Document:

Exhibit
10(a)

 

Executive
Annual Incentive Plan

Of

Constellation Energy Group, Inc.

 

 

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

 

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

 

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

 

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designated, participation shall continue until such designation is withdrawn at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

 

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

 

 

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

 

4.                                      Performance Goals

 

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

 

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

 

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

 

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

 

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

 

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

 

5.                                      Award Opportunity.  The Committee on Management shall
establish for each plan year the Award Opportunity (minimum, target,

 

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and maximum, as appropriate) applicable to
participants in the Plan.  The Award
Opportunity may be allocated among the various Performance Targets and
Individual Performance and may vary among classes of participants.

 

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

 

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

 

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

 

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

 

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

 

9.                                      Designation of Beneficiary.  A participant shall have the right to
designate a beneficiary or beneficiaries who are to receive in a lump sum any
undistributed incentive compensation award to the extent a participant has
chosen not to defer all or a portion of his incentive award pursuant to Section
8 hereof, should the participant die during the plan year and be entitled to an
incentive award for that plan year. 
Such designation shall apply only to the portion of the undistributed
incentive award not subject to a deferral election.  Any designation, change or rescission of the designation shall be
made in writing by completing and furnishing to the Vice President — Human
Resources of the Company a notice on an appropriate form designated

 

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by the Vice President — Human Resources  of
the Company.  The last designation of
beneficiary received by the Vice President — Human Resources of the Company
shall be controlling over any testamentary or purported disposition by the
participant, provided that no designation, rescission or change thereof shall
be effective unless received prior to death of the participant.  Distribution of any incentive awards
previously deferred pursuant to Section 8 of the Plan shall be paid to the beneficiary
or beneficiaries designated under the Constellation Energy Group Nonqualified
Deferred Compensation Plan.

 

10.                               Change in Control.  Notwithstanding any other provisions of
this Plan to the contrary, if a participant separates from service with
Constellation Energy Group or a subsidiary of Constellation Energy Group
(except due to a participant’s transfer of employment to or from a subsidiary
of Constellation Energy Group), within 2 years following a change in control,
such participant is eligible for an award for the performance year during which
the separation from service occurs.  The
award is calculated assuming maximum performance achievement and based on the
participant’s position at the time of termination and is pro-rated for the
period of active employment during the performance year.  The Committee on Management, in its
discretion, may grant a total, rather than pro-rated award.  Payment of the award will be made in a lump
cash sum within 60 days after the participant’s separation from service.  Payment may not be deferred.

 

                                                A change in control for purposes of this
Section 10 shall mean (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
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 Group or the
combined voting power of Constellation Energy Group’s then outstanding shares
of voting securities entitled to a vote generally, or (ii) the consummation of,
following the approval by the stockholders of Constellation Energy Group of a
reorganization, merger, or consolidation of Constellation Energy Group, in each
case, with respect to which persons who were stockholders of Constellation
Energy Group 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 Constellation Energy Group or the sale of
substantially all of its assets, or (iv) a change of more than one-half of the
members of the Board of

 

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Directors of Constellation Energy Group within a
90-day period for reasons other than the death, disability, or retirement of
such members.

 

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

 

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

 

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

 

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

 

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

 

The Committee on Management intends to continue the
Plan indefinitely but reserves the right to amend the Plan from time to time

 

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or to permanently discontinue it provided none of
these, nor any suspension, may deprive the participants of any payment of
amounts which were previously awarded at the time thereof.

 

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

 

6Exhibit 10(c)

 

CONSTELLATION ENERGY GROUP, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN (PLAN)

 

1.                                       Objective.  The
objective of this Plan is to enable certain management employees of
Constellation Energy Group and its subsidiaries to defer compensation.

 

2.                                       Definitions. 
All words beginning with an initial capital letter and not otherwise
defined herein shall have the meaning set forth in the Employee Savings
Plan.  All singular terms defined in
this Plan will include the plural and vice versa.  As used herein, the following terms will
have the meaning specified below:

 

“Basic Compensation”
means such compensation as set forth in the Employee Savings Plan, without
regard to the Internal Revenue Code Section 401(a)(17) annual compensation
limitation.

 

“Committee” means the
Committee on Management of the Board of Directors of Constellation Energy
Group.

 

“Constellation Energy
Group” means Constellation Energy Group, Inc., a Maryland corporation, or its
successor.

 

“Death Benefit
Contributions” means the death benefit contributions described in Section 9.

 

“Deferred Compensation”
means any compensation payable by Constellation Energy Group or its
subsidiaries to a participant that is deferred under the provisions of this
Plan.

 

“Employee Savings Plan”
means the Constellation Energy Group, Inc. Employee Savings Plan as may be
amended from time to time, or any successor plan.

 

“Executive Annual
Incentive Plan” means the Executive Annual Incentive Plan of Constellation
Energy Group, Inc. as may be amended from time to time, or any successor plan,
and/or any other incentive plan designated in writing by the Plan
Administrator.

 

 

“Incentive Award” means
an award granted under the Executive Annual Incentive Plan or the Senior
Management Annual Incentive Plan.

 

“Matching Contributions”
means the matching contributions described in Section 8.

 

“Plan Accounts” means
amounts of a participant’s Deferred Compensation, Matching Contributions, and
earnings under the Plan.

 

“Plan Administrator”
means, as set forth in Section 3, the Vice President — Human Resources of
Constellation Energy Group, (or the Vice-President succeeding to that
function).

 

“Rabbi Trust” means the
trust established by Constellation Energy Group pursuant to Grantor Trust
Agreement dated as of April 30, 1999 between Constellation Energy Group and T.
Rowe Price Trust Company.

 

“Rollover Contributions”
means the rollover contributions described in Section 10.

 

“Senior Management Annual
Incentive Plan” means the Senior Management Annual Incentive Plan of Constellation
Energy Group, Inc. as may be amended from time to time, or any successor plan,
and/or any other incentive plan designated in writing by the Plan
Administrator.

 

“Termination From
Employment with Constellation Energy Group” means a participant’s separation
from service with Constellation Energy Group or a subsidiary of Constellation
Energy Group; however, a participant’s transfer of employment to or from a
subsidiary of Constellation Energy Group shall not constitute a Termination
From Employment with Constellation Energy Group.

 

3.                                       Plan Administration. 
The Vice President — Human Resources of Constellation Energy Group, (or
the Vice-President succeeding to that function) is the Plan Administrator and
has the sole authority (except as specified otherwise herein) to interpret the
Plan, and, in general, to make all other determinations advisable for the
administration of the Plan to achieve its stated objective.

 

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Appeals of written
decisions by the Plan Administrator may be made to the Committee.  Decisions by the Committee shall be final
and not subject to further appeal.  The
Plan Administrator shall have the power to delegate all or any part of his/her
duties to one or more designees, and to withdraw such authority, by written
designation.

 

4.                                       Eligibility and Participation. 
Each officer or key employee of Constellation Energy Group or its
subsidiaries, or employees of Constellation Energy Group or its subsidiaries
who hold senior management level positions, may be designated in writing by the
Plan Administrator as eligible to participate with respect to one or more of
the provisions of Sections 5, 6, 7, 8, 9 and 10, which designation will also
indicate whether all or part of such participant’s Plan Accounts will be held
in the Rabbi Trust.  Once designated,
eligibility shall continue until such designation is withdrawn at the
discretion and by written order of the Plan Administrator.  Notwithstanding subsequent withdrawal of
eligibility of an employee, such an employee with Plan Accounts will remain a
participant of the Plan, except that no further deferrals of compensation under
the Plan are permitted.  While
designated as eligible with respect to one or more of the provisions of
Sections 5, 6, 7, 8, 9 or 10, an employee may participate in the Plan to the
extent set forth in such designation.

 

5.                                       Basic Compensation Deferral Election. 
Unless otherwise designated in writing by the Plan Administrator, a
participant may defer Basic Compensation as set forth in this Section 5.  A participant may elect to defer up to 15%
of monthly Basic Compensation.  A
participant may also elect to defer up to 100% of Basic Compensation, if any,
in excess of the dollar limitation set forth in Internal Revenue Code Section
401(a)(17) (as adjusted by the Commissioner for increases in the cost of living
in accordance with Internal Revenue Code Section 401(a)(17)(B)).  Any deferrals shall be in 1% multiples, or
in such other manner established by the Plan Administrator from time to time,
subject to adjustment as necessary to provide for any required withholding
taxes.  Such election shall 

 

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be made by notification
in the form and manner established by the Plan Administrator from time to time,
and shall be effective as of the beginning of the month following the month
during which the election is received by the Plan Administrator.  Such election may be revoked by notification
in the form and manner established by the Plan Administrator from time to time,
and shall be effective as of the beginning of the month following the month
during which the revocation is received by the Plan Administrator.

 

5(a).                         Special
Provisions for Employees of Nine Mile Point Nuclear Station, LLC.  A participant may elect to defer up to 25%
of monthly base salary (as defined from time to time by the Plan
Administrator).  Any deferrals shall be
in 5% multiples, subject to adjustment as necessary to provide for any required
withholding taxes.  Such election shall
be made in December by notification in the form and manner established by the
Plan Administrator from time to time, and shall be effective on January 1
following the date of the notification. 
For a new participant who becomes eligible during the calendar year, an
election must be made within 30 days of becoming eligible, and the election
shall be effective as of the beginning of the month following the month during
which the election is received by the Plan Administrator.  Any election may be revoked by notification
in the form and manner established by the Plan Administrator from time to time,
and shall be effective as of January 1 of the year following receipt of the
notification by the Plan Administrator.

 

6.                                       Incentive Award Deferral Election. 
A participant may elect to defer Incentive Award compensation in 1%
multiples (10% multiples for employees of Nine Mile Point Nuclear Station,
LLC), or in such other manner established by the Plan Administrator from time
to time, subject to adjustment as necessary to provide for any required
withholding taxes.  Such election shall
be made annually by notification in the form and manner established by the Plan
Administrator from time to time.  Such
annual election shall be made prior to the Incentive Award performance year,
and shall be effective as of the first day of such performance year.  If a participant initially becomes eligible 

 

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to participate in the
Plan during a performance year, the election for such performance year must be
made prior to the date the participant initially becomes eligible to
participate in the Plan, and shall be effective on such date.  Elections under this Section are irrevocable
once effective.

 

7.                                       Other Deferral Election. 
A participant may elect to defer, in 1% multiples, other forms of
compensation that are designated in writing by the Plan Administrator.  Such election must be made prior to the date
the compensation is earned by the participant, by notification in the form and
manner established by the Plan Administrator from time to time.  Such election is effective as of the date
the compensation is earned.  Elections
under this Section are irrevocable once effective.

 

8.                                       Matching Contributions. Matching Contributions are made by
Constellation Energy Group to the Plan in an amount equal to (i) up to the rate
of Company Matching Contributions under the Employee Savings Plan multiplied by
a participant’s monthly Basic Compensation deferral, less (ii) the amount of
Company Matching Contributions made to the Employee Savings Plan on behalf of
such participant with respect to such month. 
Employees of Nine Mile Point Nuclear Station, LLC are not eligible to
receive Matching Contributions.

 

9.                                       Death Benefit Contribution. 
Constellation Energy Group made contributions to separate Plan Account
balances during 2001 on behalf of certain participants in connection with
modifications made to the Company’s management death benefit program.  With respect to a participant, such
contribution and related earnings are forfeited and not subject to distribution
upon the participant’s Termination From Employment with Constellation Energy
Group prior to meeting the early retirement eligibility provisions under the
Pension Plan of Constellation Energy Group, Inc.; provided, however, no amount
will be forfeited in the event of a participant’s death prior to Termination
From Employment.

 

10.                                 Rollover Contributions. 
A participant may rollover the participant’s benefit under the
Constellation Energy Group, Inc. Supplemental Pension Plan, Senior Executive
Supplemental Plan,

 

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Senior Management Pension
Plan, Senior Management Supplemental Pension Plan, or the Benefit Restoration
Plan (collectively, SERPs), upon the participant’s retirement under a SERP, but
for the Benefit Restoration Plan only if the present value of such
participant’s benefit under that plan is at least $50,000.

 

11.                                 Plan Accounts. 
Deferred Compensation, Matching Contributions, Death Benefit
Contributions and Rollover Contributions shall be (i) credited to participant
Plan Accounts as soon as practicable; (ii) to the extent designated by the Plan
Administrator, held for the benefit of the participant in the Rabbi Trust; and
(iii) credited with earnings at the T. Rowe Price Prime Reserve Fund rate.  However, a participant may elect (by
notification in the form and manner established by the Plan Administrator from
time to time) to have all or a portion of his/her Plan Accounts credited with earnings
at a rate equal to the T. Rowe Price Prime Reserve Fund rate, the T. Rowe Price
New Income Fund rate, or one or more of the rates earned by investment options
available under the Employee Savings Plan, except the Common Stock Fund and the
Interest Income Fund.  Earnings are
credited to Plan Accounts commencing on the day the Deferred Compensation,
Matching Contributions, Death Benefit Contributions and Rollover Contributions
are credited to the Plan Accounts.  Plan
Accounts will be valued daily in the same manner as for Investment Funds under
the Employee Savings Plan.

 

A participant may elect
to change the investment option of future Deferred Compensation and Matching
Contributions, which election shall be effective when the next Deferred
Compensation contributions and/or Matching Contributions are credited to the
participant’s Plan Accounts.  A
participant may elect to reallocate to other investment options current Plan
Accounts, which election shall be effective at the same time as, and valued in
accordance with, the interfund transfer provisions under the Employee Savings
Plan.  Such elections shall be made by
notification in the form and manner established by the Plan Administrator from
time to time.

 

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12.                                 Distributions of Plan Accounts. 
Distributions of Plan Accounts shall be made in cash only, and to the
extent designated by the Plan Administrator, from the Rabbi Trust.

 

Prior to the end of the
thirtieth (30th) calendar 
day after the date of a participant’s Termination From Employment with
Constellation Energy Group, such participant must elect the timing of
distributions of his/her Plan Accounts. 
The participant may elect (by notification in the form and manner
established by the Plan Administrator from time to time) to begin distributions
(i) in the calendar year following the calendar year of the participant’s
Termination From Employment with Constellation Energy Group, (ii) in the year
following the year in which a participant attains age 70-1/2, if later, or
(iii) any calendar year between (i) and (ii). 
A participant may elect (by notification in the form and manner
established by the Plan Administrator from time to time) to receive
distributions in a single payment or in annual installments during a period not
to exceed twenty-five years.  Such
annual installments shall be made on a ratable basis, except the participant
may elect a different initial installment payment (expressed as a percentage of
the participant’s Plan Account balance). 
The single payment or the first installment payment, whichever is
applicable, shall be made within the first sixty (60) days of the calendar year
elected for distribution.  Subsequent
installments, if any, shall be made within the first sixty (60) days of each
succeeding calendar year until the participant’s Plan Accounts have been
paid.  In the event no election is made
prior to the end of the thirtieth (30th) calendar day after the date
of a participant’s Termination From Employment with Constellation Energy Group,
a participant shall receive a distribution in a single payment within the first
sixty (60) days of the following year. 
Earnings are credited to Plan Accounts through the date of distribution,
and amounts held for installment payments shall continue to be credited with
earnings, as specified in Section 11.

 

A participant’s
distribution election is irrevocable on the thirtieth (30th)
calendar day after the date of a participant’s Termination From

 

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Employment with
Constellation Energy Group; provided, however a participant may subsequently
make a one-time post-employment termination distribution election to receive a
lump-sum payout of the participant’s remaining balance, provided such election
is made no later than December 31 of the year that is at least one full
calendar year prior to the distribution date, and is in the form and manner
established by the Plan Administrator.

 

If a participant dies,
the entire unpaid balance of his/her Plan Accounts shall be paid to the
beneficiary(ies) designated by the participant by notification in the form and
manner established by the Plan Administrator from time to time or, if no
designation was made, to the estate of the participant.  Payment shall be made within sixty (60) days
after notice of death is received by the Plan Administrator, unless prior to
the end of the thirtieth (30th) calendar day after the date of the
participant’s Termination From Employment with Constellation Energy Group, the
participant elected (in the form and manner established by the Plan
Administrator from time to time) a delayed and/or installment distribution
option for such beneficiary(ies); provided, however that (i) such a
distribution option election shall be effective only if the value of the
participant’s Plan Accounts is more than $50,000 on the date of the
participant’s death; and (ii) the final distribution must be made to such
beneficiary(ies) no later than the earlier of (a) 15 years after the
participant’s death or (b) 25 years minus the years for which installments were
paid to the participant before the participant’s death.  After the end of the thirtieth (30th)
calendar day after the date of a participant’s Termination From Employment with
Constellation Energy Group, a distribution option election for a particular
beneficiary is irrevocable; provided, however, that the participant may make a
distribution option election for a new beneficiary who is initially designated
after the participant’s Termination From Employment with Constellation Energy
Group, and such election is irrevocable with respect to the new beneficiary.

 

In the event a
participant’s deferred Incentive Award is credited to the Plan after the
participant’s death, such Incentive Award shall be

 

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either paid to his/her
beneficiary(ies), or if a delayed and/or installment distribution option was
elected for such beneficiary(ies), paid as part of the aggregate Plan Accounts
in accordance with such election.

 

Upon the death of a
participant’s beneficiary for whom a delayed and/or installment distribution
option was elected, the entire unpaid balance of the participant’s Plan
Accounts shall be paid to the beneficiary(ies) designated by the participant’s
beneficiary by notification in the form and manner established by the Plan
Administrator from time to time or, if no designation was made, to the estate
of the participant’s beneficiary. 
Payment shall be made within sixty (60) days after notice of death is
received by the Plan Administrator.

 

Notwithstanding anything
herein contained to the contrary, the Committee shall have the right in its
sole discretion to vary the manner and timing of distributions, and may make
such distributions in a single payment or over a shorter or longer period of
time than that elected by a participant.

 

13.                                 Beneficiaries. 
A participant shall have the right to designate a beneficiary(ies) who
is to receive a distribution(s) pursuant to Section 12 in the event of the
death of the participant.  A
participant’s beneficiary(ies) for whom a delayed and/or installment
distribution option was elected shall have the right to designate a
beneficiary(ies) who is to receive a distribution pursuant to Section 12 in the
event of the death of the participant’s beneficiary(ies).

 

Any designation, change
or recision of the designation of beneficiary shall be made by notification in
the form and manner established by the Plan Administrator from time to
time.  The last designation of
beneficiary received by the Plan Administrator shall be controlling over any
testamentary or purported disposition by the participant (or, if applicable,
the participant’s beneficiary(ies)), provided that no designation, recision or
change thereof shall be effective unless received by the Plan Administrator
prior to the death of the participant (or, if applicable, the participant’s
beneficiary(ies)).

 

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If the designated
beneficiary is the estate, or the executor or administrator of the estate, of
the participant (or, if applicable, the participant’s beneficiary(ies)), a
distribution pursuant to Section 12 may be made to the person(s) or entity
(including a trust) entitled thereto under the will of the participant (or, if
applicable, the participant’s beneficiary(ies)), or, in the case of intestacy,
under the laws relating to intestacy.

 

A participant’s
beneficiary(ies) for whom a delayed and/or installment distribution option was
elected shall have the right, after the death of the participant, to make
investment elections or changes in investment elections with respect to a
participant’s Plan Accounts to the same extent available to the participant
pursuant to Section 11.  A
beneficiary(ies) of the participant’s beneficiary(ies) shall have no right to
make any investment election or change in investment election pursuant to
Section 11 with respect to a participant’s Plan Accounts.

 

14.                                 Valuation of Interest. 
The Plan Administrator shall cause the value of a participant’s Plan Accounts,
at least once per year as of December 31, to be determined separately and be
reported to Constellation Energy Group and the participant (or, if applicable,
the participant’s beneficiary(ies)). 
Valuation of a participant’s Plan Accounts shall be determined in
accordance with the procedures contained in the Employee Savings Plan.

 

15.                                 Withdrawals. 
No withdrawals of Plan Accounts may be made, except a participant may at
any time request a hardship withdrawal from his/her Plan Accounts if he/she has
incurred an unforeseeable financial emergency. 
An unforeseeable financial emergency is defined as severe financial
hardship to the participant resulting from a sudden and unexpected illness or
accident of the participant (or of his/her dependents), loss of the
participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the participant.  The need to send a
child to college or the desire to purchase a

 

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home are not considered
to be unforeseeable emergencies.  The
circumstance that will constitute an unforeseeable emergency will depend upon
the facts of each case.

 

A hardship withdrawal
will be permitted by the Plan Administrator only as necessary to satisfy an
immediate and heavy financial need.  A
hardship withdrawal may be permitted only to the extent reasonably necessary to
satisfy the financial need.  Payment may
not be made to the extent that such hardship is or may be relieved (i) through
reimbursement or compensation by insurance or otherwise, (ii) by liquidation of
the participant’s assets, to the extent the liquidation of such assets would
not itself cause severe financial hardship, or (iii) by cessation of deferrals
under the Plan.

 

The request for hardship
withdrawal shall be made by notification in the form and manner established by
the Plan Administrator from time to time. 
Such hardship withdrawal will be permitted only with approval of the
Plan Administrator.  The participant
will receive a lump sum payment after the Plan Administrator has had reasonable
time to consider and then approve the request.

 

16.                                 Miscellaneous. 
A participant’s Plan Accounts shall not be subject to alienation or
assignment by any participant or beneficiary nor shall any of them be subject
to attachment or garnishment or other legal process except (i) to the extent
specially mandated and directed by applicable State or Federal statute; and
(ii) as requested by the participant or beneficiary to satisfy income tax
withholding or liability.

 

This Plan may be amended
from time to time or suspended or terminated at any time at the written
direction of the Committee.  No
amendment to or termination of this Plan shall impair the rights of any
participant or beneficiary with respect to amounts in his/her Plan Accounts
before the date of such amendment or termination.

 

Participation in this
Plan shall not constitute a contract of employment between Constellation Energy
Group and any person and shall not be

 

11

 

deemed to be
consideration for, or a condition of, continued employment of any person.

 

The Plan, notwithstanding
the creation of the Rabbi Trust, is intended to be unfunded for purposes of
Title I of the Employee Retirement Income Security Act of 1974.  Constellation Energy Group shall make
contributions to the Rabbi Trust in accordance with the terms of the Rabbi
Trust.  Any funds which may be invested
and any assets which may be held to provide benefits under this Plan shall
continue for all purposes to be a part of the general funds and assets of
Constellation Energy Group and no person other than Constellation Energy Group
shall by virtue of the provisions of this Plan have any interest in such funds
and assets.  To the extent that any
person acquires a right to receive payments from Constellation Energy Group
under this Plan, such rights shall be no greater than the right of any
unsecured general creditor of Constellation Energy Group.

 

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

 

This Plan shall be
governed in all respects by Maryland law.

 

12

 

Amendment to the

Constellation
Energy Group, Inc.

Nonqualified
Deferred Compensation Plan (Plan)

 

Notwithstanding anything
in Section 12 of the Plan to the contrary, for Rollover Contributions effective
December 31, 2001 in connection with employment terminations related to
management restructuring announced late in 2001, all or part of such Rollover
Contributions may be distributed to a participant in 2002 if the participant
provides notification by December 31, 2001 in the form and manner established
by the Plan Administrator.

 

13

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