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EXHIBIT 10(s)  

 
 

AMENDED AND RESTATED
  CHANGE IN CONTROL SEVERANCE AGREEMENT    
    

        This
amended and restated agreement (the "Agreement") is made as of the 22nd day of December, 2005, by and between CONSTELLATION ENERGY GROUP, INC. (the "Company") and Thomas F.
Brady (the "Executive"). 

        WHEREAS,
the Company and the Executive are parties to a Change in Control Severance Agreement dated as of August 16, 2004 (the "Original Agreement"); 

        WHEREAS,
the Company and the Executive desire to amend and restate the Original Agreement so that the Original Agreement will be replaced in its entirety with this Agreement; 

        WHEREAS,
the Company wishes to encourage the orderly succession of management in the event of a Change in Control (as hereinafter defined); 

        WHEREAS,
the Company desires to maintain a severance benefit for the Executive covering the period from the date of a Change in Control until the end of the twenty-four month period
following the date of a Change in Control, to avoid the loss or the serious distraction of the Executive to the detriment of the Company and its stockholders prior to and during such period when the
Executive's undivided attention and commitment to the needs of the Company would be particularly important; 

        WHEREAS,
the Executive desires to devote the Executive's time and energy for the benefit of the Company and its stockholders and not to be distracted as a result of a Change in Control. 

        NOW,
THEREFORE, the parties agree as follows: 

1.    Definitions.

        1.1    Annual Award Amount.    The term "Annual Award Amount" means, as of the applicable date of determination, the
average of the two highest annual incentive awards under the Company's annual incentive plan (or the annual incentive plan maintained by a successor Company or a Subsidiary) payable or actually paid
under the terms of such annual incentive plan for the performance year during which the date of determination occurs, and in respect of the last four years to the Executive prior to the date of
determination; provided, however, that (a) if the Executive has not been employed by the Company or a Subsidiary for a sufficient length of time to have been eligible for payment of at least
two annual incentive awards, deemed target award payout shall be used for the one or two years for which the Executive was not so eligible, except that the maximum payout shall be used for the
performance year in which the date of determination occurs; (b) for any year during which an annual incentive award was paid or is payable to the Executive that was prorated because of less
than a year of plan participation, such award shall be annualized, except that for the year in which the date of determination occurs, the maximum payout shall be used; and (c) for any year
during which a guaranteed minimum annual incentive award amount was paid or is payable to the Executive, such full (not prorated because of less than a full year of plan participation) guaranteed
annual incentive amount shall be used for such year. 

        1.2    Board.    The term "Board" means the Board of Directors of the
Company.

        1.3    Cause.    The term "Cause" means the occurrence of any one or more of the following: 

	(a)
	The
Executive is convicted of a felony involving moral turpitude or that involves the misappropriation of property of the Company or a Subsidiary; or

	(b)
	The
Executive engages in conduct or activities that constitutes disloyalty to the Company or a Subsidiary and such conduct or activities are materially damaging to the property,
business or reputation of the Company or a Subsidiary; or

	(c)
	The
Executive persistently fails or refuses to comply with any written direction of an authorized representative of the Company other than a directive constituting an assignment
described in Section 1.7(a); or

	(d)
	The
Executive embezzles or knowingly, and with intent, unlawfully appropriates any corporate opportunity of the Company or a Subsidiary. 

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        A
termination of the Executive's employment for Cause for purposes of this Agreement shall be effected in accordance with the following procedures. The Company shall give the Executive
written notice ("Notice of Termination for Cause") of its intention to terminate the Executive's employment for Cause, setting forth in reasonable detail the specific conduct of the Executive that it
considers to constitute Cause and the specific provision(s) of this Agreement on which it relies, and stating the date, time and place of the Board Meeting for Cause. The "Board Meeting for Cause"
means a meeting of the Board at which the Executive's termination for Cause will be considered, that takes place not less than ten (10) and not more than twenty (20) business days after
the Executive receives the Notice of Termination for Cause. The Executive shall be given an opportunity, together with counsel, to be heard at the Board Meeting for Cause. The Executive's Termination
for Cause shall be effective when and if a resolution is duly adopted at the Board Meeting for Cause by a two-thirds vote of the entire membership of the Board, excluding employee directors, stating
that in the good faith opinion of the Board, the Executive is guilty of the conduct described in the Notice of Termination for Cause, and that conduct constitutes Cause under this Agreement. 

        Notwithstanding
the foregoing, no event described hereunder shall constitute Cause if such event is a result of an isolated, insubstantial and inadvertent action that is not taken in bad
faith and that is remedied by the Executive within ten (10) days after receipt of the Notice of Termination for Cause by the Executive from the Company. 

        1.4    Change in Control.    The term "Change in Control" means the occurrence of any one of the following events: 

	(a)
	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;

	(b)
	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 (b) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (A) by the
Company or any Subsidiary, (B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (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 (c)), or (E) pursuant to any acquisition by Executive
or any group of persons including Executive (or any entity controlled by Executive or any group of persons including Executive);

	(c)
	there
is consummated a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries (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 

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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 

	(d)
	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. 

        1.5    Effective Date.    The term "Effective Date" means the first date during the term of this Agreement on which a
Change in Control occurs provided that the Executive is employed by the Company or a Subsidiary on such date. Anything in
this Agreement to the contrary notwithstanding, if the Executive's employment with the Company or a Subsidiary has terminated for any reason prior to the first date on which a Change in Control
occurs, this Agreement shall be null and void as of the date of such termination of employment; provided, however, that if it is reasonably demonstrated that such termination (i) was at the
request of a third party who has taken steps reasonably calculated to effect a Change in Control, or (ii) otherwise arose in connection with or anticipation of a Change in Control, then for all
purposes of this Agreement the "Effective Date" shall mean the date immediately prior to the date of such termination. 

        1.6    Eligible to Retire.    The term "Eligible to Retire" means an Executive who has met the eligibility
requirements for retirement under any Company or Subsidiary supplemental executive non-qualified defined benefit retirement plan in which the Executive participated immediately prior to the occurrence
of a Qualifying Termination. 

        1.7    Good Reason.    The term "Good Reason" means, without the Executive's express written consent, the occurrence
after the Effective Date of any one or more of the following: 

	(a)
	The
assignment to the Executive of duties materially inconsistent with the Executive's authorities, duties, responsibilities, and status (including offices, title and reporting
relationships) as an executive and/or officer of the Company or a Subsidiary immediately prior to the Effective Date, or a material reduction or alteration in the nature or status of the Executive's
authorities, duties, or responsibilities from those in effect immediately prior to the Effective Date, (including as a type of such reduction or alteration for an Executive who is an officer of a
publicly traded company immediately prior to the Effective Date, the Executive occupying the same position or title but with a company whose stock is not publicly traded), unless such act is remedied
by the Company or such Subsidiary within 10 business days after receipt of written notice thereof given by the Executive; or

	(b)
	A
reduction by the Company or a Subsidiary of the Executive's base salary in effect immediately prior to the Effective Date or as the same shall be increased from time to time, unless
such reduction is less than ten percent (10%) and it is either (i) replaced by an incentive opportunity equal in value; or is (ii) consistent and proportional with an overall reduction
in management compensation due to extraordinary business conditions, including but not limited to reduced profitability and other financial stress (i.e., the base salary of the Executive will not be
singled out for reduction in a manner inconsistent with a reduction imposed on other executives of the Company or such Subsidiary); or

	(c)
	The
relocation of the Executive's office more than 50 miles from the Executive's office immediately prior to the Effective Date; or

	(d)
	Failure
of the Company or a Subsidiary (whichever is the Executive's employer) to provide (i) the Executive the opportunity to participate in all applicable incentive, savings
and retirement plans, practices, policies and programs of the Company or such Subsidiary to the same extent as other senior executives (or, where applicable, retired senior executives) of the Company
or such Subsidiary, and (ii) the Executive and/or the Executive's family, as the case may be, the opportunity to participate in, and receive all benefits under, all applicable welfare benefit
plans, practices, policies and programs provided by the Company or such Subsidiary, including, without limitation, medical, prescription, dental, disability, sick benefits, accidental 

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death
and travel insurance plans and programs, to the same extent as other senior executives (or, where applicable, retired senior executives) of the Company or such Subsidiary; or 

	(e)
	Failure
of the Company or a Subsidiary (whichever is the Executive's employer) to provide the Executive such perquisites as the Company or such Subsidiary may establish from time to
time which are commensurate with the Executive's position and at least comparable to those received by other senior executives at the Company or such Subsidiary; or

	(f)
	The
aggregate benefits provided to the Executive by the Company following a Change in Control are materially less than the aggregate benefits made available to the Executive
immediately prior to such Change in Control; or

	(g)
	The
failure by the Company to comply with paragraph (c) of Section 14 of this Agreement; or

	(h)
	Any
other substantial breach of this Agreement by the Company that either is not taken in good faith or is not remedied by the Company promptly after receipt of notice thereof from
the Executive. 

        The
Executive's right to terminate employment for Good Reason shall not be affected by the Executive's incapacity due to physical or mental illness. The Executive's continued employment
shall not constitute consent to, or a waiver of rights with respect to, any circumstance constituting Good Reason herein; provided, however, a termination of employment by the Executive for Good
Reason for purposes of this Agreement shall be effectuated by giving the Company written notice ("Notice of Termination for Good Reason") of the termination, at any time during the Protection Period,
setting forth in reasonable detail the specific conduct of the Company that constitutes Good Reason and the specific provision(s) of this Agreement on which the Executive relied. Unless the parties
agree otherwise, a termination of employment by the Executive for Good Reason shall be effective on the thirtieth (30th) day following the date when the Notice of Termination for Good
Reason is given, unless the notice sets forth a later date (which date shall in no event be later than sixty (60) days after the notice is given); provided, however, that no event described
hereunder shall constitute Good Reason if such event is a result of an isolated, insubstantial and inadvertent action that is not taken in bad faith and that is remedied by the Company within ten
(10) days after receipt of the Notice of Termination for Good Reason by the Company from the Executive. If the Company disputes the existence of Good Reason, the burden of proof is on the
Company to establish that Good Reason does not exist. If the Executive continues to provide services to the Company after one of the events giving rise to Good Reason has occurred, it will
be in no way considered a waiver of the Executive's right to terminate his employment at any time during the Protection Period for Good Reason in connection with such event. 

        1.8    Ineligible to Retire.    The term "Ineligible to Retire" means an Executive who has not met the eligibility
requirements for retirement under any Company or Subsidiary supplemental executive non-qualified defined benefit retirement plan in which the Executive participated immediately prior to the occurrence
of a Qualifying Termination. 

        1.9    Qualifying Termination.    The term "Qualifying Termination" means 

	(a)
	The
occurrence of any one or more of the following employment termination events during the period beginning with the Effective Date and ending on the second anniversary of such date,
shall constitute a "Qualifying Termination":

	(i)
	The
Company's termination of the Executive's employment without Cause (as defined in Section 1.3); or

	(ii)
	The
Executive's resignation for Good Reason (as defined in Section 1.7).

	(b)
	A
Qualifying Termination shall not include a termination of employment by reason of death, disability, the Executive's voluntary termination of employment without Good Reason, or the
Company's termination of the Executive's employment for Cause. 

        1.10    Protection Period.    The Term "Protection Period" means the two (2) year period commencing on the
Change in Control and ending on the second anniversary of the Change in Control. 

        1.11    Subsidiary.    The term "Subsidiary" means 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. 

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2.    Severance Benefits for an Executive Ineligible to Retire.    Upon the occurrence of a Qualifying Termination with respect to
an Executive who is Ineligible to Retire: 

	(a)
	Severance Payment. The Company shall pay to the Executive an amount equal to three times the sum of (i) the greater of
(A) the Executive's annual base salary as of immediately prior to the occurrence of the Change of Control or (B) the Executive's annual base salary (as in effect on the date of the
Qualifying Termination, not reduced by any reduction described in Section 1.7(b) above) and (ii) the greater of (A) the Annual Award Amount, determined with the date of the Change
of Control as the date of determination, or (B) the Annual Award Amount, determined with the date of the Qualifying Termination as the date of determination. The payment shall be made in a lump
sum after the Qualifying Termination, and within approximately 10 business days after the Company receives the executed agreement referred to in 2(e) below but in no case prior to the expiration of
any period during which the Executive is permitted to revoke such agreement.

	(b)
	Supplemental Retirement Benefits. For purposes of determining the Executive's supplemental retirement benefits which the Executive is
entitled to under the Company's supplemental non-qualified retirement plan in which the Executive participated immediately prior to the Qualifying Termination (or the supplemental
retirement plan maintained by a successor company or a Subsidiary), (i) the Executive's service percentage shall be computed by adding three years of executive-level service to the Executive's
actual service; (ii) any minimum age and service eligibility requirements for such benefits shall be waived and such benefits shall be fully vested; (iii) Annual Award Amount shall be
used to compute such benefits in lieu of any other annual incentive award amount under such plan and (iv) for purposes of computing the present value of the benefit to be paid to the Executive
at age 62, three years will be added to the Executive's age. Notwithstanding the foregoing, on a Qualifying Termination, the Executive will be entitled to receive under the supplemental
non-qualified retirement plan in which the Executive participated immediately prior to the Qualifying Termination, an amount equal to the greater of (i) the amount that would have
been payable under this Section 2(b) had the Qualifying Termination occurred on the Change in Control or (ii) the amount payable under this Section 2(b) determined as of the date
of the Qualifying Termination.

	(c)
	Severance Health Benefits. Commencing upon a Qualifying Termination and continuing through the third anniversary of such Qualifying
Termination, the Executive and/or the Executive's family, as the case may be, shall receive all medical and dental benefits and any life insurance coverage provided to active employees of the Company,
and such benefits shall be provided on an insured basis. In addition, if the Executive has attained age fifty (50) as of his Qualifying Termination (or would have attained age fifty
(50) had he remained employed through the period ending on the third anniversary of his Qualifying Termination), the Company shall make available to the Executive insured medical and dental
benefits at prevailing retiree coverage rates (based on the executive's age and deemed service on the third anniversary of his Qualifying Termination), beginning upon the third anniversary of the
Executive's Qualifying Termination and lasting for the Executive's life. The Executive must elect retiree medical and dental coverage within five (5) years after the third anniversary of his
Qualifying Termination, in order to be entitled to the benefit described in the second sentence of this paragraph, and will commence receiving such coverage effective as soon as practicable after the
date of such election in accordance with the terms of the applicable retiree medical and dental programs.

	(d)
	Outplacement. For a 60-day period commencing on the date of the Qualifying Termination, the Executive is entitled to
receive outplacement services from one or more organizations that are offered by the Company from time to time, with such services capped at a Company cost of $50,000.

	(e)
	Release. The benefits described in this Section 2 are payable by the Company to the Executive only if after the date of the
Qualifying Termination, the Executive executes (and does not subsequently revoke) in writing and submits to the Company a mutual release and waiver of legal claims, including those against the Company
and its Subsidiaries, in the form attached hereto. Following receipt of the Executive's signed mutual release pursuant to this Agreement, the Company shall have ten (10) days from the date such
release becomes irrevocable to execute the release and deliver a copy to the Executive. If the Company fails to execute such release within the time frame established by the preceding sentence, the
release shall be deemed to have been signed by the Company and shall be fully enforceable by each party against the other.

	(f)
	Benefits Paid to Estate of Executive on Death. If the Executive dies after providing the Company with Notice of Termination for Good
Reason during the Protection Period and a Good Reason event has occurred, any 

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payments
and benefits due to him at the time of his death under this Agreement, shall be paid to his estate in accordance with the same terms as described in the provisions of this Agreement. Such
benefits shall expressly include continuation of any severance health benefits for which the Executive was eligible under Section 2(c) for the Executive's family. 

3.    Severance Benefits for an Executive Eligible to Retire.    Upon the occurrence of a Qualifying Termination with respect to an
Executive who is Eligible to Retire: 

	(a)
	Severance Payment. The Company shall pay to the Executive an amount equal to the amount determined under Section 2(a) of this
Agreement. The payment shall be made in a lump sum after the Qualifying Termination, and within approximately 10 business days after the Company receives the executed agreement referred to in
Section 3(e) below, but in no case prior to the expiration of any period during which the Executive is permitted to revoke such agreement.

	(b)
	Supplemental Retirement Benefits. For purposes of determining the Executive's supplemental retirement benefits which the Executive is
entitled to under the Company's supplemental non-qualified retirement plan in which the Executive participated immediately prior to the Qualifying Termination (or the supplemental
retirement plan maintained by a successor company or a Subsidiary), (i) the Executive's service percentage shall be computed by adding three years of executive-level service to the Executive's
actual service; (ii) Annual Award Amount shall be used to compute such benefits in lieu of any other annual incentive award amount under such plan; and (iii) for purposes of computing
the present value of the benefit to be paid to the Executive at age 62, three years will be added to the Executive's age. Notwithstanding the foregoing, on a Qualifying Termination, the Executive will
be entitled to receive under the supplemental non-qualified retirement plan in which the Executive participated immediately prior to the Qualifying Termination, an amount equal to the
greater of (i) the amount that would have been payable under this Section 3(b) had the Qualifying Termination occurred on the Change in Control or (ii) the amount payable under
this Section 3(b) determined as of the date of the Qualifying Termination. For purposes of clarification, upon a Qualifying Termination, in no event shall the Executive be entitled to receive
under the supplemental non-qualified retirement plan in which the Executive participated immediately prior to the Qualifying Termination, an amount less than he would have received had
there been no Change in Control.

	(c)
	Severance Health Benefits. Commencing upon a Qualifying Termination and continuing through the third anniversary of such Qualifying
Termination, the Executive and/or the Executive's family, as the case may be, shall receive all medical and dental benefits and any life insurance coverage provided to active employees of the Company,
and such benefits shall be provided on an insured basis. In addition, if the Executive has attained age fifty (50) as of his Qualifying Termination (or would have attained age fifty
(50) had he remained employed through the period ending on the third anniversary of his Qualifying Termination), the Company shall make available to the Executive insured medical and dental
benefits at prevailing retiree coverage rates (based on the executive's age and deemed service on the third anniversary of his Qualifying Termination), beginning upon the third anniversary of the
Executive's Qualifying Termination and lasting for the Executive's life. The Executive must elect retiree medical and dental coverage within five (5) years after the third anniversary of his
Qualifying Termination, in order to be entitled to the benefit described in the second sentence of this paragraph, and will commence receiving such coverage effective as soon as practicable after the
date of such election in accordance with the terms of the applicable retiree medical and dental programs.

	(d)
	Outplacement. For a 60-day period commencing on the date of the Qualifying Termination, the Executive is entitled to
receive outplacement services from one or more organizations that are offered by the Company from time to time, with such services capped at a Company cost of $50,000.

	(e)
	Release. The benefits described in this Section 3 are payable by the Company to the Executive only if after the date of the
Qualifying Termination, the Executive executes (and does not subsequently revoke) in writing and submits to the Company a mutual release and waiver of legal claims, including those against the Company
and its Subsidiaries, in the form attached hereto. Following receipt of the Executive's signed mutual release pursuant to this Agreement, the Company shall have ten (10) days from the date such
release becomes irrevocable to execute the release and deliver a copy to the Executive. If the Company fails to execute such release within the time frame established by the preceding sentence, the
release shall be deemed to have been signed by the Company and shall be fully enforceable by each party against the other. 

6

  

	(f)
	Benefits Paid to Estate of Executive on Death. If the Executive dies after providing the Company with Notice of Termination for Good
Reason during the Protection Period and a Good Reason event has occurred, any payments and benefits due to him at the time of his death under this Agreement, shall be paid to his estate in accordance
with the same terms as described in the provisions of this Agreement. Such benefits shall expressly include continuation of any severance health benefits for which the Executive was eligible under
Section 3(c) for the Executive's family. 

4.    Grant of Replacement Options upon a Change in Control.    Some or all of the outstanding options to purchase common stock of
the Company outstanding under the Company's equity compensation plans (the "Equity Plans") as of the occurrence of a Change in Control will be cashed-out in accordance with the terms of
the applicable plans in connection with any Change in Control (the "Cashed-Out Options"). As soon as practicable following the occurrence of a Change in Control, the Company shall, subject
to shareholder approval, cause the applicable committee or committees administering the Equity Plans to grant the Executive additional stock options (the "Replacement Options") to purchase common
stock of the Company (or, if the Company is not the surviving entity in connection with a Change in Control, common stock of the surviving entity). The Replacement Options will (i) be granted
on substantially the same terms and conditions as the Cashed-Out Options (including provisions related to the term), (ii) have an exercise price equal to the greater of
(A) the fair market value of the underlying common stock at the time of grant and (B) the exercise price of the Cashed-Out Options to which they relate, as adjusted to take
into account the transaction or transactions that resulted in the Change in Control, (iii) relate to the same number of shares as the Cashed-Out Options (as adjusted to take into
account the transaction or transactions that resulted in the Change in Control), (iv) vest in accordance with the terms of the schedule of the Cashed-Out Options to which they
relate (excluding any vesting that occurs as a result of such Change in Control and, for purposes of determining the vesting schedule, the Replacement Options will be deemed to have been granted at
the time of grant of the Cashed-Out Options to which they relate), and (v) will remain exercisable for the same period as the Cashed-Out Options would have been
exercisable had they not been terminated. The Replacement Options shall vest in full as of a Qualifying Termination. Notwithstanding anything to the contrary set forth herein, the Replacement Options
will not vest in connection with a subsequent transaction (the "Subsequent Transaction") following the Change in Control in which such Replacement Options were granted (the "Initial Change in
Control") that would constitute a Change in Control if such Subsequent Transaction merely increases the percentage ownership of common stock of the Company held by the person or entity whose initial
acquisition of common stock of the Company triggered the Initial Change in Control. 

5.    Non-Exclusivity of Rights.    Nothing in this Agreement shall prevent or limit the Executive's continuing or
future participation in any plan, program, policy or practice provided by the Company or a successor company or a Subsidiary (whichever is the Executive's employer) for which the Executive may
qualify, nor shall anything in this Agreement limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or a successor Company or such
Subsidiary. However, if the Executive receives severance benefits under this Agreement, the Executive is not also entitled to any benefit under any other severance plan, program, arrangement or
agreement maintained by the Company or a Subsidiary. Vested benefits and other amounts that the Executive is otherwise entitled to receive under any incentive compensation (including, but not limited
to any restricted stock or stock option agreements), deferred compensation and other benefit programs listed in Section 1.7(d), life insurance coverage, or any other plan, policy, practice or
program of, or any contract or agreement with, the Company or a
successor Company or such Subsidiary on or after the date of the Qualifying Termination shall be payable in accordance with the terms of each such plan, policy, practice, program, contract or
agreement, as the case may be, except as explicitly modified by this Agreement. 

6.    Full Settlement.    The Company's obligation to make the payments provided for in, and otherwise to perform its obligations
under, this Agreement shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against the Executive or others. In
no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement
and, such amounts shall not be reduced, regardless of whether the Executive obtains other employment. 

7.    Certain Additional Payments by the Company.

	(a)
	Anything
in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution (including an acceleration of vesting, or a lapse of
restrictions on amounts otherwise subject to vesting) by the Company to or for the benefit of the Executive (a "Payment") would be subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the "Code") or 

7

 

any
interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such that after payment by the Executive of all taxes (including any interest
or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereon) and Excise Tax imposed upon the Gross-Up
Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment. 

	(b)
	Subject
to the provisions of paragraph (c) of this Section 7, all determinations required to be made under this Section 7, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by one of the major internationally recognized certified
public accounting firms (commonly referred to, as of the date hereof, as a Big Four firm) designated by the Executive and approved by the Company (which approval shall not be unreasonably withheld)
(the "Accounting Firm"), which shall provide detailed supporting calculations both to the Company and the Executive within fifteen (15) business days of the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group
affecting the change of control, the Executive shall designate another Big Four accounting firm (subject to the approval of the Company, which approval shall not be unreasonably withheld) to make the
determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company.
Any Gross-Up Payment, as determined pursuant to this Section 7, shall be paid by the Company to the Executive within five (5) days of the receipt of the Accounting Firm's determination.
Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made ("Underpayment") consistent with the
calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to paragraph (c) of this Section 7 and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the
benefit of the Executive.

	(c)
	The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than ten (10) business days after the Executive is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the thirty (30) day period following the date on
which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such claim, the Executive shall:

	(i)
	give
the Company any information reasonably requested by the Company relating to such claim,

	(ii)
	take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company,

	(iii)
	cooperate
with the Company in good faith in order effectively to contest such claim, and

	(iv)
	permit
the Company to participate in any proceedings relating to such claim;

	

	PROVIDED,
however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this paragraph (c) of Section 7, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or 

8

 

contest
the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or
more appellate courts, as the Company shall determine; PROVIDED, however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and PROVIDED, further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the
Company's control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 

	(d)
	If,
after the receipt by the Executive of an amount advanced by the Company pursuant to paragraph (c) of this Section 7, the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall promptly take all necessary action to obtain such refund and (subject to the Company's complying with the requirements of paragraph (c) of
this Section 7) upon receipt of such refund shall promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If
after the receipt by the Executive of an amount advanced by the Company pursuant to paragraph (c) of this Section 7, a determination is made that the Executive shall not be entitled to
any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid. 

8.    Certain Additional Agreements under Section 409A.

	(a)
	In
the event the payment of any amounts under this Agreement would be treated as non-qualified deferred compensation under Section 409A of the Code, such payment
will be delayed for six (6) months after the date of the Executive's Qualifying Termination if required in order to avoid additional tax under Section 409A of the Code. If the Executive
dies within six (6) months following a Qualifying Termination, any such delayed payments shall not be further delayed, and shall be immediately payable to the Executive's estate in accordance
with the applicable provisions of this Agreement.

	(b)
	The
Company will not take any action that would expose any payment or benefit to the Executive under this Agreement or under any plan, arrangement or other agreement to the additional
tax imposed under Section 409A of the Code, unless (i) the Company is obligated to take the action under an agreement, plan or arrangement to which the Executive is a party,
(ii) the Executive requests the action, (iii) the Company advises the Executive in writing that the action may result in the imposition of the additional tax and (iv) the
Executive subsequently requests the action in a writing that acknowledges that he will be responsible for any effect of the action under Section 409A of the Code. The Company will hold the
Executive harmless for any action it may take in violation of this paragraph.

	(c)
	It
is the parties' intention that the benefits and rights to which the Executive could become entitled in connection with the termination of employment covered under this Agreement
comply with Section 409A of the Code. If the Executive or the Company believes, at any time, that any of such benefit or right does not so comply, he or it will promptly advise the other party
and will negotiate reasonably and in good faith to amend the terms of such arrangement such that it complies (with the most limited possible economic effect on the Executive and on the Company). 

9.    Termination of Agreement.    This Agreement shall remain in effect from the date hereof until the last day of the
twenty-fourth calendar month following the date of a Change in Control. Further, upon a Qualifying Termination, this Agreement shall continue until the Company or its successor shall have fully
performed all of its obligations thereunder with respect to the Executive, with no future performance being possible. This Agreement may be terminated at any time by the Board with the written consent
of the Executive. Notwithstanding the foregoing, this Agreement shall automatically terminate upon cessation of Executive's employment with the Company and its Subsidiaries prior to the Effective
Date. 

9

 

10.    Amendment of Agreement.    This Agreement may be amended at any time by the Board with the written consent of the Executive. 

11.    Construction.    Wherever any words are used herein in the masculine gender they shall be construed as though they were also
used in the feminine gender in all cases where they would so apply, and wherever any words are used herein in the singular form, they shall be construed as though they were also used in the plural
form in all cases where they would so apply. 

12.    Governing Law.    This Agreement shall be governed by the laws of Maryland. 

13.    Dispute Resolution.    The parties agree that any disputes, claims, complaints or causes of action of any type or kind
(including but not limited to any disputes relating in any way to this Agreement) which the parties may have between themselves shall be resolved by final and binding arbitration using a single
arbitrator from the American Arbitration Association pursuant to its then existing commercial arbitration rules. The arbitration proceedings shall be conducted in Baltimore, Maryland, unless the
parties mutually agree in writing to a different location. Prior to presiding over any such dispute, any arbitrator shall be required to consent in writing that he or she shall reach a final decision
within four (4) months after a claim has been filed and within sixty (60) days after final submission. Any award rendered in
the arbitration may be enforced in any court of competent jurisdiction. Pending the resolution of any such claim or dispute, the Executive (and his beneficiaries) shall continue to receive all
payments and benefits due under this Agreement or otherwise, except to the extent that the arbitrators otherwise provide. 

14.    Successors and Assigns.

	(a)
	This
Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives.

	(b)
	This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

	(c)
	The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would have been required to perform it if no such succession had taken place.
As used in this Agreement, "Company" shall mean both the Company as defined above and any such successor that assumes and agrees to perform this Agreement, by operation of law or otherwise. 

15.    Director & Officer Insurance and Indemnification.    During the Protection Period and, upon a Qualifying Termination,
for so long thereafter as the Executive could be subject to liability, the Company shall keep in place a directors' and officers' liability insurance policy (or policies) providing comprehensive
coverage to the Executive for claims relating to the Executive's service as an employee, officer, or director of the Company, on terms and conditions no less favorable to the Executive (e.g., with
respect to scope, amounts and deductibles) provided to then-existing officers and directors of the Company. The Company shall indemnify the Executive to the fullest extent permitted by the
general laws of the State of Maryland and shall provide indemnification expenses in advance to the extent permitted thereby. The Company will follow the procedures required by applicable law in
determining persons eligible for indemnification and in making indemnification payments and advances. The indemnification and advance of expenses provided by the Company pursuant to this Agreement
shall not be deemed exclusive of any other rights to which the Executive may be entitled under any law (common or statutory), or any agreement, vote of stockholders or disinterested directors or other
provision that is consistent with law, both as to action in his official capacity and as to action in another capacity while holding office or while employed or acting as agent for the Company, shall
continue in respect of all events occurring while the Executive was a director of or employed by the Company after the Executive has ceased to be a director of or employed by the Company, and shall
inure to the benefit of the estate, heirs, executors and administrators of the Executive. 

16.    Reimbursement of Legal Fees.    The Company will pay all reasonable fees and expenses, if any (including without limitation,
legal fees and expenses) that are incurred by the Executive to enforce this Agreement and that result from a breach of this Agreement by the Company. 

17.    Notice.    Any notices, requests, demands, or other communications provided for by this Agreement shall be sufficient if in
writing and if sent by registered or certified mail to the Executive at the last address the Executive has filed in writing with the Company, or in the case of the Company, to its principal offices. 

18.    Severability.    The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. If any provision of this Agreement shall be held invalid or 

10

 

unenforceable
in part, the remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the
fullest extent consistent with law. 

19.    Withholding.    Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable under
this Agreement all federal, state, local and foreign taxes that are required to be withheld by applicable laws or regulations. 

20.    Entire Agreement.    Unless otherwise specifically provided in this Agreement, the Executive and the Company acknowledge that
this Agreement supersedes any other agreement between them or between the Executive and the Company or a Subsidiary, concerning the subject matter hereof. 

21.    Alienability.    The rights and benefits of the Executive under this Agreement may not be anticipated, alienated or subject
to attachment, garnishment, levy, execution or other legal or equitable process except as required by law. Any attempt by the Executive to anticipate, alienate, assign, sell, transfer, pledge,
encumber or charge the same shall be void. Payments hereunder shall not be considered assets of the Executive in the event of insolvency or bankruptcy. 

22.    Counterparts.    This Agreement may be executed in several counterparts, each of which shall be deemed an original, and said
counterparts shall constitute but one and the same instrument. 

11

 

        IN
WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and, pursuant to the authorization of the Board, the Company has caused this Agreement to be executed in its name
on its behalf, all as of the day and year first above written. 

	 	CONSTELLATION ENERGY GROUP, INC.
	

 	

By:	

/s/  MAYO A. SHATTUCK III      

	 	 	Name: Mayo A. Shattuck III
	 	 	Title: Chairman, President and CEO
	

 	

 	

/s/  THOMAS F. BRADY      
 Thomas F. Brady

12

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EXHIBIT No. 10(t)  

 
 

Constellation Energy Group, Inc.
  Amended and Restated Executive Long-Term Incentive Plan
  (Plan)    
    

1.    Purpose.
The purpose of this Plan is to increase shareholder value by providing a long-term incentive to reward officers and key employees of the Company and its
Subsidiaries, who are mainly responsible for the continued growth, development, and financial success of the Company and its Subsidiaries, and for the continued profitable performance of the Company
and its Subsidiaries. The Plan is also designed to permit the Company and its Subsidiaries to attract and retain talented and motivated directors, officers and key employees and to increase their
ownership of Company common stock. The Plan also provides the ability to award long-term incentives that qualify for federal income tax deduction. 

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: 

        "Adjusted
EBIT" means EBIT, subject to, and/or after giving effect to, any adjustments applicable pursuant to Section 9A(iv) at the time Business Criteria and Performance
Target(s) are established for any Year or Years. 

        "Adjusted
EPS" means EPS, subject to, and/or after giving effect to, any adjustments applicable pursuant to Section 9A(iv) at the time Business Criteria and Performance
Target(s) are established for any Year or Years. 

        "Adjusted
Net Income" means Net Income, subject to, and/or after giving effect to, any adjustments applicable pursuant to Section 9A(iv) at the time Business Criteria and
Performance Target(s) are established for any Year or Years. 

        "Adjusted
Return on Assets" means Return on Assets subject to, and/or after giving effect to, any adjustments applicable pursuant to Section 9A(iv) at the time Business
Criteria and Performance Target(s) are established for any Year or Years. 

        "Adjusted
Return on Equity" means Return on Equity, subject to, and/or after giving effect to, any adjustments applicable pursuant to Section 9A(iv) at the time Business
Criteria and Performance Target(s) are established for any Year or Years. 

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

        "Board"
means the Board of Directors of the Company. 

        "Book
Value" means the book value of a share of Stock determined in accordance with the Company'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. 

        "Business
Criteria" means any one or any combination of Net Income, Adjusted Net Income, Return on Equity, Adjusted Return on Equity, Return on Assets, Adjusted Return on Assets, Total
Shareholder Return, Stock Fair Market Value, EBIT, Adjusted EBIT, EPS or Adjusted EPS. 

        "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 or the outside director provisions of Section 162(m)(4)(C) of the Code, "Committee" shall mean a committee of directors of the Company who
satisfy the requirements of such Sections. 

        "Company"
means Constellation Energy Group, Inc., a Maryland corporation, or its successor, including any "New Company" as provided in Section 15I. 

        "Covered
Award" means any Award granted under the Plan on or after December 18, 2005. 

        "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. 

 

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

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

        "EBIT"
for any Year means the consolidated earnings before income taxes of the Company, as reported in the consolidated financial statements of the Company for the Year. 

        "Eligible
Person" means any person who satisfies all of the requirements of Section 5. 

        "EPS"
for any Year means diluted earnings per share of the Company, as reported in the Company's consolidated financial statements for the Year. 

        "Equity"
means an Award granted under Section 12. 

        "Excluded
Transactions" has the meaning set forth in Section 13. 

        "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. 

        "Net
Income" for any Year means the consolidated net income of the Company, as reported in the consolidated financial statements of the Company for the Year. 

        "1934
Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

        "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 individual 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 or Restricted Stock Unit Award payout, the Committee will take into account the Performance Targets. 

        "Performance
Period" means the taxable year of the Company or any other period designated by the Committee with respect to which an Award may be granted. 

        "Performance
Target(s)" means the specific objective goal or goals that are timely set in writing by the Committee pursuant to Section 9A(ii) for each Participant for the
applicable Performance Period in respect of any one or more of the Business Criteria. 

        "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 Stock issued in the name of a Participant that bears a restrictive legend prohibiting sale, transfer, pledge or hypothecation of the Stock until the expiration
of the restriction period. 

        "Restricted
Stock Unit" means a right granted under Section 7 that is denominated in shares of stock, each of which represents a right to receive the value of a share of stock (or
a percentage of such value, which percentage may be higher than 100%) upon the terms and conditions set forth by the Committee. 

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

2

 

        "Return
on Assets" means Net Income divided by the average of the total assets of the Company at the end of the four fiscal quarters of the Year, as reported by the Company in its
consolidated financial statements. 

        "Return
on Equity" means the Net Income divided by the average of the common shareholders equity of the Company at the end of each of the four fiscal quarters of the Year, as reported by
the Company in its consolidated financial statements. 

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

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

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

        "Subsidiary(ies)"
means any entity that is directly or indirectly controlled by the Company or any entity, including an acquired entity, in which the Company has a significant equity
interest, as determined by the Committee, in its discretion. 

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

        "Total
Shareholder Return" means the sum of the change in the Fair Market Value of the Stock plus the value of reinvested dividends and cash equivalents, over the Performance Period. 

        "Year"
means a fiscal year of the Company commencing on or after January 1, 2002 that constitutes all or part of the applicable Performance Period. 

3.    Effective
Date, Duration and Stockholder Approval. 

        A.     Effective
Date and Stockholder Approval. Subject to the approval of the Plan by a majority of the outstanding shares of Stock voted at the 2002 Annual Meeting of
Stockholders, the Plan will be effective as of January 1, 2002. The Plan was most recently amended and restated effective as of December 18, 2005. 

        B.     Period
for Grants of Awards. Awards may be made as provided herein for a period of 10 years after January 1, 2002. 

        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. 

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 purpose. Without limiting the generality of the foregoing, the Plan Administrator may modify, amend, extend or renew outstanding Awards, or accept the
surrender of outstanding Awards and substitute new Awards (provided, however, that, except as provided in Section 15H of the Plan, any modification that would materially adversely affect any
outstanding Award shall not be made without the consent of the Participant, and provided, further, that no modification, amendment or substitution that results in repricing a Stock Option to a lower
exercise price, other than to reflect an adjustment made pursuant to Section 15H, shall be made without prior stockholder approval). 

        The
Plan Administrator's determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the
terms and provisions of such Awards and any agreements evidencing such Awards) need not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to
receive, Awards under the Plan, whether or not such persons are similarly situated. Such determinations shall be final and not subject to further appeal. 

        The
Committee may delegate its authority under the Plan with respect to Participants who are not directors or executive officers. 

5.    Eligibility.
Each officer, key employee or director of the Company and its Subsidiaries may be designated by the Committee as a Participant, from time to time, with respect to one or
more Awards. No officer, employee or director of the Company or its Subsidiaries shall have any right to be granted an Award under this Plan. The Plan Administrator may also grant Awards to
individuals in connection with hiring (as an officer, key employee or director), 

3

 

retention
or otherwise, prior to the date the individual first performs services for the Company or a Subsidiary; provided, however, that such Awards shall not become vested or exercisable prior to
the date the individual first commences performance of such services. 

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 Persons, provided that subject to any adjustment
pursuant to Section 15H, the aggregate number of shares of Stock subject to Awards that may be delivered under this Plan may not exceed eight million (8,000,000) shares. Shares delivered by the
Company under the Plan may be authorized and unissued Stock, Stock held in the treasury of the Company, or Stock purchased on the open market (including private purchases) in accordance with
applicable securities laws. 

        Any
shares of Stock covered by an Award (or portion of an Award) granted under the Plan that is forfeited or canceled, expires or is settled in cash, including the settlement of tax
withholding obligations using shares, shall be deemed not to have been delivered for purposes of determining the maximum number of shares available for delivery under the Plan. Likewise, if any Option
granted under the Plan is exercised by tendering shares of Stock to the Company as full or partial payment for such exercise under the Plan, only the number of shares issued net of the shares tendered
shall be deemed delivered for purposes of determining the maximum number of shares available for delivery under the Plan. 

        The
maximum number of shares of Stock that may be issued in conjunction with Service-Based Restricted Stock or Restricted Stock Unit Awards under Section 7 of the Plan,
Performance-Based Restricted Stock or Restricted Stock Unit or Performance Unit Awards under Section 9 of the Plan and Equity Awards under Section 12 of the Plan shall in the aggregate
be eight hundred thousand (800,000). The maximum number of shares of Stock subject to Awards of any combination that may be granted during any calendar year under the Plan to any one person is two
million (2,000,000); provided, however, that to the extent the maximum permissible award is not made in a year, such amount may be carried over to subsequent years. Such per-individual
limit shall not be adjusted to effect a restoration of shares of Stock with respect to which the related Award is terminated, surrendered or canceled. 

        The
Plan Administrator may permit or require a recipient of an Award to defer all or part of such individual's receipt of the payment of cash or the delivery of Stock that would
otherwise be due to such individual by virtue of the exercise of, payment of, or lapse or waiver of restrictions respecting, any Award. If any such payment deferral is required or permitted, the Plan
Administrator shall, in its sole discretion, establish rules and procedures for such payment deferrals. 

7.    Service-Based
Restricted Stock and Restricted Stock Unit Awards. 

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

        The
Committee may also impose such other restrictions and conditions on the Service-Based Restricted Stock or Restricted Stock Unit as it deems appropriate. 

        Upon
issuance to the Participant of the Service-Based Restricted Stock the Participant will have the right to vote the Service-Based Restricted Stock. Upon issuance to the Participant of
the Restricted Stock or grant of the Restricted Stock Unit and subject to the Committee's discretion, the Participant will have the right to receive the cash dividends (or Dividend Equivalents as
provided in Section 11) distributable with respect to such shares or units, with such dividends or Dividend Equivalents 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.     Restriction
Period. At the time a Service-Based Restricted Stock or Restricted Stock Unit 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 or Restricted Stock Unit Award may have a different restriction period, at the discretion of the
Committee. 

        C.    Forfeiture
or Payout of Award. In the event a Participant ceases employment (or ceases Board membership in the case of a director) during a restriction period, a
Service-Based Restricted Stock or Restricted Stock Unit Award is 

4

 

subject
to forfeiture or payout (i.e., removal of restrictions) as follows: (a) Termination—the Service-Based Restricted Stock or Restricted Stock Unit Award is completely
forfeited; or (b) Retirement, Disability or death—payout of the Service-Based Restricted Stock or Restricted Stock Unit 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 Service-Based Restricted Stock which are forfeited will be transferred to the Company. 

        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. 

        D.    Waiver
of Section 83(b) Election. Unless otherwise directed by the Committee, as a condition of receiving an Award of Service-Based 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 Service-Based 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 Person 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 the Company 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 the Company with another
company is submitted to the stockholders of the Company for a vote, the Committee, in its sole discretion, may declare any previously granted Options 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 applicable date. 

        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 (or ceases Board membership in the case of a director) within the Option Period and prior to the lapse of the Option, the Option will lapse as follows:
(a) Termination-any unvested Option will lapse on the effective date of the Termination and any vested Option will lapse 90 days after the effective date of the Termination;
or (b) Retirement, Disability or death-any unvested Option will lapse on the effective date of the Retirement, Disability or death and any vested Option will lapse on the earlier of
60 months after the effective date of the Retirement, Disability or death or 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. 

        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 

5

 

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-Based
Restricted Stock or Restricted Stock Units/Performance Units. 

        A.     Provision
for Awards. 

        (i)    General.
For Awards under this Section 9, the Committee will establish (a) Performance Target(s) relative to the applicable Business Criteria,
(b) the applicable Performance Period and (c) the applicable number of shares of Performance-Based Restricted Stock, Performance-Based Restricted Stock Units or Performance Units that
are the subject of the Award. The applicable Performance Period and Performance Target(s) shall be determined by the Committee consistent with the terms of the Plan and Section 162(m) of the
Code. Notwithstanding the fact that the Performance Target(s) have been attained, the Committee may pay an Award under this Section 9 of less than the amount determined by the formula or
standard established pursuant to Section 9A(ii) or may pay no Award at all. 

        (ii)    Selection
of Performance Target(s). The specific Performance Target(s) with respect to the Business Criteria must be established by the Committee in advance of the
deadlines applicable under Section 162(m) of the Code and while the performance relating to the Performance Target(s) remains substantially uncertain within the meaning of Section 162(m)
of the Code. The Performance Target(s) with respect to any Performance Period may be established on a cumulative basis or in the alternative, and may be established on a stand-alone basis with respect
to the Company or on a relative basis with respect to any peer companies or index selected by the Committee. At the time the Performance Target(s) are selected, the Committee shall provide, in terms
of an objective formula or standard for each Participant, the method of computing the specific amount that will represent the maximum amount of Award payable to the Participant if the Performance
Target(s) are attained. The objective formula or standard shall preclude the use of discretion to increase the amount of any Award earned pursuant to the terms of the Award. 

        (iii)    Effect
of Mid-Year Commencement of Service. If services as an executive officer or director commence after the adoption of the Plan and the Performance
Target(s) are established for a Performance Period, the Committee may grant an Award that is proportionately adjusted based on the period of actual service during the Year, and the amount of any Award
paid to such person shall not exceed that proportionate amount of the applicable maximum individual Award under Section 6. 

        (iv)    Adjustments.
To preserve the intended incentives and benefits of an Award based on Adjusted EPS, Adjusted Net Income, Adjusted Return on Assets or Adjusted Return on
Equity, the Committee may determine at the time the Performance Targets are established that certain adjustments shall apply to the objective formula or standard with respect to the applicable
Performance Target to take into account, in whole or in part, in any manner specified by the Committee, any one or more of the following with respect to
the Performance Period: (i) the gain, loss, income or expense resulting from changes in accounting principles that become effective during the Performance Period; (ii) the
gain, loss, income or expense reported publicly by the Company with respect to the Performance Period that are extraordinary or unusual in nature or infrequent in occurrence, excluding gains or losses
on the early extinguishment of debt; (iii) the gains or losses resulting from, and the direct expenses incurred in connection with, the disposition of a business, in whole or in part or the
sale of investments or non-core assets; (iv) gain or loss from all or certain claims and/or litigation and all or certain insurance recoveries relating to claims or litigation;
(v) the impact of impairment of tangible or intangible assets; (vi) the impact of restructuring or business recharacterization activities, including but not limited to reductions in
force, that are reported publicly by the Company; and (vii) the impact of investments or acquisitions made during the year or, to the extent provided by the Committee, any prior year. Each of
the adjustments described in this Section 9A(iv) may relate to the Company as a whole or any part of the Company's business or operations, as determined by the Committee at the time the
Performance Targets are established. The adjustments are to be determined in accordance with generally accepted accounting principles and standards, unless another objective method of measurement is
designated by the Committee. In addition to the foregoing, the Committee shall adjust any Business Criteria, Performance Targets or other features of an Award that relate to or are wholly or partially
based on the number of, or the value of, any stock of the Company, to reflect any stock dividend or split, recapitalization, combination or exchange of shares or other similar changes in such stock. 

        (v)    Committee
Discretion to Determine Award. The Committee has the sole discretion to determine the standard or formula
pursuant to which each Participant's Award shall be calculated, whether all or any portion of the amount so calculated will be paid, and the specific amount (if any) to be paid to each Participant,
subject in 

6

 

all
cases to the terms, conditions and limits of the Plan. To this same extent, the Committee may at any time establish (and, once established, rescind, waive or amend) additional conditions and terms
of payment of Awards (including but not limited to the achievement of other financial, strategic or individual goals, which may be objective or subjective) as it may deem desirable in carrying out the
purposes of the Plan. The Committee may not, however, increase the maximum amount permitted to be paid to any individual under the Plan or pay Awards under this Section 9 if the applicable
Performance Target(s) have not been satisfied. 

        B.     Performance-Based
Restricted Stock or Restricted Stock Unit Awards. 

        (i)    Grants
of Performance-Based Restricted Stock or Restricted Stock Units. Subject to Section 9A, one or more shares of Performance-Based Restricted Stock or
Restricted Stock Units may be granted to any Eligible Person. The Performance-Based Restricted Stock or Restricted Stock Unit will be issued to the Participant on the Date of Grant without the payment
of consideration by the Participant. The Performance-Based Restricted Stock or Restricted Stock Unit will be issued in the name of the Participant and will bear a restrictive legend prohibiting sale,
transfer, pledge or hypothecation of the Performance-Based Restricted Stock or Restricted Stock Unit until the expiration of the restriction period. 

        The
Committee may also impose such other restrictions and conditions on the Performance-Based Restricted Stock or Restricted Stock Unit as it deems appropriate. 

        Upon
issuance to the Participant of the Performance-Based Restricted Stock, the Participant will have the right to vote the Performance-Based Restricted Stock. Upon issuance to the
Participant of the Performance-Based Restricted Stock or Restricted Stock Unit and subject to the Committee's discretion, the Participant will have the right to receive the cash dividends (or Dividend
Equivalents as provided in Section 11) distributable with respect to such shares or units, with such dividends or Dividend Equivalents 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. 

        (ii)    Restriction
Period. At the time a Performance-Based Restricted Stock or Restricted Stock Unit 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 Performance-Based Restricted Stock or Restricted Stock Unit Award may have a different restriction
period, at the discretion of the Committee. 

        (iii)    Waiver
of Section 83(b) Election. Unless otherwise directed by the Committee, as a condition of receiving an Award of Performance-Based 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 Performance-Based Restricted Stock as income on the Date of Grant. 

        C.    Performance
Units. Subject to Section 9A, one or more Performance Units may be earned by an Eligible Person based on the achievement of preestablished performance
objectives during a Performance Period. 

        D.    Forfeiture
or Payout of Award. As soon as practicable after the end of each Performance Period, the Committee will determine whether the Performance Targets 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 Award payment for each Participant. Before any payments are made under
this Section 9, the Committee shall be responsible for certifying in writing to the Company that the applicable Performance Targets have been met. 

        In
the event a Participant ceases employment (or ceases Board membership in the case of a director) during a Performance Period, the Performance-Based Restricted Stock, Performance-Based
Restricted Stock Unit or Performance Unit Award is subject to forfeiture or payout as follows: (a) Termination—the Performance-Based Restricted Stock, Performance-Based Restricted
Stock Unit or Performance Unit Award is completely forfeited; or (b) Retirement, Disability or death—payout of the Performance-Based Restricted Stock, Performance-Based Restricted
Stock Unit or 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. 

        Any
shares of Performance-Based Restricted Stock which are forfeited will be transferred to the Company. 

7

 

        E.     Form
and Timing of Payment. With respect to shares of Performance-Based Restricted Stock or Restricted Stock Units for which restrictions lapse, new certificates will be
issued (the payout) without the restrictive legend described in Section 9B(i). 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 Award payment 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 the Company with another company is submitted to the stockholders of the Company
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. 

        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. 

8

 

        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 (or ceases Board membership in the case of a director) within the Exercise Period and prior to the lapse of
the Stock Appreciation Right, the Stock Appreciation Right will lapse as follows: (a) Termination—any unvested Stock Appreciation Right will lapse on the effective date of the
Termination and any vested Stock Appreciation Right will lapse 90 days after the effective date of the Termination; or (b) Retirement, Disability or death—any unvested Stock
Appreciation Right will lapse on the effective date of the Retirement, Disability or death and any vested Stock Appreciation Right will lapse on the earlier of 60 months after the effective
date of the Retirement, Disability or death or 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. 

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-Based Restricted Stock,
Performance-Based Restricted Stock Units or Performance Units, at any time during the Performance Period, without consideration by the Participant. 

        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 or Restricted Stock Unit Award; or (iv) the lapse date established by the Committee on the Date of Grant of the Dividend
Equivalent. 

12.    Equity.
One or more shares of Stock may be granted to any Eligible Person, in such amounts, on such terms and conditions, and for such consideration, including no consideration or
such minimum consideration as may be required by law, as the Committee shall determine. An Equity Award may be denominated in Stock or other securities, stock-equivalent units, securities or
debentures convertible into Stock, or any combination of the foregoing and may be paid in Stock or other securities, in cash, or in a combination of Stock or other securities and cash, all as
determined in the sole discretion of the Committee. Unless the Committee determines otherwise, the vesting period for Equity Awards shall be at least three years. 

13.    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 (as set forth in Section 13B)
with respect to any previously granted Award upon the happening of a change in control; provided, that,
except as otherwise expressly provided to the contrary in the applicable grant agreement, a Participant will not be entitled to an accelerated vesting or payout of any Covered Awards in connection
with the consummation of the transactions contemplated by the Agreement and Plan of Merger dated as of December 18, 2005 by and among FPL Group, Inc., CF Merger Corporation and the
Company (the "Excluded Transactions"), and such Covered Awards shall remain outstanding in accordance with their terms following the consummation of the Excluded Transactions, subject to any
adjustments made by the Plan Administrator in accordance with the provisions of Section 15. 

        A
change in control for purposes of this Section 13 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 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 

9

 

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 Participant or any group of persons including Participant (or any entity
controlled by Participant or any group of persons including Participant); 

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

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

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

        B.     Amount
of Award Subject to Accelerated Payout. The amount of a Participant's previously granted Award that will be paid or exercisable upon the happening of a change in
control (or if earlier upon the termination of the Participant's employment with the Company or a Subsidiary if it is reasonably demonstrated that such termination (i) was at the request of a
third party who has taken steps reasonably calculated to effect a change in control or (ii) otherwise arose in connection with or anticipation of a change in control) will be determined as
follows, provided, that, except as otherwise expressly provided to the contrary in the applicable grant
agreement, a Participant will not be entitled to an accelerated vesting or payout of any Covered Awards under this Section 13B in connection with the consummation of the Excluded Transactions: 

        Service-Based
Restricted Stock or Restricted Stock Unit 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 Service-Based Restricted Stock or Restricted Stock Units that were issued on the Date of Grant. 

10

 

        Stock
Option Awards and Stock Appreciation Rights. Any previously granted Stock Option Awards or Stock Appreciation Rights will be immediately vested, any gain will be immediately paid
in cash, and the Stock Option Awards and/or Stock Appreciation Rights will then lapse. 

        Performance-Based
Restricted Stock or Restricted Stock Units/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 shares of Performance-Based Restricted Stock or Restricted Stock Units/Performance Units subject to the 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. 

        Equity
Awards. Any previously granted Equity Award will be immediately vested. 

        Covered
Awards. Except as may be expressly provided to the contrary in the applicable grant agreement, Covered Awards shall not vest or be subject to immediate payout as a result of the
consummation of the Excluded Transactions, but will remain outstanding in accordance with their terms following the consummation of the Excluded Transactions, subject to any adjustments made by the
Plan Administrator in accordance with the provisions of Section 15. 

        C.    Timing
of Accelerated Payout/Option Period/Exercise Period. The accelerated payout set forth in Section 13B will be made in cash within 30 days after the
date of the change in control. 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 date. 

14.    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 number of securities which may be issued pursuant to the Plan (except as provided in Section 15H), extends the period for granting Options under the Plan
or materially modifies the requirements as to eligibility for participation in the Plan; (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; and (iii) no such action that would require the consent of the Board and/or the stockholders of the Company pursuant to Section 162(m) of the Code or the 1934 Act, or any
other applicable law, rule, or regulation, shall be effective without such consent. 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. 

15.    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 the Company 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. The Company 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 the Company 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 the Company or a Subsidiary, the retention by the Company 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 the Company 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. The Company 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, the Company 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 the Company 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 the Company 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 the Company or any of its Subsidiaries, as a matter of law, or otherwise, or any power that the Company 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 the Company 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.      Company
Successors. In the event the Company becomes a party to a merger, consolidation, sale of substantially all of its assets or any other corporate reorganization in
which the Company 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 the Company 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 the Company and its Subsidiaries. 

        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. 

12

 

        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 Executive 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: 

Corporate Secretary

750 East Pratt Street

18th Floor

Baltimore, Maryland 21202

(410) 783-3600  

13

  

 
 

2002 Executive 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: 

Manager – Executive
Compensation

Constellation Energy Group, Inc.

750 East Pratt Street

5th Floor

Baltimore, MD 21202

410-783-3244 

        After
each grant is made, participants will be furnished with information about the amount of the grant. Participants have access to 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. 

14

  

 
 

FORM OF SERVICE-BASED RESTRICTED STOCK AWARD AGREEMENT    
    

[DATE]  

Recipient Name

Recipient Title

Company

Company Address

City, State Zip Code

RE: Service-Based Restricted Stock Award  

Dear
Recipient: 

Effective
date, The Board of Directors Compensation Committee, (The Committee), granted you  [#] service-based restricted shares of CEG Common Stock (the "Award")
pursuant to Section 7 of the Constellation Energy
Group, Inc. Executive Long-Term Incentive Plan (the "Plan"). In addition to other provisions of the Plan (a copy of which is provided to you with this letter), your Award is subject
to the following conditions: 

	1.
	The
Plan restriction period for these shares expires as show on the restriction lapse dates in the table below: 

	

	# Shares

Granted
	 	Share

Grant

Date
	 	Restriction

Period
	 	Restriction

Lapse Date
	 	Aggregate

Shares

Lapsed

	

	[#]	 	mm/dd/yy	 	[one to five years]	 	[one to five years after Share Grant Date]	 	[#]
	

	 	 	

	 	 	

	2.
	The
Plan requires that as a condition to receiving your Award, you waive in writing the right to make an election under Section 83(b) of the Internal Revenue Code of 1986 with
respect to your Award (see Section 7D of the Plan). Your execution of this letter will constitute your waiver to make such election under Section 83(b). This waiver means that you will
not have the option of electing to be taxed on the restricted shares at the time of the grant. Instead, you will be taxed on the restricted shares at the time the Plan restrictions are removed (see
Attachment A). This waiver allows the Company to treat dividends paid to you during the period of the Plan restrictions as compensation, thereby giving the Company a tax deduction for such amounts.

	3.
	As
provided in the Plan, until the Plan restriction period expires, you may not sell, transfer, pledge or hypothecate the Award shares. CEG will hold the shares for safekeeping until
the restriction lapse, unless you let us know that you want a stock certificate for the Award. If you prefer a certificate, it will be issued in your name with a legend to the effect that you may not
sell, transfer, pledge, or hypothecate the Award shares and that the shares are subject to certain conditions under the Plan.

	4.
	If
you contemplate the sale or transfer (for example to a family member) of any shares after the restriction period expires, you should contact the SEC-related persons
specified below for advice on the timing of any sale or transfer and any reporting obligations you may have. 

15

 

Please
read the Plan carefully as it contains many other provisions relating to your Award. If you have any questions, please do not hesitate to call: 

	

	General
 
	 	SEC-related
 
	 	Tax-related
 

	

	[NAME]	 	[NAME]	 	[NAME]
	

	[PHONE NUMBER]	 	[PHONE [NUMBER]	 	[PHONE [NUMBER]
	

Please sign the enclosed copy of this letter and return it in the envelope provided.  

Sincerely, 

[NAME]

[TITLE, DEPARTMENT]  

I have read the Plan and this letter and agree to the terms and conditions contained in each regarding my Award. 

	
	 	 
	
 Signature of Recipient	 	
 Date

16

  

ATTACHMENT A  

CONSTELLATION ENERGY GROUP, INC.  

 
 

INCOME TAX CONSEQUENCES TO PARTICIPANTS    
    

FOR SERVICE-BASED RESTRICTED STOCK AWARDS 

        Set
forth is a brief overview of certain income tax consequences associated with your Service-Based Restricted Stock Award ("the Award"). 

Stock  

        Because
the Plan places certain restrictions on the Award which could lead to forfeiture of the shares prior to lifting the Plan restrictions and because you have agreed to waive the
Section 83(b) election1, the value of the restricted stock is not taxed to you when the initial grant is made. Rather, the stock is taxable to you at the time the restrictions are
removed. The amount subject to income tax is the fair market value of the stock on the day that the Plan restrictions are removed. This amount is treated as compensation subject to withholding of
income taxes, Medicare taxes and, if applicable, Social Security taxes. You are not taxed on the value of any stock forfeited. 

        For
purposes of determining the gain or loss on any sale of the stock received pursuant to this Award, your basis in the stock is the amount that you included in taxable income when the
Plan restrictions were removed. Your tax holding period, for purposes of determining whether a gain or loss on a sale is long-term or short-term, begins on the day after the
day that the Plan restrictions were removed. 

Dividends  

        The
dividends during the restriction period will be automatically reinvested in additional shares of company common stock. These shares will be subject to the same restrictions as the
originally awarded shares and will vest accordingly. For tax purposes, the dividends on the restricted stock will not be taxable as dividend income. Rather, the accumulated shares of stock will be
taxable to you in the same manner as stated above. 

        After
the Plan restrictions on the stock are removed, the dividends are treated as regular dividend income (generally not subject to tax withholding). 

Tax Planning  

        You
may wish to consult your tax advisor in the year the restrictions are lifted from the Award if you have questions regarding the impact of the Award on your tax withholding or if you
have questions about the applicable capital gains holding period and rates for this Award. 

	1
	The
Plan requires that as a condition to receiving a Restricted Stock Award, you must waive in writing the right to make an election under Section 83(b) of the
Internal Revenue Code of 1986 with respect to your Award (see Section 7 D of the Plan). This waiver means that you will not have the option of electing to be taxed on the restricted shares at
the time of grant. Instead, you will be taxed on the restricted shares at the time the Plan restrictions are removed. This allows the Company to treat dividends paid during the period of Plan
restrictions as compensation, thereby giving the Company a tax deduction for such amounts. 

17

  

 
 

PERFORMANCE UNIT AGREEMENT    
    

[date] 

TO:
«First» «MI» «Last» 

Effective
[Date], as part of the [3 CALENDAR YEAR PERFORMANCE
PERIOD] Long-Term Incentive Program, you were granted [#] performance units (the
"Units") under the Constellation Energy Group, Inc. Executive Long-Term Incentive Plan (the "Plan"). In addition to other provisions of the Plan, your award is subject to the
conditions set forth in this document. 

	Target Grant

(# Units)
	 	Grant

Date
	 	Performance

Period
	 	Vesting Date

	[#]	 	[MM/DD/YY]	 	[3-Year Period]	 	[End of 3-Year Period]
	

Under
current tax law, you are not subject to tax on your Units until the Vesting Date. 

	1.
	Each
Unit is worth $1. The final award payout on the Vesting Date will be based on Constellation Energy Group's relative Total Shareholder Return ("TSR") performance over the
Performance Period as set forth below. TSR is defined as the stock price change from [BEGINNING TO END OF 3 CALENDAR YEAR PERFORMANCE
PERIOD] and dividends during that period that are reinvested on the ex-dividend date

(date stock trades without its dividend) at the closing price on that date.

	

	The
Plan Administrator will determine the award payout soon after the conclusion of the Performance Period. The performance measures used to determine the
award payout are as follows:

	•
	Primary
Measure: Constellation Energy TSR for the Performance Period is compared to the TSR performance results of large and
mid-size investment grade companies within the Dow Jones Electric Utilities Index (DJEUI) on [END OF PERFORMANCE
PERIOD]. In the DJEUI, companies that are rated "non-investment grade' by both Moody's and S&P rating agencies on  [END OF PERFORMANCE PERIOD] are excluded.

	•
	Secondary
Measure: If Constellation Energy's percentile rank for the Primary Measure is below the  [    ] percentile, then a comparison will be made to the TSR performance results of
investment grade companies in the
S&P 500 Index on [END OF PERFORMANCE PERIOD]. 

	 
	 	 
	 	

	 
	 	 
	 	Primary

Measure
 TSR v. DJEUI

Large & Mid-Cap

Investment Grade

Companies
	 	Secondary

Measure
 TSR v. S&P

500 Index

Comparison

Group

	 
	 	 
	 	

	Performance Level
 
	 	Total Shareholder

Return
 
	 	Payout vs. Target
 
	 	Payout vs. Target
 

	

	<Threshold	 	<[        ] Percentile	 	[        ]%	 	[        ]%
	

	Threshold	 	[        ] Percentile	 	[        ]%	 	[        ]%
	

	Target	 	[        ] Percentile	 	[        ]%	 	[        ]%
	

	Stretch	 	[        ] Percentile	 	[        ]%	 	[        ]%
	

	

	Payout
levels interpolated between points.

Secondary measure applies only if performance vs. primary measure is below threshold.

	2.
	The
award payout amount is determined by multiplying the "Payout vs. Target" percentage by the number of Units (worth $1 each) that you were granted. This award payout amount may be
settled, in the sole discretion of the Plan Administrator, in either restricted or unrestricted stock or stock units, or cash (or any combination thereof).

	3.
	Under
current tax law, you will be subject to tax on the Vesting Date on the award payout amount. The Company will be required to withhold applicable taxes at such time. If the award
payout is settled in stock or stock units, the Company will withhold the required number of shares or units to pay these taxes.

	4.
	As
provided in the Plan, until the Vesting Date, you may not sell, transfer, or pledge the Units. 

18

 

Please
read the Plan carefully as it contains many other provisions relating to your award. If you have any questions, please do not hesitate to call: 

	General
 
	 	SEC-related
 
	 	Tax-related
 

	

	

	[NAME]	 	[NAME]	 	[NAME]
	

	[PHONE NUMBER]	 	[PHONE [NUMBER]	 	[PHONE [NUMBER]
	

Please sign this letter and return it in the envelope provided, and keep a copy for your records.  

Sincerely, 

[NAME]

[TITLE, DEPARTMENT]

I
have read the Plan and this letter and agree to the terms and conditions contained in each regarding my Award. 

	
	 	 
	
 Signature of «First» «MI» «Last»	 	
 Date

19

  

 
 

FORM OF STOCK UNIT AWARD WITH SALE RESTRICTION AGREEMENT    
    

[DATE]  

Recipient Name

Recipient Title

Company

Company Address

City, State Zip Code  

RE: Stock Unit Award with Sale Restriction  

Dear
Recipient: 

Effective
date, as part of your [PERFORMANCE YEAR] annual incentive and in
recognition of your performance during [PERFORMANCE YEAR], you were granted  [#] restricted Constellation Energy Group, Inc. (the "Company")
common stock units with sale restrictions ("Deferred
Shares") under the Constellation Energy Group, Inc. Executive Long-Term Incentive Plan (the "Plan"). In addition to other provisions of the Plan, your award is subject to the
following conditions: 

	1.
	Each
Deferred Share entitles you to receive on the Restriction Lapse Date (set forth below) one share of Constellation Energy Group common stock ("Common Stock"). Under current tax
law, you are not subject to tax on your Deferred Shares until the Restriction Lapse Date (see paragraph 4 below).

	2.
	During
the Restriction Period (set forth below), on any date that Constellation Energy Group pays dividends with respect to the Common Stock, the Company shall credit you with a number
of Deferred Shares equal to (i) the number of your Deferred Shares on the dividend record date times (ii) the dividend rate per share, divided by (iii) the per share reinvestment
price. These dividend-based additional Deferred Shares shall be subject to the same rules and restrictions as Deferred Shares originally granted to you.

	3.
	The
Restriction Period for your Deferred Shares expires on the Restriction Lapse Date as shown in the table below: 

	

	# Deferred

Shares Granted
	 	Deferred Share

Grant

Date
	 	Restriction

Period
	 	Restriction

Lapse

Date

	

	[#]	 	[MM/DD/YY]	 	[5 years]	 	[5 years after Grant Date]
	

	 	 	

	 	 	

	

	Your
Deferred Shares are fully and immediately vested, however, during the Restriction Period, you may not sell, transfer, or pledge the Deferred Shares.
During the Restriction Period, you will have no voting rights with respect to the Deferred Shares. The Restriction Period remains in effect irrespective of your employment status.

	4.
	Following
the Restriction Lapse Date, the Company shall cause to be issued to you a certificate for shares of Common Stock equal to the number of your Deferred Shares (including
dividend-based additional Deferred Shares). Under current tax law, you will be subject to tax on the Restriction Lapse Date based on an amount equal to the number of shares of Common Stock issued to
you times the Fair Market Value per share (i.e., the average of the high and low price of the Common Stock on the Restriction Lapse Date). The Company will be required to withhold applicable taxes at
such time, and will withhold the required number of shares to pay these taxes. The total shares you receive will be rounded to the nearest whole share. You should consult your tax advisor regarding
any tax issues. 

20

 

Please
read the Plan carefully as it contains many other provisions relating to your award. If you have any questions, please do not hesitate to call: 

	

	General
 
	 	SEC-related
 
	 	Tax-related
 

	

	[NAME]	 	[NAME]	 	[NAME]
	

	[PHONE NUMBER]	 	[PHONE [NUMBER]	 	[PHONE [NUMBER]
	

Please sign the enclosed copy of this letter and return it in the envelope provided.  

Sincerely, 

[NAME]

[TITLE, DEPARTMENT]  

I have read the Plan and this letter and agree to the terms and conditions contained in each regarding my Award. 

	
	 	 
	
 Signature of Recipient	 	
 Date

21

  

 
 

FORM OF
  STOCK OPTION AGREEMENT    
    

        This
Stock Option Agreement ("Agreement") is subject to the terms and conditions of the Constellation Energy Group, Inc. Executive Long-Term Incentive Plan (the
"Plan"). The «Administrator» Constellation Energy Group, Inc. (the "Plan Administrator") has authorized the option grant under this Agreement by and between Participant
(designated below) and Constellation Energy Group, Inc. ("Constellation Energy"). 

1.    Grant of Option.

        (a)    The
"Participant" is «First» «Middle» «Last». 

        (b)   The
date of the grant is «GrantDate» ("Grant Date"). 

        (c)    The
number of shares subject to the option ("Option Shares") are «Grant» shares of Constellation
Energy common stock ("Stock"). 

        (d)   The
exercise price is [OptionPrice = fair market value of stock on grant date] per share
of Stock ("Exercise Price"). 

        This
Agreement specifies the terms of the option ("Option") granted to Participant to purchase the Option Shares at the Exercise Price set forth above. The Option is  not intended to constitute an "incentive
stock option" as that term is used in Internal Revenue Code section 422. The "Option Period" is the
period during which the Option is exercisable as provided in this Agreement. 

2.    Installment Exercise.

        Subject
to the terms of this Agreement, the Option will be exercisable in installments according to the following schedule (each a "Vesting Date"): 

	 

	INSTALLMENT
	 	VESTING DATE

APPLICABLE TO INSTALLMENT

	

	[1/3 of Option Shares] Options	 	[One year after Grant Date]
	

	[1/3 of Option Shares] Options	 	[Two years after Grant Date]
	

	[1/3 of Option Shares] Options	 	[Three years after Grant Date]
	

3.    Termination of Option.

        (a)    Except
as provided in paragraph 3(b) below, the Option will terminate upon the earlier to occur of: (1) when all Option Shares have been exercised; or
(2) ten (10) years from the Grant Date ("Expiration Date"). 

        (b)   If
Participant ceases employment, the Option will terminate as to any unvested Option Shares on the effective date of Participant's employment Termination (as defined in
the Plan) and as to vested Option Shares 90 days after such effective date; provided that if Participant ceases employment because of Participant's Retirement, Disability (each as defined in
the Plan), or death, the Option will terminate as to any unvested Option Shares on the effective date of the Retirement, Disability or death, and as to vested Option Shares, the Option will remain
exercisable until the earlier of 60 months after such effective date or the Expiration Date. 

        (c)    In
the event of Participant's death during the Option Period, vested Option Shares may be exercised by Participant's legal representative(s), or by other person(s)
authorized under Participant's will. Alternatively, if Participant fails to make testamentary disposition of the Option or dies intestate, such vested Option Shares may be exercised by persons(s)
entitled to receive the Option Shares under the applicable laws of descent and distribution. 

        (d)   A
transfer of Participant's employment between Constellation Energy and any Subsidiary of Constellation Energy, or between Subsidiaries of Constellation Energy, will not
be considered an employment Termination. 

4.    Exercise of Option.

        (a)    Subject
to this Agreement and the Plan, the Option may be exercised in whole or in part by the method specified by the Plan Administrator from time to time or by
contacting [NAME] at [PHONE NUMBER(S)]. 

22

 

        (b)   On
or before the exercise date specified pursuant to paragraph 4(a), Participant must fully pay the Exercise Price and the tax withholding obligation for the
Option Shares exercised in U.S. dollars by cash or by check payable to Constellation Energy Group, Inc. All or a portion of the Exercise Price and tax withholding obligation may also be paid by
Participant: (i) subject to the terms of paragraph 4(c) below, by delivery of shares of Stock owned by Participant and acceptable to the Plan Administrator having an aggregate Fair
Market Value (as defined in paragraph 6 below) on the date of exercise that is equal to the amount of cash that would otherwise be required; or (ii) by authorizing a third party to sell
the Option Shares (or a sufficient portion of the Option Shares), and immediately remit to Constellation Energy the Exercise Price and any tax withholding resulting from such exercise. Further, tax
withholding up to the minimum required withholding rate (but not in excess of that rate) may also be satisfied through a holdback by Constellation Energy of some of the Option Shares that would
otherwise be deliverable to Participant by reason of the Option exercise. The Option will cease to be exercisable, as to the portion exercised, when Participant purchases the Stock to which the
exercised portion of the Option relates. 

        (c)    Other
shares of Stock owned by Participant may be delivered to satisfy the Exercise Price, or to satisfy Participant's tax withholding obligation above the minimum
withholding rate, only if the shares have been held by Participant for at least six months before delivery, except that there shall be no holding period imposed for shares purchased by Participant for
cash on the open market. Use of previously-owned shares shall be effected by actual delivery of the Stock certificates to Constellation Energy, and by completing an affidavit available from
Constellation Energy affirming that Participant owns the necessary shares and that any applicable holding period has been satisfied. 

        (d)   Participant
is required to comply with Constellation Energy's Insider Trading Policy at all times, including in connection with exercise of the Option. The Option may
not be exercised by Participant during any blackout or prohibited trading period established by Constellation Energy or applicable to Participant, nor shall the Option be exercisable if and to the
extent Constellation Energy determines that such exercise would violate applicable state or Federal securities laws or the rules and regulations of any securities exchange on which the Stock is
traded. If Constellation Energy makes such a determination, it will use all reasonable efforts to comply with such laws, rules or regulations. In making any such determinations, Constellation Energy
may rely on the opinion of counsel for Constellation Energy. 

        (e)    As
soon as practicable after the exercise date, Constellation Energy will deliver to Participant a Stock certificate or certificates (or other evidence of ownership) for
the purchased Option Shares. 

5.    Tax Withholding.

        Constellation
Energy will have the right to withhold any applicable federal, state or local taxes, deductions or withholdings due with respect to the Option or its exercise in such form
and manner as provided in the Plan. 

6.    Fair Market Value.

        The
"Fair Market Value" of a share of Stock is the average of the highest and lowest sale price per share of Stock on the New York Stock Exchange-Composite Transactions on the applicable
date of reference, or if there are no sales on such date, then the average of such highest and lowest sale price on the last previous day on which sales are reported. 

7.    No Rights of Stockholders.

        Participant
does not have any of the rights and privileges of a stockholder of Constellation Energy with respect to any shares of Stock purchasable or issuable upon the exercise of the
Option, in whole or in part, before the date of exercise and purchase of the Option Shares. 

8.    Non-Transferability of Option.

        The
Option is not transferable, except for a transfer to Participant's family member or to a trust established for the benefit of Participant's family members which has been approved by
the Plan Administrator as provided in the Plan, or in case of Participant's death, by will or the laws of descent and distribution, nor shall the Option be subject to attachment, execution or other
similar process. During Participant's lifetime, the Option is exercisable only by Participant, any guardian or legal representative of Participant, or a family member or trustee of a trust established
for the benefit of Participant's family members to whom the Option has been transferred in accordance with the Plan. In the event of (a) any attempt by Participant to alienate, assign, pledge,
hypothecate or otherwise dispose of the Option, except as provided in this Agreement, or (b) the levy of any attachment, execution or similar process upon the rights or interest conferred under
this Agreement, Constellation Energy may terminate the Option by notice to Participant and it will become null and void. 

23

 

9.    Employment Not Affected.

        Neither
this Agreement nor the grant of the Option constitutes a contract of employment between Constellation Energy or any Subsidiary and Participant, and neither will be deemed to be
consideration for, or a condition of, continued employment of Participant. 

10.    Incorporation of Plan by Reference.

        The
Option is granted pursuant to the terms of the Plan, the terms of which are incorporated in this Agreement by reference. The Option will in all respects be interpreted in accordance
with the Plan. All capitalized terms, which are not otherwise defined in this Agreement, will have the meaning specified in the Plan. The Plan Administrator will interpret and construe the Plan and
this Agreement, and its interpretations and determinations will be conclusive and binding on the parties and any other person claiming an interest with respect to any issue arising under this
Agreement. 

11.    Severability.

        The
provisions of this Agreement are severable. If any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions will
nevertheless be binding and enforceable. 

IN
WITNESS WHEREOF, Constellation Energy Group, Inc. and Participant have executed this Stock Option Agreement effective as of the Grant Date. 

	Constellation Energy Group, Inc	 	ACCEPTED AND AGREED TO:
	

 [NAME]

[TITLE, DEPARTMENT]	
 	
By:	

 ‹‹First›› ‹‹Middle›› ‹‹Last››

24

QuickLinks

Constellation Energy Group, Inc. Amended and Restated Executive Long-Term Incentive Plan (Plan)

2002 Executive Long-Term Incentive Plan Appendix

FORM OF SERVICE-BASED RESTRICTED STOCK AWARD AGREEMENT

INCOME TAX CONSEQUENCES TO PARTICIPANTS

PERFORMANCE UNIT AGREEMENT

FORM OF STOCK UNIT AWARD WITH SALE RESTRICTION AGREEMENT

FORM OF STOCK OPTION AGREEMENT

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