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Exhibit 10(a)  

 
  Executive Annual Incentive Plan
  Of
  Constellation Energy Group, Inc.    
    

        1.    Plan Objective.    The objective of this Plan is to allow
Constellation Energy Group, Inc. (Constellation Energy Group or Company) to attract, retain and motivate highly competent officers and key employees of the Company and its subsidiaries by
focusing incentive compensation toward the achievement of performance results that primarily support the interests of shareholders and customers of the Company. 

        2.    Plan Administration.    The Plan is administered by the
Constellation Energy Group Board of Directors' (Board) Committee on Management (Committee on Management) which has sole authority (unless otherwise specified herein) to interpret the Plan; to refine
its provisions from time to time, particularly those relating to factors, targets and procedures used in connection with calculating the awards (which refinements shall be reflected in guidelines for
the performance year); to suspend the Plan at any time; and in general, to make all other determinations necessary or advisable for the administration of the Plan to achieve its stated objective. 

        The
Committee on Management shall have the power to delegate all or any part of their duties to one or more designees, and to withdraw such authority, by written designation. 

        3.    Eligibility.    Each officer or key employee of Constellation
Energy Group or its subsidiaries may be designated in writing by the Committee on Management as a participant under the Plan. Once designated, participation shall continue until such designation is
withdrawn at the discretion and by written order of the Committee on Management. Participation is subject to the following conditions: 

        Participant
must have been an eligible participant for some portion of the performance year and at the time of distribution be actively employed by the Company or elsewhere with the
approval of the Company unless employment was terminated by death, disability or retirement. Except as otherwise
provided herein, where an individual is not an eligible participant for the entire performance year, the amount of the award, whether full, partial or none, will be at the Committee on Management's
discretion. 

        Where,
prior to the end of a performance year, a participant's active employment is terminated as a result of death, disability or retirement, the award is calculated based on the
participant's position at the time of termination. Unless otherwise stated, any such award will be made on a pro-rata basis for the period of active employment, or, in total, at the
discretion of the Committee on Management. Where active employment is terminated as a result of death of participant, distribution is made in accordance with Section 9. (Designation of
Beneficiary) of this Plan. 

        4.    Performance Goals    

        A.    Performance Targets.    The Committee on Management shall
establish for each plan year Performance Targets designed to accomplish the purpose set forth in Section 1 of this Plan. The Committee on Management will ensure that each plan year's
Performance Targets meet the following general criteria: 

        (1)   The
interests of the Company's shareholders will be balanced with the interests of the Company's customers. 

        (2)   The
targets should be set at levels which are attainable, but which, in the Committee on Management's judgment, are attainable only with a high degree of competence and
diligence. 

        The
Committee on Management shall have sole authority to amend Performance Targets at any time when, in the Committee's judgment, unforeseen circumstances exist which require
modification in order to ensure that the purpose of the Plan is properly served. 

 

        The
Committee on Management shall have authority to establish appropriate Performance Targets, differing to the degree necessary from those established for the Company, for each of the
Company's
subsidiaries employing one or more participants in this Plan; and shall have authority to adjust such targets subsequently should unforeseen circumstances arise. 

        B.    Individual Performance.    A participant's individual
per- formance will be evaluated by the Chairman of the Board. 

        5.    Award Opportunity.    The Committee on Management shall
establish for each plan year the Award Opportunity (minimum, target, and maximum, as appropriate) applicable to participants in the Plan. The Award Opportunity may be allocated among the various
Performance Targets and Individual Performance and may vary among classes of participants. 

        6.    Award Determination.    The Committee on Management shall
determine the Awards, if any, to be made for each plan year as soon after the end of the plan year as is practical. 

        Awards
are calculated taking into account the degree of attainment of performance targets, individual performance, and the percent of participation during the performance year. The
dollar amount of the participants' award is determined by multiplying the participant's prior December 31 annualized base salary by the award percentage. 

        7.    Payment of Awards.    Awards approved by the Committee on
Management for each plan year shall be paid as soon as practicable after such determination has been made. Payment may be made in a lump cash sum or, at the participants' election, may be deferred in
whole or in part. When required by applicable law, Federal, State and FICA taxes will be withheld from awards at applicable rates. 

        Awards
will not be paid for any performance year in which Company earnings are less than the amount necessary to fund the annual dividend. Additionally, awards will not be paid for any
plan year in which the dividend is suspended or effectively reduced from its prior amount. 

        8.    Deferred Payment of Award.    A participant may elect to defer
the receipt of all or a portion of the award for the plan year. Any such deferral and investment of any such amounts deferred pursuant to this Plan shall be made in accordance with the provisions of
the Constellation Energy Group Nonqualified Deferred Compensation Plan. 

        9.    Designation of Beneficiary.    A participant shall have the
right to designate a beneficiary or beneficiaries who are to receive in a lump sum any undistributed incentive compensation award to the extent a participant has chosen not to defer all or a portion
of his incentive award pursuant to Section 8 hereof, should the participant die during the plan year and be entitled to an incentive award for that plan year. Such designation shall apply only
to the portion of the undistributed incentive award not subject to a
deferral election. Any designation, change or rescission of the designation shall be made in writing by completing and furnishing to the Vice President—Human Resources of the Company a
notice on an appropriate form designated by the Vice President—Human Resources of the Company. The last designation of beneficiary received by the Vice President—Human
Resources of the Company shall be controlling over any testamentary or purported disposition by the participant, provided that no designation, rescission or change thereof shall be effective unless
received prior to death of the participant. Distribution of any incentive awards previously deferred pursuant to Section 8 of the Plan shall be paid to the beneficiary or beneficiaries
designated under the Constellation Energy Group Nonqualified Deferred Compensation Plan. 

        10.    Change in Control.    Notwithstanding any other provisions of
this Plan to the contrary, if a participant separates from service with Constellation Energy Group or a subsidiary of Constellation Energy Group (except due to a participant's transfer of employment
to or from a subsidiary of Constellation Energy Group), within 2 years following a change in control, such participant is eligible for an award for the performance year during which the
separation from service occurs. The award is calculated assuming maximum performance achievement and based on the participant's position at the 

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time
of termination and is pro-rated for the period of active employment during the performance year. The Committee on Management, in its discretion, may grant a total, rather than
pro-rated award. Payment of the award will be made in a lump cash sum within 60 days after the participant's separation from service. Payment may not be deferred. 

        A
change in control for purposes of this Section 10 shall mean the occurrence of any one of the following events: 

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

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

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

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majority
of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination
were Incumbent Directors at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the
criteria specified in (A), (B), and (C) above shall be deemed to be a "Non-Qualifying Transaction"); or 

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

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

        Notwithstanding
any provision in the Plan to the contrary, on or within 2 years after a Change in Control, no action, including, but not by way of limitation, the amendment,
suspension or termination of the Plan, shall be taken which would adversely affect the rights of any participant without such participant's prior written consent. 

        11.    Miscellaneous.    The plan year and the performance year shall
be the same and shall be the calendar year. 

        Any
payments made under this Plan are not considered as earnings for purposes of determining benefits under any pension, profit sharing or other retirement or welfare plan, or for any
other general employee benefit program, unless expressly considered as compensation under the terms of such plan or program. 

        None
of the payments provided under this Plan which are deferred shall be subject to alienation or assignment by any participant or beneficiary nor shall any of them be subject to
attachment or garnishment or other legal process except to the extent specifically mandated and directed by applicable State or Federal statute. Payment shall be made only into the hands of the
participant or beneficiary entitled to receive the same or into the hands of his or her authorized legal representative. Deposit of any sum into any financial institution to the credit of the
participant or beneficiary entitled thereto shall constitute payment into his or her hands. Notwithstanding the foregoing, at the request of the participant or beneficiary or as required by law, such
sums as may be requisite for payment of any estimated or currently accrued income tax liability may be withheld and paid over to the governmental entity entitled to receive the same. 

        Participation
in this Plan shall not constitute a contract of employment between the Company and any employee and shall not be deemed to be consideration for, inducement to, or a
condition of employment of any person. The deferral of any incentive compensation amounts pursuant to the provisions of the Plan shall not be construed to give any employee the right to be retained in
the employ of the Company or to interfere with the right of the company to terminate such employment at any time. 

        The
Committee on Management intends to continue the Plan indefinitely but reserves the right to amend the Plan from time to time or to permanently discontinue it provided none of these,
nor any suspension, may deprive the participants of any payment of amounts which were previously awarded at the time thereof. 

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

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Exhibit 10(b)  

This document constitutes part of a prospectus covering securities

that have been registered under the Securities Act of 1933.  

  
 

    Constellation Energy Group, Inc.
  1995 Long-Term Incentive Plan
  (Plan)    
    

        1.    Objective.    The objective of this Plan is to increase shareholder value by providing a
long-term incentive to reward officers and key employees of CEG and its Subsidiaries, who are mainly responsible for the continued growth, development, and financial success of CEG and its
Subsidiaries, for the continued profitable performance of CEG and its subsidiaries. The Plan is also designed to permit CEG and its Subsidiaries to retain talented and motivated officers and key
employees and to increase their ownership of CEG common stock. 

        2.    Definitions.    All singular terms defined in this Plan will include the plural and  vice versa. As used herein, the following terms will have the meaning specified below: 

        "Award"
means individually or collectively, Restricted Stock, Options, Performance Units, Stock Appreciation Rights, or Dividend Equivalents granted under this Plan. 

        "Board"
means the Board of Directors of CEG. 

        "Book
Value" means the book value of a share of Stock determined in accordance with CEG's regular accounting practices as of the last business day of the month immediately preceding the
month in which a Stock Appreciation Right is exercised as provided in Section 10. 

        "CEG"
means Constellation Energy Group, Inc., a Maryland corporation, or its successor, including any "New Company" as provided in Section 14I. 

        "Code"
means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code will be deemed to include any amendments or successor provisions to such
section and any regulations promulgated thereunder. 

        "Committee"
means the Committee on Management of the Board, provided, however, that if such Committee fails to satisfy the disinterested administration provisions of
Section 16b-3 of the 1934 Act, "Committee" shall mean a committee of directors of CEG who satisfy the disinterested person requirements of such Section. 

        "Date
of Grant" means the date on which the granting of an Award is authorized by the Committee or such later date as may be specified by the Committee in such authorization. 

        "Date
of Retirement" means the date of Retirement or Early Retirement. 

        "Disability"
means the determination that a Participant is "disabled" under the CEG disability plan in effect at that time. 

        "Dividend
Equivalent" means an award granted under Section 11. 

        "Early
Retirement" means retirement prior to the Normal Retirement Date. 

        "Earned
Performance Award" means an actual award of a specified number of Performance Units (or shares of Restricted Stock, as the context requires) which the Committee has determined
have been earned and are payable (or, in the case of Restricted Stock, earned and with respect to which restrictions will lapse) for a particular Performance Period. 

        "Eligible
Employee" means any person employed by CEG or a Subsidiary on a regularly scheduled basis who satisfies all of the requirements of Section 5. 

 

        "Exercise
Period" means the period or periods during which a Stock Appreciation Right is exercisable as described in Section 10. 

        "Fair
Market Value" means the average of the highest and lowest price at which the Stock was sold regular way on the New York Stock Exchange-Composite Transactions on a specified date. 

        "Incentive
Stock Option" means an incentive stock option within the meaning of Section 422 of the Code. 

        "1934
Act" means the Securities Exchange Act of 1934, as amended. 

        "Normal
Retirement Date" is the retirement date as described in the Pension Plan or a Subsidiary's retirement or pension plan. 

        "Option"
or "Stock Option" means either a nonqualified stock option or an incentive stock option granted under Section 8. 

        "Option
Period" or "Option Periods" means the period or periods during which an Option is exercisable as described in Section 8. 

        "Participant"
means an employee of CEG or a Subsidiary who has been granted an Award under this Plan. 

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

        "Performance-Based"
means that in determining the amount of a Restricted Stock Award payout, the Committee will take into account the performance of the Participant, CEG, one or more
Subsidiaries, or any combination thereof. 

        "Performance
Period" means a period of time, established by the Committee at the time an Award is granted, during which corporate and/or individual performance is measured. 

        "Performance
Unit" means a unit of measurement equivalent to such amount or measure as defined by the Committee which may include, but is not limited to, dollars, market value shares, or
book value shares. 

        "Plan
Administrator" means, as set forth in Section 4, the Committee. 

        "Restricted
Stock" means an Award granted under Section 7. 

        "Retirement"
means retirement on or after the "Normal Retirement Date" (as such term is defined in the Pension Plan or a Subsidiary's retirement or pension plan). 

        "Service-Based"
means that in determining the amount of a Restricted Stock Award payout, the Committee will take into account only the period of time that the Participant performed
services for CEG or its Subsidiaries since the Date of Grant. 

        "Stock"
means the common stock, without par value, of CEG. 

        "Stock
Appreciation Right" means an Award granted under Section 10. 

        "Subsidiary(ies)"
means any corporation of which 20% or more of its outstanding voting stock or voting power is beneficially owned, directly or indirectly, by CEG. 

        "Target
Performance Award" means a targeted award of a specified number of Performance Units (or shares of Restricted Stock, as the context requires) which may be earned and payable (or,
in the case of Restricted Stock, earned and with respect to which restrictions will lapse) based upon the performance objectives for a particular Performance Period, all as determined by the
Committee. The 

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Target
Performance Award will be a factor in the Committee's ultimate determination of the Earned Performance Award. 

        "Termination"
means resignation or discharge from employment with CEG or any of its Subsidiaries except in the event of death, Disability, Retirement or Early Retirement. 

        3.    Effective Date, Duration and Stockholder Approval.    

        A.    Effective Date and Stockholder Approval.    This Plan has been transferred from
Baltimore Gas and Electric Company (BGE) to CEG effective April 30, 1999 in connection with a share exchange between CEG and the common stockholders of BGE. The Plan was approved by a majority
of the outstanding shares of common stock of BGE voted at its 1995 Annual Meeting of Stockholders, and became effective as of January 1, 1995. 

        B.    Period for Grants of Awards.    Awards may be made as provided herein for a period of
10 years after January 1, 1995. 

        C.    Termination.    The Plan will continue in effect until all matters relating to the
payment of outstanding Awards and administration of the Plan have been settled. 

        D.    Grants Outstanding.    Grants outstanding at the effective time of the share exchange
between CEG and the common stockholders of Baltimore Gas and Electric Company (BGE) will be converted from BGE common stock-based grants to CEG common stock-based grants. 

        4.    Plan Administration.    The Committee is the Plan Administrator and has sole authority
(except as specified otherwise herein) to determine all questions of interpretation and application of the Plan, or of the terms and conditions pursuant to which Awards are granted, exercised or
forfeited under the Plan provisions, and, in general, to make all determinations advisable for the administration of the Plan to achieve its stated objective. Such determinations shall be final and
not subject to further appeal. 

        5.    Eligibility.    Each officer or key employee of CEG and its Subsidiaries (including
officers or employees who are members of the Board, but excluding directors who are not officers or employees) may be designated by the Committee as a Participant, from time to time, with respect to
one or more Awards. No officer or employee of CEG or its Subsidiaries shall have any right to be granted an Award under this Plan. 

        6.    Grant of Awards and Limitation of Number of Shares Awarded.    The Committee may, from
time to time, grant Awards to one or more Eligible Employees, provided that (i) subject to any adjustment pursuant to Section 14H, the aggregate number of shares of Stock subject to
Awards under this Plan may not exceed three million (3,000,000) shares; (ii) to the extent that an Award lapses or the rights of the Participant to whom it was granted terminate, any shares of
Stock subject to such Award shall again be available for the grant of an Award under the Plan; and (iii) shares delivered by CEG under the Plan may be authorized and unissued Stock, Stock held
in the treasury of CEG, or Stock purchased on the open market (including private purchases) in accordance with applicable securities laws. 

        7.    Restricted Stock Awards.    

        A.    Grants of Restricted Shares.    One or more shares of Restricted Stock may be granted to
any Eligible Employee. The Restricted Stock will be issued to the Participant on the Date of Grant without the payment of consideration by the Participant. The Restricted Stock will be issued in the
name of the Participant and will bear a restrictive legend prohibiting sale, transfer, pledge or hypothecation of the Restricted Stock until the expiration of the restriction period. 

        The
Committee may also impose such other restrictions and conditions on the Restricted Stock as it deems appropriate, and will designate the grant as either a Service-Based or
Performance-Based Award. 

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        Upon
issuance to the Participant of the Restricted Stock, the Participant will have the right to vote the Restricted Stock, and subject to the Committee's discretion, to receive the cash
dividends distributable with respect to such shares, with such dividends treated as compensation to the Participant. The Committee, in its sole discretion, may direct the accumulation and payment of
distributable dividends to the Participant at such times, and in such form and manner, as determined by the Committee. 

        B.    Service-Based Award.    

        i.    Restriction Period.    At the time a Service-Based Restricted Stock Award is granted,
the Committee will establish a restriction period applicable to such Award which will be not less than one year and not more than ten years. Each Restricted Stock Award may have a different
restriction period, at the discretion of the Committee. 

        ii.    Forfeiture or Payout of Award.    In the event a Participant ceases employment during a
restriction period, a Restricted Stock Award is subject to forfeiture or payout (i.e., removal of restrictions) as follows: (a) Termination—the Restricted Stock Award is completely
forfeited; (b) Retirement, Disability or death—payout of the Restricted Stock Award is prorated for service during the period; or (c) Early Retirement—if at the
Participant's request, the payout or forfeiture of the Restricted Stock Award is determined at the discretion of the Committee, or if at CEG's request, payout of the Restricted Stock Award is prorated
for service during the period; provided, however, that the Committee may modify the above if it determines at its sole discretion that special circumstances warrant such modification. 

        Any
shares of Restricted Stock which are forfeited will be transferred to CEG. 

        Upon
completion of the restriction period, all Award restrictions will expire and new certificates representing the Award will be issued (the payout) without the restrictive legend
described in Section 7A. 

        C.    Performance-Based Award.    

        i.    Restriction Period.    At the time a Performance-Based Restricted Stock Award is
granted, the Committee will establish a restriction period applicable to such Award which will be not less than one year and not more than ten years. Each Restricted Stock Award may have a different
restriction period, at the discretion of the Committee. The Committee will also establish a Performance Period. 

        ii.    Performance Objectives.    The Committee will determine, no later than 90 days
after the beginning of each Performance Period, the performance objectives for each Participant's Target Performance Award and the number of shares of Restricted Stock for each Target Performance
Award that will be issued on the Date of Grant. Performance objectives may vary from Participant to Participant and will be based upon such performance criteria or combination of factors as the
Committee deems appropriate, which may include, but not be limited to, the performance of the Participant, CEG, one or more Subsidiaries, or any combination thereof. Performance Periods may overlap
and Participants may participate simultaneously with respect to Performance-Based Restricted Stock Awards for which different Performance Periods are prescribed. 

        If,
during the course of a Performance Period significant events occur as determined in the sole discretion of the Committee, which the Committee expects to have a substantial effect on
a performance objective during such period, the Committee may revise such objective. 

        iii.    Forfeiture or Payout of Award.    As soon as practicable after the end of each
Performance Period, the Committee will determine whether the performance objectives and other material terms of the Award were satisfied. The Committee's determination of all such matters will be
final and conclusive. 

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        As
soon as practicable after the later of (i) the date the Committee makes the above determination, or (ii) the completion of the restriction period, the Committee will
determine the Earned Performance Award for each Participant. Such determination may result in forfeiture of all or some shares of Restricted Stock (if Target Performance Award performance objectives
were not attained), or the issuance of additional shares of Stock (if Target Performance Award performance objectives were exceeded), and will be based upon such factors as the Committee determines at
its sole discretion, but including the Target Performance Award performance objectives. 

        In
the event a Participant ceases employment during a restriction period, the Restricted Stock Award is subject to forfeiture or payout (i.e., removal of restrictions) as follows:
(a) Termination—the Restricted Stock Award is completely forfeited; (b) Retirement, Disability or death—payout of the Restricted Stock Award is prorated taking
into account factors including, but not limited to, service during the period; and the performance of the Participant during the portion of the Performance Period before employment ceased; or
(c) Early Retirement—if at the Participant's request, the payout or forfeiture of the Restricted Stock Award is determined at the discretion of the Committee, or if at CEG's
request, payout of the Restricted Stock Award is prorated taking into account factors including, but not limited to, service during the period and the performance of the Participant during the portion
of the Performance Period before employment ceased; provided, however, that the Committee may modify the above if it determines at its sole discretion that special circumstances warrant such
modification. 

        Any
shares of Restricted Stock which are forfeited will be transferred to CEG. 

        With
respect to shares of Restricted Stock for which restrictions lapse, new certificates will be issued (the payout) without the restrictive legend described in Section 7A. New
certificates will also be issued for additional Stock, if any, awarded to the Participant because Target Performance Award performance objectives were exceeded. 

        D.    Waiver of Section 83(b) Election.    Unless otherwise directed by the Committee,
as a condition of receiving an Award of Restricted Stock, a Participant must waive in writing the right to make an election under Section 83(b) of the Code to report the value of the Restricted
Stock as income on the Date of Grant. 

        8.    Stock Options.    

        A.    Grants of Options.    One or more Options may be granted to any Eligible Employee on the
Date of Grant without the payment of consideration by the Participant. 

        B.    Stock Option Agreement.    Each Option granted under the Plan will be evidenced by a
"Stock Option Agreement" between CEG and the Participant containing provisions determined by the Committee, including, without limitation, provisions to qualify Incentive Stock Options as such under
Section 422 of the Code if directed by the Committee at the Date of Grant; provided, however, that each Incentive Stock Option Agreement must include the following terms and conditions:
(i) that the Options are exercisable, either in total or in part, with a partial exercise not affecting the exercisability of the balance of the Option; (ii) every share of Stock
purchased through the exercise of an Option will be paid for in full at the time of the exercise; (iii) each Option will cease to be exercisable, as to any share of Stock, at the earliest of
(a) the Participant's purchase of the Stock to which the Option relates, (b) the Participant's exercise of a related Stock Appreciation Right, or (c) the lapse of the Option;
(iv) Options will not be transferable by the Participant except by Will or the laws of descent and distribution and will be exercisable during the Participant's lifetime only by the Participant
or by the Participant's guardian or legal representative; and (v) notwithstanding any other provision, in the event of a public tender for all or any portion of the Stock or in the event that
any proposal to merge or consolidate CEG with another company is submitted to the stockholders of CEG for a vote, the 

5

 

Committee,
in its sole discretion, may declare any previously granted Option to be immediately exercisable. 

        C.    Option Price.    The Option price per share of Stock will be set by the grant, but will
be not less than 100% of the Fair Market Value at the Date of Grant. 

        D.    Form of Payment.    At the time of the exercise of the Option, the Option price will be
payable in cash or in other shares of Stock or in a combination of cash and other shares of Stock, in a form and manner as required by the Committee in its sole discretion. When Stock is used in full
or partial payment of the Option price, it will be valued at the Fair Market Value on the date the Option is exercised. 

        E.    Other Terms and Conditions.    The Option will become exercisable in such manner and
within such Option Period or Periods, not to exceed 10 years from its Date of Grant, as set forth in the Stock Option Agreement upon payment in full. Except as otherwise provided in this Plan
or in the Stock Option Agreement, any Option may be exercised in whole or in part at any time. 

        F.    Lapse of Option.    An Option will lapse upon the earlier of: (i) 10 years
from the Date of Grant, or (ii) at the expiration of the Option Period set by the grant. If the Participant ceases employment within the Option Period and prior to the lapse of the Option, the
Option will lapse as follows: (a) Termination—the Option will lapse on the effective date of the Termination; or (b) Retirement, Early Retirement, or
Disability—the Option will lapse at the expiration of the Option Period set by the grant; provided, however, that the Committee may modify the above if it determines in its sole discretion
that special circumstances warrant such modification. If the Participant dies within the Option Period and prior to the lapse of the Option, the Option will lapse at the expiration of the Option
Period set by the grant unless it is exercised before such time by the Participant's legal representative(s) or by the person(s) entitled to do so under the Participant's Will or, if the Participant
fails to make testamentary disposition of the Option or dies intestate, by the person(s) entitled to receive the Option under the applicable laws of descent and distribution. 

        G.    Individual Limitation.    In the case of an Incentive Stock Option, the aggregate Fair
Market Value of the Stock for which Incentive Stock Options (whether under this Plan or another arrangement) in any calendar year are first exercisable will not exceed $100,000 with respect to such
calendar year (or such other individual limit as may be in effect under the Code on the Date of Grant) plus any unused portion of such limit as the Code may permit to be carried over. 

        9.    Performance Units.    

        A.    Performance Units.    One or more Performance Units may be earned by an Eligible
Employee based on the achievement of preestablished performance objectives during a Performance Period. 

        B.    Performance Period and Performance Objectives.    The Committee will determine a
Performance Period and will determine, no later than 90 days after the beginning of each Performance Period, the performance objectives for each Participant's Target Performance Award and the
number of Performance Units subject to each Target Performance Award. Performance objectives may vary from Participant to Participant and will be based upon such performance criteria or combination of
factors as the Committee deems appropriate, which may include, but not be limited to, the performance of the Participant, CEG, one or more Subsidiaries, or any combination thereof. Performance Periods
may overlap and Participants may participate simultaneously with respect to Performance Units for which different Performance Periods are prescribed. 

        If
during the course of a Performance Period significant events occur as determined in the sole discretion of the Committee which the Committee expects to have a substantial effect on a
performance objective during such period, the Committee may revise such objective. 

6

 

        C.    Forfeiture or Payout of Award.    As soon as practicable after the end of each
Performance Period, the Committee will determine whether the performance objectives and other material terms of the Award were satisfied. The Committee's determination of all such matters will be
final and conclusive. 

        As
soon as practicable after the date the Committee makes the above determination, the Committee will determine the Earned Performance Award for each Participant. Such determination may
result in an increase or decrease in the number of Performance Units payable based upon such Participant's Target Performance Award, and will be based upon such factors as the Committee determines in
its sole discretion, but including the Target Performance Award performance objectives. 

        In
the event a Participant ceases employment during a Performance Period, the Performance Unit Award is subject to forfeiture or payout as follows: (a) Termination—the
Performance Unit Award is completely forfeited; (b) Retirement, Disability or death—payout of the Performance Unit Award is prorated taking into account factors including, but not
limited to, service and the performance of the Participant during the portion of the Performance Period before employment ceased; or (c) Early Retirement—if at the Participant's
request, the payout or forfeiture of the Performance Unit Award is determined at the discretion of the Committee, or if at CEG's request, payout of the Performance Unit Award is prorated taking into
account factors including, but not limited to, service and the performance of the Participant during the portion of the Performance Period before employment ceased; provided, however, that the
Committee may modify the above if it determines in its sole discretion that special circumstances warrant such modification. 

        D.    Form and Timing of Payment.    Each Performance Unit is payable in cash or shares of
Stock or in a combination of cash and Stock, as determined by the Committee in its sole discretion. Such payment will be made as soon as practicable after the Earned Performance Award is determined. 

        10.    Stock Appreciation Rights.    

        A.    Grants of Stock Appreciation Rights.    Stock Appreciation Rights may be granted under
the Plan in conjunction with an Option either at the Date of Grant or by amendment or may be separately granted. Stock Appreciation Rights will be subject to such terms and conditions not inconsistent
with the Plan as the Committee may impose. 

        B.    Right to Exercise; Exercise Period.    A Stock Appreciation Right issued pursuant to an
Option will be exercisable to the extent the Option is exercisable; both such Stock Appreciation Right and the Option to which it relates will not be exercisable during the six months following their
respective Dates of Grant except in the event of the Participant's Disability or death. A Stock Appreciation Right issued independent of an Option will be exercisable pursuant to such terms and
conditions established in the grant. Notwithstanding such terms and conditions, in the event of a public tender for all or any portion of the Stock or in the event that any proposal to merge or
consolidate CEG with another company is submitted to the stockholders of CEG for a vote, the Committee, in its sole discretion, may declare any previously granted Stock Appreciation Right immediately
exercisable. 

        C.    Failure to Exercise.    If on the last day of the Option Period, in the case of a Stock
Appreciation Right granted pursuant to an Option, or the specified Exercise Period, in the case of a Stock Appreciation Right issued independent of an Option, the Participant has not exercised a Stock
Appreciation Right, then such Stock Appreciation Right will be deemed to have been exercised by the Participant on the last day of the Option Period or Exercise Period. 

7

   
        D.    Payment.    An exercisable Stock Appreciation Right granted pursuant to an Option
will
entitle the Participant to surrender unexercised the Option or any portion thereof to which the Stock Appreciation Right is attached, and to receive in exchange for the Stock Appreciation Right
payment (in cash or Stock or a combination thereof as described below) equal to either of the following amounts, determined in the sole discretion of the Committee at the Date of Grant: (1) the
excess of the Fair Market Value of one share of Stock at the date of exercise over the Option price, times the number of shares called for by the Stock Appreciation Right (or portion thereof) which is
so surrendered, or (2) the excess of the Book Value of one share of Stock at the date of exercise over the Book Value of one share of Stock at the Date of Grant of the related Option, times the
number of shares called for by the Stock Appreciation Right. Upon exercise of a Stock Appreciation Right not granted pursuant to an Option, the Participant will receive for each Stock Appreciation
Right payment (in cash or Stock or a combination thereof as described below) equal to either of the following amounts, determined in the sole discretion of the Committee at the Date of Grant:
(1) the excess of the Fair Market Value of one share of Stock at the date of exercise over the Fair Market Value of one share of Stock at the Date of Grant of the Stock Appreciation Right,
times the number of shares called for by the Stock Appreciation Right, or (2) the excess of the Book Value of one share of Stock at the date of exercise of the Stock Appreciation Right over the
Book Value of one share of Stock at the Date of Grant of the Stock Appreciation Right, times the number of shares called for by the Stock Appreciation Right. 

        The
Committee may direct the payment in settlement of the Stock Appreciation Right to be in cash or Stock or a combination thereof. Alternatively, the Committee may permit the
Participant to elect to receive cash in full or partial settlement of the Stock Appreciation Right, provided that (i) the Committee must consent to or disapprove such election and
(ii) unless the Committee directs otherwise, the election and the exercise must be made during the period beginning on the 3rd business day following the date of public release of quarterly or
year-end earnings and ending on the 12th business day following the date of public release of quarterly or year-end earnings. The value of the Stock to be received upon
exercise of a Stock Appreciation Right shall be the Fair Market Value of the Stock on the trading day preceding the date on which the Stock Appreciation Right is exercised. To the extent that a Stock
Appreciation Right issued pursuant to an Option is exercised, such Option shall be deemed to have been exercised, and shall not be deemed to have lapsed. 

        E.    Nontransferable.    A Stock Appreciation Right will not be transferable by the
Participant except by Will or the laws of descent and distribution and will be exercisable during the Participant's lifetime only by the Participant or by the Participant's guardian or legal
representative. 

        F.    Lapse of a Stock Appreciation Right.    A Stock Appreciation Right will lapse upon the
earlier of: (i) 10 years from the Date of Grant; or (ii) at the expiration of the Exercise Period as set by the grant. If the Participant ceases employment within the Exercise
Period and prior to the lapse of the Stock Appreciation Right, the Stock Appreciation Right will lapse as follows: (a) Termination—the Stock Appreciation Right will lapse on the
effective date of the Termination; or (b) Retirement, Early Retirement, or Disability—the Stock Appreciation Right will lapse at the expiration of the Exercise Period set by the
grant; provided, however, that the Committee may modify the above if it determines in its sole discretion that special circumstances warrant such modification. If the Participant dies within the
Exercise Period and prior to the lapse of the Stock Appreciation Right, the Stock Appreciation Right will lapse at the expiration of the Exercise Period set by the grant unless it is exercised before
such time by the Participant's legal representative(s) or by the person(s) entitled to do so under the Participant's Will or, if the Participant fails to make testamentary disposition of the Stock
Appreciation Right or dies intestate, by the person(s) entitled to receive the Stock Appreciation Right under the applicable laws of descent and distribution. 

8

 

        11.    Dividend Equivalents.    

        A.    Grants of Dividend Equivalents.    Dividend Equivalents may be granted under the Plan in
conjunction with an Option or a separately awarded Stock Appreciation Right, at the Date of Grant or by amendment, without consideration by the Participant. Dividend Equivalents may also be granted
under the Plan in conjunction with Performance Units, at any time during the Performance Period, without consideration by the Participant. Dividend Equivalents will be granted under a
Performance-Based Restricted Stock Award in conjunction with additional shares of Stock issued if Target Performance Award performance objectives are exceeded. 

        B.    Payment.    Each Dividend Equivalent will entitle the Participant to receive an amount
equal to the dividend actually paid with respect to a share of Stock on each dividend payment date from the Date of Grant to the date the Dividend Equivalent lapses as set forth in Section 11D.
The Committee, in its sole discretion, may direct the payment of such amount at such times and in such form and manner as determined by the Committee. 

        C.    Nontransferable.    A Dividend Equivalent will not be transferable by the Participant. 

        D.    Lapse of a Dividend Equivalent.    Each Dividend Equivalent will lapse on the earlier of
(i) the date of the lapse of the related Option or Stock Appreciation Right; (ii) the date of the exercise of the related Option or Stock Appreciation Right; (iii) the end of the
Performance Period (or if earlier, the date the Participant ceases employment) of the related Performance Units or Performance-Based Restricted Stock Award; or (iv) the lapse date established
by the Committee on the Date of Grant of the Dividend Equivalent. 

        12.    Accelerated Award Payout/Exercise.    

        A.    Change in Control.    Notwithstanding anything in this Plan document to the contrary, a
Participant is entitled to an accelerated payout or accelerated Option or Exercise Period (as set forth in Section 12B) with respect to any previously granted Award, upon the happening of a
change in control. 

        A
change in control for purposes of this Section 12 means the occurrence of any one of the following events: 

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

        (ii)   any
"person" (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act") and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of CEG representing 20% or more of the combined voting power of CEG's then outstanding securities eligible to vote for the election of the Board (the
"Company Voting Securities"); provided, however, that
the event described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (A) by CEG or any corporation with respect to
which CEG owns a majority of the outstanding shares of common stock or has the power to vote or direct the voting of sufficient securities to elect a majority of the directors (a
"Subsidiary Company"), (B) by any employee benefit plan (or 

9

 

related
trust) sponsored or maintained by CEG or any Subsidiary Company, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, (D) pursuant to
a Non-Qualifying Transaction (as defined in paragraph (iii)), or (E) pursuant to any acquisition by Participant or any group of persons including Participant (or any entity
controlled by Participant or any group of persons including Participant); 

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

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

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

        B.    Amount of Award Subject to Accelerated Payout/Option Period/Exercise Period.    The
amount of a Participant's previously granted Award that will be paid or exercisable upon the happening of a change in control will be determined as follows: 

        Restricted Stock Awards.    The Participant will be entitled to an accelerated Award payout, and the amount of the payout will
be based on the number of shares of Restricted Stock that were issued on the Date of Grant, prorated based on the number of months of the restriction period that have elapsed as of the payout date.
Also, with respect to Performance-Based Restricted Stock Awards, in determining the amount of the payout, maximum performance achievement will be assumed. 

        Stock Option Awards and Stock Appreciation Rights.    Any previously granted Stock Option Awards or Stock Appreciation Rights
will be immediately exercisable. 

10

 

        Performance Units.    The Participant will be entitled to an accelerated Award payout, and the amount of the payout will be
based on the number of Performance Units subject to the Target Performance Award as established on the Date of Grant, prorated based on the number of months of the Performance Period that have elapsed
as of the payout date, and assuming that maximum performance was achieved. 

        C.    Timing of Accelerated Payout/Option Period/Exercise Period.    The accelerated payout
set forth in Section 12B will be made in cash within 30 days after the date of the change in control. The accelerated Option Period/Exercise Period set forth in Section 12B will
begin on the date of the change in control, and applicable payments will be in cash. When Stock is related to the Award, the amount of cash will be determined based on the Fair Market Value of Stock
on the payout or exercise date, whichever is applicable. 

        13.    Amendment of Plan.    

        The
Committee may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part, except (i) no such action may be taken without stockholder
approval which materially increases the benefits accruing to Participants pursuant to the Plan, materially increases the number of securities which may be issued pursuant to the Plan (except as
provided in Section 14H), extends the period for granting Options under the Plan or materially modifies the requirements as to eligibility for participation in the Plan; and (ii) no such
action may be taken without the consent of the Participant to whom any Award was previously granted, which adversely affects the rights of such Participant concerning such Award, except as such
termination or amendment of the Plan is required by statute, or rules and regulations promulgated thereunder. Notwithstanding the foregoing, the Committee may amend the Plan as desirable at the
discretion of the Committee to address any issues concerning (i) Section 162(m) of the Code, or (ii) maintaining an exemption under rule 16b-3 of the 1934 Act. 

        14.    Miscellaneous Provisions.    

        A.    Nontransferability.    No benefit provided under this Plan shall be subject to
alienation or assignment by a Participant (or by any person entitled to such benefit pursuant to the terms of this Plan), nor shall it be subject to attachment or other legal process except
(i) to the extent specifically mandated and directed by applicable state or federal statute, (ii) as requested by the Participant (or by any person entitled to such benefit pursuant to
the terms of this Plan), and approved by the Committee, to satisfy
income tax withholding, and (iii) as requested by the Participant and approved by the Committee, to members of the Participant's family, or a trust established by the Participant for the
benefit of family members. 

        B.    No Employment Right.    Participation in this Plan shall not constitute a contract of
employment between CEG or any Subsidiary and any person and shall not be deemed to be consideration for, or a condition of, continued employment of any person. 

        C.    Tax Withholding.    CEG or a Subsidiary may withhold any applicable federal, state or
local taxes at such time and upon such terms and conditions as required by law or determined by CEG or a Subsidiary. Subject to compliance with any requirements of applicable law, the Committee may
permit or require a Participant to have any portion of any withholding or other taxes payable in respect to a distribution of Stock satisfied through the payment of cash by the Participant to CEG or a
Subsidiary, the retention by CEG or a Subsidiary of shares of Stock, or delivery of previously owned shares of the Participant's Stock, having a Fair Market Value equal to the withholding amount. 

        D.    Fractional Shares.    Any fractional shares concerning Awards shall be eliminated at the
time of payment or payout by rounding down for fractions of less than one-half and rounding up for fractions of equal to or more than one-half. No cash settlements shall be
made with respect to fractional shares eliminated by rounding. 

11

 

        E.    Government and Other Regulations.    The obligation of CEG to make payment of Awards in
Stock or otherwise shall be subject to all applicable laws, rules, and regulations, and to such approvals by any government agencies as may be required. CEG shall be under no obligation to register
under the Securities Act of 1933, as amended ("Act"), any of the shares of Stock issued, delivered or paid in settlement under the Plan. If Stock awarded under the Plan may in certain circumstances be
exempt from registration under the Act, CEG may restrict its transfer in such manner as it deems advisable to ensure such exempt status. 

        F.    Indemnification.    Each person who is or at any time serves as a member of the
Committee (and each person or Committee to whom the Committee or any member thereof has delegated any of its authority or power under this Plan) shall be indemnified and held harmless by CEG against
and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit, or proceeding to
which such person may be a party or in which such person may be involved by reason of any action or failure to act under the Plan; and (ii) any and all amounts paid by such person in
satisfaction of judgment in any such action, suit, or proceeding relating to the Plan. Each person covered by this indemnification shall give CEG an opportunity, at its own expense, to handle and
defend the same before such person undertakes to handle and defend it on such person's own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be entitled under the Charter or By-Laws of CEG or any of its Subsidiaries, as a matter of law, or otherwise, or
any power that CEG may have to indemnify such person or hold such person harmless. 

        G.    Reliance on Reports.    Each member of the Committee (and each person or Committee to
whom the Committee or any member thereof has delegated any of its authority or power under this Plan) shall be fully justified in relying or acting in good faith upon any report made by the
independent public accountants of CEG and its Subsidiaries and upon any other information furnished in connection with the Plan. In no event shall any person who is or shall have been a member of the
Committee be liable for any determination made or other action taken or any omission to act in reliance upon any such report or information or for any action taken, including the furnishing of
information, or failure to act, if in good faith. 

        H.    Changes in Capital Structure.    In the event of any change in the outstanding shares of
Stock by reason of any stock dividend or split, recapitalization, combination or exchange of shares or other similar changes in the Stock, then appropriate adjustments shall be made in the shares of
Stock theretofore awarded to the Participants and in the aggregate number of shares of Stock which may be awarded pursuant to the Plan. Such adjustments shall be conclusive and binding for all
purposes. Additional shares of Stock issued to a Participant as the result of any such change shall bear the same restrictions as the shares of Stock to which they relate. 

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

        J.    Governing Law.    All matters relating to the Plan or to Awards granted hereunder shall
be governed by the laws of the State of Maryland, without regard to the principles of conflict of laws. 

        K.    Relationship to Other Benefits.    Any Awards under this Plan are not considered
compensation for purposes of determining benefits under any pension, profit sharing, or other retirement or welfare plan, or for any other general employee benefit program. 

        L.    Expenses.    The expenses of administering the Plan shall be borne by CEG and its
Subsidiaries. 

12

 

        M.    Titles and Headings.    The titles and headings of the sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

        This document constitutes part of a prospectus covering securities that have been registered under the Securities Act of
1933.

        You may obtain without charge, upon written or oral request, a copy of documents incorporated by reference in the Registration Statement on file
with the Securities and Exchange Commission pertaining to the securities offered under the 1995 Long-Term Incentive Plan. In addition you may obtain, without charge, upon
written or oral request, a copy of documents that are required to be delivered under Rule 428(b) of the Securities Act including our annual report to shareholders or annual
report on Form 10-K and a copy of the documents that comprise the prospectus.

        To make a request for any of these documents, you may telephone or write:  

Kathleen A. Chagnon,

Corporate Secretary

750 East Pratt Street

18th Floor

Baltimore, Maryland 21202

(410) 783-3600  

1995 Long-Term Incentive Plan

Appendix 

Additional Information  

        The Plan is not subject to any provisions of the Employee Retirement Income Security Act of 1974, and the Plan is not qualified under
Section 401(a) of the Internal Revenue Code. 

        Participants
may obtain additional information about the Plan by contacting: 

Director—Compensation

Constellation Energy Group, Inc.

750 East Pratt Street

5th Floor

Baltimore, MD 21202

(410) 783-2844 

        After
each grant is made, participants will be furnished with information about the amount of the grant. At least annually, participants will be furnished with
information about their outstanding grants. 

        In
general, grants subject to restrictions are taxable to participants when the restrictions lapse, and deductible by Constellation Energy at such time, based on the fair
market value of the awards when the restrictions lapse. Grants not subject to restrictions are taxable/deductible at fair market value on the grant date. Additionally, options are
subject to other special tax provisions. 

13

QuickLinks

Constellation Energy Group, Inc. 1995 Long-Term Incentive Plan (Plan)

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