credited thereto) and the Trust Collateral Account (including any Collateral on deposit therein or credited thereto) in such order as the Collateral Agent shall decide in its sole discretion and shall have no duty to marshal any Collateral;
(vi)exercise, or cause the exercise of, the Applicant’s rights under or in respect of any Collateral; and/or
(vii)exercise or cause the exercise of any other rights or remedies provided herein, in any document or instrument delivered pursuant hereto, under any other agreement or under applicable law (including, without limitation, any rights or remedies under the UCC).
(c)each Agent may enforce its rights and remedies hereunder without prior judicial process or hearing, and the Applicant hereby expressly waives, to the fullest extent permitted by law, any right the Applicant might otherwise have to require any Agent to enforce its rights by judicial process. The Applicant also waives, to the fullest extent permitted by law, any defense the Applicant might otherwise have to the Obligations secured hereby arising from use of nonjudicial process, enforcement and sale of all or any portion of the Collateral or from any other election of remedies, in each case, to the extent permitted under the UCC.
(d)If the Collateral is insufficient to cover the payment in full of all Obligations, the Applicant shall remain liable for any deficiency.
(e)The powers conferred on each Agent hereunder are solely for its benefit and for the benefit of the Issuers and do not impose any duty on any Agent to exercise any such powers. Following an Event of Default, the Collateral Agent shall have no duty of care as a secured party hereunder to the Applicant as to any Collateral or with respect to the taking of any necessary steps to preserve rights against other parties or any other obligations pertaining to the Collateral, other than as may be expressly required by the UCC. The Applicant waives all rights whatsoever against each Agent for any loss, expense, liability or damage suffered by the Applicant as a result of actions taken by any such Agent as secured party pursuant to this Agreement or any other Facility Document, except to the extent caused by the gross negligence or willful misconduct of such Agent, as determined by a court of competent jurisdiction in a non-appealable final judgment.
(f)The Applicant hereby expressly waives, to the fullest extent permitted by law, every statute of limitation, right of redemption, any moratorium or redemption period, any limitation on a deficiency judgment, and any right which it may have to direct the order in which any of the Collateral shall be disposed of in the event of any disposition pursuant hereto.
(g)Each of the Issuers agrees that it shall not, unless specifically requested to do so by the Administrative Agent or the Collateral Agent, take or cause to be taken any action to enforce its rights under this Agreement or any Facility Document or against the Applicant.
17.Amendments; Waivers. Any provision of this Agreement may be amended, supplemented or waived if, but only if, such amendment, supplement or waiver is in writing and signed by each of the 
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Applicant, the Administrative Agent and the Majority Issuers, and shall be effective only in the specific instance and for the specific purpose for which it is given; provided that no such amendment, supplement or waiver shall increase or extend the Commitment of any Issuer without the written consent of such Issuer (it being understood that such increase may be effected solely with the consent of the Applicant and such Issuer); provided, further, that no such amendment, supplement or waiver shall, unless in writing and signed by all of the affected Issuers, the Administrative Agent and the Applicant, do any of the following:
(a)postpone or delay any date fixed by this Agreement or any other Facility Document for any payment of interest, fees or other amounts due to the Issuers (or any of them) hereunder or under any other Facility Document or amend Section 8 or Section 15 of this Agreement;
(b)reduce the principal of, or the rate of interest specified herein on any Obligation, or any fees or other amounts payable hereunder or under any other Facility Document;
(c)change the percentage of the Commitments or of the aggregate unpaid amount of the Obligations which is required for the Issuers or any of them to take any action hereunder;
(d)amend this Section or any provision of this Agreement providing for consent or other action by all Issuers;
(e)change the definitions of “Aggregate Availability”, “Eligible Treasury Assets Cap”, “Majority Issuers”, “Minimum Collateral Base”, “Minimum Collateral Percentage” or “Net Asset Value”;
(f)amend Sections 5(a), 6, 16(b), 16(d) 16(g) or any provisions related to pro rata sharing; or
(g)increase the Facility Amount; 
provided that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent or the Collateral Agent, as applicable, affect the rights or duties of the Administrative Agent or the Collateral Agent under this Agreement or any other Facility Document.
Notwithstanding the foregoing, (i) the consent of the Issuers shall not be required for any amendment (A) to cure any mutually identified ambiguity or correct any mutually identified mistake or (B) to correct or supplement any provision of this Agreement that may be defective or inconsistent with any other provision of this Agreement, the Facility Agreement or the Trust Declaration and (ii) after the execution and delivery of the Issuer Joinder Agreement, Schedule I attached hereto may be amended from time to time with respect to any Issuer solely with the written consent of the Applicant and such Issuer (and notice thereof to the Administrative Agent), and no other consent will be required hereunder to establish, increase or decrease the Commitments of such Issuer; it being understood that the Applicant and the Administrative Agent shall be permitted to make technical amendments to this Agreement as may be necessary or appropriate in the reasonable opinion of the Applicant and the Administrative Agent to reflect any such newly established or increased Commitments of an Issuer; provided that, if any amendment to Schedule I attached hereto shall cause the Facility Amount to exceedthe amount set forth in the proviso to the definition of Facility Amount, such amendment shall be subject to the consent requirement under clause (g) above.
In the case of any waiver, the Applicant and the Issuers shall be restored to their former positions and rights hereunder and any Event of Default waived shall be deemed to be cured and not continuing, but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereon.
Notwithstanding anything herein to the contrary, during such period as an Issuer is a Defaulting Issuer, to the fullest extent permitted by applicable law, such Defaulting Issuer shall not be entitled to 
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vote in respect of waivers, amendments or modifications to any Facility Document and the Commitment and the Obligations of such Defaulting Issuer hereunder shall not be taken into account in determining whether the Majority Issuers or all of the Issuers, as required by this Section 17 or otherwise, have approved any such waiver, amendment or modification (and the definition of “Majority Issuers” will automatically be deemed modified accordingly for the duration of such period); provided that any such waiver, amendment or modification that would increase or extend the Commitment of such Defaulting Issuer, extend the date fixed for the payment of interest or other amounts owing to such Defaulting Issuer hereunder, reduce the principal amount of any Obligation owing to such Defaulting Issuer, reduce the rate of interest on any Obligation owing to such Defaulting Issuer or of any fee payable to such Defaulting Issuer hereunder, or alter the terms of this proviso, shall require the prior written consent of such Defaulting Issuer.
18.The Agents.
(a)Appointment and Authorization. Applicant requests the Administrative Agent and Collateral Agent to enter into this Agreement and the Pledge Agreement prior to the Issuer Joinder Agreement and authorizes the Administrative Agent to enter into the Issuer Joinder Agreement. Each Issuer hereby designates and appoints each of the Administrative Agent and the Collateral Agent (the Administrative Agent and the Collateral Agent are referred to collectively as the “Agents”) as its agent under this Agreement and the other Facility Documents, and each Issuer hereby irrevocably authorizes the Agents to take such actions on its behalf under the provisions of this Agreement and each other Facility Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Facility Document, together with such powers as are reasonably incidental thereto. Each Agent is hereby authorized to execute, deliver and perform each of the Facility Documents to which the Administrative Agent or the Collateral Agent, as the case may be, is a party. Each Agent agrees to act as such on the express conditions contained in this Section 18. The provisions of this Section 18 are solely for the benefit of the Agents and the Issuers and the Applicant shall not have any rights as a third party beneficiary of any of the provisions contained herein. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Facility Document, no Agent shall have any duties or responsibilities, except those expressly set forth herein, nor shall any Agent have or be deemed to have any fiduciary relationship with any Issuer, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Facility Document or otherwise exist against any Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with reference to any Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Notwithstanding the foregoing, prior to the execution and delivery of the Issuer Joinder Agreement, each Agent shall be entitled to rely on instructions delivered to such Agent by the Applicant in connection with the taking of any actions under the provisions of this Agreement and each other Facility Document; provided that immediately upon the execution and delivery of the Issuer Joinder Agreement, each Agent shall thereafter act hereunder as directed by the Issuers as set forth herein.
(b)Delegation of Duties. Each Agent may perform any and all of its duties and exercise its rights and powers by or through any one or more sub-agents appointed by it and shall not be liable for the negligence or misconduct of a sub-agent appointed with due care. Each Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Section 18 shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Agent. The parties hereto acknowledge that as of the Execution Date, the Collateral Agent has appointed Credit Suisse Securities (USA) LLC, in its capacity as Calculation Agent (as defined in the Calculation Agency Agreement), as sub-agent for purposes of (i) determining the fair market value of Eligible Treasury Assets under Section 6(a), if necessary, (ii) the duties under Section 6(d)(i) and Section 6(d)(ii) of this Agreement, including the determination of the pro rata amount of each interest and principal STRIP as set forth in the provision of such Sections and (iii) any determination of a Percentage 
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Pro Rata Basis under the Pledge Agreement, together with such powers as are reasonably incidental thereto.
(c)Liability of Agents. None of the Agent-Related Persons shall (i) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Facility Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible in any manner to any of the Issuers for any recital, statement, representation or warranty made by the Applicant or affiliate of the Applicant, or any officer thereof, contained in this Agreement or in any other Facility Document, or in any certificate, report, statement or other document referred to or provided for in, or received by any Agent under or in connection with, this Agreement or any other Facility Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Facility Document, or for any failure of the Applicant or any other party to any Facility Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Issuer to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Facility Document, or to inspect the properties, books or records of the Applicant. The Agents shall not be responsible for and make no representation as to the existence, genuineness, value or protection of any Collateral, for the legality, effectiveness or sufficiency of the Pledge Agreement or for the creation, perfection, priority, sufficiency or protection of any liens securing the Obligations. Nothing herein shall require the Agents to file financing statements or continuation statements, or be responsible for maintaining the security interests purported to be created as described herein (except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder or under any other Facility Document) and such responsibility shall be solely that of the Applicant. No Agent shall incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of such Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, pandemic, epidemic, civil unrest, local or national disturbance or disaster, any act of terrorism, or the unavailability of the Federal Reserve Bank wire or facsimile or other wire or communication facility). The Agents shall not be required to expend or risk any of its own funds or otherwise incur any liability, financial or otherwise, in the performance of any of its duties hereunder or under any other Facility Document.
(d)Reliance by Agent. Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex, electronic mail or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the Applicant), independent accountants and other experts selected by such Agent. Each Agent shall be fully justified in failing or refusing to take any action or exercising any discretion or right under this Agreement or any other Facility Document unless it shall first receive such advice or concurrence of the Majority Issuers as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Issuers against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action; provided, that the Agents shall not be required to take any action that would violate any Facility Document or applicable law. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Facility Document in accordance with a request or consent of the Majority Issuers (or all Issuers if so required by Section 17) and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Issuers. The Agents may consult with legal counsel of its own choosing, at the expense of the Applicant, as to any matter relating to the Facility Documents, and the Agents shall not incur any liability in acting in good faith in accordance with any advice from such counsel.
(e)Notice of Default. No Agent shall be deemed to have knowledge or notice of the occurrence of any Event of Default, unless such Agent shall have received written notice from an Issuer or the Applicant in accordance with the provisions of Section 19, referring to this Agreement, describing such Event of Default and stating that such notice is a “notice of default.” The applicable Agent will notify the Issuers of its receipt of any such notice. The Agents shall take such action with respect to such Event of Default as may be requested by the Majority Issuers in accordance with Section 16; provided, 
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however, that unless and until the Agents have received any such request, the Agents may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as it shall deem advisable.
(f)Credit Decision. Each Issuer acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by any Agent hereinafter taken, including any review of the affairs of the Applicant and its Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Issuer. Each Issuer represents to each Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Applicant, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Applicant. Each Issuer also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Facility Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Applicant. Except for notices, reports and other documents expressly herein required to be furnished to the Issuers by an Agent, no Agent shall have any duty or responsibility to provide any Issuer with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Applicant which may come into the possession of any of the Agent-Related Persons.
(g)Indemnification. Whether or not the transactions contemplated hereby are consummated, the Issuers shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of the Applicant and without limiting the obligation of the Applicant to do so), in accordance with their Pro Rata Shares, from and against any and all indemnified liability pursuant to Section 10; provided, however, that no Issuer shall be liable for the payment to the Agent-Related Persons of any portion of such Indemnified Liabilities resulting solely from such Person’s gross negligence or willful misconduct. Without limitation of the foregoing, each Issuer shall reimburse each Agent upon demand for its Pro Rata Share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by such Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Facility Document, or any document contemplated by or referred to herein, to the extent that such Agent is not reimbursed for such expenses by or on behalf of the Applicant. The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of the applicable Agent.
(h)Agent in Individual Capacity. Deutsche Bank Trust Company Americas and its affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Applicant and its Subsidiaries and affiliates as though Deutsche Bank Trust Company Americas were not an Agent hereunder and without notice to or consent of the Issuers. Deutsche Bank Trust Company Americas or its affiliates may receive information regarding the Applicant and its affiliates (including information that may be subject to confidentiality obligations in favor of the Applicant) and acknowledge that the Agents and Deutsche Bank Trust Company Americas shall be under no obligation to provide such information to them.
(i)Successor Agent. Any Agent may resign as Administrative Agent and/or Collateral Agent, as applicable, upon at least thirty (30) days’ prior written notice to the Issuers and the Applicant, such resignation to be effective upon the acceptance of a successor agent to its appointment as Administrative Agent or Collateral Agent, as applicable. Subject to the foregoing, if any Agent resigns under this Agreement, the Majority Issuers shall appoint from among the Issuers a successor agent for the Issuers. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Issuers and the Applicant, a successor agent from among the Issuers, or, at the expense of the Applicant, apply to a court of competent jurisdiction for the appointment 
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of a successor. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term “Administrative Agent” and/or “Collateral Agent”, as applicable, shall mean such successor agent and the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 18 shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement.
19.Notices. All notices, requests and demands to or upon the respective parties hereto shall be in writing (including as a “.pdf” attachment to an electronic mail) and shall be deemed to have been duly given or made (a) on the date of receipt if delivered by hand or overnight courier service or sent by fax, (b) on the date five Business Days after dispatch by certified or registered mail if mailed, and (c) upon acknowledgement of receipt (in writing or orally), if delivered by electronic mail or any other telecommunications device, in the case, addressed as follows, or to such other address as may be hereafter notified by the respective parties hereto:
Address for communications to the Applicant:
    Constellation Energy Generation, LLC
    200 Exelon Way
    Kennett Square, Pennsylvania 19348
    Attention: General Counsel

With a copy (which shall not constitute notice) to:
    Ballard Spahr LLP
    1735 Market Street, 51st Floor
    Philadelphia, Pennsylvania
    Attention: Patrick R. Gillard, Esq.

Address for communications to the Administrative Agent:
Deutsche Bank Trust Company Americas
Trust & Agency Services
1 Columbus Circle, 17th Floor
MS:NYC01-1710  
New York, New York 10019
Attention: Corporates Team -Fells Point Funding Trust, Constellation, SF7147 

20.Costs and Expenses. The Applicant agrees to pay, from time to time, promptly upon demand, all reasonable and documented out-of-pocket costs and expenses of the Agents and the Issuers (including reasonable fees and disbursements of Holland & Knight LLP, counsel to the Agent, Richards, Layton & Finger, P.A., counsel to the Trustee, Ballard Spahr LLP, counsel to the Applicant, Winston & Strawn LLP, as counsel to the Issuers, and Sullivan & Cromwell LLP, as special product counsel), in connection with the negotiation, preparation, execution and delivery of this Agreement and all Letters of Credit, as well as in connection with the enforcement of, and preservation of rights under, and ongoing advice, administration, and any modifications or amendments with respect to, this Agreement.
21.No Waiver; Remedies Cumulative. No failure to exercise, and no delay in exercising any right, power or remedy under this Agreement or any other document executed and delivered in connection herewith shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The rights, remedies, powers and privileges provided under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law or in equity. No waiver or approval by any Agent or any Issuer shall, except as may be otherwise stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. The remedies herein provided are 
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cumulative and not exclusive of any remedies provided by law. None of any Agent, any Issuer nor any of their respective Related Parties shall be liable for any loss of any or all of the Collateral in the absence of gross negligence, fraud or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision) on the part of any such person or entity.
22.Successors and Assigns. This Agreement shall be binding upon each party hereto and its successors and permitted assigns and shall inure to the benefit of and be enforceable by each party hereto, its successors and permitted assigns. The Applicant shall not transfer or otherwise assign any of its obligations under this Agreement and any assignment in violation of this Section 22 shall be null and void. Each Issuer may transfer or otherwise assign its rights and obligations under this Agreement to one or more assignees (other than any natural person, the Applicant or any of the Applicant’s affiliates); provided that each of the Administrative Agent and the Applicant must give its prior written consent to such assignment (which consent shall not be unreasonably withheld or delayed); provided, further, that the consent of the Applicant shall not be required to any such assignment (a) during the continuance of any Event of Default or (b) to any affiliate of such Issuer or to any other Issuer or any affiliate of another Issuer.
The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Applicant, shall maintain at one of its offices in the United States a copy of each assignment delivered to it and a register for the recordation of the names and addresses of the Issuers, and principal amounts (and stated interest) of the drawings on each Letter of Credit issued by, each Issuer pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Applicant, the Administrative Agent and the Issuers shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as an Issuer hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Applicant and any Issuer, at any reasonable time and from time to time upon reasonable prior notice.
Notwithstanding the foregoing, each Issuer may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure its obligations, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this paragraph shall not apply to any such pledge or assignment of a security interest.
23.Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
24.Right of Set-off.  If an Event of Default shall have occurred and be continuing, each Issuer is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set-off and apply any and all deposits (general or special, time or demand, provisional or final, including, without limitation, any amount held by the Issuer pursuant to this Agreement or otherwise) at any time held and other indebtedness at any time owing by the Issuer to or for the credit or the account of the Applicant against any and all of the Obligations (now or hereafter existing) that are due and payable hereunder or under any related document. The rights of the Issuers under this Section 24 are in addition to other rights and remedies (including, without limitation, other rights of set-off) that any Issuer may have.
25.Counterparts. This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. Any signature to this Agreement or any notice or other document delivered in connection herewith may be delivered by electronic mail (including pdf) or any electronic signature complying with the Electronic Signatures in Global and National Commerce Act, the New York Electronic Signature and Records Act or the Uniform Electronic Transaction Act, or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be 
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valid and effective for all purposes to the fullest extent permitted by applicable law. For the avoidance of doubt, the foregoing also applies to any amendment, extension or renewal of this Agreement.
Each party hereto represents and warrants to the other party hereto that it has the corporate (or limited liability company) capacity and authority to execute this Agreement through electronic means and that there are no restrictions for doing so in that party’s constitutive documents.
26.Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
27.Submission to Jurisdiction. WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS (“PROCEEDING”) RELATING TO THIS AGREEMENT OR ANY LETTER OF CREDIT, EACH OF THE APPLICANT, EACH AGENT AND EACH ISSUER IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY AND WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY PROCEEDINGS BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT SUCH PROCEEDINGS HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDINGS, THAT SUCH COURT DOES NOT HAVE ANY JURISDICTION OVER SUCH PARTY. EACH PARTY HEREBY AGREES THAT PROCESS SHALL BE DEEMED SERVED IF SENT TO ITS ADDRESS GIVEN FOR NOTICES UNDER THIS AGREEMENT AND THAT NOTHING IN THIS AGREEMENT SHALL AFFECT ANY AGENT’S OR ANY ISSUER’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. THE APPLICANT HEREBY AGREES THAT FINAL JUDGMENT AGAINST IT IN ANY ACTION OR PROCEEDING SHALL BE ENFORCEABLE IN ANY OTHER JURISDICTION WITHIN OR OUTSIDE THE UNITED STATES BY SUIT ON THE JUDGMENT.
28.Waiver of Jury Trial. THE APPLICANT, EACH AGENT AND EACH ISSUER EACH HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY PROCEEDING RELATING TO THIS AGREEMENT OR ANY LETTER OF CREDIT OR ANY COUNTERCLAIM THEREIN.
29.Waiver of Special, Punitive or Exemplary Damages. Each party waives, to the maximum extent not prohibited by law, any right it may have to claim or recover any special, indirect, exemplary, punitive or consequential damages (as opposed to direct or actual damages) in any Proceeding relating to this Agreement or any Letter of Credit.
30.PATRIOT Act and Beneficial Ownership Regulation Notice. Each Issuer hereby notifies the Applicant that pursuant to the requirements of the PATRIOT Act and the Beneficial Ownership Regulation, it is required to obtain, verify and record information that identifies the Applicant (and related information), which information includes the name and address of the Applicant and other information that will allow it to identify the Applicant in accordance with the PATRIOT Act and the Beneficial Ownership Regulation. The Applicant shall, and shall cause each of its Subsidiaries to, provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by any Issuer in order to assist it in maintaining compliance with the PATRIOT Act and the Beneficial Ownership Regulation.
In order to comply with the laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including, without limitation, those relating to the funding of terrorist activities and money laundering, including Section 326 of the USA PATRIOT Act of the United States (“Applicable AML Law”), the Agents are required to obtain, verify, record and update certain information relating to individuals and entities which maintain a business relationship with the Agents. Accordingly, each of the parties agree to provide to the Agents, upon their request from time to time such identifying information and documentation as may be available for such party in order to enable the Agents to comply with Applicable AML Law.
35
4890-7560-4489 v.7

31.Time. All references in this Agreement to a time of day refer to the time in New York City.
32.Termination.
(a)This Agreement shall terminate upon the earlier of (i) January 31, 2027 and (ii) at any time after the first anniversary of the Effective Date, the Applicant terminating this Agreement upon ten (10) days’ prior written notice to the Administrative Agent if there are no L/C Outstandings with respect to which arrangements satisfactory to the applicable Issuer have not been made (the “Termination Date”); provided that in any event, Sections 8, 9, 10, 14, 16(c)–(f), 19, 20, 21, 23, 26, 27, 28 and 29 shall survive the termination of this Agreement. Upon termination of this Agreement, an amount equal to the excess of (A) cash and Eligible Treasury Assets provided by the Applicant on deposit in the Collateral Accounts (including all interest thereon and, with respect to Eligible Treasury Assets, as determined based on their Net Asset Value) on the date of such termination, over (B) any outstanding Obligations of the Applicant, including, without limitation, L/C Outstandings and outstanding fees and expenses, shall be promptly returned to the Applicant; provided, further, that, with respect to any Eligible Treasury Assets in the Trust Collateral Account, the Eligible Treasury Assets to be retained in the Trust Collateral Account pursuant to this sentence shall be determined on a pro rata basis across each principal and interest STRIP, selecting, to the extent practicable, an equal percentage of each such principal and interest STRIP and, to the extent any such principal or interest STRIP to be retained would have a face amount less than $100, rounding such face amount to be retained to the nearest $100.
(b)Upon not less than three (3) Business Days’ prior written notice to the Administrative Agent, the Applicant shall have the right, at any time or from time to time, without premium or penalty to permanently terminate the Total Unutilized L/C Commitment in whole, or reduce it in part, pursuant to this Section 32(b), in integral multiples of $10,000,000 in the case of partial reductions to the Total Unutilized L/C Commitment; it being understood and agreed upon such termination the Facility Amount shall be reduced in an amount equal to amount of the Total Unutilized L/C Commitment termination or reduction. Each termination or reduction of the Total Unutilized L/C Commitment pursuant to this Section 32(b) shall be applied to the Commitments of one or more Issuers as directed by the Applicant. Any notice of termination or reduction of the Total Unutilized L/C Commitment pursuant to this Section 32(b) may state that such termination or reduction is conditioned upon the effectiveness of other credit facilities, liquidity facilities or any other event, in which case such notice may be revoked by the Applicant (by notice to the Administrative Agent on or prior to the specified termination or reduction date) if such condition is not satisfied.
33.Entire Agreement. This Agreement, together with the exhibits hereto and all documents delivered pursuant to Section 3, as the case may be, represents the agreement of the parties hereto with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Agents, the Issuers or the Applicant relative to subject matter hereof not expressly set forth or referred to herein.
[Remainder of page intentionally left blank]
36
4890-7560-4489 v.7

IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed, all as of the day and year first above written.
									
	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	as Administrative Agent and Collateral Agent
	
	
	By:	/s/ Bridgette Casasnovas
		Name:	Bridgette Casasnovas
		Title:	Vice President
			
	By:	/s/ Robert Peschler
		Name:	Robert Peschler
		Title:	Vice President
			
			

[Signature Page to Letter of Credit Facility Agreement]

4890-7560-4489 v.7

									
	CONSTELLATION ENERGY GENERATION, LLC, as the Applicant

	
	
	By:	/s/ Shane Smith
		Name:	Shane Smith
		Title:	Vice President and Treasurer

 

[Signature Page to Letter of Credit Facility Agreement]

4890-7560-4489 v.7

SCHEDULE I
COMMITMENTS1

						
	Issuers	Commitment

	[______]	$[_____]
	[______]	$[_____]
	[______]	$[_____]
	[______]	$[_____]
	[______]	$[_____]
	[______]	$[_____]
	[______]	$[_____]

1 NTD: To come in connection with Issuer joinders.

4890-7560-4489 v.7

EXHIBIT A
FORM OF REQUEST FOR LETTER OF CREDIT
[NAME OF ISSUER]
[_________]
[_________]
Attention: [_________]
Facsimile No.: [        ]
E-Mail: [    ] [INSERT DATE]

Ladies and Gentlemen:

Reference is hereby made to the Letter of Credit Facility Agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Agreement”), dated as of February 9, 2022, by and among Constellation Energy Generation, LLC, a Pennsylvania limited liability company (the “Applicant”), the financial institutions from time to time parties thereto each in the capacity as the issuer of Letters of Credit thereunder, including [ ] (the “Issuer”), and Deutsche Bank Trust Company Americas, as administrative agent for the Issuers (in such capacity, the “Administrative Agent”) and as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”). All capitalized terms used but not defined herein have the respective meaning assigned thereto in the Agreement.
Pursuant to Section 3 of the Agreement, the undersigned hereby requests that the Issuer (or any of the Issuer’s affiliates or branches) issue (or continue) for the account of the Applicant [and ______]2 [____]3 Letter(s) of Credit, in the aggregate principal amount of $[ ] and in the form(s) attached hereto, for the benefit of the Beneficiary(ies) and in the amount set forth in such form(s).
The Applicant hereby agrees and acknowledges the Issuer’s obligation to effect such issuance (or continuance) shall be subject in all events to satisfaction of the conditions precedent set forth in Section 3 of the Agreement, including without limitation, satisfaction of the Applicant’s obligation set forth in Section 5(a) of the Agreement.
This notice shall be deemed part of the Agreement and shall be subject to all the terms and conditions set forth therein.
[Signature page follows]

2 Insert name of Subsidiary(ies) or Minority Investment(s) that would be co-applicant, if desired by Constellation.
3 Insert number of Letters of Credit being requested.
[Request for Letter of Credit]
4890-7560-4489 v.7

									
	CONSTELLATION ENERGY GENERATION, LLC, as the Applicant

	
	
	By:	
		Name:	
		Title:	

[Signature Page to Request for Letter of Credit]
4890-7560-4489 v.7

EXHIBIT B
FORM OF REQUEST FOR AMENDMENT TO EXISTING LETTER OF CREDIT
[NAME OF ISSUER]
[_________]
[_________]
Attention: [_________]
Facsimile No.: [        ]
E-Mail: [    ]
[INSERT DATE]
Ladies and Gentlemen:
Reference is hereby made to:
(a)    the Letter of Credit Facility Agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Agreement”), dated as of February 9, 2022, by and among Constellation Energy Generation, LLC, a Pennsylvania limited liability company (the “Applicant”), financial institutions from time to time parties thereto each in the capacity as the issuer of Letters of Credit thereunder, including [ ] (the “ Issuer”), and Deutsche Bank Trust Company Americas, as administrative agent for the Issuers (in such capacity, the “Administrative Agent”) and as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”); and
(b)    Letter of Credit No. [__________], issued on [__________] in the aggregate principal amount of $[    ] for the benefit of [ADD BENEFICIARY INFORMATION] [, as amended on [    ]]4 (the “Letter of Credit”).
Pursuant to Section 3 of the Agreement, the undersigned hereby requests that the Issuer (or any of the Issuer’s affiliates or branches) amend the Letter of Credit as follows:
[INSERT REQUESTED AMENDMENTS]
The Applicant hereby agrees and acknowledges that the Issuer may elect to so amend the Letter of Credit in a form reasonably satisfactory to the Issuer, and that, if the Issuer so elects, the Issuer’s obligation to effect such amendment shall be subject in all events to satisfaction of the conditions precedent set forth in Section 3 of the Agreement, including without limitation, satisfaction of the Applicant’s obligation set forth in Section 5(a) of the Agreement.
All capitalized terms used but not defined herein have the meaning assigned thereto in the Agreement.
This notice shall be deemed part of the Agreement and shall be subject to all the terms and conditions set forth therein.
[Signature page follows]

4 Include this information if the referenced Letter of Credit has been previously amended.

4890-7560-4489 v.7

									
	CONSTELLATION ENERGY GENERATION, LLC, as the Applicant

	
	
	By:	
		Name:	
		Title:	

4890-7560-4489 v.7

EXHIBIT C
FORM OF ACTIVITY REPORT
[See attached]

4890-7560-4489 v.7

FORM OF ACTIVITY REPORT
																																										
	Activity for Week Of:

	

Issuing Bank Name
	

LC
Number
	

Beneficiary Name
	

Issue Date
(mm/dd/yy)
	

New Issue (Y/N)
	Expiry Date (mm/dd/yy)
or “1/1/2999”
	

Cancellation (Y/N)
	

Extension Date (mm/dd/yy)
	

Existing Notional Amount
	

New Notional Amount
	

Notional Increase / (Decrease)
	

New Total USD
Equiv.
		
														
														
														
														
														
														
														
														
														
														
														
														
														
														
														
														
														
														
														

4890-7560-4489 v.6ceg-20211231x10kxexh416

      4895-0578-8168 v.5    AMENDED AND RESTATED   DECLARATION OF TRUST   OF   FELLS POINT FUNDING TRUST   Dated as of February 9, 2022    

 

 

 

      4895-0578-8168 v.5  ARTICLE I    DEFINITIONS AND INTERPRETATION  Section 1.1 Definitions................................................................................................................2  Section 1.2 Interpretation ..........................................................................................................11  ARTICLE II    ORGANIZATION  Section 2.1 Name ......................................................................................................................11  Section 2.2 Office .....................................................................................................................12  Section 2.3 Nature and Purpose of the Trust ............................................................................12  Section 2.4 Authority ................................................................................................................14  Section 2.5 Title to Property .....................................................................................................14  Section 2.6 Powers and Duties of the Trustee ..........................................................................14  Section 2.7 Prohibition of Actions by the Trust and the Trustee ..............................................18  Section 2.8 Execution of Documents ........................................................................................19  Section 2.9 Investment in Eligible Treasury Assets .................................................................20  Section 2.10 Exercise of the Issuance Right; Facility Agreement ..............................................20  Section 2.11 Mergers ..................................................................................................................21  Section 2.12 Limitation on Directions to the Trustee .................................................................21  Section 2.13 Duration of the Trust ..............................................................................................21  Section 2.14 Notices to the Trust and Trustee under the Facility Agreement ............................21  ARTICLE III    RESPONSIBILITIES OF THE DEPOSITOR  Section 3.1 Responsibilities of the Depositor ...........................................................................22  Section 3.2 Financing Statements .............................................................................................22  ARTICLE IV    THE TRUSTEE  Section 4.1 Trustee; Eligibility .................................................................................................23  Section 4.2 Delaware Trustee ...................................................................................................24  Section 4.3 Appointment, Removal and Resignation of Trustee ..............................................24  . 24  Section 4.4 Delegation of Power ..............................................................................................25  Section 4.5 Merger, Conversion, Consolidation or Succession to Business ............................26  Section 4.6 Regarding the Trustee ............................................................................................26  Section 4.7 Certain Rights of the Trustee .................................................................................27  Section 4.8 Multiple Roles ........................................................................................................31  

 

      4895-0578-8168 v.5  Section 4.9 Anti-Money Laundering Laws ...............................................................................31  ARTICLE V    THE TRUST SECURITIES  Section 5.1 Description of the Trust Securities ........................................................................31  Section 5.2 Execution of Certificates........................................................................................32  Section 5.3 Registration of Certificates ....................................................................................32  Section 5.4 Transfer and Exchange of Trust Securities ............................................................32  Section 5.5 Restrictions on Transfer of the Trust Securities ....................................................34  Section 5.6 Mutilated, Destroyed, Lost or Stolen Certificates .................................................39  Section 5.7 Deemed Holders.....................................................................................................39  Section 5.8 Distributions ...........................................................................................................40  Section 5.9 Liquidation of Eligible Treasury Assets (other than Retained Eligible Treasury  Assets) and Senior Notes .......................................................................................42  Section 5.10 Redemption or Repurchase ....................................................................................43  Section 5.11 No Preemptive Rights ............................................................................................47  Section 5.12 Status of the Trust Securities .................................................................................47  Section 5.13 CUSIP Numbers.....................................................................................................47  Section 5.14 Lists of Holders ......................................................................................................47  Section 5.15 No Other Rights .....................................................................................................48  Section 5.16 Global Certificates .................................................................................................48  ARTICLE VI    GRANTOR TRUST  Section 6.1 Treatment as “Grantor” Trust ................................................................................49  ARTICLE VII    ACCOUNTING AND RECORDS  Section 7.1 Annual Tax Information ........................................................................................49  Section 7.2 Certain Accounting Matters ...................................................................................50  ARTICLE VIII    DISSOLUTION AND TERMINATION OF THE TRUST  Section 8.1 Dissolution and Termination of the Trust ..............................................................51  Section 8.2 Liquidation and Dissolution ...................................................................................51  

 

    -iii-  4895-0578-8168 v.5  ARTICLE IX    LIMITATION OF LIABILITY OF HOLDERS, THE TRUSTEE   OR OTHERS  Section 9.1 Liability; Indemnity ...............................................................................................55  Section 9.2 Outside Businesses.................................................................................................56  ARTICLE X    VOTING; AMENDMENTS AND MEETINGS  Section 10.1 General ...................................................................................................................56  Section 10.2 Voting ....................................................................................................................56  Section 10.3 Amendments ..........................................................................................................56  Section 10.4 Certain Other Matters ............................................................................................58  Section 10.5 Meetings of the Holders .........................................................................................59  ARTICLE XI    REPRESENTATIONS OF THE TRUSTEE  Section 11.1 Representations and Warranties of the Trustee .....................................................59  Section 11.2 Representations and Warranties of the Delaware Trustee .....................................60  ARTICLE XII    MISCELLANEOUS  Section 12.1 Notices ...................................................................................................................61  Section 12.2 GOVERNING LAW ..............................................................................................63  Section 12.3 Jurisdiction .............................................................................................................63  Section 12.4 WAIVER OF TRIAL BY JURY ...........................................................................64  Section 12.5 Enforceability .........................................................................................................64  Section 12.6 Counterparts ...........................................................................................................64    Exhibit A Certificate of Trust   Exhibit B Form of Certificate   Exhibit C Form of Pledge Agreement   Exhibit D Form of Facility Agreement   Exhibit E Form of Trust Expense Reimbursement Agreement   Exhibit F Form of Engagement Letter of Cover & Rossiter   Exhibit G CUSIPs, Face Amount and Purchase Price of the Eligible Treasury Assets on the  Date Hereof  

 

 

 

     -1-      4895-0578-8168 v.5  AMENDED AND RESTATED   DECLARATION OF TRUST   OF   FELLS POINT FUNDING TRUST  This AMENDED AND RESTATED DECLARATION OF TRUST is made as of  February 9, 2022 (this “Declaration”), among CONSTELLATION ENERGY GENERATION,  LLC, a Pennsylvania limited liability company (“Constellation”), individually and as depositor  (in such capacity, the “Depositor”), Deutsche Bank Trust Company Americas (“Deutsche  Bank”), a New York banking corporation, as trustee (the “Trustee”), and Deutsche Bank Trust  Company Delaware, a Delaware banking corporation, as Delaware trustee (the “Delaware  Trustee” and together with the Trustee, the “Trustees”).  WHEREAS, the Depositor and the Trustees have heretofore duly declared and  established Fells Point Funding Trust, a statutory trust established pursuant to the Statutory Trust  Act (as defined herein) (the “Trust”), by entering into a Declaration of Trust, dated as of January  28, 2022 (the “Original Declaration”), and by the execution by the Trustees and the filing by the  Trustees with the Secretary of State of the State of Delaware (the “Secretary of State”) of the  Certificate of Trust, filed on January 28, 2022 in the form attached as Exhibit A (the “Certificate  of Trust”); and   WHEREAS, the parties hereto desire to amend and restate the Original Declaration in its  entirety as set forth herein to provide for, among other things, (i) the issuance and sale of the  Trust Securities to the Initial Purchasers pursuant to the Trust Securities Purchase Agreement;  (ii) the investment of the proceeds of such issuance in Eligible Treasury Assets; (iii) the  execution and performance by the Trust of the Facility Agreement with Constellation; (iv) the  pledge of Eligible Treasury Assets in favor of the Collateral Agent for the benefit of the LC  Issuers, to secure Constellation’s reimbursement obligations under the LC Agreement and, with  respect to any Eligible Treasury Assets not required to be pledged to the Collateral Agent, in  favor of Constellation to secure the obligations of the Trust to pay the Notes Purchase Price  under the Issuance Right, in each case pursuant to the Pledge Agreement and (v) all other actions  deemed necessary or desirable in connection with the transactions contemplated by this  Declaration, including entering into and performing the other Transaction Agreements to which  it is a party.  NOW, THEREFORE, in consideration of the agreements and obligations set forth herein  and for other good and valuable consideration, the receipt and sufficiency of which is hereby  acknowledged, the Original Declaration is hereby amended and restated in its entirety and it is  agreed as follows:  

 

      4895-0578-8168 v.5  ARTICLE I    DEFINITIONS AND INTERPRETATION  Section 1.1 Definitions.  (a) Unless the context otherwise require, in this Declaration (including in the  Recitals):  “30/360 Basis” means a calculation for the relevant Distribution Period or other period on  the basis of a year of 360 days consisting of twelve 30-day months.  “Affiliate” means, with respect to a specified Person, any other Person that directly or  indirectly controls, is controlled by, or is under direct or indirect common control with, such  specified Person. For purposes of this definition, “control” when used with respect to any  specified Person means the power to direct the management and policies of such Person, directly  or indirectly, whether through the ownership of voting securities, by contract or otherwise; and  the term “controlling” and “controlled” have meanings correlative to the foregoing.  “Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is  not a day on which (i) banking institutions in The City of New York or the State of Delaware are  authorized or obligated by law or executive order to close or (ii) the Federal Reserve Bank of  New York is closed.  “Calculation Agency Agreement” means the Calculation Agency Agreement, dated  February 9, 2022, between Constellation, as Depositor, and the Calculation Agent.  “Calculation Agent” means Credit Suisse Securities (USA) LLC, in its capacity as  calculation agent under the Calculation Agency Agreement, or any successor thereto in such  capacity.  “Certificate” means a trust certificate in the form attached as Exhibit B, which shall  evidence the Trust Securities identified thereon.  “Change in Law” means any adoption (including any announced prospective adoption)  of, change (including any announced prospective change) in or amendment to the laws of the  United States or any regulations or rulings promulgated by any regulatory authority or agency  thereof (including without limitation any authority or agency thereunder or therein affecting  taxation), or any adoption of or change in official position regarding the application or  interpretation of such laws, regulations or rulings (including a holding by a court of competent  jurisdiction), which adoption, change or amendment is announced or becomes effective on or  after the original date of issuance of the Trust Securities.  “Change of Control Triggering Event” means (i) a Change of Control has occurred and  (ii) the Trust Securities and/or the Senior Notes are downgraded by each of the Rating Agencies  on any date during the 60-day period commencing after the earlier of (a) the occurrence of a  Change of Control and (b) public disclosure by Constellation of the occurrence of a Change of  Control or Constellation’s intention to effect a Change of Control; provided, however, that a  

 

    -3-  4895-0578-8168 v.5  particular reduction in rating will not be deemed to have occurred in respect of a particular  Change of Control (and thus will not constitute a Change of Control Triggering Event) if the  Rating Agencies making the reduction in rating to which this definition would otherwise apply  do not announce or publicly confirm or inform the Trustee in writing at Constellation’s or the  Trustee’s request that such downgrade was the result of the applicable Change of Control  (whether or not the applicable Change of Control has occurred at the time of such downgrade);  provided further that no Change of Control Triggering Event shall occur if following such  downgrade, (x) the Trust Securities are rated Investment Grade by each of the Rating Agencies  or (y) the ratings of the Trust Securities by each of the Rating Agencies are equal to or better  than their respective ratings on February 9, 2022.  “Change of Control Offer Expiration Date” means the third Business Day preceding the  Change of Control Payment Date.  “Code” means the United States Internal Revenue Code of 1986.  “Collateral Agent” means Deutsche Bank, in its capacity as collateral agent under the  Pledge Agreement, and any successor to Deutsche Bank in such capacity.   “Constellation Payment” means (i) with respect to an Optional Redemption of Senior  Notes, the Optional Redemption Price payable, together with accrued interest payments, to the  holders thereof upon such redemption pursuant to the Senior Notes, (ii) with respect to a Change  of Control Triggering Event, the Change of Control Payment and (iii) with respect to any Senior  Notes as to which Constellation has made a Cash Settlement Election, the Cash Settlement  Amount.  “Constellation Payment Date” means (i) with respect to an Optional Redemption of  Senior Notes, the Optional Redemption Date, (ii) with respect to a Change of Control Payment,  the Change of Control Payment Date and (iii) with respect to any Senior Notes as to which  Constellation has made a Cash Settlement Election, the Settlement Date with respect to the  relevant exercise of the Issuance Right.  “Corporate Trust Office” means the office of the Trustee at which at any particular time  its corporate trust business shall be principally administered, which office at the date of the  execution of this instrument is located at (i) for purposes of surrender, transfer or exchange of  any P-Cap Certificate, Deutsche Bank Trust Company Americas, c/o DB Services Americas,  Inc., 5022 Gate Parkway, Suite 200, Jacksonville, FL 32256, Attn: Transfer Department and (ii)  for all other purposes, at the address of the Trustee specified in Section 12.1(a) or such other  address as to which the Trustee may give written notice to the Depositor, or the principal  corporate trust office of any successor Trustee (or such other address as such successor Trustee  may designate from time to time by notice to the Depositor).  “Defaulted Eligible Treasury Assets” means, with respect to any Distribution Date, all  Eligible Treasury Assets (other than Retained Eligible Treasury Assets) held by the Trust that are  due and unpaid on such Distribution Date.  “Delaware Trustee” has the meaning specified in the preamble hereto, initially Deutsche  Bank Trust Company Delaware, a Delaware banking corporation having its principal place of  

 

      4895-0578-8168 v.5  business in the State of Delaware, not in its individual capacity but solely as Delaware Trustee  under this Declaration until a successor or assignee shall have become Delaware Trustee  pursuant to Section 4.3(d), and thereafter “Delaware Trustee” shall mean or include each Person  who is then a Successor Delaware Trustee hereunder.  “Depositary” means DTC or any successor clearing agency registered under the  Exchange Act that is designated to act as Depositary for the Trust Securities as contemplated by  Section 5.16.  “Distribution” means a distribution made by the Trust, of and from its assets, to a Holder  on account of the Holder’s ownership of a Trust Security.  “Distribution Date” means each January 31 and July 31, commencing on July 31, 2022,  and ending on January 31, 2027, or if any such day is not a Business Day, the following Business  Day.  “Distribution Period” means each period from and including 5:00 p.m. on July 31 to, but  excluding, 5:00 p.m., on January 31 and each period from and including 5:00 p.m. on January 31  (or from and including 5:00 p.m. on the date of initial issuance of the Trust Securities, as  applicable) to but excluding 5:00 p.m. on July 31.  “DTC” means The Depository Trust Company.  “Eligible Bank” means a commercial bank organized under the laws of the United States  or a state thereof, the deposits of which are insured by the Federal Deposit Insurance  Corporation, which commercial bank has total assets of at least $10 billion and which has a long- term debt rating of not less than investment grade as assigned by Moody’s and Standard &  Poor’s.  “Eligible Treasury Assets” means a portfolio of principal and/or interest STRIPS of U.S.  Treasury Securities that are selected in accordance with Section 2.9(a) or delivered by  Constellation to the Trust as part of the Repurchase Price upon a Repurchase of Senior Notes  pursuant to Section 2.2(c) of the Facility Agreement.  “ERISA” means the United States Employee Retirement Income Security Act of 1974.   “Exchange Act” means the United States Securities Exchange Act of 1934.  “Facility Agreement” means the Facility Agreement, dated as of February 9, 2022,  among the Trust, Constellation and the Notes Trustee, in substantially the form attached as  Exhibit D.  “Fitch” means Fitch Ratings, Inc.  “Global Certificate” means a Certificate registered in the name of a Depositary (or a  nominee of a Depositary) and that is held through such Depositary as part of its system for the  holding, clearance and settlement of book-entry interests in such Certificate.  

 

    -5-  4895-0578-8168 v.5  “Holder” means, with respect to any Trust Security, the Person in whose name such Trust  Security is registered on the Register maintained for that purpose by the Trustee.  “Indenture” means the Indenture, dated as of February 9, 2022, between Constellation  and the Notes Trustee, as amended and supplemented by the Supplemental Indenture.  “Investment Company Act” means the United States Investment Company Act of 1940.  “Investment Company Act Event” means the receipt by Constellation of an opinion of  nationally recognized counsel to the effect that, as a result of a Change in Law, the Trust will be  required to, or there is a reasonable likelihood that the Trust will be required to, register under  the Investment Company Act.  “Investment Grade” means a rating of (i) Baa3 or better by Moody’s, (ii) BBB - or better  by S&P, (iii) the equivalent of such rating by such organization or (iv) if another Rating Agency  has been selected by Constellation, the equivalent of such rating by such other Rating Agency.  “IRS” means the United States Internal Revenue Service.  “LC Agreement” means the Letter of Credit Facility Agreement, dated February 9, 2022,  and any joinder agreements thereto, among Constellation, Deutsche Bank, as administrative  agent, the Collateral Agent and certain financial institutions party thereto as LC Issuers for the  issuance of letters of credit for the account of Constellation, its subsidiaries or its minority  investments.  “LC Issuers” means the financial institutions that issue letters of credit pursuant to the LC  Agreement.  “Like Amount” means (i) with respect to a redemption of any Trust Securities, Trust  Securities having an initial purchase price equal to the principal amount of Senior Notes to be  contemporaneously redeemed in accordance with the Indenture or as to which a Cash Settlement  Election has been made in accordance with the Facility Agreement, the proceeds of which will  be used to pay the Redemption Price of such Trust Securities and (ii) with respect to any  exchange of Trust Securities for Senior Notes pursuant to Section 5.4(e), Senior Notes having a  principal amount equal to the aggregate initial purchase price of the Trust Securities to be  exchanged.  “Majority of Holders” means Holders of Outstanding Trust Securities constituting more  than 50% of the Outstanding Trust Securities.  “Moody’s” means Moody’s Investors Service, Inc., or any successor entity.  “Notes Trustee” means Deutsche Bank, in its capacity as trustee under the Indenture, and  any successor to Deutsche Bank, in such capacity.  “Offering Memorandum” means the Offering Memorandum, dated February 2, 2022, of  the Trust relating to the Trust Securities.  

 

      4895-0578-8168 v.5  “Officer’s Certificate” means, with respect to any Person that is not an individual, a  certificate signed by the chairman of the board, the president, the chief executive officer, the  chief financial officer, a vice president, the treasurer, an assistant treasurer, the secretary, an  assistant secretary or the comptroller of such Person or, if such Person is a trust, any trustee of  the trust. Any Officer’s Certificate delivered with respect to compliance with a condition or  covenant provided for in this Declaration shall include:  (i) a statement that each officer signing the Officer’s Certificate has read the  covenant or condition and the definitions relating thereto;  (ii) a brief statement of the nature and scope of the examination or  investigation undertaken by each officer in rendering the Officer’s  Certificate;  (iii) a statement that each such officer has made such examination or  investigation as, in such officer’s opinion, is reasonably necessary to  enable such officer to express an informed opinion as to whether or not  such covenant or condition has been complied with; and  (iv) a statement as to whether, to the best knowledge of each such officer, such  condition or covenant has been complied with.  “Opinion of Tax Counsel” means an opinion of independent nationally recognized tax  counsel experienced in the matter that is the subject of the opinion.  “Optional Redemption” means, with respect to any Senior Notes, the redemption of such  Senior Notes pursuant to the Indenture.  “Optional Redemption Date” means, with respect to any Senior Notes called for  redemption, the date upon which such Senior Notes are redeemed as provided in the Indenture.  “Optional Redemption Price” means, with respect to any Senior Notes called for  redemption, the redemption price for such Senior Notes as provided in the Indenture.  “Outstanding” means, when used with respect to any Trust Securities as of any date,  Trust Securities theretofore issued by the Trust except, without duplication, (i) any Trust  Securities theretofore cancelled or delivered to the Trustee for cancellation, (ii) any Trust  Securities as to which the Trust, Constellation or any Affiliate thereof shall be the beneficial  owner, or (iii) any Trust Securities represented by any Certificate in lieu of which a new  Certificate has been executed and delivered by the Trust.  “P-Caps Tax Event” means the receipt by Constellation of an Opinion of Tax Counsel to  the effect that, as a result of a Change in Law (other than any amendment or change to section  163(j) of the Code (“section 163(j)”), including any issuance of, or change to, regulations or  another official administrative pronouncement under section 163(j) unless, in the opinion of such  independent nationally recognized tax counsel, the change of tax law under section 163(j) limits,  defers or prohibits the deduction of interest in respect of the Trust Securities in a manner or to an  extent different from interest on Constellation’s senior debt obligations), Constellation will be  

 

    -7-  4895-0578-8168 v.5  prevented from, or there is reasonable likelihood that Constellation will be prevented from,  deducting as interest (or other ordinary) expense for United States federal income tax purposes  an amount equal to the payments in respect of the Trust Securities.  “Paying Agent” has the meaning set forth in Section 2.6(e), and shall initially be the  Trustee.  “Person” means any individual, corporation, partnership, joint venture, association,  limited liability or joint stock company, trust, unincorporated organization or government or any  agency or political subdivision thereof.  “Pledge Agreement” means the Pledge and Control Agreement, dated as of February 9,  2022, among the Trust, Deutsche Bank, as collateral agent, Deutsche Bank, as securities  intermediary and Constellation, in substantially the form attached as Exhibit C.  “Rating Agencies” means each of Moody’s and S&P.  “Record Date” means with respect to each Distribution Date, the close of business on  each January 15 and July 15 preceding such Distribution Date.  “Redemption Date” means, with respect to any Trust Security to be redeemed, the date  fixed for such redemption by or pursuant to this Declaration.  “Redemption Price” means, with respect to the redemption of the Trust Securities, the  Optional Redemption Price of a Like Amount of Senior Notes plus accrued and unpaid interest  on such Senior Notes, to but excluding the Redemption Date.  “Register” means the list of Persons in whose name the Trust Securities are registered,  which list is maintained by or on behalf of the Trust pursuant to Section 5.3.  “Responsible Officer” means any officer within the corporate trust department of the  Trustee, including any vice president, assistant vice president, assistant secretary, assistant  treasurer, trust officer or any other officer of the Trustee who customarily performs functions  similar to those performed by the Persons who at the time shall be such officers, respectively, or  to whom any corporate trust matter is referred because of such person’s knowledge of and  familiarity with the particular subject and who shall have direct responsibility for the  administration of this Declaration.  “S&P” means S&P Global Ratings, a division of S&P Global Inc., or any successor  entity.   “Securities Act” means the United States Securities Act of 1933.  “Securities Intermediary” means Deutsche Bank, in its capacity as such under the Pledge  Agreement and under this Declaration, and any successor to Deutsche Bank in such capacity.  “Senior Notes” means up to the Maximum Amount of Constellation’s 3.046% Senior  Notes due 2027, to be issued by Constellation from time to time under the Indenture, that  

 

      4895-0578-8168 v.5  Constellation may require the Trust to purchase from time to time pursuant to the Facility  Agreement.  “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C.  Section 3801 et seq.  “STRIPS” means principal and interest strips of U.S. Government Obligations created  under the U.S. Treasury’s program for Separate Trading of Registered Interest and Principal of  Securities (STRIPS) under 31 C.F.R. Section 356.31.  “Supplemental Indenture” means the First Supplemental Indenture, dated as of the date  hereof, to the Indenture.  “Transaction Agreements” means, collectively, this Declaration, the Trust Securities  Purchase Agreement, the Facility Agreement, the Pledge Agreement, the Calculation Agency  Agreement, the LC Agreement, the Trust Expense Reimbursement Agreement, the Indenture and  the Senior Notes.  “Trust Expense Reimbursement Agreement” means the Trust Expense Reimbursement  Agreement, dated as of February 9, 2022, between Constellation and the Trust, substantially in  the form attached as Exhibit E.  “Trust Expenses” means (i) all of the reasonable and documented expenses of the Trust,  including the Trustee, Securities Intermediary, Collateral Agent and Delaware Trustee fees,  accountants’ or auditors’ fees, ongoing rating agency fees, brokerage or transaction fees and  expenses related to transactions for Eligible Treasury Assets, reasonable and documented out-of- pocket legal fees and expenses of a single lead external counsel, a single Delaware counsel and  any special subject-matter counsel, if necessary, consulted in the ordinary course by any of the  foregoing in their respective capacities as such, tax preparation fees, banking fees, expenses  relating to communications, and any other fees or expenses inherent in the operation or  liquidation and termination of the Trust and incurred without gross negligence, willful  misconduct or bad faith on any of their part and (ii) indemnification payments made by the Trust  to the Trustee, Securities Intermediary, the Delaware Trustee or the Collateral Agent.  “Trust Income” for any Distribution Period means (i) any Facility Fee paid by  Constellation under the Facility Agreement, with respect to the unexercised portion of the  Issuance Right, if any, (ii) any amounts paid by Constellation under the Trust Expense  Reimbursement Agreement, (iii) any Special Facility Fee paid by Constellation under the  Facility Agreement, (iv) any cash payments received by the Trust on the Eligible Treasury  Assets (other than Retained Eligible Treasury Assets) held by the Trust, (v) any purchase price  paid by Constellation for any Defaulted Eligible Treasury Assets for an amount equal to the face  amount of such Defaulted Eligible Treasury Assets and (vi) any interest paid by Constellation on  any Senior Notes held by the Trust.  “Trust Indenture Act” means the United States Trust Indenture Act of 1939.  “Trust Property” means, as of any particular time, any and all property that shall have  been transferred, conveyed or paid to the Trust or to the Trustee (in its capacity as such) on  

 

    -9-  4895-0578-8168 v.5  behalf thereof, and all interest, dividends, income, earnings, profits and gains therefrom, and  proceeds thereof, including any proceeds derived from the sale, exchange or liquidation thereof,  and any funds or payments derived from any reinvestment of such proceeds in whatever form the  same may be, and which at such time is owned or held by, or for the account of, the Trust or the  Trustee on behalf of the Trust.  “Trust Securities” means the pre-capitalized trust securities to be issued by the Trust in  the form of the Certificates evidencing undivided beneficial interests in the assets of the Trust in  accordance with the terms of this Declaration and designated as the “Pre-Capitalized Trust  Securities Redeemable January 31, 2027”.  “Trust Securities Purchase Agreement” means the Trust Securities Purchase Agreement,  dated February 2, 2022, among the Trust, Constellation, Credit Suisse Securities (USA) LLC and  RBC Capital Markets, LLC, on behalf of the initial purchasers named therein.  “Trustee” has the meaning specified in Section 4.1(a), and shall initially be Deutsche  Bank not in its individual capacity but solely as trustee under this Declaration, and any Successor  Trustee to Deutsche Bank in such capacity.  “U.S. Government Obligations” means U.S. Treasury securities that are direct obligations  of the United States for the payment of which its full faith and credit is pledged.  (b) As used herein, each of the following terms shall have the meaning set  forth in the Section of this Agreement or in the other document set forth opposite such term in  the table below, unless otherwise required:  Applicable AML Law Section 4.9  Authorized Officer Pledge Agreement  Automatic Exercise Facility Agreement   Automatic Exercise Event Facility Agreement   Automatic Exercise Notice Facility Agreement   Available Amount Facility Agreement   Bankruptcy Event Facility Agreement   Blocked Eligible Treasury Assets Section 2.10(b)  Cash Settlement Amount Facility Agreement   Cash Settlement Election Facility Agreement   Certificate of Trust Recitals   Change of Control Supplemental Indenture  Change of Control Offer Section 5.10(a)  Change of Control Offer Issuance Amount Facility Agreement  Change of Control Offer Subject Amount Facility Agreement  Change of Control Payment Section 5.10(a)  Change of Control Payment Date Section 5.10(a)  Change of Control Redemption Amount Section 5.10(a)  Collateral Enforcement Event Facility Agreement   Constellation Preamble   Declaration Preamble   

 

      4895-0578-8168 v.5  Depositor Preamble   Depositor Affiliated Owner/Holder Section 5.4(e)  Deutsche Bank Preamble  Eligible Purchaser Section 5.5(a)  Entitlement Holder Pledge Agreement  Entitlement Order Pledge Agreement   Exchanged Notes Section 5.4(e)  Exchanged Trust Securities Section 5.4(e)  Facility Fee Facility Agreement   Indemnified Person Section 9.1(c)  Initial Purchasers Trust Securities Purchase  Agreement   Issuance Right Facility Agreement   Issuance Notice Facility Agreement   Legal Action Section 2.6(a)(xii)  Liquidation Distribution Date Section 8.2(c)  List of Holders Section 5.14(a)  Mandatory Exercise Facility Agreement   Maximum Amount Facility Agreement   Notes Purchase Price Facility Agreement   Original Declaration Recitals   Overdue Amounts Section 5.8(d)  P-Caps Tendered Amount Facility Agreement  Paying Agent Section 2.6(f)  Permitted Liens LC Agreement   Pledged Property Accounts Pledge Agreement   Remaining Amounts Section 2.9(b)  Repurchase Facility Agreement   Repurchase Right Facility Agreement   Repurchase Settlement Date Facility Agreement   Retained Eligible Treasury Assets Section 2.10(b)  Retained Eligible Treasury Assets  Account  Pledge Agreement  SEC Facility Agreement   Secretary of State Recitals   Security Registrar Indenture   Settlement Date Facility Agreement   Special Facility Fee Facility Agreement   Similar Laws Section 5.5(a)  Successor Trustee Error! Reference source not f ound.(A)  Transfer Agent Section 2.6(a)(xvii)  Trust Recitals   Trust Collateral Account Section 2.6(c)(i)  Trust Dissolution Date Section 8.1(a)  Trust Notes Account Section 2.6(c)(iii)  

 

    -11-  4895-0578-8168 v.5  Trust Property Account Section 2.6(c)  Trustees Preamble   Trustee’s Fee Section 4.1(d)   Voluntary Exercise Facility Agreement    Section 1.2 Interpretation. Unless the context otherwise requires, in this Declaration:  (a) any reference to this Declaration or any other agreement or document shall  be construed as a reference to this Declaration or such other agreement or document, as  applicable, as the same may have been, or may from time to time be, amended, varied, novated  or supplemented in accordance with its terms;  (b) any reference to a statute or regulation shall be construed as a reference to  such statute or regulation or any successor or replacement statute or regulation, in each case as  the same may have been, or may from time to time be, amended, varied or supplemented in  accordance with its terms;  (c) any reference to time shall be to New York City time;  (d) the words “herein”, “hereof” and “hereunder” and other words of similar  import refer to this Declaration as a whole and not to any particular section, clause or other  subdivision, and references to “Articles”, “Sections” and “Exhibits” refer to Articles or Sections  of and Exhibits to this Declaration;  (e) the word “including” shall be deemed to be followed by the words  “without limitation”;  (f) any definition shall be equally applicable to both the singular and plural  forms of the defined terms;  (g) headings contained in this Declaration are inserted for convenience of  reference only and do not affect the interpretation of this Declaration or any provision hereof;  and  (h) whenever in this Declaration any Person is named or referred to, the  successors and assigns of such Person shall be deemed to be included, and all covenants and  agreements in this Declaration by the Depositor and the Trustees shall bind and inure to the  benefit of their respective successors and assigns, whether or not so expressed.  ARTICLE II    ORGANIZATION  Section 2.1 Name. The trust continued hereby shall be known as “Fells Point Funding  Trust”, as such name may be modified from time to time by the Trustee with the consent of a  Majority of Holders, following written notice to the Delaware Trustee.  

 

      4895-0578-8168 v.5  Section 2.2 Office. The principal office of the Trust shall be the Corporate Trust  Office of the Trustee. The principal office of the Trust in the State of Delaware is the office of  the Delaware Trustee in Delaware, which as of the date hereof is located at 1011 Centre Road,  Suite 200, Wilmington, Delaware 19805, Attention: Fells Point Funding Trust. Each of the  Trustee and the Delaware Trustee may designate another principal office of the Trust after not  less than 10 Business Days’ written notice to the Holders.  Section 2.3 Nature and Purpose of the Trust.  (a) The Trust shall be a “statutory trust” as defined in the Statutory Trust Act  and this Declaration shall constitute its governing instrument. The Certificate of Trust has been  duly filed with the Secretary of State. The debts, liabilities, obligations and expenses incurred,  contracted for or otherwise existing with respect to the Trust shall be enforceable only against  the assets of the Trust.  (b) The purposes and functions of the Trust are, and, subject to the provisions  set forth in Section 2.7, the Trust shall have the power and authority to, subject to the Depositor’s  performance of its obligations pursuant to Article III hereof:  (i) issue the Trust Securities, with each Trust Security representing an  undivided beneficial interest in the Trust’s assets, and enter into the Trust Securities Purchase  Agreement with the Initial Purchasers and Constellation for that purpose;  (ii) invest the net proceeds from the issuance and sale of the Trust  Securities in Eligible Treasury Assets as directed by Constellation;  (iii) enter into the Facility Agreement with Constellation and the Notes  Trustee, in substantially the form of Exhibit D;  (iv) enter into the Pledge Agreement with the Collateral Agent, the  Securities Intermediary and Constellation, in substantially the form of Exhibit C, for the benefit  of the Collateral Agent for the LC Issuers, to secure reimbursement obligations under the LC  Agreement and, with respect to any Eligible Treasury Assets that are not required to be pledged  to the Collateral Agent for the benefit of the LC Issuers, in favor of Constellation to secure the  obligations of the Trust to pay the Notes Purchase Price under the Facility Agreement;  (v) enter into the Trust Expense Reimbursement Agreement with  Constellation in substantially the form of Exhibit E pursuant to which Constellation will agree to  advance or reimburse the Trust for the Trust’s obligations relating to the Trustee’s Fee and Trust  Expenses;  (vi) execute, deliver and perform its obligations under the foregoing  agreements and the other Transaction Agreements to which it is intended to be a party and  comply with the terms thereof;  (vii) upon the exercise of the Issuance Right, in whole or in part,  delivering to Constellation all or the applicable portion of the Eligible Treasury Assets (other  than any Retained Eligible Treasury Assets) as identified by Calculation Agent (in the amounts  

 

    -13-  4895-0578-8168 v.5  identified by the Calculation Agent), less any Eligible Treasury Assets then subject to a  Collateral Enforcement Event, in exchange for the Senior Notes being sold or the cash payment  that Constellation elects to make in lieu of such Senior Notes, provided that prior to the  termination of the LC Agreement, in lieu of receiving the Eligible Treasury Assets from the  Trust, Constellation has the right to require the Trust to continue to hold such Eligible Treasury  Assets subject to the terms of the Pledge Agreement (however, the Holders of the Trust  Securities will have no interest in and no rights to receive delivery of any Retained Eligible  Treasury Assets or proceeds thereof);  (viii) upon a Repurchase, deliver to Constellation Senior Notes held by  the Trust and receive Eligible Treasury Assets from Constellation in exchange therefore, in  accordance with the Facility Agreement;  (ix) upon an Optional Redemption or a Voluntary Exercise, receive  from Constellation the Constellation Payment and use it to redeem a Like Amount of Trust  Securities pursuant to Section 5.10, subject to the priorities of distribution set forth in Section  8.2(c);  (x) purchase Trust Securities tendered for purchase pursuant to a  Change of Control Offer in accordance with Section 5.10;  (xi) on each Distribution Date, distribute its Trust Income for the  related Distribution Period to the Holders, after payment of any expenses and other amounts  payable by the Trust, as provided in Section 5.8, and subject to its other obligations under the  Transaction Agreements;  (xii) in accordance with, and subject to, Article VIII, distribute any  Senior Notes it holds subject to its other obligations under the Transaction Agreements;  (xiii) on each date that the Trustee is required to make a distribution in  accordance with Section 5.8(d)(i) or Section 5.8(d)(ii), distribute all Overdue Amounts together  with the applicable Special Facility Fee in accordance therewith;  (xiv) hold the Eligible Treasury Assets and the other assets of the Trust  (including holding any Senior Notes that may be sold to it) and sell any Defaulted Eligible  Treasury Assets to Constellation at their face amount;  (xv) liquidate all or a portion of its Eligible Treasury Assets (other than  any Retained Eligible Treasury Assets) and distribute any Senior Notes in accordance with the  terms hereof;  (xvi) hold the Retained Eligible Treasury Assets in accordance with the  Pledge Agreement;  (xvii) acquire, hold, manage, pledge, invest, dispose of and otherwise  deal with the Trust Property, subject to the terms of the Transaction Agreements;  

 

      4895-0578-8168 v.5  (xviii) acknowledge the addition of any LC Issuers to the LC Agreement  by executing any joinder agreement thereto that has been signed by Constellation; and  (xix) except as otherwise set forth herein, engage in other activities  necessary or incidental to the foregoing.  Section 2.4 Authority. Subject to the limitations provided in this Declaration, the  Trustee shall have the power and authority to carry out the purposes of the Trust. An action taken  by the Trustee in accordance with its powers shall constitute the act of and serve to bind the  Trust. In dealing with the Trustee acting on behalf of the Trust, no Person shall be required to  inquire into the authority of the Trustee to bind the Trust. Persons dealing with the Trust are  entitled to rely conclusively on the power and authority of the Trustee as set forth in this  Declaration.  Section 2.5 Title to Property. Legal title to all assets attributable to the Trust shall be  vested at all times in the Trust as a separate legal entity, except where applicable law in any  jurisdiction requires title to any part of the assets to be vested in a trustee or trustees, in which  case legal title shall be deemed to be vested in the Trustee.  Section 2.6 Powers and Duties of the Trustee.  (a) The Trustee shall have the power and authority to, and subject to Article  IV, shall, cause the Trust to engage in the following activities:  (i) to issue and sell the Trust Securities in accordance with this  Declaration and the Trust Securities Purchase Agreement at the direction of the Depositor;  provided that (A) the Trust may issue no more than one class of Trust Securities; and (B) there  shall be no equity interests in the Trust other than the Trust Securities;  (ii) to purchase Eligible Treasury Assets identified by the Calculation  Agent in consultation with Constellation with the proceeds from the sale of the Trust Securities  and to hold the same, subject to the provisions of this Declaration and the Trust’s obligations  under the Transaction Agreements;  (iii) to enter into the Facility Agreement with Constellation and the  Notes Trustee in substantially the form attached as Exhibit D and the Pledge Agreement with the  Collateral Agent, the Securities Intermediary and Constellation, in substantially the form  attached as Exhibit C, and thereby pledge the Eligible Treasury Assets and the proceeds thereof  to the Collateral Agent for the benefit of the LC Issuers to secure reimbursement obligations  under the LC Agreement and, with respect to any Eligible Treasury Assets not required to be  pledged to the Collateral Agent, in favor of Constellation, to secure the obligations of the Trust  to pay the Notes Purchase Price under the Issuance Right and, in each case, perform the Trust’s  obligations, and exercise its rights, thereunder;  (iv) to purchase and hold the Senior Notes, if and to the extent that  Constellation exercises the Issuance Right (including a Mandatory Exercise) or upon an  Automatic Exercise, until (A) such Senior Notes are repurchased or redeemed pursuant to a  Repurchase Right or Optional Redemption, (B) the Trust is liquidated pursuant to Article VIII or  

 

    -15-  4895-0578-8168 v.5  (C) the Trustee is required to liquidate any such Senior Notes pursuant to Section 5.8(d), Section  5.9 or Section 8.2 or any other provision of this Declaration;  (v) to exercise voting rights with respect to any Senior Notes held by  the Trust, if and when any Senior Notes are issued to the Trust upon Constellation’s exercise of  the Issuance Right, including a Mandatory Exercise or an Automatic Exercise, until such time as  such Senior Notes may be redeemed or the Trust is liquidated, in the same manner and  proportion as directed by the Holders of the Trust Securities providing direction (and absent such  direction the Trustee shall take no action);  (vi) upon a Repurchase, to deliver to Constellation all or a portion of  the Senior Notes then held by the Trust and to receive Eligible Treasury Assets in exchange for  the Senior Notes in accordance with the Facility Agreement;  (vii) to redeem all or a portion of the Trust Securities upon an Optional  Redemption or Voluntary Exercise as to which Constellation has made a Cash Settlement  Election and receipt of the Constellation Payment, subject to the priorities set forth in Section  8.2(c), or if a Trust Dissolution Date occurs pursuant to Section 8.1(a)(i);  (viii) to tender Senior Notes for repurchase and purchase tendered Trust  Securities, in each case in accordance with Section 5.10, and receive the corresponding  Constellation Payment from Constellation;  (ix) to enter into the Trust Expense Reimbursement Agreement with  Constellation, and to collect from Constellation any amounts due thereunder;  (x) to establish a record date with respect to all actions to be taken  hereunder that require a record date be established (provided that the record date with respect to  regular income Distributions and distributions in connection with any dissolution of the Trust  shall be determined in accordance with the definition of the term “Record Date”), including  voting rights, exchanges and final distributions, and to issue relevant notices to the Holders as to  such actions and applicable record dates;  (xi) to give prompt written notice to the Holders of any event set forth  in Section 8.1(a) and of any Change of Control Triggering Event upon a Responsible Officer  receiving a written notice thereof;  (xii) to bring or defend, pay from the Trust Property, collect,  compromise, resort to legal action, or otherwise adjust claims or demands of or against the Trust  (each such action, a “Legal Action”), or take any other Legal Action that arises out of or in  connection with the duties of the Trustee under this Declaration;  (xiii) to sell Defaulted Eligible Treasury Assets at their face amount to  Constellation;  (xiv) to take all actions and perform such express duties as may be  required of the Trustee pursuant to the terms of this Declaration or the Trust Securities;  

 

      4895-0578-8168 v.5  (xv) to employ or otherwise engage agents, brokers, managers,  contractors, advisors and consultants and pay from the Trust Property reasonable compensation  for such services, subject to Section 4.1(d);  (xvi) to incur expenses that are necessary to carry out any of the  purposes of the Trust described in Section 2.3(b) or the Trustee’s duties set forth in this  Declaration;  (xvii) to act as, or appoint another Person to act as, registrar and transfer  agent (the “Transfer Agent”) for the Trust Securities;  (xviii) to execute and deliver each other Transaction Agreement to which  it is intended to be a party, and to perform the Trust’s obligations and exercise its rights  thereunder;  (xix) to the extent directed in writing by Constellation, to execute all  other documents or instruments, perform all duties and powers, and do all things for and on  behalf of the Trust in all matters necessary or incidental to the foregoing;  (xx) to the extent directed in writing by Constellation, to take all action  that may be necessary or appropriate for the preservation and continuation of the Trust’s valid  existence, rights, franchises and privileges as a statutory trust under the laws of the State of  Delaware;  (xxi) to take any action, or to decline to take any action, not in violation  of this Declaration, the Transaction Agreements or applicable law, in carrying out the activities  of the Trust as set forth in this Section 2.6, including (A) upon advice of counsel, at the direction  of Depositor, taking any action to cause the Trust not to be deemed to be an investment company  required to be registered under the Investment Company Act, provided that such action does not  adversely affect any of the rights, preferences and privileges of the Holders, and (B) declining to  take any action that would be reasonably likely to cause the Trust to be characterized as an  association or publicly traded partnership taxable as a corporation for United States federal  income tax purposes; provided that the foregoing shall not alter any right or obligation of the  Trust to comply with an Issuance Notice or any direction or instruction of the Holders provided  hereunder (subject to Section 10.4);  (xxii) to take all actions with respect to tax forms and tax returns as set  forth in Section 7.1 and subject to Depositor’s and the Trust’s accountants’ obligations  thereunder;  (xxiii) to provide information to Holders or prospective purchasers as set  forth in Section 7.2(b);  (xxiv) to hold Retained Eligible Treasury Assets in accordance with the  Pledge Agreement;  (xxv) to execute on behalf of the Trust the engagement letter of the  accounting firm of Cover & Rossiter in the form attached hereto as Exhibit F, relating to the  

 

    -17-  4895-0578-8168 v.5  preparation of financial statements and tax filings for the Trust (for the avoidance of doubt, such  accounting firm shall be an independent contractor of the Trust and shall not be considered an  agent of the Trustee or the Delaware Trustee nor under their supervision and control; and neither  the Trustee nor the Delaware Trustee shall be liable for any claims, liabilities or expenses  relating to such accounting firms’ engagement, any advice or work of the Trust’s accountants or  any report or filing issued, prepared or made by, such accounting firm in connection with such  engagement);  (xxvi) to execute any joinder agreement to the LC Agreement that has  been signed by Constellation;   (xxvii) to file any report or make any other disclosure required by the  Corporate Transparency Act of 2019 or any rules or regulations thereunder on behalf of the  Trust; and  (xxviii)to engage in other activities necessary or incidental to the  foregoing.  (b) On the date of this Declaration (and on an annual basis thereafter until the  Trust Dissolution Date), the Trustee shall execute the engagement letter referenced in Section  2.6(a)(xxv) of this Declaration, each of the Transaction Agreements to which the Trust is  intended to be a party and the initial Certificates on behalf of the Trust and shall thereafter cause  the Trust to perform its obligations thereunder.  (c) The Trustee shall establish and maintain with the Securities Intermediary  (and keep records of) a segregated, non-interest-bearing trust account (the “Trust Property  Account”) in the name of and under the exclusive control of the Trustee on behalf of the Trust,  and upon the receipt of payments of funds representing Trust Income or any other payments of  funds made under or in respect of the Trust Property, deposit such funds into the Trust Property  Account until such cash balances are required to be distributed, invested or applied to any  obligation of the Trust in accordance with this Declaration or any other Transaction Agreement.  The Trust Property Account shall be a non-interest-bearing trust account at an Eligible Bank  (which may include the Trustee). Money held by the Trustee shall be segregated from its funds  and other funds held by it. The Trustee shall also establish with the Securities Intermediary (and  keep records of) segregated, non-interest bearing Dollar-denominated accounts, which accounts  shall be maintained until the termination of the Pledge Agreement:  (i) Account # SF7148.2 entitled “Trust Collateral Account;”  (ii) Account # SF7148.4 entitled “Retained Eligible Treasury Assets  Account;”  (iii) Account # SF7148.4 entitled “Trust Notes Account;”  (d) The Trust Property Account and the Trust Notes Account shall not be  subject to any liens in favor of the Collateral Agent or Constellation and the Trust shall remain  the sole Entitlement Holder thereof and shall be the only party that may deliver Entitlement  Orders on such accounts. For administrative purposes, additional sub-accounts within the  

 

      4895-0578-8168 v.5  Pledged Property Accounts or the Trust Property Account may be established and created by  Securities Intermediary from time to time, each of which shall be, and shall be treated as, an  account of the same type as the account within which such sub-account was created.  (e) Subject to Article IV, the Trustee shall take all actions and perform such  duties as may be required of the Trustee as it may be directed from time to time in writing by a  Majority of Holders to protect the interests of the Trust and the Holders.  (f) The Trustee may authorize one or more Persons (each, a “Paying Agent”)  to pay expenses of the Trust, Distributions, dissolution payments or other amounts on behalf of  the Trust with respect to the Trust Securities. The initial Paying Agent shall be the Trustee. Any  Paying Agent may be removed by the Trustee at any time and a successor Paying Agent or  additional Paying Agents may be appointed at any time by the Trustee.  (g) Notwithstanding any other provision in this Declaration or elsewhere, the  Trustee shall not have any duty or obligation to manage, control, use, make any payment in  respect of, register, record, insure, inspect, sell, dispose of (except in accordance with Section  2.6(a)) or otherwise deal with the Trust Property or to otherwise take or refrain from taking any  action under, or in connection with, this Declaration or any other document to which the Trust is  a party, except for (i) duties expressly required to be performed by the Trustee by the terms of  this Declaration or the Transaction Agreements to which the Trust is a party or in accordance  with written instructions from a Majority of Holders, and (ii) duties required to be performed by  the Trust by any Transaction Agreement to which is it a party, or any other agreement authorized  by this Declaration.  (h) The Trustee shall exercise the powers set forth in this Section 2.6 in a  manner that is consistent with the purposes and intentions of the Trust set forth in Section 2.3,  and the Trustee shall not take, nor shall the Holders, including a Majority of Holders, instruct the  Trustee to take, any action that is inconsistent with the purposes and functions of the Trust set  forth in Section 2.3.  Section 2.7 Prohibition of Actions by the Trust and the Trustee. The Trust shall not,  and the Trustee shall cause the Trust not to, nor shall the Holders, including a Majority of  Holders, direct the Trustee to, engage in any activity other than as expressly required or  authorized by this Declaration or the other Transaction Agreements. In particular, the Trust shall  not and the Trustee shall cause the Trust not to:  (a) re-invest any distributions received on the Trust Property, but the Trust  shall, subject to Section 5.8 and Section 8.2, distribute all such proceeds, after satisfying any  obligations of the Trust, to the Holders pursuant to the terms of this Declaration;  (b) acquire any assets other than as expressly provided herein;  (c) possess Trust Property for any purpose other than the purposes of the  Trust, as described in Section 2.3;  

 

    -19-  4895-0578-8168 v.5  (d) make any loans or incur any indebtedness or acquire any property other  than Eligible Treasury Assets, the Senior Notes, the Trust Property Account and the rights of the  Trust under the Transaction Agreements to which the Trust is a party;  (e) incur any lien or encumbrance on any Trust Property, other than the  security interest created pursuant to the Pledge Agreement and Permitted Liens;  (f) except as expressly set forth herein, act in such a way as to vary the terms  of the Trust Securities in any way whatsoever;  (g) issue any securities or other evidences of beneficial ownership of, or  beneficial interest in, the Trust other than the Trust Securities;  (h) (i) direct the time, method and place of conducting any proceeding for any remedy  available to the Trust as the holder of Trust Property or exercising any power conferred upon  holders of any Trust Property, (ii) waive any past default or violation that is waivable under the  terms of any Trust Property, or (iii) consent to any amendment or modification of the terms of any  Trust Property where such consent shall be required, except in each case after receiving  instructions from the Holders pursuant to Article X; provided that this paragraph shall not limit  the authority and obligation of the Trustee to take any action expressly contemplated by this  Declaration or any Transaction Agreement to which it is a party, and no instructions from the  Holders shall be required in connection therewith;  (ii) file a certificate of cancellation of the Trust or take any other  action to terminate the Trust, except in connection with a dissolution of the Trust pursuant to  Article VIII;  (h) permit any Trust Securities to be included on (or recognize any purchases  or sales of any Trust Securities through) (i) any national, non-U.S., regional, local or other  securities exchange, or (ii) any over-the-counter market (including an interdealer quotation  system that regularly disseminates firm buy or sell quotations by identified brokers or dealers by  electronic means or otherwise);  (i) exercise any voting rights in respect of the Senior Notes without first  obtaining directions from the Holders as provided in Section 4.7(a)(xii);  (j) object or seek to restrain or prohibit, temporarily or permanently, whether  upon occurrence of a Bankruptcy Event or otherwise, Constellation from issuing the Senior  Notes and selling such Senior Notes to the Trust in exchange for the Eligible Treasury Assets in  accordance with the Facility Agreement, including but not limited to, upon the occurrence of an  Automatic Exercise or Mandatory Exercise; or  (k) raise any defense expressly waived pursuant to Section 5.1 of the Facility  Agreement.  Section 2.8 Execution of Documents. Except as otherwise required by the Statutory  Trust Act, the Trustee is authorized to execute, deliver and perform on behalf of the Trust any  

 

      4895-0578-8168 v.5  documents that the Trustee has the power and authority to cause the Trust to execute pursuant to  Section 2.6.  Section 2.9 Investment in Eligible Treasury Assets.  (a) Promptly following the receipt of the proceeds from issuance of the Trust  Securities, the Trustee shall invest such proceeds in Eligible Treasury Assets that are scheduled  to make payments (i) with respect to each Distribution Date, in an aggregate amount equal to  1.571% per annum applied to (for each Distribution Period) the initial Maximum Amount,  calculated on a 30/360 Basis, and (ii) in an amount equal to the initial Maximum Amount on  January 31, 2027. For the avoidance of doubt, Exhibit G sets forth the CUSIP, face amount and  purchase price of each U.S. Treasury STRIP comprising the Eligible Treasury Assets in which  the Trustee shall invest on the date hereof (without limiting the composition of the Eligible  Treasury Assets as of any date thereafter).  (b) If any proceeds of the issuance of the Trust Securities remain after the  purchase of the required amount of Eligible Treasury Assets pursuant to Section 2.9(a) (the  “Remaining Amounts”), the Trustee shall apply such Remaining Amounts to pay the Trustee’s  Fee and the Trust Expenses and shall not request Constellation to reimburse it for such amounts.  Section 2.10 Exercise of the Issuance Right; Facility Agreement.  (a) Subject to clause (b) below and Section 5.8(b) and Section 5.8(d)(ii), upon  receipt by a Responsible Officer of the Trustee of an Issuance Notice from Constellation  (including in the event of a Mandatory Exercise) or an Automatic Exercise Notice, Constellation  will sell the Senior Notes to the Trust, and in exchange the Trust will deliver to Constellation the  Notes Purchase Price not later than 3:00 p.m. on the applicable Settlement Date in accordance  with the terms and conditions set forth in the Facility Agreement.  (b) Following any exercise of the Issuance Right, the Trust will hold any  Senior Notes so sold to it and any remaining Eligible Treasury Assets. Pursuant to the Facility  Agreement, prior to the termination of the LC Agreement, Eligible Treasury Assets that are  pledged to the Collateral Agent shall only be delivered to Constellation by the Trust if, upon the  delivery of such Eligible Treasury Assets to Constellation (i) such Eligible Treasury Assets will  continue to be pledged to the Collateral Agent pursuant to the Pledge Agreement, subject to no  other liens (other than Permitted Liens) and (ii) no default would exist or result under the LC  Agreement or the Pledge Agreement from such delivery of the Eligible Treasury Assets (any  Eligible Treasury Assets retained by the Trust after exercise of the Issuance Right pursuant to  such limitation, the “Blocked Eligible Treasury Assets”). Prior to the termination of the LC  Agreement, following any Mandatory Exercise or Automatic Exercise of the Issuance Right, in  lieu of receiving the Eligible Treasury Assets from the Trust, Constellation shall have the right to  require the Trust to continue to hold such Eligible Treasury Assets subject to the terms of the  Pledge Agreement (such Eligible Treasury Assets held by the Trust after a Mandatory Exercise  or Automatic Exercise of the Issuance Right, together with any Blocked Eligible Treasury  Assets, “Retained Eligible Treasury Assets”); provided however that the Holders of the Trust  Securities will have no interest in and no rights to receive delivery of any Retained Eligible  

 

    -21-  4895-0578-8168 v.5  Treasury Assets or proceeds thereof. The Trust shall transfer Eligible Treasury Assets that shall  be Retained Eligible Treasury Assets into the Retained Eligible Treasury Assets Account.  (c) The Trustee shall deliver, in exchange for the Senior Notes being issued  pursuant to the Issuance Right (or, in respect of any Senior Notes as to which Constellation has  made a Cash Settlement Election, in exchange for the applicable Cash Settlement Amount), the  Notes Purchase Price in respect of such exercise pursuant to the Facility Agreement and shall  credit such Senior Notes (or Cash Settlement Amount) to the Trust Notes Account (or the Trust  Property Account) upon receipt, less any Eligible Treasury Assets then subject to a Collateral  Enforcement Event. Any Eligible Treasury Assets delivered to Constellation by the Trust will be  credited or delivered in accordance with Section 3.1 of the Facility Agreement.  (d) Upon receipt by a Responsible Officer of the Trustee of a notice of  exercise of the Repurchase Right, the Trustee shall take such action as may be required to cause  the Trust to deliver to Constellation the Senior Notes held by the Trust in exchange for the  Eligible Treasury Assets on the Repurchase Settlement Date in accordance with the Facility  Agreement and shall credit such Eligible Treasury Assets to the Trust Property Account upon  receipt.  (e) The Trustee shall deliver the Automatic Exercise Notice to Constellation  after a Responsible Officer of the Trustee becomes aware of any Automatic Exercise Event set  forth in clause (i) of the definition thereof in the Facility Agreement in accordance with the  Facility Agreement.  Section 2.11 Mergers. The Trust may not consolidate, amalgamate, merge or convert  with or into, or be replaced by, or convey, transfer or lease its properties and assets substantially  as an entirety to any Person, except to a trust organized as such under the laws of any state of the  United States and with the unanimous consent of the Holders or, in connection with the transfer  of Eligible Treasury Assets as expressly permitted under this Declaration. The Trust shall  provide written notice of any of the foregoing events to each Rating Agency.  Section 2.12 Limitation on Directions to the Trustee. Neither the Holders, including a  Majority of Holders, nor the Depositor shall direct the Trustee to take or refrain from taking any  action if such action or inaction would be contrary to any obligation of the Trust or the Trustee  under this Declaration or any of the Transaction Agreements to which the Trust is a party or  would be contrary to Section 2.3, nor shall the Trustee be obligated to follow any such direction,  if given.  Section 2.13 Duration of the Trust. The Trust shall be dissolved, liquidated and  terminated pursuant to the provisions of Article VIII.  Section 2.14 Notices to the Trust and Trustee under the Facility Agreement. Other than  as specifically set forth in the Facility Agreement or herein, neither the Trust nor the Trustee  shall be entitled to receive from Constellation any certificate, opinion or other document in  connection with the exercise of the Issuance Right.  

 

      4895-0578-8168 v.5  ARTICLE III    RESPONSIBILITIES OF THE DEPOSITOR  Section 3.1 Responsibilities of the Depositor. The Depositor’s execution and delivery  on behalf of the Trust of the Trust Securities Purchase Agreement with the Initial Purchasers and  Constellation is hereby ratified. In connection with the issue and sale of the Trust Securities, the  Depositor shall have the exclusive right and responsibility to engage in the following activities:  (a) to take appropriate action to qualify or register for sale all or part of the  Trust Securities in such States as directed by the Initial Purchasers under the Trust Securities  Purchase Agreement and to do any and all such acts as the Depositor deems necessary or  advisable in order to comply with the applicable laws of any such States, other than actions that  must be taken by the Trust, and advise the Trustee, or its Affiliates or agents, of actions the Trust  must take, and prepare for execution and filing any documents to be executed and filed by the  Trust;  (b) subject to the terms of the Trust Securities Purchase Agreement, to advise  the Trustee, or its Affiliates or agents, of actions the Trust must take, and prepare for execution  and filing any documents to be executed and filed by the Trust, as the Depositor deems necessary  or advisable in order to comply with any applicable rules and regulations of the SEC  promulgated under the Securities Act, the Exchange Act, the Trust Indenture Act, the Investment  Company Act or any other applicable law or to obtain or maintain exemptions therefrom or other  forms of relief thereunder or to make any filings or take any actions required thereby or deemed  necessary or advisable with respect to the Trust, the Trust Securities or any Trust Property or the  offering of the Trust Securities;  (c) to take all reasonable actions necessary to enable each Rating Agency to  provide its respective rating with respect to the Trust Securities;  (d) cause a Calculation Agent to be available at all times pursuant to the terms  of the Calculation Agency Agreement;  (e) assist the Trust with its accounting and tax compliance obligations and  financial reporting requirements, including directing the retention of a nationally recognized  accounting firm as the Trust’s accountants; and  (f) prepare any Change in Control Offer and related notices required in  connection with a Change in Control Triggering Event.  Section 3.2 Financing Statements.  It shall be the Depositor’s responsibility (and not that of the Trustee) to cause the Trust or  a third-party to file all financing statements (including on Form UCC-1 and Form UCC-3) and  such other security documents to be executed by the Trust in such offices and locations as are  necessary, including those financing statements contemplated in the Pledge Agreement.  

 

    -23-  4895-0578-8168 v.5  ARTICLE IV    THE TRUSTEES  Section 4.1 Trustees; Eligibility.  (a) There shall at all times be one primary trustee which shall act as trustee of  the Trust and which shall:  (i) not be an Affiliate of Constellation; and  (ii) be a Person organized and doing business under the laws of the  United States of America or any State or Territory thereof or of the District of Columbia,  authorized under such laws to exercise corporate trust power, having a combined capital and  surplus of at least $50,000,000, and subject to supervision or examination by Federal, state,  territorial or District of Columbia authority.  If any such Person publishes reports of condition at least annually, pursuant to law or to the  requirements of the supervising or examining authority referred to herein, then for the purposes  of this Section 4.1(a), the combined capital and surplus of such Person shall be deemed to be its  combined capital and surplus as set forth in its most recent report of condition so published.  (b) If at any time the Trustee shall cease to be eligible to so act under Section  4.1(a), the Trustee shall immediately resign upon the request of the Majority of Holders in the  manner and with the effect set forth in Section 4.3.  (c) Notwithstanding the fact that neither the Trust nor the Trust Securities are  subject to the Trust Indenture Act, if the Trustee has or shall acquire any “conflicting interest”  within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee shall in all respects  comply with the provisions of Section 310(b) of the Trust Indenture Act.  (d) The initial Trustee shall be Deutsche Bank. Such Trustee shall be entitled  to receive an annual administration fee (the “Trustee’s Fee”) for the services it is performing as  Trustee in an amount agreed in writing between Constellation and the Trustee. Any Trust  Expenses (unless paid out of any Remaining Amounts as required pursuant to Section 2.9(b))  shall be advanced or reimbursed by Constellation under the Trust Expense Reimbursement  Agreement and may be paid out of the Trust Property in accordance with Section 5.8(d)(ii),  Section 5.9 or Section 8.2. All Remaining Amounts shall be applied to pay Trust Expenses prior  to the Trustee seeking advancement or reimbursement for such expenses from Constellation.  (e) In accepting the trust hereby created, the Trustee agrees to act solely as  trustee hereunder and not in its individual capacity, except as expressly provided herein and in  the other Transaction Agreements to which the Trust is intended to be a party. All Persons  having any claim against the Trustee in its capacity as such by reason of the transactions  contemplated by the documents to which the Trust is a party shall look only to the Trust Property  (or the applicable part thereof, as the case may be) and not to the Trustee in its individual  capacity. Without limiting the generality of the foregoing, the Trustee in its capacity as such or  individually shall not be responsible or liable for or in respect of the validity or sufficiency of  

 

      4895-0578-8168 v.5  this Declaration or for the due execution hereof by the Depositor, or for the form, character,  genuineness, sufficiency, value or validity of the Trust Property, and the Trustee makes no  representations as to, and shall have no duty to monitor (x) the value or condition of the Trust  Property or any part thereof, or (y) the validity or sufficiency of this Declaration, the Transaction  Agreements or the Trust Securities.  (f) The Trustee shall not be required to provide, on its own behalf, any surety  bond or other kind of security in connection with the execution of any of its trusts or powers  under this Declaration or any other Transaction Agreement or the performance of its duties  hereunder.  Section 4.2 Delaware Trustee. At all times required by Section 3807(a) of the  Statutory Trust Act, the Trust shall have a trustee meeting the requirements of such Section . The  duties and responsibilities of the Delaware Trustee shall be limited solely to (a) accepting legal  process served on the Trust in the State of Delaware and (b) the execution and delivery of all  documents, and the maintenance of all records, necessary to form and maintain the existence of  the Trust under the Statutory Trust Act. The Delaware Trustee, in such capacity, shall not be  entitled to exercise any powers, nor have any of the duties and responsibilities, of the Trustee  described in this Declaration but shall be entitled to all of the protections, immunities, rights and  exculpations provided to the Trustee. The Delaware Trustee shall (i) in the case of a natural  person, be a resident of the State of Delaware, or in all other cases, have its principal place of  business in the State of Delaware and (ii) not be an Affiliate of the Depositor. The Delaware  Trustee shall initially be Deutsche Bank Trust Company Delaware. The Delaware Trustee shall  be entitled to receive a fee for the services it is performing as Delaware Trustee in an amount  agreed to in writing between Constellation and the Trustee on behalf of the Delaware Trustee. If  at any time the Delaware Trustee shall cease to be eligible to so act under this Section 4.2, the  Delaware Trustee shall promptly resign in the manner and with the effect set forth in Section 4.3.  Section 4.3 Appointment, Removal and Resignation of Trustees.  (a) Subject to the provisions of this Section 4.3, the Trustee or the Delaware  Trustee may be removed without cause at any time by the vote of a Majority of Holders.  (b) If the Delaware Trustee is the Trustee or an Affiliate of the Trustee, then,  subject to the provisions of this Section 4.3, the Delaware Trustee shall be removed from such  capacity simultaneously with the removal of the Trustee as Trustee.  (c) Subject to Section 4.3(d) and Section 4.3(f), any Trustee or Delaware  Trustee may resign from office (without need for prior or subsequent accounting) by giving  written notice to the other Trustee, all of the Holders and Constellation of such intention on its  part, specifying the date on which its desired resignation shall become effective; provided that  such date shall not be less than 60 days from the date on which such notice is given, unless the  other Trustee agrees to accept shorter notice.  (d) No resignation or removal of a Trustee shall be effective until:  (i) (A) a successor Trustee possessing the qualifications to act as  Trustee under Section 4.1 (a “Successor Trustee”) has been appointed by the vote of a Majority  

 

    -25-  4895-0578-8168 v.5  of Holders and has accepted such appointment by written instrument executed by such Successor  Trustee and delivered to the Delaware Trustee and the resigning Trustee; and  (B) if the Trustee is also the Delaware Trustee, and if the  Successor Trustee is not the Delaware Trustee, a Successor Delaware Trustee is  appointed and has accepted such appointment in accordance with Section 4.3(e);  or  (ii) the Trust has been completely dissolved, the proceeds of the  dissolution have been distributed to the Holders pursuant to the terms of the Trust Securities and  the Trust has been terminated in accordance with Article VIII.  (e) No resignation or removal of a Delaware Trustee shall be effective until:  (i) a successor Delaware Trustee possessing the qualifications to act  as Delaware Trustee under Section 4.2 (a “Successor Delaware Trustee”) has been appointed by  the vote of a Majority of Holders or appointed by the Successor Trustee selected pursuant to  Section 4.3(d) and has accepted such appointment by written instrument executed by such  Successor Delaware Trustee and delivered to the Trustee and the resigning Delaware Trustee; or  (ii) the Trust has been completely dissolved, the proceeds of the  dissolution have been distributed to the Holders pursuant to the terms of the Trust Securities and  the Trust has been terminated in accordance with Article VIII.  (f) If no Successor Trustee or Successor Delaware Trustee shall have been  appointed and accepted appointment as provided in this Section 4.3 within 90 days after delivery  to the Holders of an instrument of resignation by the applicable Trustee, the resigning Trustee  may (i) petition, at the expense of the Trust, any court of competent jurisdiction for appointment  of a Successor Trustee or Successor Delaware Trustee, as applicable, or (ii) select a Successor  Trustee and/or Successor Delaware Trustee. Such court may thereupon, after prescribing such  notice, if any, as it may deem proper, appoint a Successor Trustee or Successor Delaware  Trustee, as the case may be.  (g) No Trustee or Delaware Trustee shall be liable for the acts or omissions to  act of any Successor Trustee or Successor Delaware Trustee, as the case may be.  (h) Any Successor Delaware Trustee shall cause an amendment to the  Certificate of Trust to be filed with the Secretary of State in accordance with the provisions of  Section 3810 of the Statutory Trust Act, indicating that such Successor Delaware Trustee is the  Delaware Trustee of the Trust.  Section 4.4 Delegation of Power. The rights, duties and powers of the Trustee as set  forth in this Declaration may be delegated to one or more Affiliates of the Trustee, provided that  each such delegee meets the eligibility requirements set forth in Section 4.1; and provided  further that, as a condition to any such delegation, the delegee shall expressly agree to be jointly  and severally liable with the Trustee for any liability arising out of or in connection with such  delegation. The Trustee may, by power of attorney consistent with applicable law, delegate to  

 

      4895-0578-8168 v.5  any other natural person over the age of 21 his or her power for the purpose of executing any  documents contemplated in Section 2.6.  Section 4.5 Merger, Conversion, Consolidation or Succession to Business. Any  Person into which the Trustee or the Delaware Trustee, as applicable, may be merged or  converted or with which either may be consolidated, or any Person resulting from any merger,  conversion or consolidation to which the Trustee or the Delaware Trustee shall be a party, or any  Person succeeding to all or substantially all the corporate trust assets and business of the Trustee  or the Delaware Trustee (including administration of this Declaration), shall be the successor of  the Trustee or the Delaware Trustee, as the case may be, hereunder, without the execution or  filing of any paper or any further act on the part of any of the parties hereto; provided that (a) if  such Person is not otherwise qualified and eligible under this Article IV, it shall promptly resign  as provided in Section 4.1(b) or Section 4.3, as applicable, and with the effect specified therein,  and (b) any Successor Delaware Trustee shall file an amendment to the Certificate of Trust (at  the expense of the Trust) if required by the Statutory Trust Act.  Section 4.6 Regarding the Trustee.  (a) The duties, responsibilities and obligations of the Trustee shall be limited  to those expressly set forth in this Declaration and the other Transaction Agreements to which  the Trustee is party. Neither the Trustee nor any of its officers, directors, employees, agents or  Affiliates shall have any implied duties (including fiduciary duties) or liabilities otherwise  existing at law or in equity with respect to the Trust, which implied duties and liabilities are  hereby eliminated. Every provision of this Declaration relating to the conduct or affecting the  liability of or affording protection to the Trustee shall be subject to the provisions of this Section.  (b) The Trustee shall not be personally liable to any Person under any  circumstances in connection with any of the transactions contemplated by this Declaration,  except that such limitation shall not relieve the Trustee of any personal liability it may have to  the Trust or the beneficial owners for the Trustee’s own bad faith, willful misconduct or gross  negligence in the performance of its express duties under this Declaration. In particular, but not  by way of limitation of the foregoing:  (i) the Trustee shall not be liable for any error of judgment made in  good faith by a Responsible Officer of the Trustee, unless it shall be proved that the Trustee was  negligent in ascertaining the pertinent facts;  (ii) subject to Section 10.4(a), the Trustee shall not be liable with  respect to any action it takes, or any action it refrains from taking, in good faith in accordance  with the direction of a Majority of Holders relating to the time, method and place of conducting  any proceeding for any remedy available to the Trustee, or exercising any trust or power  conferred upon the Trustee under this Declaration;  (iii) no provision of this Declaration shall require the Trustee to expend  or risk its own funds or otherwise incur personal financial liability in the performance of any of  its duties or in the exercise of any of its rights or powers;  

 

    -27-  4895-0578-8168 v.5  (iv) the Trustee’s sole duty with respect to the custody, safe keeping  and physical preservation of Trust Property, including the Trust Property Account, shall be to  deal with such property in the same manner as the manner in which the Trustee deals with  similar property for its own account or for the account of other trusts for which it acts as trustee,  subject to the protections, benefits, privileges, immunities and limitations on liability afforded to  the Trustee under this Declaration;  (v) the Trustee shall have no duty or liability for or with respect to the  value, genuineness, existence or sufficiency of the Trust Property or the payment of any taxes or  assessments levied thereon or in connection therewith or for or in respect of the validity or  sufficiency of the documents to which the Trust or the Trustee is a party and the Trustee shall in  no event assume or incur any liability, duty or obligation to any Person other than as expressly  provided for herein; and  (vi) the Trustee shall have no obligation to monitor the value of  Eligible Trust Assets.  (c) In no event shall the Trustee or the Delaware Trustee be responsible or  personally liable (i) for special, indirect, consequential or punitive damages, however styled,  including, without limitation, lost profits, (ii) for the acts or omissions of its correspondents,  clearing agencies or securities depositories, (iii) for the acts or omissions of any nominee,  brokers or dealers selected by it with reasonable care, or (iv) for any failure or delay in the  performance of its obligations under this Declaration, or losses, arising out of or caused, directly  or indirectly, by circumstances beyond its control, including, without limitation, acts of God;  earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics or  pandemics; riots; interruptions; loss or malfunctions of utilities, computer (hardware or  software), the unavailability of the Federal Reserve Bank wire or facsimile or other  communication services, including Internet services; accidents; labor disputes; acts of civil or  military authority and governmental action (it being understood that the Trustee or the Delaware  Trustee, as applicable, shall use reasonable efforts that are consistent with accepted practices in  the banking industry to resume performance as soon as practicable under the circumstances).  Neither the Trustee nor the Delaware Trustee shall have responsibility for the accuracy of any  information provided to the Holders or any other Person that has been obtained from, or provided  to the Trustee or the Delaware Trustee by, any other Person, so long as the Trustee or the  Delaware Trustee, as applicable, faithfully reproduces such information.  Section 4.7 Certain Rights of the Trustee.  (a) The Trustee shall have the following rights under this Declaration (which  list shall in no way limit other rights the Trustee has as expressly set forth in other provisions of  this Declaration):  (i) the Trustee may conclusively rely on and shall be fully protected in  acting or refraining from acting upon any signature, resolution, certificate, statement, instrument,  opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence  of indebtedness or other paper or document whether in its original form or in the form of a PDF  

 

      4895-0578-8168 v.5  reasonably believed by it to be genuine and to have been signed, sent or presented by the proper  party or parties;  (ii) any direction or act of the Depositor acting on behalf of or in  connection with the Trust as contemplated by this Declaration shall be sufficiently evidenced by  an Officer’s Certificate of the Depositor;  (iii) whenever in the administration of this Declaration, the Trustee  shall deem it desirable that a matter be proved or established before taking, suffering or omitting  any action hereunder, the Trustee (unless other evidence is herein specifically prescribed) may  request and, in the absence of bad faith on its part, conclusively rely upon an Officer’s Certificate  of the Person charged with such proof or establishment;  (iv) except as expressly set forth in Section 7.1, the Trustee (in its  capacity as such) shall have no duty to see to any recording, filing or registration of any  instrument (including any financing or continuation statement or any filing under tax or  securities laws) or any re-recording, re-filing or re-registration thereof;  (v) the Trustee may consult with counsel or other experts of its own  selection and the advice or opinion of such counsel and experts with respect to legal matters or  advice within the scope of such experts’ area of expertise shall be full and complete  authorization and protection in respect of any action taken, suffered or omitted by the Trustee  hereunder in good faith and in accordance with such advice or opinion; such counsel may be  counsel to the Depositor or any of its Affiliates, and may include any of its employees;  (vi) the Trustee shall have the right at any time to seek instructions  concerning the administration of this Declaration from any court of competent jurisdiction;  (vii) the Trustee shall be under no obligation to exercise any of the  rights or powers vested in it by this Declaration or at the request or direction of any Holder or the  Depositor, unless (A) such Holder or the Depositor shall have provided to the Trustee security  and indemnity, reasonably satisfactory to the Trustee, against the costs, expenses (including  reasonable attorneys’ fees and expenses and the reasonable expenses of the Trustee’s agents,  nominees or custodians), disbursements and liabilities that might be incurred by it in complying  with such request or direction, including such reasonable advances as may be requested by the  Trustee, and (B) the Trustee has been provided with the legal opinions, if any, required by this  Declaration (the cost of which shall be paid by the Holder or the Depositor directing the Trustee  to act);  (viii) the Trustee shall not be bound to make any investigation into the  facts or matters stated in any signature, resolution, certificate, statement, instrument, opinion,  report, notice, request, direction, consent, order, bond, debenture, note, other evidence of  indebtedness or other paper or document. The Trustee need not investigate any fact or matter  stated in any such document, including verifying the correctness of any numbers or calculations,  but the Trustee, in its reasonable discretion, may make such further inquiry or investigation into  such facts or matters as it may deem necessary at the expense of the Trust and shall incur no  liability of any kind by reason of such inquiry or investigation;  

 

    -29-  4895-0578-8168 v.5  (ix) the Trustee may execute any of the trusts or powers hereunder or  perform any duties hereunder either directly or by or through agents, custodians, nominees or  attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of  any agent or attorney appointed with due care by it hereunder (so long as any such agent is not  an Affiliate of the Trustee);  (x) the Trustee shall be under no obligation to supervise or monitor,  and shall assume no personal liability for, the actions of the Depositor in connection with its  duties under this Declaration, the Transaction Agreements or in connection with the Trust  generally;  (xi) any action taken by the Trustee or its agents hereunder shall bind  the Trust and the Holders, and the signature of the Trustee or its agents alone shall be sufficient  and effective to perform any such action and no third party shall be required to inquire as to the  authority of the Trustee to so act or as to its compliance with any of the terms and provisions of  this Declaration, both of which shall be conclusively evidenced by the Trustee’s or its agent’s  taking such action;  (xii) subject to Section 10.4, whenever in the administration of this  Declaration the Trustee shall deem it desirable to receive instructions with respect to enforcing  any remedy or right or taking any other action hereunder or exercising any discretion (by,  consent, designation, specification, requirement or approval of, notice, request or other  communication from, or other direction given or action to be undertaken or to be (or not to be)  suffered or omitted by the Trustee), the Trustee (A) shall request instructions from a Majority of  Holders (unless another provision of this Declaration requires the consent of a greater proportion  of the Holders, in which case it shall request instructions from such greater proportion of the  Holders), (B) may refrain from enforcing such remedy or right or taking such other action until  such instructions are received, and (C) shall be fully protected and shall be treated as acting  reasonably in conclusively relying on or acting in accordance with such instructions and in not  acting, to the extent instructions are not received within a specified period;  (xiii) except as otherwise expressly provided by this Declaration, the  Trustee shall not be under any obligation to take any action that is discretionary under the  provisions of this Declaration;  (xiv) the Trustee shall not be required to take any action if the Trustee  shall reasonably determine, or shall be advised by counsel, that such action is likely to result in  personal liability for the Trustee or is contrary to applicable law or the terms of this Declaration  or the Transaction Agreements;  (xv) under no circumstances shall the Trustee be liable for indebtedness  evidenced by or arising under any of the documents to which the Trust or the Trustee is a party,  including the Trust Securities;  (xvi) the Trustee shall have no obligation or liability to perform the  obligations of the Trust under this Declaration or any other document to which the Trust or the  Trustee is a party that are required to be performed by other Persons, including the Depositor;  

 

      4895-0578-8168 v.5  (xvii) the rights, privileges, protections, immunities and benefits given to  the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall  be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and  other Person employed to act hereunder; and  (xviii) the Trustee may request that the Depositor deliver a certificate  setting forth the names of individuals and titles of officers authorized at such time to take  specified actions on behalf of the Depositor pursuant to this Declaration, which certificate may  be signed by any person authorized to sign an Officer’s Certificate, including any person  specified as so authorized in any such certificate previously delivered and not superseded.  (b) No provision of this Declaration or any Transaction Agreement shall be  deemed to impose any duty or obligation on the Trustee to perform any act or acts or exercise  any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in which it  shall be illegal, or in which the Trustee shall be unqualified or incompetent in accordance with  applicable law, to perform any such act or acts, or to exercise any such right, power, duty or  obligation.  (c) Under no circumstance shall the Trustee be personally liable for any  representation, warranty, covenant, obligation or indebtedness of the Trust.  (d) Each of the parties hereto hereby agrees and, as evidenced by its  acceptance of any benefits hereunder, each Holder or beneficial owner of the Trust Securities  agrees that the Trustee in any capacity (i) has not provided and shall not provide in the future,  any advice, counsel or opinion regarding the tax, financial, investment, securities law or  insurance implications and consequences of the formation, funding and ongoing administration  of the Trust, including, but not limited to, income, gift and estate tax issues, insurable interest  issues, risk retention issues, doing business or other licensing matters and the initial and ongoing  selection and monitoring of financing arrangements and (ii) has not made any investigation as to  the accuracy of any representations, warranties or other obligations of the Trust under the  Transaction Agreements.  (e) The Trustee shall not be deemed to have knowledge of an event of default  in respect of the Trust Securities or the Senior Notes, or of any Mandatory Exercise Event,  Automatic Exercise Event or Change in Control Trigger Event, until one of its Responsible  Officers has received written notice thereof. The Trustee shall not be deemed to have knowledge  of any other fact or event unless a Responsible Officer of the Trustee has received a written  notice of such fact or event.  (f) The responsibility of the Trustee related to corporate actions for the Trust  Securities shall be limited to timely forwarding any notices it receives to the Holders and acting  at the direction of such Holders.  (g) The Trustee has not prepared or verified, and shall not be responsible or  liable for, any information, disclosure or other statement in any disclosure or offering document,  including the Offering Memorandum and the Trust Securities Purchase Agreement, or in any  other document issued or delivered in connection with the sale or transfer of the Trust Securities.  

 

    -31-  4895-0578-8168 v.5  Section 4.8 Multiple Roles. The parties expressly acknowledge and consent to  Deutsche Bank acting in the capacity of Trustee, as Collateral Agent under the Pledge  Agreement, as Securities Intermediary, as the Notes Trustee under the Indenture and as  Administrative Agent under the LC Facility Agreement. Each of the Trustee, the Securities  Intermediary, the Collateral Agent, the Administrative Agent and the Notes Trustee may, in such  capacity, discharge its separate functions fully, without hindrance or regard to conflict of interest  principles, duty of loyalty principles or other breach of fiduciary duties to the extent any such  conflict or breach arises from the performance by the Trustee of express duties set forth in this  Declaration, the Administrative Agent under the LC Facility Agreement, the Collateral Agent  and Securities Intermediary of express duties set forth in the Pledge Agreement or the Notes  Trustee of express duties set forth in the Facility Agreement and in the Indenture, all of which  defenses, claims or assertions are hereby expressly waived by the other parties hereto and the  Holders.  Section 4.9 Anti-Money Laundering Laws. In order to comply with the laws, rules,  regulations and executive orders in effect from time to time applicable to banking institutions,  including, without limitation, those relating to the funding of terrorist activities and money  laundering, including Section 326 of the USA PATRIOT Act of the United States (“Applicable  AML Law”), the Trustees are required to obtain, verify, record and update certain information  relating to individuals and entities which maintain a business relationship with the Trustees.  Accordingly, each of the parties hereto agree to provide to the Trustees, upon their request from  time to time such identifying information and documentation as may be available for such party  in order to enable the Trustees to comply with Applicable AML Law.  ARTICLE V    THE TRUST SECURITIES  Section 5.1 Description of the Trust Securities.  (a) The specific rights, powers and terms of the Trust Securities shall be as set  forth in this Declaration. Each Trust Security shall represent an undivided beneficial interest in  the Trust Property, and distributions shall be made in respect of the Trust Securities at the times  and in the amounts specified in this Declaration.  (b) Each Trust Security shall have an initial purchase price of $1,000, with a  minimum purchase amount of $100,000. Unless otherwise specified in this Declaration, the Trust  Securities shall be issued as definitive Trust Securities in substantially the form attached as  Exhibit B with appropriate insertions, modifications and omissions, as provided herein.  (c) Unless otherwise specified in this Declaration, each Trust Security shall  bear a legend as described in the form of Certificate attached as Exhibit B. The Trust Securities  may be endorsed with or have incorporated into the text thereof such other legends or recitals not  inconsistent with the provisions of this Declaration as may be required by the Trustee, or  required to comply with any applicable law or regulation. The Depositor shall furnish the Trustee  with all information necessary for the completion of any legend on the Trust Securities required  

 

      4895-0578-8168 v.5  by the federal income taxation or securities laws or regulations to the extent such information is  obtainable at the time of original issuance of the Trust Securities.  (d) The Trust Securities shall be typewritten, printed, lithographed or  engraved (with or without steel engraved borders), or produced by any combination of the  foregoing methods.  (e) The Trust Securities issued and sold as contemplated herein and in the  Trust Securities Purchase Agreement shall be deemed to be duly issued, fully paid and, to the  fullest extent permitted by applicable law, nonassessable.  (f) All Trust Securities shall represent an equal proportionate beneficial  interest in the assets belonging to the Trust (subject to the liabilities of the Trust), and each Trust  Security shall be equal to each other Trust Security.  (g) So long as the Depositary, or its nominee, is the registered owner of any  Global Certificate, the Depositary, or its nominee, shall be considered by the Trust, the Trustee  and any agent as the sole owner or holder of the Trust Securities represented by such Global  Certificate for all purposes whatsoever under this Declaration. None of the Trust, the Trustee or  any agent will have any responsibility or liability for any aspect of the records relating to or  payment made on account of beneficial ownership interests of a Global Certificate or for  maintaining, supervising or reviewing any records relating to such beneficial ownership interests.  Neither the Trustee nor any agent shall have any responsibility or liability for any actions taken  or not taken by the Depositary. The Trustee and agents shall be fully protected in relying upon  information furnished by the Depositary with respect to its agent members and other members,  participants and any beneficial owners.  Section 5.2 Execution of Certificates. The Trust Securities shall be executed by the  Trustee on behalf of the Trust by the manual, facsimile or electronic signature of an authorized  signatory of the Trustee, with the Trustee acting not in its individual capacity but solely as  trustee of the Trust. On the date hereof the Trustee shall execute and deliver one or more of the  Certificates evidencing 1,000,000 Trust Securities to or upon the order of the Initial Purchasers.  Trust Securities bearing the signature of an individual that was an authorized signatory of the  Trustee at the time of execution thereof shall constitute valid Trust Securities, notwithstanding  that any such individual has ceased to hold such office at any time thereafter. All Trust Securities  shall be dated the date of their execution and delivery.  Section 5.3 Registration of Certificates. The Trustee shall keep or cause to be kept at  the Corporate Trust Office a Register in which, subject to such reasonable regulations as the  Trustee may prescribe and subject to Section 5.5, the Trustee shall provide for the registration of  ownership of the Trust Securities and of transfers and exchanges of the Trust Securities as  provided in Section 5.4.  Section 5.4 Transfer and Exchange of Trust Securities.  (a) Subject to Section 5.5 and Section 5.16, a Holder may transfer any Trust  Security at the Corporate Trust Office upon the surrender of such Trust Security, together with  the form of transfer endorsed thereon duly completed and executed, and otherwise in accordance  

 

    -33-  4895-0578-8168 v.5  with the provisions of this Declaration. Each new Trust Security to be issued shall be available  for delivery within two Business Days of receipt by the Trustee at the Corporate Trust Office of  the relevant Trust Security and the form of transfer.  (b) Each Trust Security issued upon any registration of transfer or exchange  of Trust Securities shall evidence rights to receive the same distributions in accordance with this  Declaration and shall be entitled to the same benefits as the original Trust Security surrendered  upon such registration of transfer or exchange. A transferee of a Trust Security shall become a  Holder, and shall be entitled to the rights and subject to the obligations of a Holder hereunder,  upon due registration of such Trust Security in such transferee’s name pursuant to this Section  5.4.  (c) Every Trust Security presented for registration of transfer or exchange  shall, if so requested by the Trustee, be duly endorsed or be accompanied by a written instrument  of transfer in a form satisfactory to the Trustee and duly executed by either the Holder or such  Holder’s attorney duly authorized in writing. Each Trust Security surrendered for registration of  transfer or exchange shall be cancelled and subsequently destroyed by the Trustee in accordance  with its customary practices in effect from time to time.  (d) No service charge shall be made for any transfer or exchange of Trust  Securities, but the Trustee may require payment by the Holder requesting such action of a sum  sufficient to cover any tax or governmental charge that may be imposed in connection with such  transfer or exchange and may require the production of proof reasonably satisfactory to it as to  the identity and genuineness of any signature. The Trustee may also require compliance with the  requirements described herein and with such regulations as the Trustee may reasonably establish  consistent with the provisions of this Declaration.  (e) If at any time the Depositor or any of its Affiliates (in either case, a  “Depositor Affiliated Owner/Holder”) is the beneficial owner or Holder of any Trust Securities  and the Trust holds a Like Amount of Senior Notes, such Depositor Affiliated Owner/Holder  shall have the right to deliver to the Trustee all or such portion of its Trust Securities as it elects  (the “Exchanged Trust Securities”) and receive, in exchange therefor, a Like Amount of Senior  Notes (the “Exchanged Senior Notes”). Such election (i) shall be exercisable effective on any  Business Day by such Depositor Affiliated Owner/Holder delivering to the Trustee a written  notice of such election specifying the aggregate number of Exchanged Trust Securities and the  Business Day on which such exchange shall occur, which Business Day shall be not less than  five Business Days after the date of receipt by the Trustee of such election notice (or such shorter  notice period as shall be acceptable to the Trustee) and (ii) shall be conditioned upon such  Depositor Affiliated Owner/Holder having delivered or caused to be delivered to the Trustee or  its designee the Exchanged Trust Securities by 10:00 a.m. on the Business Day on which such  exchange is to occur. After the exchange, the Exchanged Trust Securities shall be cancelled and  shall no longer be deemed to be Outstanding and all rights of the Depositor Affiliated  Owner/Holder with respect to the Exchanged Trust Securities shall cease. In the case of an  exchange under this Section 5.4(e), the Trust shall, on the date of such exchange, exchange the  Exchanged Senior Notes for the Exchanged Trust Securities held by the Depositor Affiliated  Owner/Holder; provided that the Depositor Affiliated Owner/Holder delivers or causes to be  

 

      4895-0578-8168 v.5  delivered to the Trustee or its designee the Exchanged Trust Securities by 10:00 a.m. on the  Business Day on which such exchange is to occur.  Section 5.5 Restrictions on Transfer of the Trust Securities.  (a) The Trust Securities may be sold or otherwise transferred only to a Person  (an “Eligible Purchaser”): who is (i) a “qualified institutional buyer” as defined in Rule 144A  under the Securities Act; (ii) a “qualified purchaser” as defined under Section 2(a)(51) of the  Investment Company Act and the rules thereunder; (iii) not formed for the purpose of investing  in the Trust or the Senior Notes; (iv) knowledgeable, sophisticated and experienced in business  and financial matters; (v) able and prepared to bear the economic risk of investing in and holding  the Trust Securities for an indefinite period; and (vi) not (A) an employee plan (as defined in  Section 3(3) of ERISA) that is subject to ERISA or a plan described in Section 4975 of the Code,  (B) a governmental plan (as defined in Section 3(32) of ERISA), a church plan (as defined in  Section 3(33) of ERISA) or a non-U.S. plan (as described in Section 4(b)(4) of ERISA) that is  not subject to the requirements of ERISA or the Code but is subject to similar provisions under  applicable federal, state, local, non-U.S. or other laws (collectively, “Similar Laws”) or (C) an  entity whose underlying assets are considered to include plan assets of any such plans, pursuant  to Section 3(42) of ERISA, Department of Labor Regulations or otherwise.  (b) By purchasing or acquiring any Trust Securities or beneficial interest  therein, each purchaser or acquirer shall be deemed to represent, covenant to and agree (or, if  such Person is acquiring any Trust Securities for the account of one or more other Persons over  which such Person has investment discretion, such Person shall be deemed to represent, covenant  and agree for each such other person) with the Trust as follows:  (i) that any purchase of Trust Securities made by such purchaser is for  its own account or for the account of one or more other Persons that is an Eligible Purchaser and  for which it is acting as trustee or agent with complete investment discretion and with authority  to bind such party;  (ii) that such purchase is not made with a view to any public resale or  distribution thereof;  (iii) that the Trust Securities may not be reoffered or resold in Puerto  Rico, Alabama or New Mexico;  (iv) that such purchaser is an Eligible Purchaser, and that the seller of  the Trust Securities may be relying on the exemption from the provisions of Section 5 of the  Securities Act provided by Rule 144A under the Securities Act;  (v) that the Trust Securities and the Senior Notes, if and when issued  and sold to the Trust, have not been, and will not be registered under the Securities Act or  applicable securities laws of any state or other jurisdiction and, accordingly, such purchaser of  Trust Securities and the Senior Notes, if and when issued and sold to the Trust, may not offer,  sell, pledge, hypothecate or otherwise transfer such Trust Securities and the Senior Notes, if and  when issued and sold to the Trust, except pursuant to an exemption from or a transaction exempt  

 

    -35-  4895-0578-8168 v.5  from, the registration requirements of the Securities Act and applicable securities laws of any  state or other jurisdiction and only pursuant to the procedures set forth in this Declaration;  (vi) that the Trust is not registered as an investment company under the  Investment Company Act, and is exempt from registration as such by virtue of Section 3(c)(7) of  the Investment Company Act, which excludes from the definition of investment company any  issuer whose outstanding securities (other than short-term paper) are beneficially owned  exclusively by Persons that are qualified purchasers and which has not made and does not  propose to make a public offering of its securities;  (vii) that if the prospective purchaser or acquirer is not an Eligible  Purchaser that satisfies the requirements or representations contained in this Declaration at the  time it purchases or acquires the Trust Securities or an interest therein, the purchaser or acquirer  will, upon demand of the Trust and in any event within 10 Business Days after receiving such  demand, sell all of its Trust Securities or interests therein to a transferee whom such purchaser or  acquirer and the Trust reasonably believe is an Eligible Purchaser that satisfies the requirements  or representations contained in this Declaration; that any purported purchase or transfer of the  Trust Securities in violation of such measures will be null and void; and that the Trust may  withhold all payments in respect of the Trust Securities from Holders who fail to satisfy the  foregoing;  (viii) that the Offering Memorandum distributed to prospective  purchasers of Trust Securities was prepared solely for the benefit of prospective Eligible  Purchasers, in connection with their potential purchase of the Trust Securities in a private  placement; and that, except as expressly permitted by such Offering Memorandum, the  prospective purchaser shall not reproduce or distribute the Offering Memorandum, in whole or in  part, or disclose any of its contents, to any other person;  (ix) that in making decisions as to whether to purchase or sell any Trust  Securities or, if sold to the Trust, the Senior Notes, such purchaser must rely on its own  examination of the Trust, Constellation and the terms of the Trust Securities and the Senior  Notes; and that such purchaser has had access to such financial and other information concerning  Constellation, the Trust, the Trust Securities, and the Senior Notes as it has deemed necessary in  connection with its decision to purchase any of the Trust Securities, including an opportunity to  ask questions of and request information from Constellation, and it has received and reviewed all  information that was requested;  (x) that such purchaser agrees to comply with any other transfer  restrictions or other related procedures as described in the Offering Memorandum;  (xi) that the Trust and Constellation will rely upon the truth and  accuracy of the investment representations and agreements contained in this Declaration, and  such purchaser agrees that its receipt of the Trust Securities and the Senior Notes, if and when  issued and sold to the Trust, will be deemed to constitute its concurrence in all of the foregoing,  which will be binding on such purchaser and each party for which such purchaser is acting as set  forth in Section 5.5(b)(i);  

 

      4895-0578-8168 v.5  (xii) that such purchaser agrees (A) to inform the Trust and  Constellation promptly of any change in the information and representations and warranties  specified in this Declaration relating to such purchaser or to any party for whom it is acting, (B)  to supply promptly any documentation, including any opinions of counsel, requested by the Trust  at any time to confirm any of the representations and warranties made in this Declaration and (C)  to deliver to the Trust and Constellation such other representations and covenants as to such  matters as Constellation may, in the future, request in order to comply with applicable law and  the availability of any exemption therefrom;  (xiii) that such purchaser will provide notice of the transfer restrictions  applicable to the Trust Securities or, if sold to the Trust, the Senior Notes, to any subsequent  Person to whom it transfers the Trust Securities or, if sold to the Trust, the Senior Notes, and will  transfer the Trust Securities only to investors in the United States, Bermuda, the British Virgin  Islands, Canada, the Cayman Islands, the European Economic Area, Hong Kong, Japan, Jersey,  Singapore, Switzerland and the United Kingdom in compliance with the applicable securities  laws of those jurisdictions;  (xiv) that a restrictive legend to the following effect shall be placed on  the Certificates and stop-transfer instructions shall be issued to the transfer agent for the Trust  Securities, unless the Trustee determines otherwise in accordance with applicable law:  THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED  UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),  OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND  MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT  TO A PERSON WHO IS (A) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN  RULE 144A UNDER THE SECURITIES ACT); (B) A “QUALIFIED PURCHASER” (AS  DEFINED UNDER SECTION 2(A)(51) OF THE INVESTMENT COMPANY ACT OF 1940;  AS AMENDED (THE “INVESTMENT COMPANY ACT”)); (C) NOT FORMED FOR THE  PURPOSE OF INVESTING IN THE TRUST OR THE SENIOR NOTES; (D)  KNOWLEDGEABLE, SOPHISTICATED AND EXPERIENCED IN BUSINESS AND  FINANCIAL MATTERS; (E) ABLE AND PREPARED TO BEAR THE ECONOMIC RISK  OF INVESTING AND HOLDING THE TRUST SECURITIES FOR AN INDEFINITE  PERIOD; AND (F) NOT (I) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION  3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS  AMENDED (“ERISA”)) THAT IS SUBJECT TO ERISA, OR A PLAN DESCRIBED IN  SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, (II) A  GOVERNMENTAL PLAN (AS DEFINED IN SECTION 3(32) OF ERISA), A CHURCH  PLAN (AS DEFINED IN SECTION 3(33) OF ERISA) OR A NON-U.S. PLAN (AS  DESCRIBED IN SECTION 4(B)(4) OF ERISA) THAT IS NOT SUBJECT TO THE  REQUIREMENTS OF ERISA OR THE CODE BUT IS SUBJECT TO SIMILAR  PROVISIONS UNDER APPLICABLE FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER  LAWS (“SIMILAR LAWS”) OR (III) AN ENTITY WHOSE UNDERLYING ASSETS ARE  CONSIDERED TO INCLUDE PLAN ASSETS OF ANY SUCH PLANS PURSUANT TO  SECTION 3(42) OF ERISA, DEPARTMENT OF LABOR REGULATIONS OR OTHERWISE.  

 

    -37-  4895-0578-8168 v.5  THE SECURITIES EVIDENCED HEREBY MAY BE TRANSFERRED ONLY TO A  PERSON WHO THE TRUST REASONABLY BELIEVES QUALIFIES AS A TRANSFEREE  PURSUANT TO THE PRECEDING PARAGRAPH. ANY PURPORTED TRANSFER OF  SECURITIES OF THE TRUST THAT WOULD VIOLATE THESE TRANSFER  RESTRICTIONS IS DEEMED BY THE TRUST’S AMENDED AND RESTATED  DECLARATION OF TRUST (THE “TRUST DECLARATION”) TO BE VOID AND OF NO  LEGAL EFFECT WHATSOEVER. ANY INTENDED TRANSFEREE IN SUCH A  PURPORTED TRANSFER SHALL NOT BECOME OR BE THE HOLDER OF SUCH  SECURITIES FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO THE RECEIPT  OF DISTRIBUTIONS ON SUCH SECURITIES, AND SUCH INTENDED TRANSFEREE  SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.  IN SUCH A CASE, THE PURPORTED TRANSFEROR IS DEEMED BY THE TRUST  DECLARATION TO CONTINUE TO BE THE HOLDER OF THE SECURITIES  NOTWITHSTANDING THE PURPORTED TRANSFER OF THE SECURITIES.  THE TRUST RESERVES THE RIGHT TO MODIFY THE FORM OF CERTIFICATES  EVIDENCING THE TRUST SECURITIES FROM TIME TO TIME TO REFLECT ANY  CHANGES IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION  THEREOF) OR IN PRACTICES RELATING TO THEIR PURCHASE OR RESALE. THE  TRUST SECURITIES AND RELATED DOCUMENTATION, INCLUDING THIS LEGEND,  MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY  RESTRICTIONS ON AND PROCEDURES FOR RESALES AND OTHER TRANSFERS OF  THE TRUST SECURITIES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR  REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING  TO THE RESALE OR TRANSFER OF SECURITIES SUCH AS THE TRUST SECURITIES  GENERALLY. EACH HOLDER OF THIS CERTIFICATE SHALL BE DEEMED, BY THE  ACCEPTANCE OF THIS CERTIFICATE, TO HAVE AGREED TO ANY SUCH  AMENDMENT OR SUPPLEMENT.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR  SECURITIES IN DEFINITIVE FORM, THIS CERTIFICATE MAY NOT BE  TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A  NEW YORK CORPORATION (“DTC”), TO A NOMINEE OF DTC, BY A NOMINEE OF  DTC TO DTC, OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR TO DTC OR  ANY NOMINEE OF SUCH A SUCCESSOR.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC, TO THE TRUST OR ITS AGENT FOR REGISTRATION OF  TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS  REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS  REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT  IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN  AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER  USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL  INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST  HEREIN.  

 

      4895-0578-8168 v.5  (xv) that from the date of acquisition of the Trust Securities (or interest  therein), throughout the period of holding such Trust Securities (or interest therein), it is not, and  it is not acquiring or holding such Trust Securities (or interest therein), with the assets of, (A)  any employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to ERISA or any  plan described in Section 4975 of the Code, (B) a governmental plan (as defined in Section 3(32)  of ERISA), a church plan (as defined in Section 3(33) of ERISA) or a non-U.S. plan (as  described in Section 4(b)(4) of ERISA) that is subject to Similar Laws or (C) any entity whose  underlying assets are considered to include plan assets of any such plans pursuant to Section  3(42) of ERISA, Department of Labor regulations or otherwise;  (xvi) that it waives any objection to the exercise of the Issuance Right  and confirms, acknowledges and agrees that (A) it is making an investment decision with respect  to Constellation and the Senior Notes at the time of its purchase of the Trust Securities, (B)  Constellation may, at any time and for any reason, exercise its right under the Facility  Agreement to require the Trust to purchase the Senior Notes up to the Maximum Amount, in  exchange for all or a portion of the Eligible Treasury Assets (other than any Retained Eligible  Treasury Assets) corresponding to the portion of the Issuance Right being exercised at such time,  (C) the Issuance Right will be deemed to be exercised automatically, and Constellation may be  required to exercise such Issuance Right under a Mandatory Exercise, in which case the Trust  will be required to purchase the Senior Notes, and the Holders and beneficial owners of the Trust  Securities will not have the benefit of the Eligible Treasury Assets, (D) Constellation’s  condition, financial or otherwise, may have deteriorated at the time of exercise of such Issuance  Right and (E) except as otherwise provided herein, if such Issuance Right is exercised for the  entire Available Amount and the Repurchase Right has terminated, the Trust will be liquidated  and the Holders will thereafter hold only the Senior Notes;  (xvii) that it understands and acknowledges that Deutsche Bank will act  in the capacity of Trustee hereunder (and Deutsche Bank’s affiliate Deutsche Bank Trust  Company Delaware will act as Delaware Trustee hereunder), and will also act as Collateral  Agent under the Pledge Agreement and as Notes Trustee under the Facility Agreement and under  the Senior Note Indenture and agrees and consents that Deutsche Bank may, in such capacities,  discharge its separate functions fully, without hindrance or regard to conflict of interest  principles, duty of loyalty principles or other breach of fiduciary duties, to the extent that any  such conflict or breach arises from the performance by Deutsche Bank of its express duties set  forth herein, in the Offering Memorandum, the Pledge Agreement, the Facility Agreement and  the Indenture, all of which defenses, claims or assertions are waived by the Holders and the  parties hereunder and the parties to the Pledge Agreement and the Facility Agreement; and  (xviii) that, to the fullest extent permitted by applicable law, it waives,  forfeits and surrenders any right it may have, on any basis or theory, to object or seek to restrain  or prohibit, temporarily or permanently, whether upon occurrence of a Bankruptcy Event or  otherwise, (A) the Trust from purchasing the Senior Notes in exchange for the Eligible Treasury  Assets in accordance with the Facility Agreement, including, but not limited to, upon the  occurrence of an Automatic Exercise or Mandatory Exercise and whether or not a Bankruptcy  Event has occurred, (B) the Trust from delivering the Eligible Treasury Assets in exchange for  the Senior Notes in accordance with the Facility Agreement upon a Repurchase and (C) the Trust  

 

    -39-  4895-0578-8168 v.5  from redeeming the Trust Securities in accordance with Section 5.10 upon redemption of the  Senior Notes.  (c) No Trust Securities shall be transferred, in whole or in part, except in  accordance with the terms and conditions set forth in this Declaration. Any purported transfer of  Trust Securities not made in accordance with this Declaration (including any transfer that  violates Section 5.4, this Section 5.5 or Section 5.16) shall be void and of no legal effect  whatsoever. Any intended transferee in a purported transfer not made in accordance with this  Declaration (including any transfer that violates Section 5.4, this Section 5.5 or Section 5.16)  shall be deemed not to be the Holder or beneficial owner of such Trust Securities or any other  interest in the Trust for any purpose, including the receipt of Distributions and any other  payments on such Trust Securities, and shall be deemed to have no interest whatsoever in such  Trust Securities or in the Trust. The purported transferor of such Trust Securities shall be deemed  to be the Holder and beneficial owner of such Trust Securities for all purposes notwithstanding  its purported transfer of such Trust Securities. The Transfer Agent shall not register the issuance  of, the transfer of or exchange any of the Trust Securities not made in accordance with this  Declaration (including any transfer that violates Section 5.4, this Section 5.5 or Section 5.16).  (d) The Trustee shall not have any obligation or duty to monitor, determine or  inquire as to compliance with any restrictions on transfer imposed under this Declaration or  under applicable law with respect to any transfer of any interest in any Trust Security (including  any transfers between or among participants or indirect participants in any Global Certificate)  other than to require delivery of such certificates and other documentation or evidence as are  expressly required by, and to do so if and when expressly required by, the terms of this  Declaration, and to examine the same to determine substantial compliance as to form with the  express requirements hereof.  Section 5.6 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated  Certificates are surrendered to the Trustee, or if the Trustee shall receive evidence to its  satisfaction of the destruction, loss or theft of any Certificate, and (b) there shall be delivered to  the Trustee such security or indemnity as may be required by them to keep each of the Trustee  and the Trust harmless; then, in the absence of notice that such Certificate shall have been  acquired by a bona fide purchaser, the Trustee on behalf of the Trust shall execute and deliver, in  exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new  Certificate of like denomination. In connection with the issuance of any new Certificate under  this Section 5.6, the Trustee may require the payment of a sum sufficient to cover any tax or  other governmental charge that may be imposed in connection therewith. Any duplicate  Certificate issued pursuant to this Section 5.6 shall constitute conclusive evidence of an  ownership interest in the relevant Trust Securities, as if originally issued, whether or not the lost,  stolen or destroyed Certificate shall be found at any time.  Section 5.7 Deemed Holders. Except as otherwise provided by law, but without  prejudice to Section 5.5, the Trustee may treat the Person in whose name any Certificate shall be  registered on the Register as the sole Holder of such Certificate and of the Trust Securities  represented by such Certificate for purposes of receiving Distributions and for all other purposes  whatsoever and, accordingly, shall not be bound to recognize any equitable or other claim to or  

 

      4895-0578-8168 v.5  interest in such Certificate or in the Trust Securities represented by such Certificate on the part of  any Person, whether or not the Trust shall have actual or other notice thereof.  Section 5.8 Distributions.  (a) All Distributions on the Trust Securities shall be made in accordance with  this Section 5.8, other than those Distributions made in accordance with Section 5.10 in  connection with a Change of Control Triggering Event, Optional Redemption or Voluntary  Exercise or Mandatory Exercise as to which Constellation has made a Cash Settlement Election,  or in accordance with Section 8.2 in connection with dissolution or liquidation of the Trust;  provided that, notwithstanding the foregoing, if the Trust Dissolution Date occurs following any  record date for a Distribution to Holders and prior to the related Distribution Date, in lieu of this  Section 5.8, the provisions of Section 8.2 shall apply. All Distributions to Holders made in  accordance with this Section 5.8 shall be subject to the priorities set forth in Section 5.8(b).  (b) (i) The Trustee shall distribute all Trust Income held in the Trust Property  Account by 3:00 p.m. on each Distribution Date, if (A) the Trust has received all payments due  on such date with respect to the Eligible Treasury Assets (other than any Retained Eligible  Treasury Assets) that are not Defaulted Assets and Constellation has paid for all Defaulted  Eligible Treasury Assets required to be purchased at their face amount from the Trust pursuant to  Section 4.3 of the Facility Agreement and (B) the Trust has received all amounts due under the  Facility Agreement, the Trust Expense Reimbursement Agreement and the Senior Notes, in each  case, by 11:00 a.m. on such day, in accordance with the following priorities:  (1) first, in payment of any Trustee’s Fee and any Trust Expenses then  due and payable (to the extent that such Trustee’s Fee or Trust Expenses are not  paid out of any Remaining Amounts as required pursuant to Section 2.9(b));  (2) second, in satisfaction of any other outstanding obligations of the  Trust then due and payable (including obligations of the Trust to the Trustee, not  satisfied pursuant to Section 5.8(b)(i)(1)), pro rata among the creditors in  accordance with the aggregate unpaid amount due to each; and  (3) third, to the Holders, pro rata with respect to each Trust Security  Outstanding on the Record Date relating to such Distribution Date.  (ii) If the Issuance Right has been exercised under the Facility  Agreement for settlement on such Distribution Date, prior to the termination of the LC  Agreement, Eligible Treasury Assets that are pledged to the Collateral Agent shall only be  delivered to Constellation by the Trust if, upon the delivery of such Eligible Treasury Assets to  Constellation (i) such Eligible Treasury Assets will continue to be pledged to the Collateral  Agent pursuant to the Pledge Agreement, subject to no other liens (other than Permitted Liens)  and (ii) no default would exist or result under the LC Agreement or the Pledge Agreement from  such delivery of the Eligible Treasury Assets. Notwithstanding the foregoing, if the Trust is  required to apply any redemption proceeds of Senior Notes or Cash Settlement Payments to  redeem any Trust Securities on such Distribution Date, such redemption proceeds and Cash  Settlement Payments shall be applied to redeem such Trust Securities.  

 

    -41-  4895-0578-8168 v.5  (iii) If (A) the Trustee has not received all payments due on any  Distribution Date with respect to the Eligible Treasury Assets (other than any Retained Eligible  Treasury Assets) that are not Defaulted Eligible Treasury Assets or Constellation has not paid for  all Defaulted Eligible Treasury Assets required to be purchased at their face amount from the  Trust pursuant to Section 5.3 of the Facility Agreement or (B) Constellation has not paid any  amount due under the Facility Agreement, the Trust Expense Reimbursement Agreement or the  Senior Notes before 11:00 a.m. but the Trustee has received all such payments (including the  purchase price of any such Defaulted Eligible Treasury Assets) prior to 5:00 p.m. on any  Distribution Date, the entire distribution shall be made on the following Business Day, without  any additional interest for the delay.  (iv) The Trustee shall apply the Remaining Amounts solely to pay the  Trustee’s Fee and Trust Expenses and the Trustee shall not apply any Trust Income to pay any  Trustee’s Fees or any Trust Expenses until the entire Remaining Amounts have been so applied.  (c) If amounts are not available to the Trust to make Distributions under  Section 5.8(b)(i)(1) for a particular Distribution Period for any reason, the Trust shall have no  obligation to make any Distribution on such Distribution Date, whether or not Distributions  under Section 5.8(b)(i)(1) on the Trust Securities are made for any future Distribution Period,  except to the extent provided for in Section 5.8(d) or Section 5.9.  (d) If (A) the Trustee has not received all payments due on any Distribution  Date with respect to the Eligible Treasury Assets (other than Retained Eligible Treasury Assets)  that are not Defaulted Eligible Treasury Assets or Constellation has not paid for all Defaulted  Eligible Treasury Assets required to be purchased at their face amount from the Trust pursuant to  Section 4.3 of the Facility Agreement or (B) Constellation has failed to pay any amount due  under the Facility Agreement, the Trust Expense Reimbursement Agreement or the Senior Notes,  by 5:00 p.m. on any Distribution Date (such amounts in clause (A) or (B) above, the “Overdue  Amounts”), the Trustee shall give prompt written notice thereof to Constellation, and the  Distribution specified in Section 5.8(b) that would otherwise be made on such Distribution Date  shall be deferred as follows:  (i) If the Trustee receives all of the Overdue Amounts and the  applicable Special Facility Fee within 30 days following such Distribution Date, the Trustee shall  distribute, on the Business Day following receipt, all such amounts in accordance with this  Declaration and the priorities specified in Section 5.8(b); provided that such Distribution shall be  payable to the Holders of the Trust Securities as of the close of business on the Business Day  immediately preceding the date of Distribution.  (ii) If the Trustee does not receive all of the Overdue Amounts and the  applicable Special Facility Fee, and Constellation has given notice to exercise the Issuance Right  for the entire Available Amount for settlement within 30 days following such Distribution Date  pursuant to the Facility Agreement, and no Trust Dissolution Date shall have occurred (in which  event the procedures in Section 8.1(b) shall apply), as provided in the Facility Agreement (A) the  Trust shall purchase the Senior Notes issued by Constellation (or in the case of any Cash  Settlement Election, shall receive the applicable Cash Settlement Amount) in exchange for the  Notes Purchase Price, (B) the applicable Special Facility Fee shall be due and payable and (C)  

 

      4895-0578-8168 v.5  payment by the Trust of the Notes Purchase Price shall be subject to set-off against any Overdue  Amounts and Special Facility Fee (with the Eligible Treasury Assets included in the Notes  Purchase Price being valued for the purpose of such set-off based on the proceeds received  therefor by the Trust). The Trust shall have the power to liquidate Eligible Treasury Assets (other  than Retained Eligible Treasury Assets) held by the Trust to cover such Overdue Amounts and  Special Facility Fee, together with any Trust Expenses reasonably incurred in such liquidation or  any other due and unpaid amounts specified in Section 5.8(b)(i)(1) or Section 5.8(b)(i)(2), and, if  the proceeds of such liquidation of such Eligible Treasury Assets are insufficient to cover any  due and unpaid amounts specified in Section 5.8(b)(i)(1) or Section 5.8(b)(i)(2), to liquidate any  Senior Notes then held by the Trust. Any liquidation of Eligible Treasury Assets or Senior Notes  shall be done in accordance with the provisions set forth in Section 5.9, and the Trustee shall  distribute, on the Business Day following receipt, all such proceeds of such liquidation in  accordance with this Declaration and the priorities specified in Section 5.8(b); provided that such  Distribution shall be payable to the Holders of the Trust Securities as of the close of business on  the Business Day immediately preceding the date of Distribution.  (iii) If the Trustee does not receive all of the Overdue Amounts and the  applicable Special Facility Fee, and Constellation has not given notice to exercise the Issuance  Right for the entire Available Amount for settlement within 30 days following such Distribution  Date, an Automatic Exercise Event shall occur pursuant to the Facility Agreement and the  provisions of Article VIII shall apply.  (e) In any year in which January 31 or July 31 is not a Business Day, the  postponement of any Distribution Date that would otherwise fall on such January 31 or July 31,  as the case may be, to the following Business Day shall not affect the amount of any payment  that Constellation or the Trust is required to make on such Distribution Date.  (f) Notwithstanding anything to the contrary in this Declaration, if any Trust  Expenses are due and payable by the Trust on a date that is not a Distribution Date, the Trust  shall pay such Trust Expenses prior to the next Distribution Date out of any advance received  from Constellation pursuant to the Trust Expense Reimbursement Agreement.  (g) On each date on which a Distribution is made pursuant to this Section 5.8,  the Trustee shall provide written confirmation to Constellation of the Trust Income received by  the Trust that is distributed on such date, as well as the amount of Distributions made to the  Holders on such date. The Trustee shall provide each Rating Agency a copy of such written  confirmation.  Section 5.9 Liquidation of Eligible Treasury Assets (other than Retained Eligible  Treasury Assets) and Senior Notes.  (a) If the Trust is entitled to liquidate any Trust Property pursuant to Section  5.8(d):  (i) The Trustee shall first apply all Trust Income available on such  date and any other funds available in the Trust Property Account on the relevant date to make  

 

    -43-  4895-0578-8168 v.5  payments in respect of such Trust Expenses or any other expenses on such date in accordance  with the priorities set forth in Section 5.8(b).  (ii) To the extent that the funds available in the Trust Property  Account and any Eligible Treasury Assets that can be set-off against the relevant expenses  pursuant to Section 5.8 are insufficient to pay any due and unpaid amounts specified in Section  5.8(b)(i)(1) or Section 5.8(b)(i)(2), the Trustee, or agent, shall liquidate Eligible Treasury Assets,  other than Retained Eligible Treasury Assets, in the open market, to the extent necessary for the  proceeds to cover such due and unpaid amounts. The Trustee shall have no liability with respect  to the adequacy of the price received in connection with said liquidation. The Eligible Treasury  Assets to be liquidated shall be pro rata from each principal and interest STRIP of U.S.  Government Obligations comprising the Eligible Treasury Assets (other than Retained Eligible  Treasury Assets), in each case rounded to the nearest $100 in face amount.  (iii) To the extent that the proceeds from the liquidation of Eligible  Treasury Assets (other than Retained Eligible Treasury Assets) are insufficient to cover any due  and unpaid amounts specified in Section 5.8(b)(i)(1) or Section 5.8(b)(i)(2) and the Trust holds  any Senior Notes, the Trust shall liquidate Senior Notes in the open market, to the extent  necessary for the proceeds to cover such due and unpaid amounts. Any liquidation of Senior  Notes will be made in accordance with commercially reasonable market standards, which may  include retaining third-party agents (which may be affiliates of Deutsche Bank) at the expense of  the Trust, and in compliance with applicable securities laws. The Trustee shall not be liable for  the adequacy or sufficiency of the price obtained for such liquidation of Senior Notes.  (b) Not later than 3:00 p.m. on the Business Day following its receipt of  proceeds of all Trust Property to be liquidated pursuant to Section 5.9(a), the Trustee shall  distribute such proceeds in accordance with the priorities specified in Section 5.8(b); provided  that such Distribution shall be payable to the Holders of the Trust Securities as of the close of  business on the Business Day immediately preceding the date of such Distribution.  Section 5.10 Redemption or Repurchase.  (a) Constellation shall notify the Trustee of the occurrence of a Change of  Control Triggering event within five Business Days of the occurrence thereof. Within 30 days  following its receipt of notice of any Change of Control Triggering Event, the Trust shall mail  (or deliver electronically) a notice prepared by Constellation (a “Change of Control Offer”) to  each Holder describing the transaction or transactions that constitute the Change of Control and  offering to repurchase the Trust Securities on the date specified in the notice (the “Change of  Control Payment Date”), which date shall be no earlier than 10 days and no later than 60 days  from the date such notice is mailed or delivered, at a price equal to 101% of the aggregate initial  purchase price of the Trust Securities, plus accrued and unpaid distributions, if any, on the Trust  Securities to the Constellation Payment Date, subject to the rights of Holders of the Trust  Securities on the relevant record date to receive interest due on the relevant Distribution Date (a  “Change of Control Payment”); provided that a Change of Control Offer may be made in  advance of a Change of Control Triggering Event, with the obligation to pay and the timing of  the Constellation Payment Date conditioned upon the occurrence of a Change of Control  

 

      4895-0578-8168 v.5  Triggering Event, if a definitive agreement to effect a Change of Control is in place at the time  the Change of Control Offer is made.  (i) Holders of the Trust Securities electing to have any Trust  Securities purchased pursuant to a Change of Control Offer shall be required to surrender the  Trust Securities to the Paying Agent on the Change of Control Offer Expiration Date. A Change  of Control Offer Expiration Date with respect to the Trust Securities shall constitute a Mandatory  Exercise Event in respect of the Issuance Right following which Constellation will be required to  sell to the Trust Senior Notes in a principal amount equal to the Change of Control Offer  Issuance Amount in accordance with the Facility Agreement. On the Change of Control Payment  Date, Constellation shall pay the Change of Control Payment to the Trust to repurchase a  principal amount of Senior Notes equal to the P-Caps Tendered Amount (minus the Change of  Control Offer Subject Amount if Constellation has paid the Cash Settlement Amount with  respect thereto in lieu of issuance thereof), at a price equal to 101% of the principal amount  thereof, plus accrued and unpaid interest to, but not including, the date of repurchase (the  “Change of Control Redemption Amount”), in each case to the extent necessary to pay the  Change of Control Payment with respect to the P-Caps Tendered Amount.  (ii) On the Constellation Payment Date, to the extent lawful:  (A) the Trust will accept for payment all Trust Securities  properly tendered pursuant to the Change of Control Offer;  (B) Constellation will deposit with the Paying Agent an amount  equal to the Change of Control Payment in respect of all Trust Securities properly  tendered; and  (C) Constellation will deliver or cause to be delivered to the  Trustee for cancellation the Trust Securities properly accepted together with an  officers’ certificate stating the aggregate initial purchase price of Trust Securities  being repurchased by the Trust.  (iii) The Paying Agent will promptly distribute to each holder of Trust  Securities properly tendered the Change of Control Payment for such Trust Securities; provided  that holders of Trust Securities may not tender fractional amounts of Trust Securities and no  holder of Trust Securities may tender a number of Trust Securities that would, due to the  surrender of such Trust Securities, result in the holder holding greater than 0 Trust Securities but  less than 100 Trust Securities. Constellation will publicly announce the results of the Change of  Control Offer on or as soon as practicable after the Constellation Payment Date.  (iv) If the Senior Notes are then held by the Trust with respect to which  Constellation has made a “Change of Control Offer” (as defined in the Indenture), the Trustee  will accept such Change of Control Offer with respect to the Senior Notes to the extent holders  of the Trust Securities have accepted the Change of Control Offer with respect to the Trust  Securities. The Trustee will use the Change of Control Payment received with respect to such  Senior Notes and, if Constellation has elected to pay a Cash Settlement Amount with respect to  the Change of Control Offer Subject Amount in lieu of issuance thereof, the applicable Cash  

 

    -45-  4895-0578-8168 v.5  Settlement Amount, to satisfy a portion of the Change of Control Payment with respect to the  Trust Securities, and the Change of Control Payment payable by Constellation with respect to the  Trust Securities shall be reduced accordingly.  (v) Constellation and the Trust will comply with the requirements of  Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to  the extent those laws and regulations are applicable in connection with the repurchase of the  Trust Securities. To the extent that the provisions of any securities laws or regulations conflict  with the Change of Control provisions of the Indenture, Constellation and the Trust will comply  with the applicable securities laws and regulations and will not be deemed to have breached its  obligations under the Change of Control provisions of this Declaration by virtue of such  compliance.  Notwithstanding the foregoing, the Trust will not be required to make a Change of  Control Offer upon a Change of Control Triggering Event if (1) a third party makes the Change  of Control Offer in the manner, at the times and otherwise in compliance with the requirements  set forth in this Declaration applicable to a Change of Control Offer made by the Trust and  purchases all Trust Securities properly tendered and not withdrawn under the Change of Control  Offer, or (2) notice of an optional redemption with respect to all outstanding Trust Securities has  been given to the Trustee pursuant to Section 5.10(c), unless and until there is a default in  payment of the applicable Redemption Price.  (b) Subject to applicable law, other than with respect to a Change of Control  Triggering Event, upon the redemption by Constellation of any Senior Notes held by the Trust or  any Voluntary Exercise or for any Senior Notes as to which Constellation has made a Cash  Settlement Election, the Trust shall redeem a Like Amount of Trust Securities at the Redemption  Price on the Constellation Payment Date, subject to the priorities of distribution set forth in  Section 8.2(c); provided that (i) if the Constellation Payment Date is the Trust Dissolution Date,  the Constellation Payment shall be distributed in accordance with Article VIII, and (ii) if the  Trustee does not receive the Constellation Payment prior to 11:00 a.m. on the Constellation  Payment Date, such Trust Securities shall be redeemed on the Business Day following the day  the Trustee receives the Constellation Payment.  (c) Constellation shall provide a notice of redemption to the Trustee  containing the information listed below, and, based solely on the information provided in such  notice, a notice of redemption of the Trust Securities shall be given by the Trustee by first-class  mail, postage prepaid, mailed not less than 10 nor more than 60 days prior to the Redemption  Date to each Holder of Trust Securities to be redeemed, at such Holder’s address appearing in  the Register. Each notice of redemption shall state:  (i) the Redemption Date;  (ii) the Redemption Price or, if the Redemption Price cannot be  calculated prior to the time the notice is required to be sent, a description of the manner in which  the Redemption Price shall be determined;  

 

      4895-0578-8168 v.5  (iii) the CUSIP number or CUSIP numbers of the Trust Securities  affected;  (iv) if less than all the Outstanding Trust Securities are to be redeemed,  the identification and the aggregate initial purchase price of the particular Trust Securities to be  redeemed;  (v) that on the Redemption Date the Redemption Price will become  due and payable upon each such Trust Security to be redeemed and that Distributions thereon  will cease to accumulate on and after said date, except as provided in Section 5.10(e); and  (vi) if the Trust Securities are no longer in book-entry-only form, the  place or places where the Certificates are to be surrendered for the payment of the Redemption  Price.  (d) The Trust Securities redeemed on each Redemption Date shall be  redeemed at the Redemption Price with the Constellation Payment to be received on the  Redemption Date. Redemptions of the Trust Securities shall be made and the Redemption Price  shall be payable on each Redemption Date only to the extent that the Trust has received such  Constellation Payment.  (e) If the Trustee gives a notice of redemption in respect of any Trust  Securities, then, by 12:00 p.m., on the Redemption Date, subject to Section 5.10(d), the Trustee  shall, with respect to Trust Securities represented by Global Certificates, irrevocably deposit with  DTC, to the extent available therefor, funds sufficient to pay the applicable Redemption Price  and shall give DTC irrevocable instructions and authority to pay the Redemption Price to the  Holders. With respect to Trust Securities that are not represented by Global Certificates, the  Trustee, subject to Section 5.10(d), shall irrevocably deposit with the Paying Agent, to the extent  available therefor, funds sufficient to pay the applicable Redemption Price and shall give the  Paying Agent irrevocable instructions and authority to pay the Redemption Price to the Holders  upon surrender of their Certificates. Notwithstanding the foregoing, Distributions payable on or  prior to the Redemption Date for any Trust Securities called for redemption shall be payable to  the Holders of such Trust Securities as they appear on the Register for the Trust Securities on the  relevant Record Dates for the related Distribution Dates. If notice of redemption shall have been  given and funds deposited as required, then upon the date of such deposit, all rights of Holders of  Trust Securities so called for redemption shall cease, except the right of such Holders to receive  the Redemption Price and any Distribution payable in respect of the Trust Securities on or prior  to the Redemption Date, but without interest, and such Trust Securities shall cease to be  Outstanding. In the event that the Redemption Date is not a Business Day, then payment of the  Redemption Price payable on such date shall be made on the next succeeding day that is a  Business Day (without any interest or other payment in respect of any such delay), with the same  force and effect as if made on such date.  (f) If less than all the Outstanding Trust Securities are to be redeemed on a  Redemption Date, the particular Trust Securities to be redeemed shall be selected at least 10 but  not more than 60 days prior to the Redemption Date by the Trustee from the Outstanding Trust  Securities not previously called for redemption on a pro rata basis or by any method the Trustee  

 

    -47-  4895-0578-8168 v.5  deems fair and appropriate; provided that so long as the Trust Securities are represented by  Global Certificates, such selection shall be made in accordance with the procedures of the  Depositary in accordance with its standard procedures therefor. The Trustee shall promptly  notify the Security Registrar in writing of the Trust Securities selected for redemption.  (g) Constellation shall give written notice to the Trustee of any Constellation  Payment Date at least 10 days but not more than 60 days prior thereto (unless a shorter notice  shall be satisfactory to the Trustee), except to the extent a shorter notice period is expressly  required or contemplated in connection with a Change of Control Payment Date or as otherwise  described herein.  Section 5.11 No Preemptive Rights. No Holder, by virtue of holding Trust Securities,  shall have any preemptive or other right to subscribe to any additional Trust Securities.  Section 5.12 Status of the Trust Securities. Every Holder, by virtue of having become a  Holder, shall be deemed to have expressly assented and agreed to the terms hereof and to have  become party hereto. The Trust Securities shall be deemed to be personal property, giving only  the rights provided herein. Ownership of the Trust Securities shall not entitle the Holder to any  title in, or to the whole or any part of, the Trust Property or right to call for a partition or division  of the same or for an accounting. The bankruptcy of a Holder during the continuance of the Trust  shall not operate to terminate the Trust, nor entitle the representative of any bankrupt Holder to  an accounting or to take any action in court or elsewhere against the Trust or the Trustee.  Section 5.13 CUSIP Numbers. The Trust, in issuing the Trust Securities, may use  “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers  in notices of dissolution as a convenience to Holders; provided that any such notice may state  that no representation is made as to the correctness of such numbers either as printed on the Trust  Securities or as contained in any notice of a dissolution and that reliance may be placed only on  the other identification numbers printed on the Trust Securities, and any such dissolution shall  not be affected by any defect in or omission of such numbers.  Section 5.14 Lists of Holders.  (a) The Transfer Agent (if the Trustee is not acting in such capacity) shall  provide the Trustee (i) by the end of the fourth Business Day after each Record Date, a list, in  such form as the Trustee may reasonably require, of the names and addresses of the Holders (a  “List of Holders”) as of such Record Date, provided that the Transfer Agent shall not be  obligated to provide such List of Holders if at any time the List of Holders does not differ from  the most recent List of Holders given to the Trustee by the Transfer Agent, and (ii) a List of  Holders at any time the Trustee requests a List of Holders, which List of Holders shall be  provided to the Trustee by the Transfer Agent within 30 days of the Trustee delivering a written  request for the List of Holders to the Transfer Agent, and which shall be no more than four  Business Days old on the date it is delivered to the Trustee. The Trustee shall preserve, in as  current a form as is reasonably practicable, all information contained in any List of Holders  given to it or that it receives in its capacity as Paying Agent (if acting in such capacity), provided  that the Trustee may destroy any List of Holders previously given to it on receipt of a new List of  Holders.  

 

      4895-0578-8168 v.5  (b) The Trustee shall comply with the requirements of Section 312(b) of the  Trust Indenture Act, as if the Trust Indenture Act applied to this Declaration.  Section 5.15 No Other Rights. Unless otherwise required by law, the Holders of Trust  Securities shall not have any rights or preferences other than those specifically set forth in this  Declaration and in the Certificates.  Section 5.16 Global Certificates. The provisions of this Section 5.16 shall apply only to  Global Certificates:  (a) Each Global Certificate executed and delivered under this Declaration  shall be registered in the name of the Depositary or a nominee thereof and delivered to such  Depositary or a nominee thereof or custodian therefor, and each such Global Certificate shall  constitute a single Certificate for all purposes of this Declaration.  (b) If any Depositary elects to discontinue its services as securities depository  with respect to the Trust Securities, the Trustee may appoint a successor Depositary at the  written direction of Constellation with respect to the Trust Securities.  (c) Notwithstanding any other provision in this Declaration, no Global  Certificate may be exchanged in whole or in part for Certificates registered, and no transfer of a  Global Certificate in whole or in part may be registered, in the name of any Person other than the  Depositary for such Global Certificate or a nominee thereof unless (i) such Depositary has  notified the Trust that it is unwilling or unable to continue as Depositary for such Global  Certificate and no successor depositary shall have been appointed by the Trust within 90 days of  such notice, (ii) if at any time such Depository has ceased to be a clearing agency registered  under the Exchange Act at a time when such Depositary is required to be so registered to act as  Depositary and no successor depositary shall have been appointed by the Trust within 90 days  after the Trust becomes aware of such cessation, or (iii) the Trustee voluntarily elects to  discontinue the use of the book-entry transfer system with the consent of at least a Majority of  Holders. If Global Certificates are exchanged pursuant to this Section 5.16(c), Distributions may,  at the Trust’s option, be paid by check mailed to the Persons entitled thereto as shown on the  Register. Notwithstanding the foregoing, a Holder of 1,000 or more Trust Securities shall be  entitled to receive Distributions, if any, on any Distribution Date by wire transfer of immediately  available funds if appropriate wire transfer instructions have been received in writing by the  Trust not less than 15 days prior to the Distribution Date. Any such wire transfer instructions  received by the Trust shall remain in effect until revoked by such Holder.  (d) Subject to Section 5.16(c), any exchange of a Global Certificate for other  Certificates may be made in whole or in part, and all Certificates issued in exchange for a Global  Certificate or any portion thereof shall be registered in such names as the Depositary for such  Global Certificate shall direct.  (e) Every Certificate executed and delivered upon registration of, transfer of,  or in exchange for or in lieu of, a Global Certificate or any portion thereof, whether pursuant to  this Section 5.16 or otherwise, shall be executed and delivered in the form of, and shall be, a  

 

    -49-  4895-0578-8168 v.5  Global Certificate, unless such Certificate is registered in the name of a Person other than the  Depositary for such Global Certificate or a nominee thereof.  ARTICLE VI    GRANTOR TRUST  Section 6.1 Treatment as “Grantor” Trust. The offering of the Trust Securities is  intended to be treated for United States federal income tax purposes as a financing wherein  Constellation directly owns the assets held in the Trust and issues indebtedness directly to the  Holders. Because the applicable United States federal income tax reporting requirements are  unclear and to mitigate any uncertainty if, contrary to such intention, Constellation is treated as  indirectly owning such assets through the Trust, Constellation and the Trust agree to take the  position for such reporting purposes that the Trust is a “grantor” trust and is not a partnership or  an association subject to tax as a corporation, and that Constellation is the sole “grantor” of the  Trust and owner of the assets of the Trust. The provisions of this Declaration shall be interpreted  to further this intention of the parties.1  ARTICLE VII    ACCOUNTING AND RECORDS   Section 7.1 Annual Tax Information.  (a) The Trustee shall cause the Trust to comply with information reporting  and backup withholding requirements imposed on the Trust in connection with payments in  respect of the Trust Securities. The Trustee shall undertake its information reporting and backup  withholding obligations under this Section 7.1 consistent with Section 6.1 absent a change of law  or a change in administrative guidance or interpretation by the IRS or any state or local taxing  authority. Pursuant to the engagement letter of the accounting firm of Cover & Rossiter  referenced in Section 2.6(a)(xxiv), Cover & Rossiter has agreed to notify the Trust and the  Trustee if any future developments in the law or regulations would result in the Trust being  required to prepare or file tax forms or returns that are different from those set forth in Section  7.1(b). The Trust shall have no obligation to independently monitor developments in law or  regulations and shall be entitled to conclusively rely on the advice of Cover & Rossiter or any  successor accounting firm. If the Trustee receives such notification from Cover & Rossiter (or if  Constellation provides a similar notification), then promptly following the Trustee’s written  request to Constellation, Constellation shall direct the Trustee in engaging Cover & Rossiter or  another tax accounting firm to prepare such forms or returns. The expenses of such tax  accounting firm shall be treated as Trust Expenses for the purposes of this Declaration and the  Trust Expense Reimbursement Agreement. In addition, the authorizations and protections set  forth in Section 2.6(a)(xxiv) shall apply to the engagement of any such accounting firm.    1  Note to Draft:  Subject to review by S&C tax.  

 

      4895-0578-8168 v.5  (b) The Trustee shall cause the Trust to collect from, and deliver to,  Constellation and the Holders all applicable tax forms as required by law.2  (i) In the case of Constellation, the Trustee shall cause its accountants  to prepare and file on a timely basis and at the expense of Constellation IRS Form 1041 with  respect to the Trust. The Trust may provide any Form 1041 to Constellation for comment prior to  submission to the IRS. Consistent with Section 6.1, such IRS Form 1041 shall contain only entity  information with respect to Constellation and contain no information in respect of income  received by the Trust. Such income shall instead be shown on a separate statement attached to  such IRS Form 1041 as income received by Constellation. The Trustee shall also cause to be  duly prepared and filed with the appropriate taxing authority any other annual United States  federal income tax information return and any other annual income tax returns required to be  filed on behalf of the Trust with any state or local taxing authority. The Trustee shall also cause  the Trust to furnish Constellation with any additional forms or information as shall be reasonably  requested by Constellation to assist Constellation in fulfilling its information reporting and  backup withholding obligations.  (ii) In the case of the Holders, unless an exemption from information  reporting and backup withholding applies with respect to a Holder (an “exempt recipient”), the  Trustee shall cause the Trust to deliver to each Holder the appropriate IRS Form 1099, reflecting  that income distributions from the Trust in respect of the Trust Securities are interest payments in  respect of indebtedness of Constellation paid by Constellation to such Holder.  (c) Not later than 30 days following the last day of each calendar quarter  (each, a “statement date”), the Trustee shall provide Constellation a statement of the assets held  in the Trust as of the statement date or shall provide Constellation with read-only on-line access  to the position listings and transaction history with respect to the Trust Property Account, the  Trust Notes Account, the Trust Collateral Account and the Retained Eligible Treasury Assets  Account that contain valuations of the Eligible Treasury Assets provided by International Data  Corporation (“IDC”) to the extent published by IDC. The Trustee shall have no obligation to  verify or confirm IDC valuations.  Section 7.2 Certain Accounting Matters.  (a) At all times during the existence of the Trust, the Trustee shall keep, or  cause to be kept, full books of account, records and supporting documents, which shall reflect in  reasonable detail each transaction of the Trust. The books of account shall be maintained on the  accrual method of accounting, in accordance with generally accepted accounting principles,  consistently applied.  (b) So long as any of the Trust Securities are “restricted securities” within the  meaning of Rule 144(a)(3) under the Securities Act, the Trust shall, unless it becomes subject to  and complies with Section 13 or 15(d) of the Exchange Act, provide or cause to be provided to  each Holder of such restricted securities and to each prospective purchaser (as designated by    2  Note to Draft:  Subject to review by S&C Tax.  

 

    -51-  4895-0578-8168 v.5  such Holder) of such restricted securities, upon the request of such Holder or prospective  purchaser, any information required to be provided by Rule 144A(d)(4) under the Securities Act.  ARTICLE VIII    DISSOLUTION AND TERMINATION OF THE TRUST   Section 8.1 Dissolution and Termination of the Trust.  (a) Following the termination of the LC Agreement, the Trust shall dissolve  and liquidate in accordance with the Statutory Trust Act upon the date that is the earliest to occur  of the following (the date of such earliest occurrence, the “Trust Dissolution Date”):  (i) January 31, 2027 (or on the following Business Day if such date is  not a Business Day);  (ii) any date to which any Senior Notes held by the Trust have been  accelerated as a result of an Event of Default under (and as defined in) the Indenture;  (iii) if the Repurchase Right has been terminated, the settlement date of  the exercise of the Issuance Right in respect of the entire Available Amount of Senior Notes or,  if the Trust then holds the Maximum Amount of Senior Notes, the date the Repurchase Right is  terminated;  (iv) the date on which the Maximum Amount is reduced to zero as the  result of any redemption of Senior Notes or Voluntary Exercise in respect of which Constellation  has made a Cash Settlement Election; and  (v) before the issuance of any Trust Securities by the Trust, receipt by  the Trustee of written instruction from the Depositor;  provided that the Trust may dissolve prior to the termination of the LC Agreement following the  occurrence of a Mandatory Exercise pursuant to an Investment Company Act Event    (b) The Trustee shall give prompt notice to the Holders and each Rating  Agency of any event that may result in a Trust Dissolution Date pursuant to Section 8.1(a)(ii),  Section 8.1(a)(iii) or Section 8.1(a)(iv), including the receipt of (i) any Issuance Notice in respect  of the entire Available Amount if the Repurchase Right has been terminated, (ii) any Automatic  Exercise Notice or (iii) any notice of redemption of Senior Notes or any Issuance Notice in  respect of which Constellation has made a Cash Settlement Election that will, on the  Constellation Payment Date, reduce the Maximum Amount to zero, in each case, within 5  Business Days of a Responsible Officer’s receipt of a written notice of such events from  Constellation.  Section 8.2 Liquidation and Dissolution.  (a) As soon as practicable after the Trust Dissolution Date, the Trustee shall  liquidate the Eligible Treasury Assets (other than any Retained Eligible Treasury Assets) held by  

 

      4895-0578-8168 v.5  the Trust and seek to collect any amounts due under the Facility Agreement, the Trust Expense  Reimbursement Agreement and any Senior Notes held by the Trust; provided that, if the Trust is  dissolved pursuant to Section 8.1(a)(ii), Section 8.1(a)(iii) or Section 8.1(a)(iv), the Trustee shall  only liquidate any Eligible Treasury Assets if and to the extent the amounts collected from other  sources are not sufficient to pay or set aside for payment for the Trustee’s Fee and all Trust  Expenses due and payable and the Trustee shall deliver the remaining Eligible Treasury Assets to  Constellation or, as the case may be, the Collateral Agent in respect of such exercise of the  Issuance Right prior to distributing any Trust Property to the Holders or other creditors of the  Trust.  (b) (i) If the Trust is dissolved pursuant to Section 8.1(a)(ii) or Section  8.1(a)(iii), after satisfying or setting aside for payment all amounts due as set forth in Section  8.2(c)(i) through Section 8.2(c)(v), the Trustee shall (to the extent permitted by law) distribute  the Senior Notes pro rata to the Holders of the Outstanding Trust Securities as soon as  practicable after the Trust Dissolution Date. If the Trust is unable to satisfy or set aside for  payment all amounts due as set forth in Section 8.2(c)(i) through Section 8.2(c)(v) from the  amounts received under the Facility Agreement, Trust Expense Reimbursement Agreement,  payments under the Senior Notes and liquidation proceeds of any Eligible Treasury Assets that  are not delivered to Constellation or, as the case may be, the Collateral Agent pursuant to the  exercise of the Issuance Right, in accordance with the Statutory Trust Act, as soon as practicable  after the Trust Dissolution Date, the Trustee shall liquidate its remaining Trust Property,  including the Senior Notes, in accordance with Section 8.2(d) to the extent necessary to cover all  amounts due as set forth in Section 8.2(c)(i) through Section 8.2(c)(v), and distribute any funds  and any Senior Notes it then holds in accordance with the priorities set forth in Section 8.2(c).  (ii) If the Trust is dissolved pursuant to Section 8.1(a)(i), the Trustee  shall redeem all Outstanding Trust Securities on January 31, 2027 (or on the following Business  Day if such date is not a Business Day) at a redemption price per Trust Security equal to the  amount of principal and interest that would have been payable at maturity on $1,000 principal  amount of Senior Notes, subject to the priorities set forth in Section 8.2(c). If the Trust is  dissolved pursuant to Section 8.1(a)(iv), the Trustee shall make the Distributions on the  Constellation Payment Date, as set forth in Section 5.10. All such Distributions made pursuant to  this Section 8.2(b)(ii) shall be made only after the Trustee satisfies or sets aside for payment all  amounts due as set forth in Section 8.2(c)(i) through Section 8.2(c)(v). If the Trust is unable to  satisfy or set aside for payment all amounts due as set forth in Section 8.2(c)(i) through Section  8.2(c)(v) from the amounts received under the Facility Agreement and Trust Expense  Reimbursement Agreement and payments under the Senior Notes, in accordance with the  Statutory Trust Act, as soon as practicable after the Trust Dissolution Date, the Trustee shall  liquidate (A) any Eligible Treasury Assets then held by the Trust to the extent necessary to  satisfy or set aside for payment all amounts as set forth in Section 8.2(c)(i) through Section  8.2(c)(v) and (B) thereafter any Senior Notes then held by the Trust in accordance with Section  8.2(d), to the extent necessary to cover all amounts due as set forth in Section 8.2(c)(i) through  Section 8.2(c)(v), and distribute any funds it then holds in accordance with the priorities set forth  in Section 8.2(c).  

 

    -53-  4895-0578-8168 v.5  (c) To the fullest extent permitted by the Statutory Trust Act, on the  Liquidation Distribution Date, the Trustee shall distribute the Trust Property in accordance with  the following priorities:  (i) first, in satisfaction of the expenses of liquidation;  (ii) second, in payment of any Trustee’s Fee and any Trust Expenses  then due and payable;  (iii) third, to Constellation in satisfaction of any amounts then due and  payable to Constellation under the Facility Agreement (including, for the avoidance of doubt,  any remaining Retained Eligible Treasury Assets);  (iv) fourth, in satisfaction of any other outstanding obligations of the  Trust then due and payable, pro rata among those creditors in accordance with the aggregate  unpaid amount due to each;  (v) fifth, to set aside any amounts required to reasonably provide for  the payment of any known claims or contingent obligations pursuant to the Statutory Trust Act;  and  (vi) sixth, to the Holders, pro rata with respect to each Trust Security,  subject to the provisions set forth in Section 8.2(k).  The date on which the Trustee is required to make any distributions as set forth in Section 8.2(b)  or Section 8.2(d) shall be the “Liquidation Distribution Date”.  (d) Notwithstanding Section 8.2(c), if the Trust Property includes Senior  Notes on the Trust Dissolution Date, and if the Trustee determines that any Senior Notes must be  liquidated in order to satisfy obligations of the Trust that rank prior to the Distributions to the  Holders under Section 8.2(c)(vi), the Trustee shall not make any such Distribution pursuant to  Section 8.2(c) until the date on which it has liquidated the Senior Notes to the extent necessary to  cover all amounts due as set forth in Section 8.2(c)(i) through Section 8.2(c)(v). Pending the  distribution of the Trust Property, the Trustee shall hold the Trust Property, other than any Senior  Notes held by the Trust, as provided in Section 2.6(c). To determine whether any Senior Notes  must be liquidated, the Trustee shall assume that it shall apply all Trust Property, other than the  Senior Notes and any Retained Eligible Treasury Assets, to all obligations and claims of the  Trust ranking higher in order of priority than the rights of the Holders, and that the Senior Notes  shall be liquidated only to the extent such other Trust Property is insufficient. If the Trustee  determines that it must liquidate any of the Senior Notes, it shall liquidate such Senior Notes in  accordance with commercially reasonable market standards and in compliance with applicable  securities laws. The Trustee shall use commercially reasonable efforts (including retaining third- party agents at the expense of the Trust) to liquidate the Senior Notes as promptly as practicable,  but in any event shall dispose of the Senior Notes held by the Trust no later than the 90th day  following the Trust Dissolution Date. The Trustee shall distribute the proceeds received from any  liquidation of Senior Notes pursuant to this Section 8.2(d) on the date on which the Trustee  liquidates the required amount of Senior Notes; provided that a purchaser for such Senior Notes  is available on such date.  

 

      4895-0578-8168 v.5  (e) Upon the occurrence of an event referred to in Section 8.1(a)(v), the  Trustee shall proceed to wind up the affairs of the Trust, liquidate the Trust Property, apply the  proceeds of such liquidation in the following order of priority and liquidate:  (i) first, to the expenses of liquidation; and  (ii) second, to the payment of the debts and liabilities of the Trust, as  required by applicable law, including any outstanding expenses, fees or indemnity obligations  owing to the Trustee.  (f) For purposes of the application of this Section 8.2, all unrealized income,  gain, loss and deduction of the Trust shall be treated as realized and recognized immediately  before any such distributions.  (g) If the Trustee receives any funds or other Trust Property after the  Liquidation Distribution Date, the Trustee shall distribute such funds or other Trust Property in  accordance with the priorities set forth in Section 8.2(c), not later than the third Business Day  following its receipt of such funds or other Trust Property; provided, however, that if the Trustee  receives such funds or other Trust Property in respect of any Retained Eligible Trust Asset, such  funds or other Trust Property shall be distributed as required by the Pledge Agreement or as  otherwise directed by Constellation.  (h) Unless a Majority of Holders or Constellation determine otherwise, on the  one-year anniversary of the Trust Dissolution Date, the Trustee shall (i) distribute any remaining  Trust Property in kind or abandon such Trust Property and (ii) at the expense of the Depositor,  file a certificate of cancellation of the Trust with the Secretary of State terminating the Trust.  (i) To the extent consistent with the priorities established by this Article VIII,  the Trustee may make liquidation distributions after the Trust Dissolution Date but prior to the  Liquidation Distribution Date only pursuant to an amendment or waiver of this Declaration made  in accordance with Section 10.3.  (j) Once the assets of the Trust have been liquidated and distributed as set  forth in this Section 8.2 and a certificate of cancellation has been filed by the Trustee as  described above, the Trust shall be terminated in accordance with the Statutory Trust Act.  (k) If pro rata distribution of the Senior Notes would result in any Holder  being entitled to receive Senior Notes with an aggregate principal amount that is not a multiple  of $1,000, then the Trustee shall round the principal amount of the Senior Notes deliverable to  that Holder down to the nearest $1,000 and shall seek to liquidate any remaining Senior Notes  and distribute the proceeds of those remaining Senior Notes to those Holders, pro rata in  accordance with the principal amount of Senior Notes such Holder would have otherwise been  entitled to receive.  

 

    -55-  4895-0578-8168 v.5  ARTICLE IX    LIMITATION OF LIABILITY OF HOLDERS, THE TRUSTEE, THE DELAWARE TRUSTEE OR OTHERS  Section 9.1 Liability; Indemnity.  (a) The Trustee, the Delaware Trustee and Constellation shall not be:  (i) personally liable for the return of any portion of the investment of  the Holders or any return thereon, all of which shall be made solely from assets of the Trust;  (ii) required to pay to the Trust or to any Holder any deficit upon  dissolution of the Trust or otherwise; or  (iii) except as expressly set forth herein in the case of the Depositor,  required to pay any fees or expenses relating to the operation of the Trust.  (b) Pursuant to Section 3803(a) of the Statutory Trust Act, the Holders shall  be entitled to the same limitation of personal liability extended to shareholders of private  corporations for profit organized under the General Corporation Law of the State of Delaware.  (c) (i) To the fullest extent permitted by applicable law, and (ii) to the extent  Constellation fails to indemnify any Indemnified Person (as defined herein) related to the  Trustee, the Delaware Trustee or the Collateral Agent pursuant to the Trust Expense  Reimbursement Agreement, the assets of the Trust shall be used to indemnify (A) the Trustee,  (B) the Delaware Trustee (including in its individual capacity), (C) Collateral Agent, (D) the  Securities Intermediary, (E) any Affiliate of the Trustee or the Delaware Trustee and (F) any  officers, directors, shareholders, members, partners, employees, representatives, custodians,  nominees or agents of the Trustee, the Delaware Trustee, the Collateral Agent, the Securities  Intermediary or such Affiliates (each of the Persons in clause (A) through (F) being referred to as  an “Indemnified Person”) for, and hold each Indemnified Person harmless against, any loss,  obligation, action, damage, claim, liability, suit or proceeding whether civil, criminal,  administrative or investigative, and whether formal or informal and including appeals, in which  any Indemnified Person may be involved, as a party or otherwise, by reason of its status as an  Indemnified Person, or expense including taxes (other than taxes based on or determined (in  whole or in part) by reference to the income of the Trustee, the Delaware Trustee, the Collateral  Agent, the Securities Intermediary or such other Person) arising out of or in connection with the  Trust, the acceptance or administration of the Trust or the Trust Property, or relating to this  Declaration or any other document or agreement, including the Pledge Agreement and the  Facility Agreement, entered into, by or on behalf of the Trust or the Trustee, including the costs,  disbursements and expenses (including reasonable legal fees and expenses and fees and expenses  incurred in connection with enforcement of indemnification rights) of defending itself against, or  investigating any claim or liability in connection with, the exercise or performance of any of its  powers or duties hereunder or any other such document or agreement and incurred without gross  negligence, bad faith or willful misconduct on the part of such Indemnified Person. The  obligation to indemnify as set forth in this Section 9.1(c) shall survive the satisfaction and  

 

      4895-0578-8168 v.5  discharge of this Declaration or the resignation or removal of the Trustee or the Delaware  Trustee.  Section 9.2 Outside Businesses. Any of the Depositor, the Trustee, the Delaware  Trustee, the Trustee’s or Delaware Trustee’s officers, directors, shareholders, partners, members,  representatives, employees, custodians, nominees, agents or Affiliates, and the Holders may  engage in or possess an interest in other business ventures of any nature or description,  independently or with others, similar or dissimilar to the business of the Trust, and the Trust and  the Holders shall have no rights by virtue of this Declaration in and to such independent ventures  or the income or profits derived therefrom, and the pursuit of any such venture, even if  competitive with the business of the Trust, shall not be deemed wrongful or improper. None of  the foregoing Persons shall be obligated to present any particular investment or other opportunity  to the Trust even if such opportunity is of a character that, if presented to the Trust, could be  taken by the Trust, and any such Person shall have the right to take for its own account  (individually or as a partner or fiduciary) or to recommend to others any such particular  investment or other opportunity. Any of the foregoing Persons may engage or be interested in  any financial or other transaction with Constellation or any Affiliate of Constellation, or may act  as depository for, trustee or agent for, or act on any committee or body of holders of, securities  or other obligations of Constellation or its Affiliates.  ARTICLE X    VOTING; AMENDMENTS AND MEETINGS  Section 10.1 General. Except as provided in this Article X, the Holders shall not have  any voting rights.  Section 10.2 Voting. The Holders shall be entitled to vote as a single class on all  matters submitted to the vote of the Holders. Each Trust Security shall have one vote on all  matters submitted to the vote of the Holders.  Section 10.3 Amendments.  (a) No amendment to this Declaration shall be made, and any such purported  amendment shall be void and ineffective:  (i) unless, in the case of any purported amendment, the Trustee shall  have first received an opinion of counsel (which may be in-house counsel for Constellation) that  such purported amendment is permitted by, and conforms to, the terms of this Declaration  (including the terms of the Trust Securities);  (ii) unless, in the case of any purported amendment that affects the  rights, duties, powers, liabilities, indemnities or immunities of the Trustee, the Trustee shall have  consented to such amendment;  (iii) unless, in the case of any purported amendment that affects the  rights, powers, liabilities, indemnities or immunities of the Delaware Trustee, the Delaware  Trustee has consented in writing to such amendment;   

 

    -57-  4895-0578-8168 v.5  (iv) unless, in the case of any purported amendment that affects the  rights of Constellation, Constellation shall have consented to such amendment; or  (v) if the result of such amendment would be to:  (A) cause the Trust to be classified as an association or a  publicly traded partnership taxable as a corporation for United States federal  income tax purposes;  (B) cause the Trust to be deemed to be an investment company  required to be registered under the Investment Company Act; or  (C) permit the Trust to invest in or hold any assets other than  the Eligible Treasury Assets, the Senior Notes and its rights under the Transaction  Agreements.  (b) Section 2.11, Section 9.1(b), Section 10.2, this Section 10.3 and Section  10.4 shall not be amended without the unanimous consent of the Holders. In addition, if any  proposed amendment would affect the rights of the Holders to receive Distributions on the Trust  Securities in accordance with their terms, including Distributions in connection with a  dissolution of the Trust, such amendment shall not be effective without the unanimous consent of  the Holders. Any other amendment may be effected with the approval of the Majority of Holders  voting on such matter, subject to the provisions set forth in Section 10.3(c).  (c) Notwithstanding any other provision of this Declaration, this Declaration  may be amended without the consent of the Holders:  (i) to cure any ambiguity or correct any mistake or conform this  Declaration to the description thereof in the Offering Memorandum;  (ii) to correct or supplement any provision in this Declaration that may  be defective or inconsistent with any other provision of this Declaration;  (iii) as determined in good faith by an Authorized Officer, in an  Officer’s Certificate (as defined in the Indenture; provided that any reference to the term  “Trustee” in the definition of Officer’s Certificate in the Indenture shall be deemed to refer to the  Trustee as defined in this Agreement) delivered to the Trustee, upon which the Trustee and the  opinion of counsel referenced in Section 10.3(a)(i) are entitled to rely, to make any change that  does not adversely affect the rights of any Holder in any material respect; or  (iv) to make any other change that may in the reasonable judgment of  Constellation be necessary or appropriate to prevent the occurrence of any Investment Company  Act Event or P-Caps Tax Event, provided that such change would not change the timing or  amount of any Distribution to the Holders or the United States federal income tax treatment of  the Holders as the owners of indebtedness of Constellation, either held directly or held through  the Trust.  

 

      4895-0578-8168 v.5  (d) At the request of Constellation, the Trust may consent to any amendment  or modification of the Facility Agreement, the Pledge Agreement or Trust Expense  Reimbursement Agreement, subject to obtaining any consent of Holders required by the terms of  such agreement in respect of such amendment or modification.  (e) The Trustee shall provide prompt written notice to the Holders and each  Rating Agency of any amendment to or modification of any Transaction Agreement to which it  is a party, other than any such amendment or modification that conforms such Transaction  Agreement to the description thereof in the Offering Memorandum.  (f) Prior to the execution of any amendment to this Trust Declaration or any  Transaction Agreement to which the Trust is a party, the Trustee and the Delaware Trustee shall  be entitled to receive and conclusively rely on an opinion of counsel, at the expense of the Trust,  stating that the execution of such amendment is authorized or permitted by this Declaration and  the Transaction Agreements and that all conditions precedent to the execution of such  amendment have been satisfied. The Trustee and the Delaware Trustee may, but shall not be  obligated to, enter into any such amendment which affects the Trustee’s or the Delaware  Trustee’s own rights, duties or immunities under this Declaration.  Section 10.4 Certain Other Matters.  (a) If the consent of the Holders or the holders of the Senior Notes is required,  or would be required if the Senior Notes were outstanding, with respect to any amendment,  modification or waiver of the terms of or rights or preferences under, or other matter in respect of  the Senior Notes or the Indenture (whether or not the Trust is then holding any Senior Notes),  any other securities that are part of the Trust Property or any other agreement to which the Trust  is a party, the Trustee shall request the direction of the Holders of the Trust Securities with  respect to such matter.  (b) With respect to the Senior Notes and the Indenture (whether or not the  Trust is then holding any Senior Notes), the Trustee shall only give its consent with respect to  those matters if (i) a Majority of Holders consent thereto, in the case of any matter of the type  that requires, or would require, the consent of holders of a majority of the outstanding Senior  Notes or (ii) all Holders consent thereto, in the case of any matter of the type that requires, or  would require, consent of all holders of Senior Notes. With respect to all other matters, and prior  to taking any other legal action with respect to any Trust Property, the Trustee shall request the  direction of the Holders with respect to such matter or legal action and shall act with respect to  such matter or legal action as directed by a Majority of Holders. The Trustee shall not be  obligated to take any action in accordance with the directions of the Holders under this Section  10.4 unless the Trustee has received an Opinion of Tax Counsel to the effect that for United  States federal income tax purposes the Trust shall not be classified as an association or a publicly  traded partnership taxable as a corporation after consummation of such action.  (c) Constellation agrees that it shall not amend the Indenture, as it would  apply to the Senior Notes, after the issue date of the Trust Securities and at a time no Senior  Notes are outstanding, except with respect to changes that would not require any vote by holders  of Senior Notes if the Senior Notes were outstanding, without the consent of the Trustee, as  

 

    -59-  4895-0578-8168 v.5  directed by the Holders of the Trust Securities, as provided in Section 10.4(a) and Section  10.4(b).  Section 10.5 Meetings of the Holders.  (a) Meetings of the Holders may be called at any time by the Trustee or as  provided by this Declaration. Except to the extent otherwise provided in this Declaration, the  following provisions shall apply to meetings of Holders.  (b) Whenever a vote, consent or approval of Holders is permitted or required  under this Declaration such vote, consent or approval may be given at a meeting of Holders, in  person or by proxy, or by written consent.  (c) Each Holder may authorize any Person to act for it by proxy on all matters  in which such Holder is entitled to participate, including waiving notice of any meeting, or  voting or participating at a meeting. Every proxy must be signed by the Holder or its attorney-in- fact. Every proxy shall be revocable at the pleasure of the Holder executing it at any time before  it is voted.  (d) Each meeting of Holders shall be conducted by the Trustee or by such  other Person that the Trustee may designate.  (e) A quorum with respect to any such meeting shall not be less than 50% of the  Holders entitled to vote at the meeting. The Trustee shall cause a notice of any meeting at which  Holders are entitled to vote, or of any matter upon which action may be taken by written consent  of such Holders, to be mailed to each Holder at least 10 days before such meeting. Each such notice  shall include a statement setting forth (i) the date of such meeting or the date by which such action  is to be taken, (ii) a description of any action proposed to be taken at such meeting on which such  Holders are entitled to vote or of such matters upon which written consent is sought and (iii)  instructions for the delivery of proxies or consents. Any and all meetings of Holders shall be held  during normal business hours.  (e) The Trustee shall establish all other provisions relating to meetings of  Holders, including notice of the time, place or purpose of any meeting at which any matter is to  be voted on by any Holders, action by consent without a meeting, the establishment of a record  date, quorum requirements (other than those set forth in Section 10.5(e)), voting in person or by  proxy or any other matter with respect to the exercise of any such right to vote.  ARTICLE XI    REPRESENTATIONS OF THE TRUSTEE AND THE DELAWARE TRUSTEE  Section 11.1 Representations and Warranties of the Trustee. The Person that acts as  initial Trustee represents and warrants to the Trust and to the Depositor and for the benefit of the  Holders at the date of this Declaration, and each Successor Trustee represents and warrants to the  Trust and the Depositor and for the benefit of the Holders at the time of the Successor Trustee’s  acceptance of its appointment as Successor Trustee that:  

 

      4895-0578-8168 v.5  (a) The Trustee is a banking corporation, organized and authorized under the  laws of the State of New York (or, in the case of a Successor Trustee, its jurisdiction of  incorporation) to exercise corporate trust powers, duly organized, validly existing and in good  standing under such laws, with power and authority to execute and deliver, and to carry out and  perform its obligations under the terms of, this Declaration.  (b) The Trustee satisfies the requirements of Section 4.1(a).  (c) The execution, delivery and performance by the Trustee of the Certificate  of Trust and this Declaration have been duly authorized by all necessary corporate action on the  part of the Trustee. This Declaration has been duly executed and delivered by the Trustee and  constitutes a legal, valid and binding obligation of the Trustee, enforceable against it in  accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium,  insolvency and other similar laws affecting creditors’ rights generally and to general principles  of equity and the discretion of the court (regardless of whether the enforcement of such remedies  is considered in a proceeding in equity or at law).  (d) The execution, delivery and performance of the Certificate of Trust and  this Declaration by the Trustee does not conflict with or constitute a breach of the charter or  Articles of Association or the By-laws of the Trustee.  (e) No consent, approval or authorization of, or registration with or notice to,  any State or Federal banking authority is required for the execution, delivery or performance by  the Trustee of the Certificate of Trust and this Declaration.  (f) The Trustee, except as expressly provided or contemplated by this  Declaration, shall not dispose of any Trust Property, or create, incur or assume, or suffer to exist  as a result of its conduct any mortgage, pledge, hypothecation, encumbrance, lien or other charge  or security interest upon the Trust Property.  Section 11.2 Representations and Warranties of the Delaware Trustee. The Delaware  Trustee that acts as initial Delaware Trustee represents and warrants to the Trust and to the  Depositor and for the benefit of the Holders at the date of this Declaration, and each Successor  Delaware Trustee represents and warrants to the Trust and the Depositor and for the benefit of  the Holders at the time of the Successor Delaware Trustee’s acceptance of its appointment as  Delaware Trustee, that:  (a) The Delaware Trustee fulfills the requirements of Section 3807 of the  Statutory Trust Act and has the power and authority to execute and deliver, and to carry out and  perform its obligations under the terms of, this Declaration.  (b) The Delaware Trustee has been authorized to execute, deliver and perform  its obligations under the Certificate of Trust and this Declaration. This Declaration has been duly  executed and delivered by the Delaware Trustee and constitutes a legal, valid and binding  obligation of the Delaware Trustee, enforceable against it in accordance with its terms, subject to  applicable bankruptcy, reorganization, moratorium, insolvency and other similar laws affecting  creditors’ rights generally and to general principles of equity and the discretion of the court  

 

    -61-  4895-0578-8168 v.5  (regardless of whether the enforcement of such remedies is considered in a proceeding in equity  or at law).  (c) No consent, approval or authorization of, or registration with or notice to,  any State or Federal banking authority is required for the execution, delivery or performance by  the Delaware Trustee of this Declaration.  (d) The Delaware Trustee is an entity that has its principal place of business in  the State of Delaware.  ARTICLE XII    MISCELLANEOUS  Section 12.1 Notices.  (a) Any notice, request or other communication required or permitted to be  given hereunder shall be given in writing by delivering the same against receipt therefor in  person, by registered or certified mail or by nationally recognized overnight courier, by facsimile  or as a PDF attachment to an e-mail, addressed as follows (except that such notices, requests and  other communications if given to the Trustee or the Delaware Trustee shall not be effective  unless actually received by the Trustee or the Delaware Trustee, as the case may be, at the  Corporate Trust Office or principal place of business of the Delaware Trustee, as the case may  be):  If to the Trust at:  Fells Point Funding Trust  c/o Deutsche Bank Trust Company Americas   Trust & Agency Services  1 Columbus Circle, 17th Floor  MS:NYC01-1710    New York, New York 10019  Attention: Corporates Team -Fells Point Funding Trust, Constellation, SF7147     If to the Trustee at:  Deutsche Bank Trust Company Americas   Trust & Agency Services  1 Columbus Circle, 17th Floor  MS:NYC01-1710    New York, New York 10019  Attention: Corporates Team -Fells Point Funding Trust, Constellation, SF7147     If to the Delaware Trustee at:  

 

      4895-0578-8168 v.5  Deutsche Bank Trust Company Delaware   1011 Centre Road Suite 200   Wilmington, Delaware 19805  Attn: Corporate Trust/Fells Point Funding Trust     If to S&P at:  S&P Global Ratings   55 Water Street   New York, New York 10041   If to Moody’s at:  Moody’s Investors Service, Inc.  7 World Trade Center   250 Greenwich Street   New York, New York 10007  If to the Depositor or Constellation at:   Constellation Energy Generation, LLC   200 Exelon Way   Kennett Square, Pennsylvania 19348   Attention: General Counsel  With a copy to:   Ballard Spahr LLP   1735 Market Street, 51st Floor   Philadelphia, Pennsylvania 19103   Attention: Patrick R. Gillard, Esq.    If to any Holder, at the address of such Holder set forth on the Register.  The Trustee shall have the right, but shall not be required, to rely upon and comply with  instructions and directions sent by e-mail and other similar unsecured electronic methods by  persons believed by the Trustee to be authorized to give instructions and directions on behalf of  the Depositor. The Trustee shall have no duty or obligation to verify or confirm that the person  who sent such instructions or directions is, in fact, a person authorized to give instructions or  directions on behalf of the Depositor; and the Trustee shall have no liability for any losses,  liabilities, costs or expenses incurred or sustained by the Depositor as a result of such reliance  upon or compliance with such instructions or directions. The Depositor agrees to assume all risks  arising out of the use of such electronic methods to submit instructions and directions to the  Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions,  and the risk of interception and misuse by third parties.  

 

    -63-  4895-0578-8168 v.5  Any notice or other communication provided for herein to be given to a Rating Agency  shall be provided as a matter of accommodation and no liability shall attach to the giver of such  notice or other communication for the failure to deliver same or any defect in its contents.  (b) Any such notice shall be effective upon delivery, if delivered in person;  upon acknowledgement of receipt, if delivered by email transmission; on the fifth day after  deposited in the mail, postage prepaid, if delivered by registered or certified mail; and on the day  after deposit with a nationally recognized overnight courier, if delivered by overnight courier.  Any party hereto may change its address or email address for notices and other communications  hereunder by notice to the other parties hereto in accordance with this Section 12.1.  Section 12.2 GOVERNING LAW. THIS DECLARATION, THE TRUST SECURITIES  AND THE RIGHTS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND  INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE  AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS  WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS OF THE STATE OF  DELAWARE OR ANY OTHER JURISDICTION THAT WOULD CALL FOR THE  APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF  DELAWARE; PROVIDED, HOWEVER, THAT THERE SHALL NOT BE APPLICABLE TO  THE PARTIES HEREUNDER OR THIS DECLARATION ANY PROVISION OF THE LAWS  (STATUTORY OR COMMON, OTHER THAN THE STATUTORY TRUST ACT) OF THE  STATE OF DELAWARE PERTAINING TO TRUSTS THAT RELATE TO OR REGULATE,  IN A MANNER INCONSISTENT WITH THE TERMS HEREOF, INCLUDING (A) THE  FILING WITH ANY COURT OR GOVERNMENTAL BODY OR AGENCY OF TRUSTEE  ACCOUNTS OR SCHEDULES OF TRUSTEE FEES AND CHARGES, (B) AFFIRMATIVE  REQUIREMENTS TO POST BONDS FOR TRUSTEES, OFFICERS, AGENTS OR  EMPLOYEES OF A TRUST, (C) THE NECESSITY FOR OBTAINING COURT OR OTHER  GOVERNMENTAL APPROVAL CONCERNING THE ACQUISITION, HOLDING OR  DISPOSITION OF REAL OR PERSONAL PROPERTY, (D) FEES OR OTHER SUMS  PAYABLE TO TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST, (E) THE  ALLOCATION OF RECEIPTS AND EXPENDITURES TO INCOME OR PRINCIPAL, (F)  RESTRICTIONS OR LIMITATIONS ON THE PERMISSIBLE NATURE, AMOUNT OR  CONCENTRATION OF TRUST INVESTMENTS OR REQUIREMENTS RELATING TO  THE TITLING, STORAGE OR OTHER MANNER OF HOLDING OR INVESTING TRUST  ASSETS, OR (G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER STANDARDS OR  RESPONSIBILITY OR LIMITATIONS ON THE ACTS OR POWERS OF THE TRUSTEE  THAT ARE INCONSISTENT WITH THE LIMITATIONS OR LIABILITIES OR  AUTHORITIES AND POWERS OF THE TRUSTEE HEREUNDER AS SET FORTH OR  REFERENCED IN THIS TRUST DECLARATION. SECTIONS 3540 AND 3561 OF TITLE 12  OF THE DELAWARE CODE SHALL NOT APPLY TO THE TRUST.  Section 12.3 Jurisdiction. The parties hereto agree that any suit, action or proceeding  seeking to enforce any provision of, or based on any matter arising out of or in connection with,  this Declaration or the transactions contemplated hereby shall be brought exclusively in the  Court of Chancery of the State of Delaware or, if such court does not have jurisdiction over the  subject matter of such proceeding or if such jurisdiction is not available, in any other court of the  State of Delaware or in the United States District Court for the District of Delaware, and each of  

 

      4895-0578-8168 v.5  the parties hereto hereby irrevocably consents to the exclusive jurisdiction of those courts (and of  the appropriate appellate courts therefrom) in any suit, action or proceeding and irrevocably  waives, to the fullest extent permitted by applicable law, any objection which it may now or  hereafter have to the laying of the venue of any suit, action or proceeding in any of those courts  or that any suit, action or proceeding which is brought in any of those courts has been brought in  an inconvenient forum. Each of the parties hereto unconditionally agrees, to the extent such party  is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an  agent in the State of Delaware as such party’s agent for acceptance of legal process. Process in  any suit, action or proceeding may be served on any party hereto anywhere in the world, whether  within or without the jurisdiction of any of the named courts and such service shall, to the fullest  extent permitted by applicable law, have the same legal force and effect as if served upon such  party within the State of Delaware.  Section 12.4 WAIVER OF TRIAL BY JURY. THE PARTIES HERETO AND THE  HOLDERS HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED  BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL  PROCEEDING ARISING OUT OF OR RELATING TO THIS DECLARATION OR THE  TRANSACTIONS CONTEMPLATED HEREBY.  Section 12.5 Enforceability. If any provision of this Declaration, or the application of  such provision to any Person or circumstance, shall be held invalid, the remainder of this  Declaration, or the application of such provision to persons or circumstances other than those to  which it is held invalid, shall not be affected thereby.  Section 12.6 Counterparts. This Declaration may contain more than one counterpart of  the signature page and this Declaration may be executed by the affixing of the signatures of the  Trustee, the Delaware Trustee and a duly authorized officer of the Depositor to one of such  counterpart signature pages. The words “execution”, “signed”, “signature”, and words of like  import in this Declaration shall include electronic signatures (including without limitation,  Diligent, DocuSign and AdobeSign or any other similar platform identified by Constellation and  reasonably available at no undue burden or expense to the Trustee or Delaware Trustee, with  respect to their signatures) and such electronic signature procedures shall apply to all documents  related to this Declaration, without limitation, addendums, amendments, notices, instructions,  communications with respect to the delivery of Trust Securities or the wire transfer of funds or  other communications. All of such counterpart signature pages shall be read as though one, and  they shall have the same force and effect as though all of the signers had signed a single  signature page. The exchange of copies of this Declaration and of signature pages by email  transmission of PDF files shall constitute effective execution and delivery of this Declaration as  to the parties hereto and may be used in lieu of the original Declaration for all purposes.  Signatures of the parties hereto transmitted by email transmission of PDF files shall be deemed  to be their original signatures for all purposes.  [Signature Pages Follow]  

 

    [Signature Page to Amended & Restated Declaration of Trust]  4895-0578-8168 v.5  IN WITNESS WHEREOF, each of the undersigned has caused this Amended and  Restated Declaration of Trust to be executed as of the day and year first above written.  CONSTELLATION ENERGY  GENERATION, LLC,  individually and as Depositor    By /s/ Shane Smith   Name: Shane Smith   Title: Vice President and Treasurer       

 

      4895-0578-8168 v.5  DEUTSCHE BANK TRUST COMPANY  AMERICAS,   as Trustee    By /s/ Bridgette Casasnovas   Name: Bridgette Casasnovas   Title: Vice President    By /s/ Robert Peschler   Name: Robert Peschler   Title: Vice President       

 

    [Signature Page to Amended & Restated Declaration of Trust]  4895-0578-8168 v.5    DEUTSCHE BANK TRUST COMPANY  DELAWARE,   as Delaware Trustee    By /s/ Bridgette Casasnovas   Name: Bridgette Casasnovas   Title: Vice President    By /s/ Robert Peschler   Name: Robert Peschler   Title: Vice President  

 

      4895-0578-8168 v.5  EXHIBIT A  CERTIFICATE OF TRUST  

 

     B-1              4895-0578-8168 v.5  EXHIBIT B   FORM OF CERTIFICATE     THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED  UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),  OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND  MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT  TO A PERSON WHO IS (A) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN  RULE 144A UNDER THE SECURITIES ACT); (B) A “QUALIFIED PURCHASER” (AS  DEFINED UNDER SECTION 2(A)(51) OF THE INVESTMENT COMPANY ACT OF 1940,  AS AMENDED (THE “INVESTMENT COMPANY ACT”)); (C) NOT FORMED FOR THE  PURPOSE OF INVESTING IN THE TRUST OR THE SENIOR NOTES; (D)  KNOWLEDGEABLE, SOPHISTICATED AND EXPERIENCED IN BUSINESS AND  FINANCIAL MATTERS; (E) ABLE AND PREPARED TO BEAR THE ECONOMIC RISK  OF INVESTING AND HOLDING THE TRUST SECURITIES FOR AN INDEFINITE  PERIOD; AND (F) NOT (I) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION  3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS  AMENDED (“ERISA”)) THAT IS SUBJECT TO ERISA, A PLAN DESCRIBED IN SECTION  4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, (II) A  GOVERNMENTAL PLAN (AS DEFINED IN SECTION 3(32) OF ERISA), A CHURCH  PLAN (AS DEFINED IN SECTION 3(33) OF ERISA) OR A NON-U.S. PLAN (AS  DESCRIBED IN SECTION 4(B)(4) OF ERISA) THAT IS NOT SUBJECT TO THE  REQUIREMENTS OF ERISA OR THE CODE BUT IS SUBJECT TO SIMILAR  PROVISIONS UNDER APPLICABLE FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER  LAWS (“SIMILAR LAWS”) OR (III) AN ENTITY WHOSE UNDERLYING ASSETS ARE  CONSIDERED TO INCLUDE PLAN ASSETS OF ANY SUCH PLANS PURSUANT TO  SECTION 3(42) OF ERISA, DEPARTMENT OF LABOR REGULATIONS OR OTHERWISE.     THE SECURITIES EVIDENCED HEREBY MAY BE TRANSFERRED ONLY TO A  PERSON WHO THE TRUST REASONABLY BELIEVES QUALIFIES AS A TRANSFEREE  PURSUANT TO THE PRECEDING PARAGRAPH. ANY PURPORTED TRANSFER OF  SECURITIES OF THE TRUST THAT WOULD VIOLATE THESE TRANSFER  RESTRICTIONS IS DEEMED BY THE TRUST’S AMENDED AND RESTATED  DECLARATION OF TRUST (THE “TRUST DECLARATION”) TO BE VOID AND OF NO  LEGAL EFFECT WHATSOEVER. ANY INTENDED TRANSFEREE IN SUCH A  PURPORTED TRANSFER SHALL NOT BECOME OR BE THE HOLDER OF SUCH  SECURITIES FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO THE RECEIPT  OF DISTRIBUTIONS ON SUCH SECURITIES, AND SUCH INTENDED TRANSFEREE  SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.  IN SUCH A CASE, THE PURPORTED TRANSFEROR IS DEEMED BY THE TRUST  

 

      4895-0578-8168 v.5  DECLARATION TO CONTINUE TO BE THE HOLDER OF THE SECURITIES  NOTWITHSTANDING THE PURPORTED TRANSFER OF THE SECURITIES.      THE TRUST RESERVES THE RIGHT TO MODIFY THE FORM OF CERTIFICATES  EVIDENCING THE TRUST SECURITIES FROM TIME TO TIME TO REFLECT ANY  CHANGES IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION  THEREOF) OR IN PRACTICES RELATING TO THEIR PURCHASE OR RESALE. THE  TRUST SECURITIES AND RELATED DOCUMENTATION, INCLUDING THIS LEGEND,  MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY  RESTRICTIONS ON AND PROCEDURES FOR RESALES AND OTHER TRANSFERS OF  THE TRUST SECURITIES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR  REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING  TO THE RESALE OR TRANSFER OF SECURITIES SUCH AS THE TRUST SECURITIES  GENERALLY. EACH HOLDER OF THIS CERTIFICATE SHALL BE DEEMED, BY THE  ACCEPTANCE OF THIS CERTIFICATE, TO HAVE AGREED TO ANY SUCH  AMENDMENT OR SUPPLEMENT.      UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR  SECURITIES IN DEFINITIVE FORM, THIS CERTIFICATE MAY NOT BE  TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A  NEW YORK CORPORATION (“DTC”), TO A NOMINEE OF DTC, BY A NOMINEE OF  DTC TO DTC, OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR TO DTC OR  ANY NOMINEE OF SUCH A SUCCESSOR.      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC TO THE TRUST OR ITS AGENT FOR REGISTRATION OF  TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS  REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS  REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT  IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN  AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER  USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL  INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST  HEREIN.  

 

    B-4  4895-0578-8168 v.5  Certificate Number:      Number of Trust Securities:           CUSIP: 314382 AA0          ISIN: US314382AA01    Pre-Capitalized Trust Securities Redeemable January 31, 2027    issued by    Fells Point Funding Trust     Fells Point Funding Trust, a statutory trust formed under the laws of the State of  Delaware (the “Trust”) hereby certifies that [____________] (the “Holder”) is the registered  owner of [___________________] Pre-Capitalized Trust Securities Redeemable January 31,  2027 (the “Trust Securities”) representing an undivided beneficial interest in the assets of the  Trust. This Certificate, and the Trust Securities evidenced hereby, are transferable on the books  and records of the Trust, in person or by a duly authorized attorney, upon surrender of this  instrument duly endorsed and in proper form for transfer as provided in Section 5.4 of the Trust  Declaration (as defined below). The designations, rights, privileges, restrictions, preferences and  other terms of the Trust Securities are set forth in, and this Certificate is issued and shall in all  respects be subject to the terms and provisions of, the Amended and Restated Declaration of  Trust of Fells Point Funding Trust, dated as of February 9, 2022, as the same may be amended  from time to time in accordance with its terms (the “Trust Declaration”), among Constellation  Energy Generation, LLC, a Pennsylvania limited liability company, in its individual capacity and  as Depositor, Deutsche Bank Trust Company Americas, a New York banking corporation, as  trustee, and Deutsche Bank Trust Company Delaware, a Delaware banking corporation, as  Delaware trustee. The Trust Declaration authorizes the issuance of a total of 1,000,000 Trust  Securities. The Trustee shall furnish a copy of the Trust Declaration to the Holder without charge  upon written request to the Trust at its Corporate Trust Office.      The Holder is bound by the Trust Declaration and entitled to the benefits provided for  therein for Holders holding Trust Securities.      This instrument shall be governed by and construed in accordance with the laws of the  State of Delaware without regard to its conflict of laws provisions.     All capitalized terms used and not otherwise defined in this instrument shall have the  meanings assigned to them in the Trust Declaration.    

 

    B-3  4895-0578-8168 v.5   IN WITNESS WHEREOF, the Trust has caused this instrument to be executed by the  Trustee by one of its officers thereunto duly authorized this _____, day of ___________,  ________.     FELLS POINT FUNDING TRUST    By  DEUTSCHE BANK TRUST  COMPANY AMERICAS, not in its  individual capacity but solely as Trustee    By    Name:    Title:      

 

    B-4  4895-0578-8168 v.5  EXHIBIT C  FORM OF PLEDGE AGREEMENT  

 

      4895-0578-8168 v.5  EXHIBIT D  FORM OF FACILITY AGREEMENT  

 

      4895-0578-8168 v.5  EXHIBIT E  FORM OF TRUST EXPENSE REIMBURSEMENT AGREEMENT  

 

      4895-0578-8168 v.5  EXHIBIT F  FORM OF ENGAGEMENT LETTER OF COVER & ROSSITER  

 

      4895-0578-8168 v.5  EXHIBIT G  CUSIPS, FACE AMOUNT AND PURCHASE PRICE OF THE ELIGIBLE TREASURY  ASSETS ON THE DATE HEREOF  CUSIP STRIP Face Amount Purchase Price  912834PL6 $7,505,900.00  $7,490,062.55   912834PY8 $7,855,000.00  $7,804,649.45   912834QN1 $7,855,000.00  $7,753,277.75   912834RA8 $7,855,000.00  $7,685,017.80   912834RQ3 $7,855,000.00  $7,623,591.70   912834TE8 $7,855,000.00  $7,555,253.20   912834TU2 $7,855,000.00  $7,486,993.25   912834UG1 $7,855,000.00  $7,413,391.90   912834UX4 $7,855,000.00  $7,339,005.05   912834VL9 $7,855,000.00  $7,260,455.05   912821DT9 $1,000,000,000.00  $924,580,000.00   Total  $999,991,697.70

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