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TABLE OF CONTENTS

	Page
ARTICLE I The Merger
SECTION 1.01. The Merger	2
SECTION 1.02. Closing	2
SECTION 1.03. Effective Time of the Merger	2
SECTION 1.04. Effects of the Merger	2
SECTION 1.05. Articles of Incorporation and By-laws	3
SECTION 1.06. Board of Directors; Officers	3
SECTION 1.07. Post-Merger Operations	3
ARTICLE II Effect of the Merger on the Capital Stock of the Constituent Corporations; Exchange of Certificates
SECTION 2.01. Effect on Capital Stock	4
SECTION 2.02. Exchange of Certificates	4
ARTICLE III Representations and Warranties
SECTION 3.01. Representations and Warranties of Constellation and Merger Sub	7
SECTION 3.02. Representations and Warranties of FPL Group	28
ARTICLE IV Covenants
SECTION 4.01. Covenants of Constellation	46
SECTION 4.02. Covenants of FPL Group	52
SECTION 4.03. No Solicitation by Constellation	58
SECTION 4.04. No Solicitation by FPL Group	62
SECTION 4.05. Other Actions	66
SECTION 4.06. Coordination of Dividends	66

ARTICLE V Additional Agreements
SECTION 5.01. Preparation of the Form S-4 and the Joint Proxy Statement; Shareholders/Stockholders Meetings	66
SECTION 5.02. Letters of FPL Groups Accountants	67
SECTION 5.03. Letters of Constellations Accountants	68
SECTION 5.04. Access to Information; Confidentiality; Effect of Review	68
SECTION 5.05. Regulatory Matters; Reasonable Best Efforts	69
SECTION 5.06. FPL Group Employee Stock Options, FPL Group Restricted Stock, FPL Group Other Equity-Based Awards, and FPL Group Stock Plans	70
SECTION 5.07. Constellation Employee Stock Options, Constellation Restricted Stock and Constellation Performance Units	72
SECTION 5.08. Employee Matters	75
SECTION 5.09. Indemnification, Exculpation and Insurance	76
SECTION 5.10. Fees and Expenses	77
SECTION 5.11. Public Announcements	83
SECTION 5.12. Affiliates	83
SECTION 5.13. NYSE Listing	83
SECTION 5.14. Shareholder Litigation	83
SECTION 5.15. Tax Treatment	83
SECTION 5.16. Transfer Taxes	83
SECTION 5.17. Standstill Agreements; Confidentiality Agreements	84
SECTION 5.18. Stock Split	84
ARTICLE VI Conditions Precedent
SECTION 6.01. Conditions to Each Partys Obligation to Effect the Merger	84
SECTION 6.02. Conditions to Obligations of Constellation and Merger Sub	85
SECTION 6.03. Conditions to Obligations of FPL Group	86
SECTION 6.04. Frustration of Closing Conditions	87
ARTICLE VII Termination, Amendment and Waiver
SECTION 7.01. Termination	87
SECTION 7.02. Effect of Termination	90
SECTION 7.03. Amendment	90
SECTION 7.04. Extension; Waiver	90
SECTION 7.05. Procedure for Termination, Amendment, Extension or Waiver	91

ARTICLE VIII General Provisions
SECTION 8.01. Nonsurvival of Representations and Warranties	91
SECTION 8.02. Notices	91
SECTION 8.03. Definitions	92
SECTION 8.04. Interpretation	93
SECTION 8.05. Counterparts	94
SECTION 8.06. Entire Agreement; No Third-Party Beneficiaries	94
SECTION 8.07. Governing Law	94
SECTION 8.08. Assignment	94
SECTION 8.09. Enforcement	94
SECTION 8.10. Severability	95
SECTION 8.11. Waiver of Jury Trial	95

Exhibit A-1 Form of Amended and Restated Articles of Incorporation of Constellation

Exhibit A-2 Form of Articles Supplementary of Constellation

Exhibit B Form of By-laws of Constellation

Exhibit C Corporate Governance of Constellation

Exhibit D Form of Affiliate Letter