Identify and explain exothermic and endothermic reactions in terms of energy transfer

Exothermic reaction is when the system releases energy to the surrounding, the energy (in the perspective of the system) will have a sign of negative, as the system is transferring energy towards the surrounding.

Endothermic reaction is when the system is absorbing energy from the surrounding, the energy (in the perspective of the system) will have a sign of positive, as energy is transferred to the system.