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Exhibit 10(k)  

This
document constitutes part of a prospectus covering securities that have

been registered under the Securities Act of 1933. 

 
 

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

        1.    Objective.    The objective of this Plan is to increase shareholder value by providing a long-term
incentive to reward management level and other designated employees of Constellation Energy and its Subsidiaries, whose responsibilities include the continued growth, development, and financial
success of Constellation Energy and its Subsidiaries, for the continued profitable performance of Constellation Energy and its Subsidiaries. The Plan is also designed to assist Constellation Energy
and its Subsidiaries to retain talented and motivated management level and other designated employees and to increase their ownership of Constellation Energy common stock. 

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

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

        "Board"
means the Board of Directors of Constellation Energy. 

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

        "Performance
Unit" means a unit of measurement equivalent to such amount or measure as defined by the Plan Administrator 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 Chief Executive Officer of Constellation Energy. 

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

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

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

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

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

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

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

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

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        3.    Effective Date and Duration.

        A.    Effective Date.    The Plan became effective as of February 1, 1998. 

        B.    Period for Grants of Awards.    Awards may be made as provided herein for a period of 10 years after
February 1, 1998. 

        C.    Grants Outstanding.    Grants outstanding at the effective time of the share exchange between Constellation
Energy and the common stockholders of Baltimore Gas and Electric Company (BGE) were converted from BGE common stock-based grants to Constellation Energy common stock-based grants. 

        4.    Plan Administration.    The Chief Executive Officer of Constellation Energy is the Plan Administrator and has
sole authority (except as specified otherwise herein) to determine all questions of interpretation and application of the Plan, or of the terms and conditions pursuant to which Awards are granted,
exercised or forfeited under the Plan provisions, and, in general, to make all determinations advisable for the administration of the Plan to achieve its stated objective. Such determinations shall be
final and not subject to further appeal. The Plan Administrator shall have the power to delegate all or any part of his/her duties to one or more designees, and to withdraw such authority, by written
designation. 

        5.    Eligibility.    Each employee of Constellation Energy who holds a management level position, and other employees
of Constellation Energy and its Subsidiaries, may be designated by the Plan Administrator as a Participant, from time to time, with respect to one or more Awards. No employee of Constellation Energy
or its Subsidiaries shall have any right to be granted an Award under this Plan. 

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

        7.    Restricted Stock Awards. 

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

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

        Upon
issuance to the Participant of the Restricted Stock, the Participant will have the right to vote the Restricted Stock, and subject to the Plan Administrator's discretion, to receive
the cash dividends distributable with respect to such shares, with such dividends treated as compensation to the Participant. The Plan Administrator, in his/her 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 Plan Administrator. 

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        B.    Service-Based Award. 

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

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

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

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

        C.    Performance-Based Award. 

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

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

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

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

        As
soon as practicable after the later of (i) the date the Plan Administrator makes the above determination, or (ii) the completion of the restriction period, the Plan
Administrator will determine the Earned Performance Award for each Participant. Such determination may result in forfeiture of all or some shares of Restricted Stock (if Target Performance Award
performance objectives were not 

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attained),
or the issuance of additional shares of Stock (if Target Performance Award performance objectives were exceeded), and will be based upon such factors as the Plan Administrator determines at
his/her sole discretion, but including the Target Performance Award performance objectives. 

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

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

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

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

        8.    Stock Options

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

        B.    Stock Option Agreement.    Each Option granted under the Plan will be evidenced by a "Stock Option Agreement"
between Constellation Energy and the Participant containing provisions determined by the Plan Administrator, including, without limitation, provisions to qualify Incentive Stock Options as such under
Section 422 of the Code if directed by the Plan Administrator 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 Constellation Energy with another company is submitted to the stockholders of Constellation Energy for a vote, the Plan Administrator, in his\her sole discretion,
may declare any previously granted Option to be immediately exercisable. 

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

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        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 Plan Administrator in his/her sole discretion. When Stock is used in full or
partial payment of the Option price, it will be valued at the Fair Market Value on the date the Option is exercised. 

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

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

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

        9.    Performance Units. 

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

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

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

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

6

 

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

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

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

        10.    Stock Appreciation Rights. 

        A.    Grants of Stock Appreciation Rights.    Stock Appreciation Rights may be granted under the Plan in conjunction
with an Option either at the Date of Grant or by amendment or may be separately granted. Stock Appreciation Rights will be subject to such terms and conditions not inconsistent with the Plan as the
Plan Administrator 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
Constellation Energy with another company is submitted to the stockholders of Constellation Energy for a vote, the Plan Administrator, in his/her 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 Plan Administrator 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, 

7

 

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

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

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

        11.    Dividend Equivalents. 

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

8

   
        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 Plan
Administrator, in his/her sole discretion, may direct the payment of such amount at such times and in such form and manner as determined by the Plan Administrator. 

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

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

        12.    Accelerated Award Payout/Exercise. 

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

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

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

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

        (iii)    Company
shareholder approval of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its
Subsidiary Companies, 

9

 

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

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

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

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

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

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

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

        C.    Timing of Accelerated Payout/Option Period/Exercise Period.    The accelerated payout set forth in
Section 12B will be made in cash within 30 days after the date of the change in control. The 

10

 

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

        13.    Amendment of Plan.

        The
Plan Administrator may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part, except 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. 

        14.    Miscellaneous Provisions. 

        A.    Nontransferability.    No benefit provided under this Plan shall be subject to alienation or assignment by a
Participant (or by any person entitled to such benefit pursuant to the terms of this Plan), nor shall it be subject to attachment or other legal process except (i) to the extent specifically
mandated and directed by applicable state or federal statute, (ii) as requested by the Participant (or by any person entitled to such benefit pursuant to the terms of this Plan), and approved
by the Plan Administrator, to satisfy income tax withholding, and (iii) as requested by the Participant and approved by the Plan Administrator, 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
Constellation Energy 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.    Constellation Energy 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 Constellation Energy or a Subsidiary. Subject to compliance with any requirements of applicable law, the Plan
Administrator 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 Constellation Energy or a Subsidiary, the retention by Constellation Energy 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. 

        E.    Government and Other Regulations.    The obligation of Constellation Energy 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. Constellation Energy 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, Constellation Energy may restrict its transfer
in such manner as it deems advisable to ensure such exempt status. The Plan is not subject to any provisions of the Employee Retirement Income Security Act of 1974. 

        F.    Indemnification.    The Plan Administrator (and his/her designees), and Constellation Energy's Chairman of the
Board, and President and all other employees of Constellation Energy or its Subsidiaries whose assigned duties include matters under the Plan, shall be indemnified by Constellation Energy or its
Subsidiaries or from proceeds under insurance policies purchased by 

11

 

Constellation
Energy or its Subsidiaries against any and all liabilities arising by reason of any act or failure to act made in good faith pursuant to the provisions of the Plan, including expenses
reasonably incurred in the defense of any related claim. 

        G.    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 as the result of any such change shall bear the same restrictions as the shares of Stock to which they relate. 

        H.    Constellation Energy Successors.    In the event Constellation Energy becomes a party to a merger,
consolidation, sale of substantially all of its assets or any other corporate reorganization in which Constellation Energy 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 Constellation Energy under this Plan. 

        I.    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. 

        J.    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. 

        K.    Expenses.    The expenses of administering the Plan shall be borne by Constellation Energy and its Subsidiaries. 

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

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

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

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

Kathleen A. Chagnon

Corporate Secretary

750 East Pratt Street

18th Floor

Baltimore, Maryland 21202

(410) 783-3600  

12

 
Management Long-Term Incentive Plan

Appendix 

Additional Information  

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

        Participants
may obtain additional information about the Plan by contacting: 

Director—Compensation

Constellation Energy Group, Inc.

750 East Pratt Street

5th Floor

Baltimore, MD 21201-2437

(410) 783-2844 

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

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

13

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Exhibit 10(l)  

CONSENT TO ASSIGNMENT AND ASSUMPTION AGREEMENT  

 by and among  

 ALLEGHENY ENERGY SUPPLY COMPANY, LLC  

 And  

 BALTIMORE GAS AND ELECTRIC COMPANY  

 And  

 CONSTELLATION POWER SOURCE, INC.  

Dated as of May 9, 2003  

 
  
 

    CONSENT TO ASSIGNMENT AND ASSUMPTION AGREEMENT    
    

        This Consent to Assignment and Assumption Agreement ("Agreement") is by and among Allegheny Energy Supply Company, LLC ("Assignor"), Baltimore Gas and Electric
Company ("Utility") and Constellation Power Source, Inc. (Assignee"). 

 
 

RECITALS    
    

        WHEREAS, Assignor, on August 15, 2001, entered into a Full Requirements Service Agreement with Utility (the "Assigned Agreement"), which is incorporated
into and made a part of this Agreement by reference as if set forth in full in this Agreement; and 

        WHEREAS,
Assignor conducted a competitive request for proposals beginning on March 27, 2003 to assign the Assigned Agreement to which numerous parties responded; and 

        WHEREAS,
Assignee was the winning bidder in the competitive request for proposals process; and 

        WHEREAS,
Assignor and Assignee are parties to that certain Assignment and Assumption Agreement, dated as of May 9, 2003 (the "Assignment and Assumption Agreement"), pursuant to
which, among other things, Assignor has agreed to sell, transfer, convey and assign to Assignee the Assigned Agreement and Assignee has agreed to accept such sale, transfer, conveyance and assignment
of the Assigned Agreement; and 

        WHEREAS,
the Assigned Agreement, by its terms, is assignable and Assignor, pursuant to the Assignment and Assumption Agreement, desires to sell, transfer, convey and assign to Assignee
all of Assignor's rights, title, benefits, privileges and interests in and to the Assigned Agreement and Assignee
desires to acquire and accept such rights, title, benefits, privileges and interests and to assume the Contract Liabilities; and 

        WHEREAS,
Utility agrees, effective as of the Assignment Date, to consent to the assignment by Assignor to Assignee of all of Assignor's rights, title, benefits, privileges and interests
in and to the Assigned Agreement and the acquisition and acceptance by Assignee of such rights, title, benefits, privileges and interests and to the assumption by Assignee of the Contract Liabilities,
on the terms and conditions contained herein; and 

        WHEREAS,
each of the Assignor, Assignee and Utility acknowledge that the assignment contemplated in the Assignment and Assumption Agreement is contingent on the Federal Energy Regulatory
Commission ("FERC") issuing an order approving the 203 filing to be made by Assignor; and 

        WHEREAS,
Assignor and Assignee have agreed to a Back-to-Back Agreement in the event that such FERC approval is not received prior to June 27 and provided
that Closing has occurred, 2003 and have further agreed that the Back-to-Back Agreement will be in place effective as of Flow Date and continuing until the earlier of
(i) the Assignment Date and (ii) the end of the Term of the Assigned Agreement (as defined therein); and 

        [DELETED TEXT]

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

        1.    Definitions.    All capitalized terms not otherwise defined in this Agreement shall have the meanings ascribed
to such terms in the Assignment and Assumption Agreement. 

        2.    Consent to Assignment and Assumption Agreement.    In satisfaction of Section 13.2 of the Assigned
Agreement, effective as of the Assignment Date, Utility hereby consents to the Assignment 

1

 

and
Assumption Agreement and all of the terms and conditions thereunder including, without limitation, (i) the assignment, sale, transfer and conveyance by Assignor to Assignee of all of
Assignor's rights, title, benefits, privileges and interests in and to the Assigned Agreement, and (ii) the acquisition and acceptance by Assignee of all of such rights, title, benefits,
privileges and interests and the assumption by Assignee of the Contract Liabilities. Utility hereby agrees, effective as of the Assignment Date, to be bound by the terms of the Assigned Agreement and
to perform all obligations of Utility thereunder as if the Assigned Agreement had been entered into originally between Utility and Assignee but with all other terms remaining unaltered except as
expressly altered herein. Utility agrees that Assignee's only liability and obligations under the Assigned Agreement are the Contract Liabilities and that Assignee shall not have liability or
obligations with respect to the Excluded Liabilities. 

        3.    Releases.    Effective on the Assignment Date and subject to the occurrence of the Closing, Utility hereby
releases, acquits and forever discharges Assignor and each of its officers, directors, agents, servants, employees, present and future parent, subsidiary and affiliated corporations, successors in
interest, insurers, assigns and indemnitees, of and from any and all claims of whatsoever kind and nature, character and description, whether known or unknown, and whether anticipated or
unanticipated, arising from the Assigned Agreement and any events, transactions or occurrences thereunder that happened at any time on and after the Assignment Date. Effective on the Assignment Date
and subject to the occurrence of the Closing, Assignor hereby releases, acquits and forever discharges Utility and each of its officers, directors, agents, servants, employees, present and future
parent, subsidiary and affiliated corporations (excluding Assignee), successors in interest, insurers, assigns and indemnitees, of and from any and all claims of whatsoever kind and nature, character
and description, whether known or unknown, and whether anticipated or unanticipated, arising from the Assigned Agreement and any events, transactions or occurrences thereunder that happened at any
time on and after, the Assignment Date. Notwithstanding anything contained herein to the contrary, the consent and releases set forth herein shall (i) not release or discharge any party from
its obligations under this Agreement, and (ii) be deemed to be of no force and effect if the Assignment Date or the Closing does not occur. 

        [DELETED TEXT]

        5.    Back-to-Back Agreement and [DELETED
TEXT].    Utility acknowledges that, pursuant to the Assignment and Assumption Agreement, if FERC has not issued an order approving the Assignor's 203
filing prior to June 27, 2003 and provided that Closing has occurred, then effective as of Flow Date and continuing until the earlier of (i) the Assignment Date and (ii) the end
of the Term of the Assigned Agreement (as defined therein) (the "Back-to-Back Period"), Assignee shall sell and deliver, or cause to be delivered to Assignor and Assignor shall
purchase and receive, or cause to be received from Assignee the Full Requirements Service (as defined in the Assigned Agreement) that Assignor is obligated to deliver and Utility is obligated to
receive under the terms and conditions set forth in the Assigned Agreement, but only to the extent that Assignor actually in fact delivers the Full
Requirements Service to Utility under the terms of the Assigned Agreement. Under the Back-to-Back Agreement, Assignee shall be entitled to any and all proceeds from
"Transmission Congestion Rights" that Assignor is entitled to under the Assigned Agreement. For the purposes of the Back-to-Back Agreement, "Transmission Congestion Rights"
shall be defined as Fixed Transmission Rights (as defined in the Assigned Agreement), Auction Revenue Right's (as defined by PJM), currently referred to as Financial Transmission Rights by PJM, or any
subsequent similar structure whereby Assignor is entitled under the Assigned Agreement to receive revenue from congestion credits. In addition, Assignee shall be entitled to receive any penalty
associated with the PJM RAA for Utility's failure to implement its Load Response Resources (as defined in the Assigned Agreement). 

        Utility
further acknowledges, and agrees, that, pursuant to the Assignment and Assumption Agreement, during the Back-to-Back Period, Assignee shall be Assignor's
exclusive agent and Assignee shall assume responsibility for, including but not limited to, the following actions to the extent Assignor 

2

 

may
otherwise lawfully take them under the Assigned Agreement, and may take such actions without Assignor giving its approval thereof: (i) directing and scheduling the quantity and timing of
thehourly load demands under the Assigned Agreement; (ii) dealing directly with Utility, PJM and other transmission providers, federal, state and local governmental authorities and any other
persons; (iii) nominating Transmission Congestion Rights and receiving directly, through assignment or otherwise, the revenues associated therewith and (iv) billing, collecting and
performing all settlements necessary [DELETED TEXT] 

        6.    Credit Support During Back-to-Back Period.    Solely for the purposes of the
Back-to-Back Agreement and only during the Back-to-Back Period, Utility acknowledges and agrees that (i) credit support under Article 8 of
the Assigned Agreement shall come solely from Assignee under the terms and conditions set forth below in Section 6(a) and (ii) Utility shall not have any rights to request credit support
under Article 8 of the Assigned Agreement from Assignor. 

        (a)   Unless
Assignee satisfies the Creditworthiness Criteria, as security for Assignor's obligations under the Assigned Agreement, Assignee shall deliver to BGE a guaranty of
payment from either Parent, or another affiliate of Assignee that satisfies the Creditworthiness Criteria, in an amount equal to the reasonably determined credit exposure of BGE to Assignor taking
into account such factors as market risk, settlement risk, the underlying creditworthiness of Assignee, or such other conditions as may be reasonable under the circumstances. Such credit support shall
be available to be drawn upon by BGE in the event of default by Assignee of its obligations hereunder, and except as otherwise provided in this paragraph shall be maintained in effect (by annual
renewal or otherwise) by Assignee for the Term of the Assigned Agreement. Assignee may deliver substitute credit support pursuant to 8.1(b) of the Assigned Agreement. Notwithstanding the foregoing, if
at any time during the Term of the Assigned Agreement, Assignee satisfies the Creditworthiness Criteria or the parties agree to alternative credit arrangements, its obligation to deliver any credit
support pursuant to this paragraph shall be suspended for so long as Assignee continues to satisfy the Creditworthiness Criteria. From and after the date on which Assignee satisfies the
Creditworthiness Criteria, Assignee shall make all certifications to BGE as Assignor would have been required to do under 8.1(c) of the Assigned Agreement. If at any time thereafter Assignee no longer
satisfies the Creditworthiness Criteria, then Assignee shall, within ten (10) business days after receipt of written notice with respect thereto, deliver a guaranty that satisfies the
requirements of 8.1(a) of the Assigned Agreement or other credit support in accordance with section 8.1(b) of the Assigned Agreement. The failure of Assignee or its guarantor to maintain any of
the security requirements under this paragraph shall be considered an "Event of Default" under Section 7.1 of the Assigned Agreement with both Assignee and Assignor deemed to be the "Defaulting
Party". Assignee shall then be liable for any resulting Termination Payment under the Assigned Agreement, if such a payment is owed by the Defaulting Party. All capitalized terms in this Section which
have not been previously defined shall have the meanings ascribed to such terms in the Assigned Agreement. 

        7.    Utility Representations.    

        (a)   Utility
is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland and is in good standing in all jurisdictions where
necessary in light of the business it conducts (including, without limitation, performance of its obligations under the Assigned Agreement) and the properties it owns. 

        (b)   Utility
has the necessary corporate power, authority and legal right to execute, deliver and perform the Assigned Agreement and this Agreement, and the execution and
delivery by the Utility of the Assigned Agreement and this Agreement and the performance of its obligations there under and hereunder have been duly authorized by all necessary corporate action and do
not and will not (i) require any consent or approval of the Utility's board of directors except for those consents and approvals which may have been duly obtained and are in full force and
effect, (ii) violate any provisions 

3

 

of
the corporate charter or by-laws of the Utility or any provision of any law, rule, or regulation, or any order, write, judgment, injunction, decree, determination or award having
applicability to the Utility, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which the
Utility is a party or by which it or its properties may be bound or affected. 

        (c)   Each
of the Assigned Agreement and this Agreement has been duly executed and delivered, is in full force and effect and constitutes a legal, valid and binding obligation
of the Utility, enforceable in accordance with its terms, and there are no amendments, modifications or supplements thereto, either oral or written. 

        (d)   Utility
has not assigned, transferred, pledged or hypothecated the Assigned Agreement or any interest therein. 

        (e)   Other
than FERC approval, no consent or approval of, or other action by, or any notice or filing with, any court or administrative or governmental body (except those
previously obtained and in full force and effect) is required in connection with the execution and delivery of the Assigned Agreement or this Agreement or the performance by the Utility of its
obligations there under or hereunder. 

        (f)    Utility
has contracted for the delivery of power (including energy, capacity, ancillary services or other components) under the Assigned Agreement and will accept the
delivery of such power from suppliers under the Assigned Agreement as agent for its customers. 

        8.    Assignee Representations.    

        (a)   The
Assignee is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is in good standing in all jurisdictions
where necessary in light of the business it conducts (including without limitation performance of its obligations under the Assigned Agreement) and the properties it owns. 

        (b)   The
Assignee has the necessary corporate power, authority and legal right to perform the Assigned Agreement and this Agreement, and the execution and delivery by the
Assignee of this Agreement and the performance of its obligations thereunder and under the Assigned Agreement have been duly authorized by all necessary corporate action and do not and will not
(i) require any consent or approval of the Assignee's board of directors except for those consents and approvals which may have been duly obtained and are in full force and effect,
(ii) violate any provisions of the corporate charter or by-laws of the Assignee or any provision of any law, rule or regulation, or any order, writ, judgment, injunction, decree,
determination or award having applicability to the Assignee, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease
or instrument to which the Assignee is a party or by which it or its properties may be bound or affected 

        (c)   This
Agreement has been duly executed and delivered, is in full force and effect and constitutes a legal, valid and binding obligation of the Assignee, enforceable in
accordance with its terms. 

        (d)   Other
than FERC approval, no consent or approval of, or other action by, or any notice or filing with, any court or administrative or governmental body (except those
previously obtained and in full force and effect) is required in connection with the execution and delivery of this Agreement or the performance by the Assignee of its obligations thereunder or under
the Assigned Agreement. 

        9.    Assignor Representations.    

        (a)   The
Assignor is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is in good standing in all jurisdictions
where necessary in light of the 

4

 

business
it conducts (including, without limitation, performance of its obligations under the Assigned Agreement) and the properties it owns. 

        (b)   The
Assignor has the necessary corporate power, authority and legal right to execute, deliver and perform the Assigned Agreement and this Agreement, and the execution
and delivery by Assignor of the Assigned Agreement and this Agreement and the performance of its obligations thereunder and hereunder have been duly authorized by all necessary corporate action and do
not and will not (i) require any consent or approval of the Assignor's directors except for those consents and approvals which may have been duly obtained and are in full force and effect
(ii) violate any provisions of the corporate charter or by-laws of the Assignor or any provision of any law, rule or regulation, or any order, writ, judgment, injunction, decree,
determination or award having applicability to the Assignor, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease
or instrument to which the Assignor is a party or by which it or its properties may be bound or affected. 

        (c)   Each
of the Assigned Agreement and this Agreement has been duly executed and delivered, is in full force and effect and constitutes a legal, valid and binding obligation
of the Assignor, enforceable in accordance with its terms, and there are no amendments, modifications or supplements thereto, either oral or written. 

        (d)   The
Assignor has not assigned, transferred, pledged or hypothecated the Assigned Agreement or any interest therein. 

        (e)   Other
than FERC approval, no consent or approval of, or other action by, or any notice or filing with, any court or administrative or governmental body (except those
previously obtained and in full force and effect) is required in connection with the execution and delivery of the Assigned Agreement or this Agreement or the performance by the Assignor of its
obligations thereunder or hereunder; provided, however, that Assignor intends to provide an informational filing to the Maryland Public Service Commission Board of Public Utilities advising of the
assignment of the Assigned Agreement on or about the time that Assignor makes the 203 filing with the FERC. 

        10.    Setoff Rights.    Assignor, Assignee and Utility hereby agree, effective as of the Closing, that Assignee may,
in its sole and absolute discretion, setoff any and all amounts which are due and owing from Assignee to Assignor under the Assignment and Assumption Agreement against any and all amounts which are
due and owing from Assignor to Utility under the Assigned Agreement and that, upon such setoff, Assignee shall not owe such amounts to Assignor and Assignor shall not owe such amounts to Utility,
provided, however, that any amounts then or thereafter owing from Utility to Assignee are correspondingly reduced by the amount setoff. 

        11.    Notice.    All notices, requests, statements or payments shall be made as specified below. All notices are
required to be in writing and shall be delivered by letter, facsimile or other documentary form. Notice by facsimile or hand delivery shall be deemed to have been received by the close of the Business
Day on which it was transmitted or hand delivered (unless transmitted or hand delivered after close in which case it shall be deemed received at the close of the next Business Day). Notice by
overnight mail or courier shall be deemed to have been received two (2) Business Days after it was sent. A Party may change its addresses by providing notice of same in accordance herewith.
Notices shall be sent as follows: 

If
to Assignor, to: 

Contract
Administration

Allegheny Energy Supply Company, LLC

4350 Northern Pike

Monroeville, PA 15146-2841 

5

 

If
to Assignee, addressed to: 

Constellation
Power Source, Inc.

Attn: General Counsel

111 Market Place

Suite 500

Baltimore, Maryland 21202

Phone: (410) 468-3500

Fax: (410) 468-3499 

If
to Utility, addressed to: 

Baltimore
Gas and Electric Company

General Counsel

20th Floor—Gas and Electric Bldg.

39 W. Lexington Street

Baltimore, Maryland 21201

Phone: (410) 234-6318

Fax: (410) 234-5012 

        12.    Governing Law.    The parties hereto agree that this Agreement shall be construed and interpreted in accordance
with the laws of the State of New York, excluding any choice of law rules, which may direct the application of the laws of another jurisdiction. 

        13.    Waiver.    No term, covenant or condition hereof shall be deemed waived and no breach excused unless such
waiver or excuse shall be in writing and signed by the party claimed to have so waived or excused. 

        14.    Further Actions by Assignor.    Assignor for itself and its successors and assigns, does hereby covenant with
Assignee, its successors and assigns, that, in order to more effectively convey, transfer, assign, vest, perfect or confirm in Assignee, the rights intended to be conveyed hereunder, Assignor and its
successors and assigns will, on or after the date hereof and without further consideration, do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all
such further acts, deeds, bills of sale, transfers, consents, assurances, releases, assignments and conveyances,
powers of attorney, conveying and confirming unto Assignee, its successors and assigns, all and singular, the Assigned Agreement hereby granted, sold, assigned, transferred, conveyed and delivered as
Assignee, its successors or assigns, shall reasonably require. 

        15.    Counterparts.    This Agreement may be executed by facsimile and in one or more counterparts, each of which
shall be an original, but which together shall constitute one and the same instrument. 

        16.    Binding Upon Successors.    The terms and conditions of this Agreement shall extend and bind, and inure to the
benefit of, the parties and their successors and assigns. 

        17.    Amendment.    This Agreement may be modified, amended or rescinded only by a writing expressly referring to
this Agreement and signed by all of the parties hereto. 

        18.    Severability.    Every provision of this Agreement is intended to be severable. If any term or provision hereof
is declared by a court of competent jurisdiction to be illegal, invalid or enforceable for any reason whatsoever, such illegality, invalidity or enforceability shall not affect the other terms and
provisions hereof, which terms and provisions shall remain binding and enforceable, and to the extent possible all of such other provisions shall remain in full force and effect. If the FERC issues an
order denying approval of the transfer of the Assigned Agreement, then the Parties acknowledge and agree that the provisions concerning the Back-to-Back Agreement and the  [DELETED TEXT]contained in

6

 

this
Agreement and in the Assignment and Assumption Agreement shall not be affected thereby and shall remain in full force and effect provided that Closing has occurred. 

        19.    Joint Negotiation.    This Agreement shall be considered for all purposes as prepared through the joint efforts
of the Parties and shall not be construed against one Party or the other as a result of the preparation, submission or other event of negotiation, drafting or execution hereof. 

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        IN WITNESS WHEREOF, each of the parties hereto have caused their duly authorized representative to execute and deliver this Consent to Assignment and Assumption Agreement on the dates
written below to be effective as of May 9, 2003. 

	Assignee:

Constellation Power Source, Inc.	 	Assignor:

Allegheny Energy Supply Company, LLC
	

By: 	
 	

By: 
	 	
	 	 	

	

Name: 	
 	

Name: 
	 	
	 	 	

	

Title: 	
 	

Title: 
	 	
	 	 	

	

Date: 	
 	

Date: 
	 	
	 	 	

	

Address: 	
 	

Address: 
	 	
	 	 	

	

 	

 	
 	

 	

 
	Baltimore Gas and Electric Company	 	 	 
	

By: 	
 	

 	

 
	 	
	 	 	 
	

Name: 	
 	

 	

 
	 	
	 	 	 
	

Title: 	
 	

 	

 
	 	
	 	 	 
	

Date: 	
 	

 	

 
	 	
	 	 	 
	

Address: 	
 	

 	

 
	 	
	 	 	 

QuickLinks

CONSENT TO ASSIGNMENT AND ASSUMPTION AGREEMENT

RECITALS

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