Document:

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                                                                   Exhibit 10(b)
                       Constellation Energy Group, Inc.
                         1995 Long-Term Incentive Plan
                                    (Plan)

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

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

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

     "Board" means the Board of Directors of CEG.

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

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

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

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

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

     "Date of Retirement" means the date of Retirement or Early Retirement.
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     "Disability" means the determination that a Participant is "disabled" under
     the CEG disability plan in effect at that time.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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     the Participant at such times, and in such form and manner, as determined
     by the Committee.

     B. Service-Based Award.

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

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

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

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

     C. Performance-Based Award.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     F. Lapse of Option.  An Option will lapse upon the earlier of:  (i) 10
     years from the Date of Grant, or (ii) at the expiration of the Option
     Period set by the grant.  If the Participant ceases employment  within the
     Option Period and prior to the lapse of the Option, the Option will lapse
     as follows: (a) Termination - the Option will lapse on the effective date
     of the Termination; or (b) Retirement, Early Retirement, or Disability -
     the Option will lapse at the expiration of the Option Period set by the
     grant; provided, however, that the Committee may modify the above if it
     determines in its sole discretion that special circumstances

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

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

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

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

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

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

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

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

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

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

     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

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

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

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

     F. Lapse of a Stock Appreciation Right.  A Stock Appreciation Right will
     lapse upon the earlier of:  (i) 10 years from the Date of Grant; or (ii) at
     the expiration of the Exercise Period as set by the grant.  If the
     Participant ceases employment within the Exercise Period and prior to the
     lapse of the Stock Appreciation Right, the Stock Appreciation Right will
     lapse as follows: (a) Termination - the Stock Appreciation Right will lapse
     on the effective date of the Termination; or (b) Retirement, Early
     Retirement, or Disability - the Stock Appreciation Right will lapse at the
     expiration of the Exercise Period set by the grant; provided, however, that
     the Committee may modify the above if it determines in its sole discretion
     that special circumstances warrant such

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     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.

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

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

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

12.  Accelerated Award Payout/Exercise.
     ---------------------------------

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

     A change in control for purposes of this Section 12 means (i) the purchase
     or acquisition by any person, entity or group of persons, (within the
     meaning of section 13(d) or 14(d) of the 1934 Act, or any comparable
     successor provisions), of beneficial ownership (within the meaning of Rule
     13d-3 promulgated under the 1934 Act) of 20 percent or more of either the
     outstanding shares of common

                                       11
<PAGE>

     stock of CEG or the combined voting power of CEG's then outstanding shares
     of voting securities entitled to a vote generally, or (ii) the consummation
     of, following the approval by the stockholders of CEG of a reorganization,
     merger, or consolidation, in each case, with respect to which persons who
     were stockholders of CEG immediately prior to such reorganization, merger
     or consolidation do not, immediately thereafter, own more than 50 percent
     of the combined voting power entitled to vote generally in the election of
     directors of the reorganized, merged or consolidated entity's then
     outstanding securities, or (iii) a liquidation or dissolution of CEG or the
     sale of substantially all of its assets, or (iv) a change of more than one-
     half of the members of the Board within a 90-day period for reasons other
     than the death, disability, or retirement of such members.

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

13.  Amendment of Plan.
     -----------------

     The Committee may at any time and from time to time alter, amend, suspend
     or terminate the Plan in whole or in part, except (i) no such action may be
     taken without stockholder approval which materially increases the benefits
     accruing to Participants pursuant to the Plan, materially increases the
     number of securities

                                       12
<PAGE>

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

14.  Miscellaneous Provisions.
     ------------------------

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

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

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

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

     E. Government and Other Regulations.  The obligation of CEG to make payment
     of Awards in Stock or otherwise shall be subject to all applicable laws,
     rules, and regulations, and to such approvals by any government agencies as
     may be required. CEG shall be under no obligation to register under the
     Securities Act of 1933, as amended ("Act"), any of the shares of Stock
     issued, delivered or paid in settlement under the Plan.  If Stock awarded
     under the Plan

                                       13
<PAGE>

     may in certain circumstances be exempt from registration under the Act, CEG
     may restrict its transfer in such manner as it deems advisable to ensure
     such exempt status.

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

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

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

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

                                       14
<PAGE>

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

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

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

     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.

                                       15<PAGE>

                                                                   Exhibit 10(g)

                            GRANTOR TRUST AGREEMENT

                          Dated as of January 1, 2001

                                    between

                        CONSTELLATION ENERGY GROUP, INC.

                                      and

                                 CITIBANK, N.A.
<PAGE>

                            GRANTOR TRUST AGREEMENT

                                   CONTENTS

<TABLE>
<S>                                                                         <C>
Section 1.     Establishment of Trust.                                       6
      1.1      Trust is established with Trustee.                            6
      1.2      Trust is irrevocable.                                         7
      1.3      Trust is a grantor trust.                                     7
      1.4      Assets subject to claims of creditors.                        7
      1.5      Due date of Trust contributions.                              8
      1.6      Discretionary contributions.                                  8
      1.7      Eligibility for Trust benefits.                               8
      1.8      Definition of "Required Contribution."                        9
      1.9      Responsibility for Required Contribution calculation.        11
      1.10     Notification upon failure to made Required Contribution.     12

Section 2.     Payments to Plan Participants and Their Surviving Spouses.   12
      2.1      Constellation Energy required to provide Payment Schedule
               to Trustee.                                                  12
      2.2      Failure by Constellation Energy to provide Payment Schedule. 14
      2.3      Tax withholding.                                             15
      2.4      Determination entitlement to benefits.                       16
      2.5      Payment of benefits directly by Constellation Energy.        16
      2.6      Authorization for Trustee to defer payments.                 17
      2.7      Determination of insufficient assets.                        18
      2.8      Notification of insufficiency.                               19
      2.9      Restoration of discontinued or reduced payments.             19
      2.10     Determination of immediate taxation.                         20
      2.11     Reduction of future benefits following immediate taxation.   20

Section 3.     Trustee Responsibility Regarding Payments to Trust
               Beneficiary When Constellation Energy Is Insolvent.          21
      3.1      Payments cease when Constellation Energy is Insolvent.       21
      3.2      Assets subject to claims of creditors.                       21
      3.2(a)   Duty to inform Trustee of Constellation Energy's Insolvency. 21
      3.2(b)   Trustee's responsibility to cease payments.                  22
      3.2(c)   Trustee reliance on Insolvency evidence.                     22
      3.2(d)   Trustee holds assets for general creditors.                  23
      3.2(e)   Authority to resume payments.                                23
      3.3      Restoration of discontinued payments.                        24

Section 4.     Payments to Constellation Energy.                            24
      4.1      Return or diversion of Trust assets.                         24
      4.2      Distribution of excess Trust assets to Constellation Energy. 25
</TABLE>
<PAGE>

<TABLE>
<S>                                                                         <C>
      4.3      Distribution of excess Trust assets following a Change of
               Control.                                                     25

Section 5.     Investment Authority.                                        25
      5.1      No investment in Constellation Energy stock.                 25
      5.2      Acknowledgement of investment guidelines.                    26
      5.3      Constellation Energy may appoint investment advisor.         26
      5.4      Constellation Energy may transfer life insurance to Trust.   27

Section 6.     Disposition of Income.                                       28

Section 7.     Accounting by Trustee.                                       28
      7.1      Trustee provides monthly accounting to Constellation Energy. 28
      7.2      Deemed approval of accounting by Constellation Energy.       29
      7.3      Tax returns.                                                 30
      7.4      Right of Trustee to judicial settlement of accounts.         30

Section 8.     Responsibility of Trustee.                                   31
      8.1      Prudency standard for Trustee.                               31
      8.2      Indemnification of Trustee.                                  31
      8.3      Powers of Trustee.                                           32
      8.4      Additional powers of Trustee.                                33
      8.5      Trustee prohibited from carrying on business through Trust.  35

Section 9.     Compensation and Expenses of Trustee                         35
      9.1      Trustee's fees.                                              35
      9.2      Taxes on Trust income.                                       35

Section 10.    Resignation and Removal of Trustee.                          36
      10.1     Resignation of Trustee.                                      36
      10.2     Removal of Trustee.                                          36
      10.3     Removal of Trustee after Change of Control.                  36
      10.4     Resignation of Trustee after Change of Control.              36
      10.5     Transfer of assets after resignation or removal of Trustee.  36
      10.6     Appointment of successor Trustee.                            37

Section 11.    Appointment of Successor.                                    37
      11.1     Appointment of successor after removal or resignation
               of Trustee.                                                  37
      11.2     Appointment of successor Trustee following Change
               of Control.                                                  37
      11.3     Responsibility of successor Trustee.                         38
      11.4     Trustee provides written account after removal or
               resignation.                                                 38
</TABLE>
<PAGE>

<TABLE>
<S>                                                                         <C>
      12.1     Amendments to Trust.                                         38
      12.2     Termination date of Trust.                                   39
      12.3     Trust termination after participant approval.                39
      12.4     Amendment following Change of Control.                       39

Section 13.    Miscellaneous.                                               40
      13.1     Provisions prohibited by law.                                40
      13.2     Alienation clause.                                           40
      13.3     Trust under New York law.                                    40
      13.4     Definitions and plurals.                                     40
      13.5     Definition of Change of Control.                             41
      13.6     Certification of authority to act.                           41
      13.7     Indemnification of Trustee.                                  43
      13.8     Authority of Trust Agreement.                                44
      13.9     Addresses for Trustee and Constellation Energy.              44

Section 14.    Effective Date.                                              45
</TABLE>
<PAGE>

                            GRANTOR TRUST AGREEMENT
                          Dated as of January 1, 2001
                                    between
                       Constellation Energy Group, Inc.
                                      and
                                Citibank, N.A.

     THIS AGREEMENT dated as of January 1, 2001, by and between Constellation
Energy Group, Inc., a Maryland corporation, or its successor ("Constellation
Energy") and Citibank, N. A., a national banking association as trustee for the
trust created hereby ("Trustee").

                                WITNESSETH THAT:

          WHEREAS, Constellation Energy has adopted and amended the
Constellation Energy Group, Inc. Senior Executive Supplemental Plan and the
Constellation Energy Group, Inc. Supplemental Pension Plan(formerly the
Constellation Energy Group, Inc. Executive Benefits Plan) ("Plans"); and

     WHEREAS, Constellation Energy has incurred or expects to incur liability
under the terms of such Plans for nonqualified supplemental pension retirement
benefits with respect to the individuals participating in such Plans; and

     WHEREAS, Constellation Energy wishes to adopt the trust ("Trust") and to
contribute to the Trust assets that shall be held therein, subject to the claims
of Constellation Energy's creditors in the event of Constellation Energy's
Insolvency, as
<PAGE>

defined in Section 3.1 hereof, until paid to Plan participants and their
surviving spouses, as defined in Section 6 of the Plans, in such manner and at
such times as specified in the Plans; and

     WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plans
as unfunded plans maintained for the purpose of providing nonqualified
supplemental pension retirement benefits for a select group of management or
highly compensated employees, for purposes of Title I of the Employee Retirement
Income Security Act of 1974; and

     WHEREAS, it is the intention of Constellation Energy to make contributions
to the Trust to provide a source of funds to assist in meeting Constellation
Energy's liabilities under the Plans;

     NOW, THEREFORE, the parties do hereby establish the Trust and agree that
the Trust shall be comprised, held and disposed of as follows:

Section 1.  Establishment of Trust.

     1.1  Constellation Energy hereby adopts and establishes with Trustee the
Trust consisting of such sums of cash and other property, including collateral
assignments of interests in certain split dollar life insurance policies, (the
"principal"),
<PAGE>

that currently constitute the Trust and as from time to time shall be paid or
delivered to Trustee to be held, administered, and disposed of by Trustee as
provided in this Trust Agreement. The principal of the Trust and any earnings
thereon (the "Trust assets") shall be held by Trustee and shall be dealt with in
accordance with the provisions of this Trust Agreement until all payments
required by this Trust Agreement have been made.

     1.2  The Trust hereby established shall be irrevocable.

     1.3  The Trust is intended to be a grantor trust, of which Constellation
Energy is the grantor, within the meaning of subpart E, part I, subchapter J,
chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and
shall be construed accordingly.

     1.4  The Trust assets shall be held separate and apart from other funds of
Constellation Energy and shall be used exclusively for the uses and purposes of
Plan participants, their surviving spouses, and Constellation Energy's general
creditors as herein set forth.  Plan participants and their surviving spouses
shall have no preferred claim on, or any beneficial ownership interest in, any
Trust assets.  Any rights created under the Plans and this Trust Agreement shall
be mere unsecured contractual rights of Plan participants and their surviving
spouses against Constellation Energy.  Any Trust assets will be subject to the
claims of Constellation Energy's general creditors under federal
<PAGE>

and state law in the event of Insolvency, as defined in Section 3.1 hereof.

     1.5  By August 31, 1994, for the Plan year 1993, BGE was required to
irrevocably contribute cash or other property to the Trust in an amount equal to
50% of the Required Contribution, as defined in Section 1.9 hereof.  By April 30
of the year following each of the Plan years 1994-1999, BGE was required to
irrevocably contribute additional cash or other property to the Trust in an
amount equal to 100% of the Required Contribution. By May 31st of the year
following each of the Plan years 2000-2002, Constellation Energy shall be
required to irrevocably contribute cash or other property to the Trust in an
amount equal to 100% of the Required Contribution.

     1.6  Constellation Energy, in its sole discretion, may at any time, or from
time to time, make additional contributions of cash or other property to the
Trust to augment the Trust assets to be held, administered and disposed of by
Trustee as provided in this Trust Agreement.  Neither Trustee nor any Plan
participant or surviving spouse shall have any right to compel such additional
contributions.

     1.7  Plan participants or their surviving spouses shall be eligible to
receive benefits under this Trust Agreement only if the Plan participant was an
employee of Constellation Energy or a subsidiary in Constellation Energy's
controlled group
<PAGE>

("Employee") as well as a Plan participant as of the end of any Plan year for
which a contribution was required pursuant to Section 1.5 hereof, or as of the
end of any Plan year for which a contribution was made pursuant to Section 1.6,
except that for the Plan year 1993, Plan participants or their surviving spouses
shall be eligible to receive benefits under this Trust Agreement only if the
Plan participant was an Employee as well as a Plan participant as of the first
day of 1993.

     1.8  "Required Contribution," for purposes of the contribution requirements
as set forth in Section 1.5 hereof, means the sum of (1), (2), (3), (4) and (5)
below computed as indicated herein, less the fair market value of the Trust
                                    ----
assets at the end of the Plan year for which the contribution is required.

     (1) For Plan participants eligible to receive benefits under this Trust
Agreement pursuant to Section 1.7 hereof, who were also Employees as of the end
of the Plan year for which the contribution is required (except Employees
entitled to lump sum payments as indicated under Section 1.8(4) hereof) and who
were not eligible for early retirement under the Plans at the end of the Plan
year for which the contribution is required, an amount equal to the present
value of an annuity including the estimated present value of post retirement
supplemental survivor annuity benefits under the Plans commencing effective with
the month in which the participant becomes age 65 using (i) the net accrued
benefit as computed under the Plans (without regard to age and
<PAGE>

Credited Service eligibility requirements), expressed as a monthly amount, (ii)
an interest rate equal to the lesser of 8% or 95% of the Interest Rate under the
Plans, and (iii) the Mortality Table.

     (2) For Plan participants eligible to receive benefits under this Trust
Agreement pursuant to Section 1.7 hereof, who were also Employees as of the end
of the Plan year for which the contribution is required (except Constellation
Energy Employees entitled to lump sum payments as indicated under Section 1.8(4)
hereof) and who were eligible for early retirement under the Plans as of the end
of the Plan year for which the contribution is required, an amount equal to the
present value of an annuity including the present value of post retirement
supplemental survivor annuity benefits under the Plans commencing effective with
the first month following the Plan year for which the contribution is required
using (i) the net accrued benefit as computed under the Plans, expressed as a
monthly amount, (ii) an interest rate equal to the lesser of 8% or 95% of the
Interest Rate under the Plans, and (iii) the Mortality Table.

     (3) For Plan participants or their surviving spouses who are eligible to
receive benefits under this Trust Agreement pursuant to Section 1.7 hereof who
were also receiving a retirement benefit under the Plans in the form of a
monthly payment as of the end of the Plan year for which the contribution is
required, an amount equal to the present value of an annuity as computed under
(2)(i),(ii), and (iii) above except that the
<PAGE>

interest rate used to compute the present value under (ii) shall be 8%.

     (4) For all Plan participants eligible to receive benefits under this Trust
Agreement pursuant to Section 1.7 hereof who are also entitled under Section 5
of the Plans to receive a lump sum payment at the later of age 55 or upon
separation from service as of the end of the Plan year for which the
contribution is required, an amount equal to the present value of an annuity as
computed under (1) above.

     (5) In the event there has been a reduction or discontinuance of payments
pursuant to Sections 2.6, 2.7, or Section 3 hereof, an amount equal to the total
amount of any previously reduced or discontinued payments to Plan participants
and their surviving spouses, less the aggregate amount of any payments made to
Plan participants and their surviving spouses by Constellation Energy or BGE in
lieu of such payments, plus interest computed pursuant to Section 2.9 hereof on
the net aggregate amount.

     1.9  Constellation Energy shall have sole responsibility for providing to
Trustee the determination and calculation of the Required Contribution which
shall be determined and calculated by the actuary of the Pension Plan of
Constellation Energy Group, Inc.  Trustee shall have no responsibility with
respect to such determination and calculation including the responsibility to
verify (i) the accuracy of such calculation or (ii) compliance by Constellation
Energy with the terms of Section 1 hereof, except
<PAGE>

as provided in Section 1.11 hereof. Trustee shall have no duty, obligation or
responsibility to bring any action or proceeding to enforce the collection of
the Required Contribution from Constellation Energy.

     1.10 In the event Constellation Energy fails to make the Required
Contribution to the Trust by the dates specified in Section 1.5 hereof, Trustee
shall notify Constellation Energy of such failure by the 15th day of the month
following the month in which the contribution was required.  Such notification
shall stipulate that Constellation Energy may correct the failure to contribute
by the last day of the month following the month in which the contribution was
required (the "Required Contribution correction date").  Trustee shall notify
the Plan participants or their surviving spouses shown on the most recent
Payment Schedule, as defined in Section 2.1 hereof, provided by Constellation
Energy to Trustee, in the event Constellation Energy fails to make the Required
Contribution by the Required Contribution correction date.  Trustee shall make
such notification no later than 15 days following the Required Contribution
correction date.

Section 2.  Payments to Plan Participants and Their Surviving Spouses.

     2.1  By May 31 of the year following each Plan year until termination of
the Trust under the provisions of Section 12 hereof, and at other times as
reasonably requested by Trustee
<PAGE>

including such times as Trustee is notified in writing of the death of a Plan
participant or surviving spouse eligible to receive benefits under this Trust
Agreement, Constellation Energy shall deliver to Trustee a schedule,
substantially in the format of Exhibit A hereof, and any other necessary
documentation (such schedule and other documentation being referred to for this
purpose as the "Payment Schedule") that indicates the Plan benefit amounts
currently payable in respect of each Plan participant (and his or her surviving
spouse), the form in which such amount is to be paid (as provided for or
available under the Plans), the time of commencement for payment of such
amounts, whether the Plan participant is receiving such payment as a result of
an entitlement event (as defined in Section 5(c) of the Plans), the present
value of the future benefits payable to Plan participants and their surviving
spouses under the terms of this Trust Agreement computed as under Section 1.8
(1), (2), (3), and (4) hereof, and the Required Contribution computed pursuant
to Section 1.8 hereof.

     Plan participants or their surviving spouses shall be included on the
Payment Schedule and shall be eligible for benefits under this Trust Agreement
pursuant to Section 1.7 hereof only to the extent contributions to the Trust
were required under Section 1.5 hereof, or for which a contribution was made by
Constellation Energy to the Trust pursuant to Section 1.6 hereof.  A modified
Payment Schedule shall be delivered by Constellation Energy to Trustee upon the
occurrence of any event, such as early retirement of a Plan participant or an
entitlement
<PAGE>

event, as defined in Section 5(c) of the Plans, requiring a modification of the
Payment Schedule or a modified Payment Schedule.

     Constellation Energy shall cause the Payment Schedule which Constellation
Energy shall provide to Trustee to be prepared by the actuary for the Pension
Plan of Constellation Energy Group, Inc.

     Except as otherwise provided in Sections 2.5 through 2.11 hereof, Trustee
shall make payments to Plan participants and their surviving spouses in
accordance with such Payment Schedule, and shall act only upon such written
direction and shall have no duty to determine the rights of any person under
this Trust Agreement or under the Plans or to inquire into the right or power of
Constellation Energy to direct or not direct any such payment and shall be
authorized to rely on the Payment Schedule most recently provided to Trustee by
Constellation Energy.

     2.2  In the event Constellation Energy fails to deliver the Payment
Schedule to Trustee by the date specified in Section 2.1 hereof, Trustee shall
notify Constellation Energy of such failure by the 15th day of the month
following the month in which the Payment Schedule was required to be delivered
to Trustee.  Such notification shall stipulate that Constellation Energy may
correct the failure by the last day of the month following the month in which
the Payment Schedule was required to be delivered to Trustee (the "Payment
Schedule correction date").  Trustee shall notify the Plan participants or their
surviving spouses
<PAGE>

shown on the most recent Payment Schedule provided by Constellation Energy to
Trustee in the event Constellation Energy fails to deliver the Payment Schedule
to Trustee by the Payment Schedule correction date. Trustee shall make such
notification no later than 15 days following the Payment Schedule correction
date If Constellation Energy fails to deliver the Payment Schedule to Trustee by
the date specified in Section 2.1 hereof, Trustee shall make payments to Plan
participants and their surviving spouses, except as otherwise provided in
Sections 2.5 through 2.11 hereof, in accordance with the Payment Schedule most
recently provided to Trustee by Constellation Energy (or prior to May 31, 2000,
by BGE). Within a reasonable period of time after Constellation Energy delivers
the updated Payment Schedule to Trustee, Trustee shall pay all amounts due to
the Plan participants and their surviving spouses for the period during which
Trustee relied on the previous Payment Schedule to the extent such amounts have
not been paid by Trustee under the previous Payment Schedule or by Constellation
Energy pursuant to Sections 2.5 through 2.11 hereof. Such amounts paid by
Trustee shall include interest computed at an 8% per annum rate from the date
the payments were due under the Plans to the first day of the month in which
such amount was paid.

     2.3  Trustee shall make provision for the reporting and withholding of any
federal, state or local taxes that may be required to be withheld with respect
to the payment of benefits from the Trust and shall pay amounts withheld to the
appropriate
<PAGE>

taxing authorities or determine that such amounts have been reported, withheld
and paid by Constellation Energy, provided, however, that Constellation Energy
shall be required to provide Trustee with all information reasonably necessary
for Trustee to perform such withholding.

     2.4  The entitlement of Plan participants and their surviving spouses to
benefits under the Plans shall be determined by Constellation Energy or such
party as it shall designate under the Plans, and any claim for such benefits
shall be considered and reviewed under the procedures set out in the Plans.
Except as provided in Section 2.7 hereof, Trustee shall have no responsibility
to determine such entitlements or to verify the accuracy of their determination
or to review or supervise the review of claims for benefits.

     2.5  Constellation Energy may make payment of benefits directly to Plan
participants and their surviving spouses as they become due in accordance with
the most recent Payment Schedule provided by Constellation Energy to Trustee.
Constellation Energy shall notify Trustee of its decision to make payment of
benefits prior to the time amounts are payable to Plan participants and their
surviving spouses by indicating such intent on the Payment Schedule provided by
Constellation Energy to Trustee pursuant to Section 2.1 or by separate written
notification.  Constellation Energy shall provide Trustee with documentation
substantiating that such payments were made no
<PAGE>

later than the last day of the month in which such payments were due in
accordance with the most recent Payment Schedule provided by Constellation
Energy to Trustee. If such documentation is not provided, Trustee is authorized
to make such payments directly to Plan participants and their surviving spouses.
In addition, if the Trust assets are insufficient to make payments of benefits
in accordance with the most recent Payment Schedule provided by Constellation
Energy to Trustee, or are not available to make such payments because all or
part of the Trust assets are invested in collateral assignments of certain split
dollar life insurance policies, Constellation Energy shall pay the balance of
each such payment to the Plan participant or their surviving spouse as it falls
due. Trustee shall notify Constellation Energy of such insufficiency or
unavailability as specified in Sections 2.6 and 2.8 hereof.

     2.6  Where Trustee is required to make payments from the Trust according to
the most recent Payment Schedule and Constellation Energy does not make payments
in lieu of such payments as provided under Section 2.5 hereof, and Trustee is
unable to make the required payments because all or part of the Trust assets are
invested in the collateral assignment portion of certain split dollar life
insurance policies, Trustee is authorized to defer the required payments until
cash is available to make the required payments under the terms of this Trust
Agreement.
<PAGE>

     2.7  A determination of insufficiency of Trust assets shall be made with
respect to the end of each Plan year after receipt by the Trustee of the Payment
Schedule prepared with respect to such Plan year or the most recent Payment
Schedule in the event Constellation Energy fails to deliver the Payment Schedule
to Trustee by the date specified in Section 2.1 hereof.  The Trust assets will
be deemed to be insufficient to make payments of benefits in accordance with the
terms of such Payment Schedule if the market value of the Trust assets at the
end of the Plan year for which the determination is being made plus the Required
Contribution actually made with respect to such Plan year is less than the
present value of the future benefits as shown on the most recent Payment
Schedule.  In determining the market value of collateral assignments of
interests in split dollar life insurance policies held by the Trust, Trustee may
rely on the valuation provided by the insurance carrier who issued such
policies, or the broker administering such policies.

     In the event of such insufficiency and to the extent Constellation Energy
does not make payments directly to Plan participants or their surviving spouses
as provided under Section 2.5 hereof, any payment made from the Trust will be
reduced by multiplying such payment by a fraction, the numerator of which shall
be the value of all cash and other property held by the Trust and the
denominator of which shall be the aggregate present value of all benefits under
the Plans as shown on the most recent Payment Schedule.
<PAGE>

     2.8  If the Trust assets are insufficient to make payments of benefits in
accordance with the most recent Payment Schedule, Trustee shall notify
Constellation Energy of such insufficiency by May 15 of the year following the
Plan year with respect to which the insufficiency has been determined.  Such
notification shall stipulate that Constellation Energy may correct the
insufficiency by May 31  of the year following the Plan year with respect to
which the insufficiency has been determined (the "insufficiency correction
date").  Trustee shall notify the participants or their surviving spouses shown
on the most recent Payment Schedule provided by Constellation Energy to Trustee
in the event Constellation Energy fails to correct the insufficiency by the
insufficiency correction date.  Trustee shall make such notification no later
than 15 days following the insufficiency correction date and shall proceed to
reduce any payment made from the Trust in the manner specified in Section 2.7
hereof as soon as practicable.

     2.9  If Trustee reduces or discontinues the payment of benefits from the
Trust pursuant to Section 2.6 and 2.7 hereof and the Trust assets subsequently
become sufficient to pay all or part of the previously reduced or discontinued
benefits, the first payment following thereafter shall include the aggregate of
all payments due to Plan participants and their surviving spouses under the
terms of this Trust Agreement for the period of such reduction or discontinuance
to the extent Trust assets are available, less the aggregate amount of any
payments made to Plan
<PAGE>

participants and their surviving spouses by Constellation Energy in lieu of the
payments provided for hereunder during any such period of reduction or
discontinuance. In such event where Trust assets are sufficient to pay only a
part of the previously reduced or discontinued benefits, amounts relating to the
earliest payments reduced or discontinued shall be paid before all other amounts
due under this Trust Agreement. Such payments shall also include interest
computed at an 8% per annum rate on the net aggregate amount of all payment
reductions from the date the payments were due under the Plans to the first day
of the month in which such net aggregate amount was paid.

     2.10 In the event there is a final judicial determination or a final
determination by the Internal Revenue Service that the Plan participants and
their surviving spouses are subject to any tax with respect to any amounts held
under the terms of the Trust, then Trustee shall make payments from the Trust to
such Plan participants and their surviving spouses in such amounts as set forth
in such final determination for the purpose of paying federal taxes and interest
and any penalties thereon which such Plan participants and their surviving
spouses incur arising out of such determination.  Trustee's decision as to
whether a final determination has occurred shall be binding and conclusive on
all Plan participants and their surviving spouses.

     2.11 Any payment from the Trust, as provided in Section 2.10 hereof,
excluding interest and penalties paid with respect to
<PAGE>

federal taxes, shall reduce the benefits payable under the Plans of those
participants and their surviving spouses on whose behalf such payments are made.
It shall be the responsibility of Constellation Energy to determine or cause to
be determined by the actuary for the Pension Plan of Constellation Energy Group,
Inc. the amount of such reduction and to provide Trustee with an updated Payment
Schedule to reflect any such reduction made hereunder. Trustee shall have no
duty to verify any calculations provided by Constellation Energy under this
Section 2.11.

Section 3.  Trustee Responsibility Regarding Payments to Trust Beneficiary When
Constellation Energy Is Insolvent.

     3.1  Trustee shall cease payment of benefits to Plan participants and their
surviving spouses if Constellation Energy is Insolvent.  Constellation Energy
shall be considered Insolvent for purposes of this Trust Agreement if (i)
Constellation Energy makes a voluntary filing under the United States Bankruptcy
Code, or (ii) Constellation Energy is subject to a pending involuntary
proceeding as a debtor under the United States Bankruptcy Code.

     3.2  At all times during the continuance of this Trust, as provided in
Section 1.4 hereof, the Trust assets shall be subject to claims of general
creditors of Constellation Energy under federal and state law as set forth
below.

     3.2(a)    The Board of Directors of Constellation Energy and the Chief
Executive Officer of Constellation Energy shall have
<PAGE>

the duty to inform Trustee in writing of Constellation Energy's Insolvency. If a
person claiming to be a creditor of Constellation Energy alleges in writing to
Trustee that Constellation Energy has become Insolvent, Trustee shall determine
whether Constellation Energy is Insolvent and, pending such determination,
Trustee shall discontinue payment of benefits to Plan participants and their
surviving spouses.

     3.2(b)    Until receipt of a notice of Insolvency as set forth above,
Trustee shall be under no obligation and shall have no responsibility to suspend
payments hereunder and hold the Trust assets for the benefit of Constellation
Energy's general creditors.  Trustee shall not be deemed to have notice or
knowledge of facts or events in public records or received by departments or
divisions of Trustee bank other than the Investor Services division of Trustee
bank.  Trustee shall not have any liability to any party for making any payments
or withholding any payments pursuant to court order or request from trustee in
bankruptcy or receivership pursuant to notice of Insolvency as provided above.

     3.2(c)    Unless Trustee has actual knowledge of Constellation Energy's
Insolvency, or has received notice from Constellation Energy or a person
claiming to be a creditor alleging that Constellation Energy is Insolvent,
Trustee shall have no duty to inquire whether Constellation Energy is Insolvent.
Trustee may in all events rely on such evidence
<PAGE>

concerning Constellation Energy's solvency as may be furnished to Trustee and
that provides Trustee with a reasonable basis for making a determination
concerning Constellation Energy's solvency.

     3.2(d)    If at any time Trustee has determined that Constellation Energy
is Insolvent, Trustee shall discontinue payments to Plan participants and their
surviving spouses and shall hold the Trust assets for the benefit of
Constellation Energy's general creditors.  Nothing in this Trust Agreement shall
in any way diminish any rights of Plan participants and their surviving spouses
to pursue their rights as general creditors of Constellation Energy with respect
to benefits due under the Plans or otherwise.

     3.2(e)    Trustee shall resume the payment of benefits to Plan participants
and their surviving spouses in accordance with Section 2 of this Trust Agreement
only after Trustee has determined that Constellation Energy is not Insolvent (or
is no longer Insolvent).  Where Constellation Energy is subject to a pending
proceeding as a debtor under the United States Bankruptcy Code, Trustee shall
resume payment when such proceeding is dismissed.  In all other cases, Trustee
shall have no obligation to so resume payment until it shall have received an
unqualified opinion of a certified public accountant that Constellation Energy
is no longer Insolvent and an opinion of counsel that there is no legal
prohibition to resuming payment hereunder.
<PAGE>

     3.3  If Trustee discontinues the payment of benefits from the Trust
pursuant to Section 3.2 hereof and subsequently resumes such payments, the first
payment following such discontinuance shall include the aggregate amount of all
payments due to Plan participants and their surviving spouses under the terms of
this Trust Agreement for the period of such discontinuance, less the aggregate
amount of any payments made to Plan participants and their surviving spouses by
Constellation Energy or BGE in lieu of the payments provided for hereunder
during any such period of discontinuance plus interest computed as under Section
2.9 hereof on the net aggregate amount of all payments from the date the
payments were due under the Plans to the first day of the month in which such
net aggregate amount was paid.  Constellation Energy shall cause to be
determined and calculated by the actuary of the Pension Plan of Constellation
Energy Group, Inc. such net aggregate amount, which determination shall be
conclusive for Constellation Energy, Trustee, and all Plan participants and
their surviving spouses.

Section 4.  Payments to Constellation Energy.

     4.1  Except as provided in Sections 3.2 and 4.2 hereof, Constellation
Energy shall have no right or power to direct Trustee to return to Constellation
Energy or to divert to others any of the Trust assets before all payments of
benefits have been made to Plan participants and their surviving spouses in
accordance with the most recent Payment Schedule provided by
<PAGE>

Constellation Energy to Trustee and the terms of this Trust Agreement.

     4.2  In the event the market value of Trust assets as of the end of a Plan
year exceeds 120 percent of the present value of future benefits as shown on the
Payment Schedule for such Plan year, plus the amount of any payments as computed
under Section 1.9(5) hereof as of the end of such Plan year, then Constellation
Energy may, in its sole discretion, direct Trustee in writing to distribute such
excess Trust assets, in whole or in part, to Constellation Energy provided such
distribution does not contravene any provision of law.  Trustee shall have no
responsibility to determine the propriety of any such direction.

     4.3  Notwithstanding Section 4.2 hereof, Constellation Energy may not
direct Trustee to distribute such excess Trust assets for 2 years from the date
a Change of Control is deemed to occur under Section 13.5 hereof.

Section 5.  Investment Authority.

     5.1  In no event may Trustee invest in securities (including stock or
rights to acquire stock) or obligations issued by Constellation Energy or BGE,
other than a de minimis amount held in common investment vehicles in which
Trustee invests.  All rights associated with the Trust assets shall be exercised
by Trustee, and shall in no event be exercisable by or rest with
<PAGE>

Plan participants and their surviving spouses; provided that Constellation
Energy may at any time, upon delivery of written notice to Trustee, terminate
Trustee's authority over the Trust assets.

     5.2  Constellation Energy shall submit to Trustee investment guidelines
which shall be acknowledged by Trustee in writing.  The Trust assets shall be
held, invested and reinvested by Trustee upon written direction of Constellation
Energy and only in accordance with the investment guidelines most recently
acknowledged by Trustee.  Constellation Energy shall direct Trustee to invest or
reinvest from time to time the Trust assets (taking into account, among other
things, anticipated cash requirements for benefits under the Plans); provided,
however, that pending receipt of investment directions or guidelines from
Constellation Energy or pending the acknowledgement by Trustee of such
investment guidelines, the Trust assets may be held in interest bearing cash
accounts maintained by Trustee; and provided, however, that Trustee shall not be
liable for any failure to maximize the income earned on the Trust assets, or for
any loss suffered by the Trust, as a result of its investment or reinvestment of
the Trust assets in accordance with 1) directions received by Trustee from
Constellation Energy, or 2) the investment guidelines as acknowledged by
Trustee.

     5.3  Constellation Energy may, in its sole discretion, appoint an
investment manager or managers to manage (including
<PAGE>

the power to acquire and dispose of) any Trust assets. Trustee may rely on
direction of such investment manager upon receipt of written direction from
Constellation Energy and shall be entitled to rely on such direction until
revoked in writing by Constellation Energy. Trustee shall not be liable for the
acts or omissions of such investment manager or managers, unless Trustee
participates knowingly in, or knowingly undertakes to conceal, an act or
omission of such investment manager, knowing that such act or omission is a
breach of its or the investment manager's fiduciary duty. Trustee is under no
obligation to review, inquire into or examine the acts or omissions of any such
investment manager. Trustee shall have the duty to inform Constellation Energy
in the event Trustee becomes aware of any such acts or omissions. Trustee shall
not be under an obligation to invest or otherwise manage Trust assets which are
subject to the management of the investment manager.

     5.4  Constellation Energy reserves the right to transfer to the Trust in
satisfaction of the contribution requirements as set forth in Section 1.5
hereof, life insurance, annuity policies or contracts on or for the life of any
Plan participant, or to direct Trustee to purchase any such policies or
contracts on or for the life of any such Plan participant out of the Trust
assets.  Any such policy or contract shall be a Trust asset subject to the
claims of Constellation Energy's creditors in the event of Insolvency, as
defined in Section 3.1 hereof.  The proceeds, dividends, or distributions of
cash value paid with
<PAGE>

respect to any life insurance policy or contract held in the Trust shall be paid
to the Trust. Trustee shall be under no duty to question any direction of
Constellation Energy or to review the form of any policies or contracts or the
selection of the issuer thereof, or to make suggestions to Constellation Energy
with respect to the form of such policies or contracts or to the issuer thereof.

Section 6.  Disposition of Income.

     During the term of this Trust, all income received by the Trust, net of
expenses and taxes, shall be accumulated and reinvested, until otherwise
required for disbursement under the terms of this Trust Agreement.

Section 7.  Accounting by Trustee.

     7.1  Trustee shall keep accurate and detailed records of all investments,
receipts, disbursements, and all other transactions required to be made,
including such specific records as shall be agreed upon in writing between
Constellation Energy and Trustee.  Within 15 days following the close of each
calendar month and within 90 days after the removal or resignation of Trustee,
Trustee shall deliver to Constellation Energy a written account of its
administration of the Trust pursuant to terms of this Trust Agreement during
such year or during the period from the close of the last preceding year to the
date of such removal or resignation, setting forth all investments, receipts,
<PAGE>

disbursements and other transactions effected by it, including a description of
all securities and investments purchased and sold with the cost or net proceeds
of such purchases or sales (accrued interest paid or receivable being shown
separately), and showing all cash, and the cost and market value of all
securities and other property held in the Trust at the end of such year or as of
the date of such removal or resignation, as the case may be.

     In the event the insurance carrier who issued the insurance policies which
are held by or collaterally assigned to the Trust or the broker who administers
such policies does not timely provide Trustee with the market value of such
insurance policies or collateral assignments, Trustee shall provide to
Constellation Energy written accounts under this Section 7.1 containing all
valuations except such insurance valuations.  As soon as practicable following
the receipt of the market valuations from the carrier or the broker, Trustee
shall provide Constellation Energy with written accounts containing such
insurance valuations.

     7.2  Unless Constellation Energy shall have filed with Trustee written
exceptions to any such statement or account delivered by Trustee pursuant to
Section 7.1 hereof within 90 days after receipt of such statement or account,
Constellation Energy shall be deemed to have approved such statement or account,
and in such case or upon the written approval by Constellation Energy of any
such statement or account, Trustee shall be forever released and discharged with
respect to all
<PAGE>

matters and things embraced in such statement or account as though it had been
settled by a decree of a court of competent jurisdiction in an action or
proceeding to which Constellation Energy or persons having any beneficial
interest in the Trust were parties.

     7.3  Constellation Energy shall prepare and file such tax returns and other
reports as may be required for the Trust, with any taxing authority or any other
government authority and shall provide Trustee with copies of such returns and
reports as soon as practicable following the date of filing.  Trustee shall
provide to Constellation Energy such information, to the extent not already
provided through written accounts delivered to Constellation Energy pursuant to
Section 7.1, as is necessary for Constellation Energy to prepare and file such
tax returns and other reports.

     7.4  Nothing contained in this Trust Agreement or in the Plans shall
deprive Trustee of the right to have a judicial settlement of its accounts.  In
any proceeding for a judicial settlement of the accounts of Trustee or for
instruction in connection with the Trust assets, the only necessary party
thereto in addition to Trustee shall be Constellation Energy.  If Trustee so
elects, it may bring in as a party any other person or persons.  No person
interested in the Trust assets, other than Constellation Energy, shall have a
right to compel an accounting, judicial or otherwise, by Trustee and each such
person shall be
<PAGE>

bound by all accountings as herein provided, as if the account had been settled
by decree of a court of competent jurisdiction in an action or proceeding to
which such person was a party.

Section 8.  Responsibility of Trustee.

     8.1  Trustee shall act with the care, skill, prudence and diligence under
the circumstances then prevailing that a prudent person acting in like capacity
and familiar with such matters would use in the conduct of an enterprise of a
like character and with like aims, provided, however, that Trustee shall incur
no liability to any person for any action taken pursuant to a direction, request
or approval given by Constellation Energy (or investment manager designated
pursuant to terms hereof) which is contemplated by, and in conformity with, the
terms of this Trust Agreement and is given in writing by Constellation Energy.

     8.2  Trustee need not engage in any litigation, arbitration or
administrative proceeding related to this Trust Agreement unless first
indemnified to its reasonable satisfaction by Constellation Energy unless such
litigation, arbitration or administrative proceeding is prompted by an
allegation that Trustee has breached its duties undertaken pursuant to this
Trust Agreement.  If Trustee proceeds to engage in any such litigation,
arbitration or administrative proceeding and is not so indemnified, all
reasonable costs of Trustee including reasonable attorney's fees incurred
pursuant to such action shall be charged
<PAGE>

against and paid from the Trust assets, except when the claim relates to an
allegation that Trustee has breached its duties in which case Trustee shall be
responsible for such costs.

     Trustee may consult with any legal counsel, including, without limitation,
counsel to Constellation Energy or Trustee's own independent counsel, to assist
Trustee in the management and administration of the Trust or with respect to (a)
the meaning or construction of the terms of this Trust Agreement, (b) its
obligations or duties hereunder, (c) any act which Trustee should take or omit
hereunder, (d) any action or proceeding, or (e) any question of law.  In any
action taken or omitted by Trustee in good faith pursuant to the advice of such
counsel, Constellation Energy shall indemnify and hold Trustee harmless against
reasonable litigation expenses and attorney's fees occasioned by such action;
except when Trustee acted or omitted to act upon the advice of counsel other
than counsel to Constellation Energy.

     8.3  Trustee shall have, without exclusion, all powers conferred on
trustees by applicable law, unless expressly provided otherwise herein,
provided, however, that if an insurance policy is held as an asset of the Trust,
Trustee shall have no power to name a beneficiary of the policy other than the
Trust, to assign the policy (as distinct from conversion of the policy to a
different form) other than to a successor Trustee, or to loan to any person the
proceeds of any borrowing against such policy.  Trustee, as assignee under split
dollar life insurance
<PAGE>

policies, may exercise the right to obtain policy loans in accordance with the
terms of the collateral assignment document.

     8.4  In executing its duties, obligations and responsibilities as herein
provided, and in addition to those powers given by law, Trustee shall have the
power, in its sole discretion:

     (a)  to collect and receive any and all money and other property due to the
Trust and to give full discharge therefor;

     (b)  to settle, compromise or submit to arbitration any claims, debts or
damages due to or owing to or from the Trust; to commence or defend suits or
legal proceedings to protect any interest of the Trust; and to represent the
Trust in all suits or legal proceedings in any court or before any other body or
tribunal;

     (c)  if specifically instructed by Constellation Energy, to provide
benefits through the purchase of individual or group annuity or life insurance
contracts issued by insurance companies licensed to do business in the State of
New York;

     (d)  if specifically instructed by Constellation Energy, to act as agent
for Constellation Energy to perform multiple services for the Plans, its
participants and beneficiaries and to receive and withdraw from the Trust assets
reasonable compensation therefor;

     (e)  to engage accountants or other advisors as Trustee may deem necessary
to control and manage the Trust assets and to carry out the purposes of this
Trust Agreement;
<PAGE>

     (f)  subject to Section 5 hereof, to invest and reinvest the Trust assets
without distinction between principal and income in any form of property not
prohibited by law including, without limitation on the amount which may be
invested therein, any common or group trust fund operated by Trustee or in
demand deposits of Trustee;

     (g)  to hold cash uninvested in an amount considered necessary and
practical for proper administration of the Trust and/or to deposit the same with
any banking, savings or similar financial institution supervised by the United
States or any State, including Trustee's own banking department; and

     (h)  to perform all such acts and exercise all such rights and privileges
consistent with applicable law and the terms of this Trust Agreement, although
not specifically mentioned herein, as Trustee may deem desirable or necessary to
control and manage the Trust assets and to carry out the purposes of this Trust
Agreement.

     Except as provided under Section 13.2, if all or any part of the Trust
assets are at any time attached, garnished, or levied upon by any court order,
or in case the payment, assignment, transfer, conveyance or delivery of any such
property shall be stayed or enjoined by any court order, or in case any order,
judgment or decree shall be made or entered by a court affecting such property
or any part thereof, then and in any of such events Trustee is authorized, in
its sole discretion, to rely upon and comply with any such order, writ, judgment
or decree, and it shall not be liable to Constellation Energy (or any of its
<PAGE>

subsidiaries) or any participant by reason of such compliance even though such
order, writ, judgment or decree subsequently may be reversed, modified,
annulled, set aside or vacated.

     8.5  Notwithstanding any powers granted to Trustee pursuant to this Trust
Agreement or to applicable law, Trustee shall not have any power that could give
this Trust the objective of carrying on a business and dividing the gains
therefrom, within the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code.

Section 9.  Compensation and Expenses of Trustee.

     9.1  Constellation Energy shall pay all administrative and Trustee's fees
and expenses (including, without limitation, reasonable fees of agents and
counsel).  If not so paid, the fees and expenses shall be paid from the Trust;
provided, however, that Constellation Energy may approve in writing the
automatic payment of fees, compensation and expenses from the Trust.  Trustee
shall have a lien on the Trust in the amount of such fees, expenses and
compensation until the same have been paid.

     9.2  Constellation Energy shall pay any federal, state, local or other
taxes imposed or levied with respect to the Trust assets under the existing or
future laws.
<PAGE>

Section 10.  Resignation and Removal of Trustee.

     10.1      Trustee may resign at any time by written notice to Constellation
Energy, which shall be effective 30 days after receipt of such notice unless
Constellation Energy and Trustee agree otherwise in writing.

     10.2      Accept as provided in Section 10.3, Trustee may be removed by
Constellation Energy on 30 days written notice or upon shorter notice accepted
by Trustee.

     10.3      Upon a Change of Control, as defined in Section 13.5 hereof,
Trustee may not be removed by Constellation Energy for 2 years from the date a
Change of Control is deemed to occur under Section 13.5 hereof.

     10.4      If Trustee resigns within 2 years of a Change of Control,
Trustee shall select a successor Trustee in accordance with the provisions of
Section 11.2 hereof prior to the effective date of Trustee's resignation.

     10.5      Upon resignation or removal of Trustee and appointment of a
successor Trustee, all Trust assets shall subsequently be transferred to the
successor Trustee.  The transfer shall be completed at the later of (i) 90 days
after receipt of notice of resignation or removal of Trustee, or (ii)
appointment of successor Trustee, unless Constellation Energy extends the time
limit in writing.
<PAGE>

     10.6      If Trustee resigns or is removed, a successor shall be appointed,
in accordance with Section 11 hereof, by the effective date of resignation or
removal under Sections 10.1 or 10.2 hereof.  If no such appointment has been
made, Trustee may apply to a court of competent jurisdiction for appointment of
a successor or for instructions.  All expenses of Trustee in connection with the
proceeding shall be allowed as administrative expenses of the Trust.

Section 11.  Appointment of Successor.

     11.1      If Trustee resigns or is removed in accordance with Sections 10.1
or 10.2 hereof, Constellation Energy may appoint any third party, such as a bank
trust department or other party that may be granted corporate trustee powers
under state law, as a successor to replace Trustee upon resignation or removal.
The appointment shall be effective when accepted in writing by the successor
Trustee, who shall have all of the rights and powers of the former Trustee,
including ownership rights in the Trust assets.  The former Trustee shall
execute any instrument necessary or reasonably requested by Constellation Energy
or the successor Trustee (in which case Trustee shall have received a copy of
successor Trustee's acceptance) to evidence the transfer of the Trust assets.

     11.2      If Trustee resigns pursuant to the provisions of Section 10.4
hereof, Trustee may appoint any third party such as
<PAGE>

a bank trust department or other party that may be granted corporate trustee
powers under state law. The appointment of a successor Trustee shall be
effective when accepted in writing by the successor Trustee. The successor
Trustee shall have all the rights and powers of the former Trustee, including
ownership rights in Trust assets. The former Trustee shall execute any
instrument necessary or reasonably requested by the successor Trustee to
evidence the transfer of the Trust assets.

     11.3      The successor Trustee need not examine the records and acts of
any prior Trustee and may retain or dispose of existing Trust assets, subject to
Sections 7 and 8 hereof.  The successor Trustee shall not be responsible for and
Constellation Energy shall indemnify and defend the successor Trustee from any
claim or liability resulting from any action or inaction of any prior Trustee or
from any other past event, or any condition existing at the time it becomes
successor Trustee.

     11.4      In the event of such removal or resignation, Trustee shall duly
file with Constellation Energy a written account as provided in Section 7.1
hereof.

Section 12.  Amendment or Termination.

     12.1      Except as provided in Section 12.4, this Trust Agreement may be
amended by a written instrument executed by Trustee and Constellation Energy.
Notwithstanding the foregoing,
<PAGE>

no such amendment shall conflict with the terms of the Plans or shall make the
Trust revocable.

     12.2      The Trust shall not terminate until the earlier of the date on
which Plan participants and their surviving spouses are no longer entitled to
benefits pursuant to the terms of the Plan or have received payment of all
benefits to which they are entitled under this Trust Agreement.  Upon
termination of the Trust any assets remaining in the Trust shall be returned to
Constellation Energy.

     12.3      Upon written approval of all Plan participants and surviving
spouses entitled to payment of benefits pursuant to the terms of the Plans and
this Trust Agreement, Constellation Energy may terminate this Trust prior to the
time all benefit payments under the Plans and this Trust Agreement have been
made.  All Trust assets at termination shall be returned to Constellation
Energy.

     12.4      This Trust Agreement may not be amended by Constellation Energy
for 2 years following a Change of Control, unless such amendment is by written
agreement between Constellation Energy and Trustee and such amendment does not
adversely affect the rights of the Plan participants and their surviving spouses
entitled to payment of benefits pursuant to terms of the Plans on the date a
Change of Control is deemed to occur.
<PAGE>

Section 13.  Miscellaneous.

     13.1      Any provision of this Trust Agreement prohibited by law shall be
ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

     13.2      Benefits payable to Plan participants and their surviving spouses
under this Trust Agreement may not be anticipated, assigned (either at law or in
equity), alienated, pledged, encumbered or subjected to attachment, garnishment,
levies, execution or other legal or equitable process, and any attempt to so
alienate, sell, transfer, assign, pledge, attach, charge or otherwise encumber
any such amount, whether presently or thereafter payable, shall be void.  The
Trust shall be in no manner liable for or subject to the debts or liabilities of
any participant.

     13.3      This Trust Agreement shall be governed by and construed in
accordance with the laws of the State of New York and Trustee shall be liable to
account only in the courts of that state.

     13.4      All words beginning with an initial capital letter and not
otherwise defined herein shall have the meaning set forth in the Plans.  All
singular terms defined in this Trust will include the plural and vice versa.
                                                                 ----------
<PAGE>

     13.5      For purposes of this Trust Agreement, Change of Control shall
mean (a) the purchase or acquisition by any person, entity or group of persons
(within the meaning of section 13(d) or 14(d) of the Securities Exchange Act of
1934 (the "Exchange Act"), or any comparable successor provisions) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20 percent or more of either the outstanding shares of common stock of
Constellation Energy or the combined voting power of Constellation Energy's then
outstanding shares of voting securities entitled to a vote generally, or (b) the
consummation of, following the approval by the stockholders of Constellation
Energy of a reorganization, merger, or consolidation of Constellation Energy, in
each case, with respect to which persons who were stockholders of Constellation
Energy immediately prior to such reorganization, merger, or consolidation do
not, immediately thereafter, own more than 50 percent of the combined voting
power entitled to vote generally in the election of directors of the
reorganized, merged or consolidated entity's then outstanding securities, or (c)
a liquidation or dissolution of Constellation Energy or the sale of
substantially all of its assets, or (d) a change of more than one-half of the
members of the Board of Directors of Constellation Energy within a 90-day period
for reasons other than death, disability, or retirement of such members.

     13.6      Constellation Energy shall certify to Trustee the name or names
of any person or persons authorized to act for
<PAGE>

Constellation Energy under this Trust Agreement. Such certification shall be
signed by a Vice President of Constellation Energy. Until Constellation Energy
notifies Trustee, in a similarly signed notice or certification, that any such
person is no longer authorized to act for Constellation Energy, Trustee may
continue to rely upon the authority of such person.

     Trustee may rely upon any certificate, schedule, notice or direction of
Constellation Energy which Trustee in good faith believes to be genuine,
executed and delivered by a duly authorized officer or agent of Constellation
Energy.  Trustee shall have no duty to verify any calculations provided by
Constellation Energy in connection with such certificate, schedule, notice or
direction.

     Communications to Trustee shall be sent in writing to Trustee at the
address specified in Section 13.9 hereof or to such other address as the Trustee
may specify in writing.  No communication shall be binding upon the Trust or
Trustee until it is received by Trustee and unless it is in writing and signed
by an authorized person.

     Communications to Constellation Energy shall be sent in writing to
Constellation Energy's principal offices at the address specified in Section
13.9 hereof or to such other address as Constellation Energy may specify in
writing.  No communication shall be binding upon Constellation Energy until it
is received by Constellation Energy and unless it is in writing and signed by
Trustee.
<PAGE>

     13.7      Constellation Energy shall pay and shall protect, indemnify and
save harmless Trustee and its officers, employees and agents from and against
any and all losses, liabilities (including liabilities for penalties), actions,
suits, judgments, demands, damages, costs and expenses of any nature arising
from or relating to any action by or any failure to act by Trustee (and its
officers, employees and agents) in accordance with the terms of this Trust
Agreement, or the transactions contemplated by this Trust Agreement (including
any action by Trustee on the direction or instruction of Constellation Energy or
any failure to act on the part of Trustee in the absence of directions or
instructions by Constellation Energy), except to the extent that any such loss,
liability, action, suit, judgment, demand, damage or expense has been determined
by final judgement of a court of competent jurisdiction to be the result of the
negligence or willful misconduct of Trustee, its officers, employees or agents.
To the extent that Constellation Energy has not fulfilled its obligations under
the foregoing provisions of this Section 13.7, Trustee shall be reimbursed out
of the Trust assets or may set up reasonable reserves for the payment of such
obligations.  To the maximum extent permitted by applicable law, no personal
liability whatsoever shall attach to or be incurred by any employee, officer or
director of Constellation Energy, as such, under or by reason of the terms or
conditions contained in or implied from this Trust Agreement.

     Trustee assumes no obligation or responsibility with respect to any action
required by this Trust Agreement on the part of
<PAGE>

Constellation Energy and shall have those responsibilities only as expressly set
forth herein.

     13.8      This Trust Agreement sets forth the entire understanding of the
parties with respect to the subject matter hereof and supersedes any and all
prior agreements, arrangements and understandings relating thereto.

     13.9 Any notice, report, demand, waiver or communication required or
permitted hereunder shall be in writing and shall be given personally or by
prepaid registered or certified mail, return receipt requested, addressed as
follows:

                    If to Constellation Energy Group, Inc.:

                    Constellation Investments, Inc.
                    250 West Pratt Street
                    Baltimore, Maryland 21201
                    Attention:  Steven D. Kesler

                    If to Trustee:

                    Citibank, N. A.
                    Client Services Division
                    111 Wall Street, 24th Floor
                    New York, NY  10005
                    Attention:  Ed Flannery

                    If to a participant or to a
                    participant's surviving spouse:

                    To the address shown on the most
                    recent Payment Schedule provided by
                    Constellation Energy to Trustee.
<PAGE>

Section 14.  Effective Date.

     The date of this Trust Agreement shall be July 31, 1994.

     IN WITNESS WHEREOF, and intending to be legally bound hereby, Constellation
Energy Group, Inc. and Trustee sign and seal this Trust Agreement the day and
year first above written.

WITNESS:                      CITIBANK, N. A.:

___________________________   By: __________________________(Seal)
                                  Name:  Sam Borowski
                                  Title: Managing Director

WITNESS:                      CONSTELLATION ENERGY GROUP, INC.:

___________________________   By: __________________________(Seal)
                                  Name:  Janet E. McHugh
                                  Title: Vice President
                                         Human Resources

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