Document:

Rider Effective Date:    
        [11/01/2008]

    Contract Number:         
        [870152]

    Owner:                           [Jane Doe]

    [Joint Owner:                
        [John Doe]]

    

    

    
      

    

    Allianz Life Insurance Company

      of North America

    [PO Box 561

    Minneapolis, MN 55440-0561]

    [800.624.0197]

    

    

    	
            Index Performance Strategy Rider II

          

    

    

    This rider forms a part of the Base Contract to which it is attached and is effective on the Rider Effective Date shown above.  The Index
      Options provided by this rider are available for allocation on the next Index Anniversary that occurs on or immediately after the Rider Effective Date.  In the case of a conflict with any provision in the Base Contract, the provisions of this rider
      control. Defined terms and contractual provisions are set forth in the Base Contract or are added in this rider.  This rider terminates as indicated under the Termination of this Rider provision.

    

    

    	
            Definitions

          

    

    

    Base Contract

    The contract to which this rider is attached.

    

    

    Buffer

    A Buffer is the maximum negative Index Return that we will absorb.  We declare a Buffer for each Index Option, and the Buffers will not change.  The Buffers are shown below.

    

    

    Cap

    A Cap is the maximum positive Performance Credit for the Index Option.  On the Term Start Date, we declare a Cap or that an
      Index Option is uncapped and we guarantee it for the Term.   If we declare that an Index Option is uncapped, there is no maximum positive Performance Credit for the Index Option on the Term End Date.  Caps are shown on your Index Options statement each year and will never be less than the Minimum Cap shown below.

    

    

    Index Option Base

    The value used to determine the dollar amount of the Performance Credit.  We establish an Index Option Base for each Index Option.

    

    

    Index Option Value

    The value in a selected Index Option.  We establish an Index Option Value for each Index Option.

    

    

    Index Value

    The value of an Index at the end of the Business Day.  Index Values are shown on your Index Options statement.

    

    

    Lock Date

    The Business Day that we receive an Authorized Request for a Performance Lock.

    

    

    Performance Credit

    The return you may receive per Term when you allocate to an Index Performance Strategy Index Option.

    

    

    Term

    The period of time from the Term Start Date to the Term End Date.  The Term is shown below.

    

    

    Term End Date

    The day on which a Term ends. A Term End Date may only occur on an Index Anniversary.

    

    

    Term Start Date

    The day on which a Term begins.  A Term Start Date may only occur on an Index Anniversary.

    
      
        S40903-IAI-INFORCE 1                 [Admin. Tracking Identifier]

      

      
        

      

    

    

    

    

    

    	
            Contract Value

          

    

    

    The following is added to the “Contract Value” section.

    

    

    How we calculate Index Option Values

    On the first Term Start Date, the Index Option Value and Index Option Base for an Index Option are equal to the amount of any Purchase
      Payments and Transfers into the Index Option.

    

    

    At the end of each Business Day other than the Term Start Date or Term End Date, the Index Option Value is equal to the Index Option Base plus
      its Daily Adjustment.  We establish a Proxy Value to calculate the Daily Adjustment.  The Proxy Value is determined on each Business Day based on the value of a hypothetical set of put and call options as determined by an option pricing formula.  The
      Daily Adjustment is calculated before we process any Partial Withdrawal or deduct any Contract Charges using the Index Option Base, the current Proxy Value, and the Proxy Value as of the Term Start Date.

    

    

    At the end of each Business Day, we reduce the Index Option Value by the dollar amount withdrawn from the Index Option, including any Withdrawal
      Charge, and Contract Charges.  We deduct withdrawals from an Index Option proportionately based on the percentage of Contract Value in the Index Option, unless you specify otherwise.  We then reduce the Index Option Base by the same percentage by
      which the amount withdrawn reduced its associated Index Option Value.

    

    

    On the Term End Date, we calculate the Index Option Value for the Index Performance Strategy Index Option by applying its associated Performance
      Credit to its Index Option Base.  If the Term End Date is not a Business Day, we calculate the Performance Credit on the next Business Day.

    

    

    On the Term End Date, we determine the Index Return for the Index Option.  The Index Return is the Index Value for the Term End Date, minus the
      Index Value from the Term Start Date, divided by the Index Value from the Term Start Date.

    

    

    If the Index Return is positive and greater than or equal to the Cap for an Index Option, then the Performance Credit for the Index Option is
      equal to the Cap.  If the Index Return is positive, but less than the Cap, or if the Index Option is uncapped, then the Performance Credit for that Index Option is equal to the Index Return.  If the Index Return is zero or negative, but within the
      Buffer, then the Performance Credit for the Index Option is zero.  If the Index Return is negative and extends beyond the Buffer, then the Performance Credit for the Index Option is equal to the Index Return plus the Buffer.

    

    

    For an Index Option that receives a Performance Credit, we multiply its Performance Credit by its Index Option Base.  This result is then added
      to its Index Option Base.  We then set the Index Option Value equal to its Index Option Base.

    

    

    Finally, on the Term End Date, for the Index Option we:

    
      	
              •

            	
              Increase its Index Option Value and Index Option Base by the amount of any Additional Purchase Payments and Transfers into the
                Index Option;

            

    

    
      	
              •

            	
              Reduce its Index Option Value and Index Option Base by the amount transferred out of the Index Option; and

            

    

    
      	
              •

            	
              Reduce its Index Option Value and Index Option Base for Withdrawals (including any Withdrawal Charge) and Contract Charges.

            

    

    

    

    At the end of each Business Day we apply the Alternate Minimum Value if we pay a Death Benefit, upon annuitization, or if you take a
      Withdrawal.

    

    

    	
            Alternate Minimum Value

          

    

    

    The Alternate Minimum Value provides a guaranteed minimum value on each of your Index Option Values when we pay a Death Benefit, upon
      annuitization, or if you take a Withdrawal.

    

    

    When we pay a Death Benefit, upon annuitization, or if you take a Full Withdrawal, we compare each of your Index Option Values (after
      deducting any applicable fees or charges) with its Alternate Minimum Value.  If your Index Option Value is less than its Alternate Minimum Value, we add the difference to the Index Option Value before determining the amount of the Death Benefit,
      Annuity Payment, or Withdrawal.

    

    

    If you take a Partial Withdrawal, we compare the percentage of Index Option Value withdrawn (including any Withdrawal Charge) with an
      equivalent percentage of its Alternate Minimum Value.  If the percentage of Index Option Value is less than the equivalent percentage of Alternate Minimum Value, we add the difference to the amount we pay to you as a Partial Withdrawal.

    
      
        S40903-IAI-INFORCE 2                 [Admin. Tracking Identifier]

      

      
        

      

    

    

    

    

    

    	
            Alternate Minimum Value
              continued from the previous page

          

    

    

    On the Index Anniversary that occurs on or immediately following the Rider Effective Date, the Alternate Minimum Value is equal to its
      associated Index Option Base multiplied by the AMV Factor shown on the Index Options Contract Schedule plus any Accumulated Alternate Interest transferred into the Index Option.  We establish an Alternate Minimum Base to calculate interest.  On the
      Index Anniversary that occurs on or immediately following the Rider Effective Date, we set the Alternate Minimum Base equal to the AMB Factor multiplied by its Index Option Base.  The AMB Factor is shown on your Index Options Contract Schedule.  On
      each Business Day, the Alternate Minimum Value is equal to the AMV Factor multiplied by its Index Option Base on the Term Start Date (adjusted proportionately for any Withdrawals, including any Withdrawal Charge) plus the Accumulated Alternate
      Interest, any Accumulated Alternate Interest transferred into the Index Option, and any Daily Adjustment.  The Accumulated Alternate Interest is the total amount of Alternate Interest accrued.

    

    

    We credit Alternate Interest to each Alternate Minimum Value at the end of the day.  Each daily Alternate Interest is equal to the Alternate
      Interest Rate divided by 365 and then multiplied by its Alternate Minimum Base.  The Alternate Interest Rate is shown on your Index Options Contract Schedule.

    

    

    If you take a Partial Withdrawal, each Alternate Minimum Value, Alternate Minimum Base, and Accumulated Alternate Interest is reduced by the
      percentage of the Index Option Value withdrawn, including any Withdrawal Charge.

    

    

    If you transfer Index Option Value from an Index Option to another Index Option, we also transfer Accumulated Alternate Interest.  The dollar
      amount of Accumulated Alternate Interest transferred is equal to the dollar amount of Index Option Value transferred divided by the total Index Option Value for the Index Option prior to the transfer, then multiplied by the Accumulated Alternate
      Interest for the Index Option prior to the transfer.

    

    

    On each Term End Date or, if an Index Option Value has been locked, the Index Anniversary that occurs on or immediately after the Lock Date, we
      reset each Alternate Minimum Base to equal its Index Option Base multiplied by the AMB Factor plus its Accumulated Alternate Interest.

    

    

    	
            Performance Lock

          

    

    

    You can request a Performance Lock of the current Index Option Value for an unlocked Index Option by providing an Authorized Request.  We
      process the request on the Lock Date based on the values at the end of the Business Day. Compared with what you would have received as a Performance Credit on the Term End Date, if you exercise a Performance Lock, you may receive less than the full
      protection of the Buffer, less than the full Cap, or if uncapped, less than the full Index Return over the Term.

    

    

    Once an Index Option Value has been locked:

    
      	
              •

            	
              The Index Option Value will not change until the Index Anniversary that occurs on or immediately after the Lock Date, unless it is
                reduced for Withdrawals and any other Contract Charges;

            

    

    
      	
              •

            	
              You cannot unlock the Index Option; and

            

    

    
      	
              •

            	
              The locked Index Option will not receive a Performance Credit on the Term End Date.

            

    

    

    

    On the Index Anniversary that occurs on or immediately after the Lock Date, we set the Index Option Base equal to the Index Option Value and we
      will reallocate the Index Option Value according to your new allocation instructions. If you have not provided new allocation instructions, we will reallocate the Index Option Value into the same Index Option with a new Term.

    
      
        S40903-IAI-INFORCE 3                                   [Admin. Tracking Identifier]

      

      
        

      

    

    

    

    

    

    	
            Index Performance Strategy Index Options

          

    

    

    Allocation Guidelines:

    [1. Currently, you can select up to [5] of the Index Performance Strategy II Index Options.

    2. Allocations must be made in whole percentages.]

    

    

    [Part [A] Index Option Rider(s):]

     Index Performance Strategy II Index Options

    	
            Index

          	
            Buffer for all Terms

          	
            Minimum Cap for all Terms

          	
            Term

          
	
            [S&P 500® Index

          	
            [10.00]%

          	
            [3.00]%

          	
            [3 Index Years]]

          
	
            [Nasdaq-100® Index

          	
            [10.00]%

          	
            [3.00]%

          	
            [3 Index Years]]

          
	
            [Russell 2000® Index

          	
            [10.00]%

          	
            [3.00]%

          	
            [3 Index Years]]

          
	
            [EURO STOXX 50®

          	
            [10.00]%

          	
            [3.00]%

          	
            [3 Index Years]]

          
	
            [iShares® MSCI Emerging Markets ETF

          	
            [10.00]%

          	
            [3.00]%

          	
            [3 Index Years]]

          

    

    

    The indexes do not reflect the dividends paid on the stocks underlying the market indexes.

    

    

    On the Income Benefit Date, for any Index Option that has not reached a Term End Date, we will lock the Index Option Value
      before we calculate Income Payments.

    

    

    	
            Rider Fee

          

    

    

    There is no fee for this rider.

    

    

    	
            Termination of this Rider

          

    

    

    This rider terminates on the earlier of the Business Day before the Annuity Date or the date the Base Contract terminates.

    
      
        S40903-IAI-INFORCE 3                                   [Admin. Tracking Identifier]

      

      
        

      

    

    

    

    

    

    	
            Index Disclosures

          

    

    

    [The Index disclaimers will populate here based on our agreements with the index companies.]

    

    

    

    

    In all other respects the provisions, conditions, exceptions and limitations contained in the Base Contract remain unchanged and apply to this
      rider.

    

    

    Signed for the Company at its home office.

    

    

    

    

    Allianz Life Insurance Company

    of North America

    

    

             [                       ]

                                                                  [Gretchen Cepek] [Walter R. White]

                                                                    Secretary President and CEO

    

    

    To obtain information, make an inquiry, or for assistance with a complaint,

    please call our toll-free number at [800.624.0197].

    

    

    
      S40903-IAI-INFORCE 5                                   [Admin. Tracking Identifier]Exhibit 4.2

 

 

DUKE ENERGY CAROLINAS, LLC

 

TO

 

THE BANK OF NEW YORK MELLON TRUST COMPANY,
N.A.,

Trustee

 

ONE-HUNDRED AND THIRD SUPPLEMENTAL INDENTURE

Dated as of January 8, 2020

 

 

 

CREATING A SERIES OF FIRST AND REFUNDING

MORTGAGE BONDS

 

$500,000,000 FIRST AND REFUNDING MORTGAGE
BONDS, 2.45% SERIES DUE 2030

 

 

 

SUPPLEMENTAL TO

FIRST AND REFUNDING MORTGAGE

DATED AS OF December 1, 1927

 

 

Drawn By and Return To:

Hunton Andrews Kurth LLP

200 Park Avenue

New York, New York 10166

Attention: Brendan P. Harney

     

     

    

 

SUPPLEMENTAL INDENTURE,
bearing date as of the 8th day of January, 2020, made and entered into by and between Duke Energy Carolinas, LLC, a
limited liability company duly organized and existing under the laws of the State of North Carolina, hereinafter called the “Company”,
party of the first part, and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company,
N.A.), a national banking association, having a corporate trust office at 10161 Centurion Parkway N., Jacksonville, Florida 32256,
hereinafter called the “Trustee”, as Trustee, party of the second part. The Trustee is the successor to JPMorgan Chase
Bank, N.A. (formerly known as The Chase Manhattan Bank, formerly known as Chemical Bank (successor to Morgan Guaranty Trust Company
of New York)), as Trustee.

 

WHEREAS the Company’s
predecessor is Duke Energy Corporation (formerly known as Duke Power Company), a corporation organized under the laws of the State
of North Carolina, which converted its form of organization on April 3, 2006 from a North Carolina corporation to a North Carolina
limited liability company named “Duke Power Company LLC,” which changed its name to Duke Energy Carolinas, LLC on October
1, 2006; and

 

WHEREAS Duke Power
Company, a New Jersey corporation, hereinafter called the “New Jersey Company”, duly executed and delivered its First
and Refunding Mortgage, dated as of December 1, 1927, to Guaranty Trust Company of New York, as Trustee, to secure its First and
Refunding Mortgage Gold Bonds, to be issued from time to time in series as provided in said Mortgage, and has from time to time
duly executed and delivered supplemental indentures, including supplemental indentures dated as of September 1, 1947 and February
1, 1949, to Guaranty Trust Company of New York (the corporate name of which has been changed to Morgan Guaranty Trust Company of
New York), as Trustee, and a supplemental indenture dated as of February 1, 1960 to Morgan Guaranty Trust Company of New York,
as Trustee, supplementing and modifying said Mortgage (said Mortgage, as so supplemented and modified by the supplemental indentures
dated as of September 1, 1947, February 1, 1949 and February 1, 1960, being hereinafter referred to as the “original
indenture”); and

 

    1 

     

    

 

WHEREAS bonds of a
series known as the “First and Refunding Mortgage Bonds, 2.65% Series Due 1977” (herein called “bonds of the
2.65% Series”), bonds of a series known as the “First and Refunding Mortgage Bonds, 2 7/8% Series Due 1979”
(herein called “bonds of the 1979 Series”), bonds of a series known as the “First and Refunding Mortgage Bonds,
6 3/8% Series Due 1998” (herein called “bonds of the 1998 Series”), bonds of a series known as the “First
and Refunding Mortgage Bonds, Pollution Control Facilities Revenue Refunding Series Due 2014” (herein called “bonds
of the 1990 Pollution Control Series”), bonds of a series known as the “First and Refunding Mortgage Bonds, City of
Greensboro Series Due 2027” (herein called “bonds of the 2027 City of Greensboro Series”), bonds of a series
known as the “First and Refunding Mortgage Bonds, Medium-Term Notes Series” (herein called “bonds of the Medium-Term
Notes Series”), bonds of a series known as the “First and Refunding Mortgage Bonds, 6 5/8% Series B Due 2003”
(herein called “bonds of the 2003 Series B”), bonds of a series known as the “First and Refunding Mortgage Bonds,
6 3/8% Series Due 2008” (herein called “bonds of the 2008 Series”), bonds of a series known as the “First
and Refunding Mortgage Bonds, 5 7/8% Series C Due 2003” (herein called “bonds of the 2003 Series C”), bonds
of a series known as the “First and Refunding Mortgage Bonds, Pollution Control Facilities Revenue Refunding Series Due
2014” (herein called “bonds of the 1993 Pollution Control Series”), bonds of a series known as the “First
and Refunding Mortgage Bonds, 6 1/4% Series B 2004” (herein called “bonds of the 2004 Series B”), bonds of a
series known as the “First and Refunding Mortgage Bonds, 7% Series Due 2033” (herein called “bonds of the 2033
Series”), bonds of a series known as the “First and Refunding Mortgage Bonds, 6 7/8% Series B Due 2023”
(herein called “bonds of the 2023 Series B”), bonds of a series known as the “First and Refunding Mortgage Bonds,
6 3/4% Series Due 2025” (herein called “bonds of the 2025 Series”), bonds of a series known as the “First
and Refunding Mortgage Bonds, 7 7/8% Series Due 2024” (herein called “bonds of the 2024 Series”), bonds of a
series known as the “First and Refunding Mortgage Bonds, 7 1/2% Series B Due 2025” (herein called “bonds of
the 2025 Series B”), bonds of a series known as the “First and Refunding Mortgage Bonds, 7 1/2% Series Due 1999”
(herein called “bonds of the 1999 Series”), bonds of a series known as the “First and Refunding Mortgage Bonds,
7% Series Due 2000” (herein called “bonds of the 2000 Series”), bonds of a series known as the “First
and Refunding Mortgage Bonds, 7% Series B Due 2000” (herein called “bonds of the 2000 Series B”), bonds of a
series known as the “First and Refunding Mortgage Bonds, 6.625% Series Due 2003” (herein called “bonds of the
2003 Series”), bonds of a series known as the “First and Refunding Mortgage Bonds, 9 5/8% Series Due 2020” (herein
called “bonds of the 9 5/8% Series due 2020”), bonds of a series known as the “First and Refunding Mortgage
Bonds, 8 3/4% Series Due 2021” (herein called “bonds of the 2021 Series”), bonds of a series known as “First
and Refunding Mortgage Bonds, 7% Series Due 2005” (herein called “bonds of the 2005 Series”), bonds of a series
known as “First and Refunding Mortgage Bonds, 3.75% Series A Due 2008” (herein called “bonds of the 3.75% Series
A”), bonds of series known as “First and Refunding Mortgage Bonds, 3.75% Series B Due 2008” (herein called “bonds
of the 3.75% Series B,” and together with the bonds of the 3.75% Series A, the “bonds of the 3.75% Series”),
bonds of a series known as “First and Refunding Mortgage Bonds, 7 3/8% Series Due 2023” (herein called “bonds
of the 7 3/8% Series”), bonds of a series known as “First and Refunding Mortgage Bonds, 4 1/2% Series Due 2010”
(herein called “bonds of the 4 1/2% Series”), bonds of a series known as “First and Refunding Mortgage Bonds,
5.30% Series Due 2015” (herein called “bonds of the 5.30% Series”), bonds of a series known as “First
and Refunding Mortgage Bonds, 5.25% Series Due 2018” (herein called “bonds of the 5.25% Series”), bonds of a
series known as “First and Refunding Mortgage Bonds, 6.00% Series Due 2038” (herein called “bonds of the 6.00%
Series”), bonds of a series known as “First and Refunding Mortgage Bonds, 2007A Pledge Series Due 2040” (herein
called “bonds of the 2007A Pledge Series”), bonds of a series known as “First and Refunding Mortgage Bonds,
2007B Pledge Series Due 2040” (herein called “bonds of the 2007B Pledge Series”), bonds of a series known as
“First and Refunding Mortgage Bonds, 5.10% Series B Due 2018” (herein called “bonds of the 5.10% Series”),
bonds of a series known as “First and Refunding Mortgage Bonds, 6.05% Series B Due 2038” (herein called “bonds
of the 6.05% Series”), bonds of a series known as “First and Refunding Mortgage Bonds, 7.00% Series C Due 2018 (herein
called “bonds of the 2018 Series C”), bonds of a series known as “First and Refunding Mortgage Bonds, 5.30%
Series Due 2040” (herein called “bonds of the 2040 Series”), bonds of a series known as “First and Refunding
Mortgage Bonds, 4.30% Series due 2020”(herein called “bonds of the 2020 Series”), bonds of a series known as
“First and Refunding Mortgage Bonds, Solid Waste Disposal Revenue Bonds Series 2010A Due 2031” (herein called “bonds
of the 2010A Solid Waste Disposal Series”), bonds of a series known as “First and Refunding Mortgage Bonds, Solid
Waste Disposal Revenue Bonds Series 2010B Due 2031” (herein called “bonds of the 2010B Solid Waste Disposal Series”),
bonds of a series known as “First and Refunding Mortgage Bonds, Solid Waste Disposal Revenue Bonds Series 2010C Due 2040”
(herein called “bonds of the 2010C Solid Waste Disposal Series”), bonds of a series known as “First and Refunding
Mortgage Bonds, Solid Waste Disposal Revenue Bonds Series 2010D Due 2040 (herein called “bonds of the 2010D Solid Waste
Disposal Series”), bonds of a series known as “First and Refunding Mortgage Bonds, 3.90% Series due 2021” (herein
called “bonds of the 3.90% Series”), bonds of a series known as “First and Refunding Mortgage Bonds, 1.75% Series
due 2016” (herein called “bonds of the 1.75% Series”), bonds of a series known as “First and Refunding
Mortgage Bonds, 4.25% Series due 2041” (herein called “bonds of the 4.25% Series”), bonds of a series known
as “First and Refunding Mortgage Bonds, 4.00% Series due 2042” (herein called “bonds of the 4.00% Series”),
bonds of a series known as “First and Refunding Mortgage Bonds, 3.75% Series due 2045” (herein called “bonds
of the 3.75% Series due 2045”), bonds of a series known as “First and Refunding Mortgage Bonds, 2.500% Series due
2023” (herein called “bonds of the 2.500% Series due 2023”), bonds of a series known as “First and Refunding
Mortgage Bonds, 3.875% Series due 2046” (herein called “bonds of the 3.875% Series due 2046”), bonds of a series
known as “First and Refunding Mortgage Bonds, 2.95% Series due 2026” (herein called “bonds of the 2.95% Series
due 2026”), bonds of a series known as “First and Refunding Mortgage Bonds, 3.70% Series due 2047” (herein called
“bonds of the 3.70% Series due 2047”), bonds of a series known as “First and Refunding Mortgage Bonds, 3.05%
Series due 2023” (herein called “bonds of the 3.05% Series due 2023”), bonds of a series known as “First
and Refunding Mortgage Bonds, 3.95% Series due 2048 (herein called “bonds of the 3.95% Series due 2048”), bonds
of a series known as “First and Refunding Mortgage Bonds, 3.35% Series due 2022” (herein called “bonds of the
3.35% Series due 2022”), bonds of a series known as “First and Refunding Mortgage Bonds, 3.95% Series due 2028”
(herein called “bonds of the 3.95% Series due 2028”), bonds of a series known as “First and Refunding Mortgage
Bonds, 2.45% Series due 2029” (herein called “bonds of the 2.45% Series due 2029”), bonds of a series known
as “First and Refunding Mortgage Bonds, 3.20% Series due 2049” (herein called “bonds of the 3.20% Series due
2049”) and such other bonds that have heretofore been issued and (except for bonds of the 2.65% Series, bonds of the 1979
Series, bonds of the 1998 Series, bonds of the 1990 Pollution Control Series, bonds of the Medium Term Notes Series, bonds of
the 2003 Series B, bonds of the 2008 Series, bonds of the 2003 Series C, bonds of the 1993 Pollution Control Series, bonds of
the 2004 Series B, bonds of the 2033 Series, bonds of the 2023 Series B, bonds of the 2025 Series, bonds of the 2024 Series, bonds
of the 2025 Series B, bonds of the 1999 Series, bonds of the 2000 Series, bonds of the 2000 Series B, bonds of the 2003 Series,
bonds of the 9 5/8% Series due 2020, bonds of the 2021 Series, bonds of the 2005 Series, bonds of the 3.75% Series, bonds of the
7 3/8% Series, bonds of the 2007A Pledge Series, bonds of the 2007B Pledge Series, bonds of the 4 1/2% Series, bonds of the 5.30%
Series, bonds of a series known as “First and Refunding Mortgage Bonds, Pollution Control Facilities Revenue Refunding Series
Due 2017,” bonds of the 1.75% Series, bonds of the 5.25% Series, bonds of the 5.10% Series, bonds of the 2018 Series C and
other such bonds which have been redeemed or retired in their entirety) are the only bonds now outstanding under the original
indenture as heretofore supplemented; and

 

    2 

     

    

 

WHEREAS the Company
has duly executed and delivered a supplemental indenture, dated as of June 15, 1964, to Morgan Guaranty Trust Company of New York,
as Trustee, for the purpose of evidencing the succession by merger of the Company to the New Jersey Company and the assumption
by the Company of the covenants and conditions of the New Jersey Company in the original indenture and to enable the Company to
have and exercise the powers and rights of the New Jersey Company under the original indenture in accordance with the terms thereof
and whereby the Company assumed and agreed to pay duly and punctually the principal of and interest on the bonds issued under the
original indenture in accordance with the provisions of said bonds and the coupons thereto appertaining and the original indenture,
and agreed to perform and fulfill all the terms, covenants and conditions of the original indenture binding upon the New Jersey
Company, and

 

WHEREAS Morgan Guaranty
Trust Company of New York resigned as Trustee under the original indenture as heretofore supplemented and Chemical Bank was appointed
successor Trustee, said resignation and appointment having taken effect on August 30, 1994 pursuant to an Instrument of Resignation,
Appointment and Acceptance dated as of August 30, 1994 among the Company, Morgan Guaranty Trust Company of New York, as Trustee,
and Chemical Bank (now known as JPMorgan Chase Bank, N.A.), as successor Trustee; and

 

WHEREAS JPMorgan Chase
Bank, N.A. resigned as Trustee and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust
Company, N.A.) was appointed successor Trustee, said resignation and appointment having taken effect on September 24, 2007 pursuant
to an Instrument of Resignation, Appointment and Acceptance dated as of September 24, 2007 among the Company, JPMorgan Chase Bank,
N.A., as Trustee, and The Bank of New York Mellon Trust Company, N.A., as successor Trustee; and

 

WHEREAS the Company
desires to create under the original indenture, as heretofore supplemented and as to be supplemented by this supplemental indenture,
a new series of bonds, to be known as its “First and Refunding Mortgage Bonds, 2.45% Series due 2030,” and to determine
the terms and provisions and the form of the bonds of such series; and

 

    3 

     

    

 

WHEREAS for the purposes
hereinabove recited, and pursuant to due limited liability company action, the Company has duly determined to execute and deliver
to the Trustee a supplemental indenture in the form hereof supplementing the original indenture (the original indenture, as previously
supplemented by supplemental indentures and as hereby supplemented, being sometimes hereinafter referred to as the “Indenture”);
and

 

WHEREAS all conditions
and requirements necessary to make this supplemental indenture a valid, legal and binding instrument in accordance with its terms
have been done and performed, and the execution and delivery hereof have been in all respects duly authorized:

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

That in consideration
of the premises and of the sum of one dollar duly paid by the Company to the Trustee at or before the execution and delivery of
these presents, the receipt whereof is hereby acknowledged, the Company hereby covenants and agrees with the Trustee and its successors
in the trust under the Indenture as follows:

 

PART
One. 

 

SECTION 1.       
Bonds of the 2.45% Series

 

Section 1.1.            
The Company hereby creates a new series of bonds to be issued under and secured by the Indenture and known as its First
and Refunding Mortgage Bonds, 2.45% Series due 2030 (herein called “bonds of the 2.45% Series”) and the Company hereby
establishes, determines and fixes the terms and provisions of the bonds of the 2.45% Series as hereinafter in this Section 1 set
forth.

 

Each bond of the 2.45%
Series shall be dated the date of its authentication (except that if any such bond shall be authenticated on any interest payment
date, it shall be dated the following day) and interest shall be payable on the principal represented thereby commencing August
1, 2020, from February 1 or August 1, as the case may be, next preceding the date thereof to which interest has been paid, unless
such date of authentication is prior to August 1, 2020, in which case interest shall be payable from January 8, 2020; provided,
however, that interest shall be payable on each bond of the 2.45% Series authenticated after the record date (as defined
in the next succeeding paragraph of this Section 1.1) with respect to any interest payment date and prior to such interest payment
date, only from such interest payment date.

 

Interest on any
bond of the 2.45% Series shall be paid to the person who, according to the bond register of the Company, is the registered
holder of such bond of the 2.45% Series at the close of business on the applicable record date, and such interest payments
shall be made by check mailed to such registered holder at his last address shown on such bond register or, at the option of
the Company, by wire transfer at such place and to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least sixteen (16) days prior to the date of payment by the Person entitled thereto
(provided, that if the bonds of the 2.45% Series are represented by Global Securities held by the Depositary, payment
may be made pursuant to the procedures of the Depositary); provided, however, that, if the Company shall
default in the payment of the interest due on any interest payment date on any bond of the 2.45% Series, such defaulted
interest shall be paid to the registered holder of such bond (or any bond or bonds of the 2.45% Series issued upon transfer,
exchange or substitution thereof) on the date of subsequent payment of such defaulted interest or, at the election of the
Company, to the person in whose name such bond (or any bond or bonds of the 2.45% Series issued upon transfer, exchange or
substitution thereof) is registered on a subsequent record date established by notice given by mail by or on behalf of the
Company to the holders of all bonds of the 2.45% Series not less than ten (10) days preceding such subsequent record date.
The term “record date” as used in this Section 1.1 shall mean, with respect to any semi-annual interest payment
date, (i) the close of business on the business day immediately preceding such interest payment date so long as the bonds of
the 2.45% Series remain in book-entry only form or (ii) the close of business on the fifteenth calendar day immediately
preceding such interest payment date if any of the bonds of the 2.45% Series do not remain in book-entry only form, in each
case, whether or not a business day, or, in the case of a payment of defaulted interest, the close of business on any
subsequent record date established as provided above.

 

    4 

     

    

 

Section 1.2.            
All bonds of the 2.45% Series shall mature as to principal on February 1, 2030 and shall bear interest at a rate of
2.45% per annum, payable semi-annually on the 1st day of February and August in each year, commencing on the 1st day of August,
2020. Interest on the bonds of the 2.45% Series will be computed on the basis of a 360-day year consisting of twelve 30-day months.

 

Section 1.3.            
The bonds of the 2.45% Series shall be fully registered bonds, without coupons, in denominations of two thousand dollars
($2,000) and integral multiples of one thousand dollars ($1,000) in excess thereof, all such bonds to be numbered, and shall be
transferable and exchangeable as provided in the form of bond set forth as Exhibit A to this supplemental indenture. The provisions
of §1.19 and any other provision in the Indenture in respect of coupon bonds or reservation of coupon bond numbers shall be
inapplicable to the bonds of the 2.45% Series.

 

Section 1.4.            
At any time before November 1, 2029 (the “Par Call Date”), the bonds of the 2.45% Series may be redeemed
at the option of the Company, in whole or in part and from time to time, at a redemption price equal to the greater of (1) 100%
of the principal amount of the bonds of the 2.45% Series to be redeemed and (2) the sum of the present values of the remaining
scheduled payments of principal and interest on the bonds of the 2.45% Series being redeemed that would be due if the bonds of
the 2.45% Series matured on the Par Call Date (exclusive of interest accrued to the redemption date) discounted to the redemption
date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 12.5 basis points,
plus, in either case, accrued and unpaid interest on the principal amount of the bonds of the 2.45% Series being redeemed to, but
excluding, the date of such redemption. The Company shall notify the Trustee of the redemption price with respect to any redemption
pursuant to this paragraph promptly after the calculation thereof. The Trustee shall not be responsible for calculating said redemption
price.

 

At any time on or after
the Par Call Date, the bonds of the 2.45% Series may be redeemed at the option of the Company, in whole or in part and from time
to time, at a redemption price equal to 100% of the principal amount of the bonds of the 2.45% Series to be redeemed plus accrued
and unpaid interest on the principal amount being redeemed to, but excluding, the date of such redemption.

 

The bonds of the 2.45%
Series are also subject to redemption through the operation of the Replacement Fund provided in Part Two of this supplemental indenture
or through the application of moneys paid to the Trustee pursuant to the provisions of §5.05 of the Indenture, at any time
or from time to time prior to maturity, upon prior notice as hereinafter provided, at the redemption prices specified in the fifth
paragraph of the reverse side of the form of bond set forth as Exhibit A to this supplemental indenture, together with interest
accrued thereon to the date fixed for redemption thereof.

 

In the event that any
redemption date is not a business day, the Company shall pay the redemption price on the next business day without any interest
or other payment due to the delay.

 

    5 

     

    

 

All such
redemptions of bonds of the 2.45% Series shall be effected as provided in Article 3 of the Indenture except that, in case a
part only of the bonds of the 2.45% Series is to be paid and redeemed, the particular bonds or part thereof shall be selected
by the Trustee in such manner as the Trustee in its uncontrolled discretion shall determine to be fair and in any case where
several bonds are registered in the same name, the Trustee may treat the aggregate principal amount so registered as if it
were represented by one bond and except that when bonds are redeemed in part only the notice given to any particular holder
need state only the principal amount of the bonds of that holder which is to be redeemed and except that notice to the
holders of bonds to be redeemed shall be given by mailing to such holders a notice of such redemption, first class mail
postage prepaid, not later than the tenth day, and not earlier than the sixtieth day, before the date fixed for redemption,
at their last addresses as they shall appear upon the bond register of the Company. Any notice which is mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether or not the holder receives such notice; and
failure duly to give such notice by mail, or any defect in such notice, to the holder of any bond designated for redemption
as a whole or in part shall not affect the validity of the proceedings for the redemption of any other bond. No publication
of notice of such redemption shall be required.

 

Section 1.5.            
The limit upon the aggregate principal amount of the bonds of the 2.45% Series which may be authenticated and delivered
pursuant to this supplemental indenture shall initially be $500,000,000. Notwithstanding the foregoing, the Company may, without
the consent of the holders of the bonds of the 2.45% Series, reopen the bonds of the 2.45% Series and issue an unlimited amount
of additional bonds having the same ranking, interest rate, maturity and other terms (except for the price to the public, the issue
date, the initial interest accrual date and the first interest payment date, as applicable) as the bonds of the 2.45% Series authenticated
and delivered pursuant to this supplemental indenture; provided, that, the Company may reopen the bonds of the 2.45% Series only
if the additional bonds issued will be fungible for United States federal income tax purposes with the bonds of the 2.45% Series
authenticated and delivered pursuant to this supplemental indenture. Any such additional bonds will be consolidated with and form
a single series of bonds under the Indenture with the bonds of the 2.45% Series authenticated and delivered pursuant to this supplemental
indenture.

 

Section 1.6.            
The place or places of payment (as to principal and premium, if any, and interest), redemption, transfer, exchange and
registration of the bonds of the 2.45% Series shall be the office or offices or the agency or agencies of the Company in the Borough
of Manhattan, The City of New York, designated from time to time by the Board of Directors of the Company (provided, that if the
bonds of the 2.45% Series are represented by Global Securities held by or on behalf of the Depositary, the procedures of the Depositary
may be followed for any action under this Section 1.6 of Part One).

 

Section 1.7.            
The form of the bonds of the 2.45% Series and the certificate of the Trustee to be endorsed on such bonds, respectively,
shall be in substantially the form set forth in Exhibit A hereto.

 

PART
Two.

 

REPLACEMENT FUND.

 

SECTION 1.       
So long as any of the bonds of the 2.45% Series are outstanding, the Company will continue to maintain the Replacement
Fund set forth in, and in accordance with the applicable terms and conditions now contained in, Part Two of the supplemental indenture
dated as of February 1, 1949, and the covenants on the part of the Company contained in such Part Two shall continue and remain
in full force and effect, whether or not bonds of the 1979 Series are outstanding and to the same extent as though the words “or
any bonds of the 2.45% Series” were inserted after the word “Series” appearing in the second line of Section
1 and the second line of Section 4 of said Part Two of said supplemental indenture dated as of February 1, 1949.

 

    6 

     

    

 

SECTION 2.        If
at any time (a) any of the bonds of the 2.45% Series are outstanding and (b) no Outstanding Mortgage Bonds (as defined in
Section 1 of Part Three of this supplemental indenture) entitled to the benefit of the Replacement Fund are outstanding
and (c) cash which shall have been deposited with the Trustee pursuant to such Replacement Fund shall not within five years
from the date of deposit thereof have been paid out, or used or set aside by the Trustee for the payment, purchase or
redemption of bonds,pursuant to such Replacement Fund, such cash shall, if in excess of fifty thousand dollars ($50,000), be
applied to the redemption of bonds of the 2.45% Series on a pro rata basis as between such series in an aggregate principal
amount sufficient to exhaust as nearly as possible the full amount of such cash. Anything in Section 5 of Part Two of the
aforesaid supplemental indenture dated as of February 1, 1949, in Section 3 of Part Two of the supplemental indentures dated
as of May 1, 1993, July 1, 1993, August 1, 1993, August 20, 1993, May 1, 1994, February 25, 2003, March 21, 2003 and
September 23, 2003, in Section 3 of Part Three of the supplemental indenture dated as of March 1, 1990 and in Section 5 of
Part Four of the supplemental indenture dated as of March 1, 1993 to the contrary notwithstanding, no cash shall be paid over
to the Company thereunder if at the time any bonds of the 2.45% Series are then outstanding, and such cash shall in such
event be applied as in this Part Two set forth.

 

SECTION 3.       Whenever
all of the bonds of the 2.45% Series and all of the Outstanding Mortgage Bonds entitled to the benefit of the Replacement Fund
shall have been paid, purchased or redeemed, the Trustee shall, upon application of the Company, pay to or upon the order of the
Company all cash theretofore deposited with the Trustee pursuant to the provisions of the Replacement Fund and not previously
disposed of pursuant to the provisions of the Replacement Fund, and shall deliver to the Company any bonds which shall theretofore
have been deposited with the Trustee pursuant to the provisions of the Replacement Fund or paid, purchased or redeemed pursuant
to the provisions of the Replacement Fund.

 

PART
Three.

 

ADDITIONAL COVENANTS OF THE COMPANY

 

SECTION 1.       
Whether or not the covenants on the part of the Company contained in Part Three of the supplemental indenture dated
as of February 1, 1949 are modified with the consent of the holders of bonds of the 2027 City of Greensboro Series, the 6.00% Series,
the 6.05% Series, the 2040 Series, the 2020 Series, the 2010A Solid Waste Disposal Series, the 2010B Solid Waste Disposal Series,
the 2010C Solid Waste Disposal Series, the 2010D Solid Waste Disposal Series, the 3.90% Series, the 4.25% Series or the 4.00% Series
(collectively, the “Outstanding Mortgage Bonds”), such covenants on the part of the Company contained in said Part
Three shall continue and remain in full force and effect so long as any of the bonds of the 2.45% Series are outstanding and to
the same extent as though the words “or so long as any bonds of the 2.45% Series are outstanding” were inserted after
the words “so long as any of the bonds of the 1979 Series or any bonds of the 2.65% Series are outstanding” wherever
such words appear in said Part Three of the supplemental indenture dated as of February 1, 1949.

 

SECTION 2.       
Whether or not the second sentence of paragraph (a) of §2.08 of the original indenture (making certain provisions
for the definition of the term “net amount” applicable while bonds of the 2.65% Series were outstanding and which was
originally set forth in Section 4 of Article One of the supplemental indenture dated as of September 1, 1947 and which is corrected
and clarified by Section 2 of Part Four of the supplemental indenture dated as of February 1, 1968) is modified with the consent
of the holders of any of the Outstanding Mortgage Bonds, said sentence shall continue and remain in full force and effect so long
as any bonds of the 2.45% Series are outstanding, and with the same force and effect as though said sentence had stated that such
provisions were to be applicable so long as any of the bonds of the 2.45% Series are outstanding.

 

PART
Four.

 

GLOBAL SECURITIES; TRANSFER AND EXCHANGE

 

SECTION 1.        The
bonds of the 2.45% Series shall initially be issued in the form of one or more Global Securities registered in the name of
the Depositary (which initially shall be The Depository Trust Company) or its nominee. Except under the limited
circumstances described below, bonds of the 2.45% Series represented by such Global Security or Global Securities shall not
be exchangeable for, and shall not otherwise be issuable as, bonds of the 2.45% Series in definitive form. The Global
Securities described in this Part Four may not be transferred except by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its
nominee.

 

    7 

     

    

 

None of the Company,
the Trustee nor any agent of the Company or the Trustee will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of a Global Security or maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.

 

A Global Security shall
be exchangeable for bonds of the 2.45% Series registered in the names of persons other than the Depositary or its nominee only
if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security
and no successor Depositary shall have been appointed by the Company within 90 days of receipt by the Company of such notification,
or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act at a time when the Depositary
is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company
within 90 days after it becomes aware of such cessation, (ii) an Event of Default has occurred and is continuing with respect to
the bonds of the 2.45% Series or (iii) the Company in its sole discretion, and subject to the procedures of the Depositary, determines
that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence
shall be exchangeable for bonds of the 2.45% Series registered in such names as the Depositary shall direct.

 

SECTION 2.       
Depository Legend. Each of the Global Securities shall bear the following legend (the “Depository Legend”)
on the face thereof:

 

“UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

 

SECTION 3.       
Transfer and Exchange.

 

(a)               
Every bond of the 2.45% Series presented or surrendered for registration of transfer or for exchange shall (if so required
by the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed, by the Holder thereof or his attorney duly authorized in writing.

 

    8 

     

    

 

(b)               
No service charge shall be made for any registration of transfer or exchange of bonds of the 2.45% Series, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
registration or transfer or exchange of bonds of the 2.45% Series.

 

SECTION 4.       Definitions. The following defined terms used herein shall, unless the context otherwise requires, have the meanings
specified below. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in
the Indenture.

 

“Business day”
means any day other than a day on which banks in New York City are required or authorized to be closed.

 

“Comparable Treasury
Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity
comparable to the remaining term of the bonds of the 2.45% Series to be redeemed (assuming, for this purpose, that the bonds of
the 2.45% Series matured on the Par Call Date), that would be utilized at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such bonds
of the 2.45% Series.

 

“Comparable Treasury
Price” means, with respect to any redemption date, (A) the average of the Reference Treasury Dealer Quotations for such redemption
date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains
fewer than four of such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations as determined
by the Company.

 

“Depositary”
means a clearing agency registered under the Exchange Act that is designated to act as Depositary for the bonds of the 2.45% Series,
which Depositary shall initially be The Depository Trust Company.

 

“Depository Legend”
means a legend set forth in Section 2 of this Part Four.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Global Security”
means a bond of the 2.45% Series in global form.

 

“Holder”
means a Person in whose name a bond of the 2.45% Series is registered in the registration books maintained by the Trustee.

 

“Person”
means any individual, corporation, partnership, limited liability company or corporation, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Quotation Agent”
means one of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury
Dealer” means each of (i) BofA Securities, Inc., Citigroup Global Markets Inc., Scotia Capital (USA) Inc. and Wells Fargo
Securities, LLC, and (ii) a Primary Treasury Dealer (as defined below) selected by each of MUFG Securities Americas Inc. and SMBC
Nikko Securities America, Inc.; or, in each case, their respective affiliates or successors, each of which is a primary U.S. Government
securities dealer in the United States (a “Primary Treasury Dealer”); provided, however, that if any of the foregoing
or their affiliates or successors shall cease to be a Primary Treasury Dealer, the Company shall substitute therefor another Primary
Treasury Dealer.

 

    9 

     

    

 

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined
by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time,
on the third business day preceding such redemption date.

 

“Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated
maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

PART
Five.

 

MISCELLANEOUS.

 

SECTION 1.       
 

 

(a)               
For the purposes of §2.10 of the Indenture and for the purposes of any modification of the provisions of the Replacement
Fund referred to in Part Two of this supplemental indenture, the covenants and provisions on the part of the Company which are
set forth or incorporated in Part Two of this supplemental indenture shall be for the benefit only of the holders of the bonds
of the 2.45% Series. Such covenants and provisions shall remain in force and be applicable only so long as any bonds of the 2.45%
Series shall be outstanding, and, subject to the provisions of paragraph (2) of subdivision (c) of §10.01 of the Indenture,
any such covenants and provisions may be modified with respect to the bonds of the 2.45% Series with the consent, in writing or
by vote at a bondholders’ meeting of the holders of sixty-six and two-thirds per cent (66 2/3%) of the principal amount of
the bonds of the 2.45% Series at the time outstanding and without the consent of the holders of any other bonds then outstanding
under the Indenture; provided that no such consent shall be effective to waive any past default under such covenants and
provisions, and its consequences, unless the consent of the holders of at least a majority in principal amount of all bonds then
outstanding under the Indenture is obtained. Such covenants shall be deemed to be additional covenants and none of them shall affect
or derogate from, or relieve the Company from, its obligation to comply with any of the other covenants, conditions, requirements
or provisions of the Indenture or any other supplemental indenture.

 

(b)               
For the purposes of §2.10 of the Indenture and for the purposes of any modification of the provisions of Part Three
of this supplemental indenture, the covenants and provisions on the part of the Company which are set forth or incorporated in
said Part Three shall be for the benefit only of the holders of the bonds of the 2.45% Series. Such covenants and provisions shall
remain in force and be applicable only so long as any bonds of the 2.45% Series shall be outstanding, and, subject to the provisions
of paragraph (2) of subdivision (c) of §10.01 of the Indenture, any such covenants and provisions may be modified with respect
to the bonds of the 2.45% Series with the consent, in writing or by vote at a bondholders’ meeting of the holders of sixty-six
and two-thirds per cent (66 2/3 %) of the principal amount of the bonds of the 2.45% Series at the time outstanding and without
the consent of the holders of any other bonds then outstanding under the Indenture; provided that no such consent shall
be effective to waive any past default under such covenants and provisions, and its consequences, unless the consent of the holders
of at least a majority in principal amount of all bonds then outstanding under the Indenture is obtained. Such covenants shall
be deemed to be additional covenants and none of them shall affect or derogate from, or relieve the Company from, its obligation
to comply with any of the other covenants, conditions, requirements or provisions of the Indenture or any other supplemental indenture.

 

    10 

     

    

 

SECTION 2.       
All terms contained in this supplemental indenture shall, except as specifically provided herein or except as the context
may otherwise require, have the meanings given to such terms in the Indenture.

 

SECTION 3.       
In case any one or more of the provisions contained in this supplemental indenture should be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect any other provision contained in this supplemental
indenture, and, to the extent, but only to the extent, that such provision is invalid, illegal or unenforceable, this supplemental
indenture shall be construed as if such provision had never been contained herein.

 

SECTION 4.       
The Trustee hereby accepts the trusts herein declared and provided upon the terms and conditions in the Indenture set
forth.

 

SECTION 5.       
This supplemental indenture may be executed in several counterparts, each of which shall be an original, and all collectively
but one instrument.

 

SECTION 6.       
In addition to the amendment provisions of the Indenture, the terms and conditions of this supplemental indenture and
the bonds of the 2.45% Series may be modified, amended or supplemented by the Company and the Trustee, without the consent of the
holders of the bonds of the 2.45% Series, and if not inconsistent with the Indenture, to cure ambiguities in this supplemental
indenture or the bonds of the 2.45% Series, or correct defects or inconsistencies in the provisions of this supplemental indenture
or the bonds of the 2.45% Series or to provide for such appropriate additional provisions in this supplemental indenture or the
bonds of the 2.45% Series as are necessary for certificated bonds to be issued in lieu of Global Securities or to reflect additional
provisions related to the issuance of Global Securities (including changes in the procedures of the Depositary).

 

    11 

     

    

 

 

IN WITNESS WHEREOF,
Duke Energy Carolinas, LLC, the party of the first part hereto, has caused this supplemental indenture to be signed in its name
by one of its Senior Vice Presidents and its company seal to be hereunto affixed, and the same to be attested by one of its Assistant
Secretaries, and The Bank of New York Mellon Trust Company, N.A., the party of the second part hereto, in token of its acceptance
of the trust hereby created, has caused this supplemental indenture to be signed in its name by one of its Vice Presidents and
its company seal to be hereunto affixed, and the same to be attested by one of its Vice Presidents, all as of the day and year
first above written.

 

	 	DUKE
    ENERGY CAROLINAS, LLC
	 	 	 
	 	By:  	/s/
    Karl W. Newlin
	 	 	Name:  	Karl
    W. Newlin
	 	 	Title:	Senior
    Vice President, Corporate Development and Treasurer

 

	ATTEST:	 
	 	 
	/s/ Robert T. Lucas III	 
	Name:  	Robert
    T. Lucas III	 
	Title:	Assistant
    Secretary	 
	 	 
	Signed, sealed, executed, acknowledged	 
	and delivered by Duke Energy	 
	Carolinas, LLC, in the presence of:	 
	 	 
	/s/ Carol Melendez	 
	Carol Melendez	 
	 	 
	/s/ Aloma M. Felder	 
	Aloma M. Felder	 

 

[COMPANY’S SIGNATURE PAGE]

[ONE-HUNDRED AND THIRD SUPPLEMENTAL INDENTURE

TO THE DUKE ENERGY CAROLINAS, LLC FIRST AND REFUNDING MORTGAGE

DATED AS OF DECEMBER 1, 1927]

 

     

     

    

 

	 	The
    Bank of New York Mellon Trust Company, N.A.,
 as Trustee
	 	 	 
	 	By:  	/s/
    Mitchell L. Brumwell
	 	 	Name:  	Mitchell
    L. Brumwell
	 	 	Title:	Vice
    President

 

	ATTEST:	 
	 	 
	/s/
    Robert W. Hardy	 
	Name:  	Robert
    W. Hardy	 
	Title:	Vice
    President	 
	 	 
	Signed,
    sealed, executed,
 acknowledged and delivered by The Bank of New York	 
	Mellon
    Trust Company, N.A.,	 
	in
    the presence of:	 
	 	 
	/s/
    Lawrence M. Kusch	 
	Name:	 Lawrence M. Kusch	 
	 	 
	/s/
    Robert Castle	 
	Name:
    Robert Castle	 

 

[TRUSTEE’S SIGNATURE PAGE]

[ONE-HUNDRED AND THIRD SUPPLEMENTAL INDENTURE

TO THE DUKE ENERGY CAROLINAS, LLC FIRST AND REFUNDING MORTGAGE

DATED AS OF DECEMBER 1, 1927]

 

     

     

    

 

	State of Illinois	)	 
	 	) 	ss.:
	County of Cook	)	 

 

Personally appeared before me, Lawrence
M. Kusch, and made oath that he is not a party to or beneficiary of the transaction and that he saw Mitchell L. Brumwell, a Vice
President and Robert W. Hardy, a Vice President, respectively, of The Bank of New York Mellon Trust Company, N.A., sign, attest
and affix hereto the corporate seal of said The Bank of New York Mellon Trust Company, N.A., and, as the act and deed of said corporation,
deliver the within written and foregoing deed, and that he, with Robert Castle, witnessed the execution thereof.

 

	 	/s/
    Larence M. Kusch
	 	Name:  	Lawrence
    M. Kusch 
	 	 	 
	 

     	Sworn
    and subscribed before me

    this 6th day of January, 2020.
	 	 	 
	 	/s/
    Mietka Collins
	 	Name:	Mietka
    Collins
	 	Notary
    Public – State of Illinois
	 	Commission
    Expires 11/28/2022

 

	State
    of Illinois	)	 
		)	ss.:
	County
    of Cook	)	 

 

I, Mietka Collins, a Notary Public in and
for the State aforesaid, certify that Robert W. Hardy personally came before me this day and acknowledged that he is a Vice President
of The Bank of New York Mellon Trust Company, N.A., a national banking association, and that, by authority duly given and as the
act of the corporation, the foregoing instrument was signed in its name by one of its Vice Presidents, sealed with its corporate
seal, and attested by himself as one of its Vice Presidents.

 

Witness may hand and official seal, this
6th day of January, 2020.

 

 

	 	/s/ Mietka Collins
	 	Name:  	Mietka Collins
	 	Notary Public – State of Illinois
	 	Commission Expires 11/28/2022

 

     

     

    

 

	State
    of North Carolina	)	 
		)	ss.:
	County
    of Mecklenburg	)	 

 

I, Phoebe P. Elliot, a Notary Public in
and for the State and County aforesaid, certify that Carol Melendez personally appeared before me this day, and being duly sworn,
stated that she is not a party to or beneficiary of the transaction and that in her presence Karl W. Newlin, Senior Vice President,
Corporate Development and Treasurer of Duke Energy Carolinas, LLC, executed the foregoing instrument, and that she, with Aloma
M. Felder, witnessed the execution thereof.

 

Witness my hand and official seal, this
8th day of January, 2020.

 

	 	/s/
    Carol Melendez
	 	Carol
    Melendez
	 	 	 
	 	/s/
    Phoebe P. Elliot
	 	Name:  	Phoebe
    P. Elliot
	 	Notary
    Public, State of North Carolina
	 	Mecklenburg
    County
	 	My
    Commission Expires: June 26, 2021

 

	State
    of North Carolina	)	 
		)	ss.:
	County
of Mecklenburg	)	 
	 	 	 

I, Phoebe P. Elliot, a Notary Public in
and for the State and County aforesaid, certify that Robert T. Lucas III personally came before me this day and acknowledged that
he is an Assistant Secretary of Duke Energy Carolinas, LLC, a North Carolina limited liability company, and that, by authority
duly given and as the act of the company, the foregoing instrument was signed in its name by one of its Senior Vice Presidents,
sealed with its seal, and attested by himself as one of its Assistant Secretaries.

 

Witness my hand and official seal, this
8th day of January, 2020.

 

	 	 	 
	 	/s/
    Phoebe P. Elliot
	 	Name:  	Phoebe
    P. Elliott
	 	Notary
    Public, State of North Carolina
	 	Mecklenburg
    County
	 	My
    Commission Expires: June 26, 2021

 

     

     

    

  

EXHIBIT
A

 

FORM
OF DUKE ENERGY CAROLINAS, LLC

FIRST AND REFUNDING MORTGAGE BOND, 2.45% SERIES DUE 2030

 

[FACE
SIDE OF BOND]

 

[DEPOSITORY
LEGEND, IF APPLICABLE]

DUKE ENERGY CAROLINAS, LLC

 

FIRST
AND REFUNDING MORTGAGE BOND,

2.45% SERIES DUE 2030

 

	No.	 	$
	CUSIP No.	26442C BA1	 
	ISIN	US26442CBA18	 

 

Duke Energy Carolinas,
LLC, a North Carolina limited liability company (hereinafter called the “Company”), for value received, hereby promises
to pay to                                   
or registered assigns, the principal sum of           Dollars on February 1, 2030 in any coin or currency of the United States of America
which at the time of payment shall be legal tender for the payment of public and private debts, at the office or agency of the
Company in the Borough of Manhattan, The City of New York, and to pay interest thereon at said office or agency from the interest
payment date next preceding the date hereof to which interest on outstanding bonds of this series has been paid (unless the date
hereof is prior to August 1, 2020, in which case from January 8, 2020, and unless the date hereof is subsequent to a record date
(as defined below) and prior to the next succeeding February 1 or August 1, in which case from the next succeeding February 1 or
August 1 as the case may be), at the rate of 2.45% per annum, in like coin or currency, semi-annually on February 1 and August
1, in each year, commencing August 1, 2020, until the principal hereof shall become due and payable. Such interest payments shall
be made to the person in whose name this bond is registered at the close of business on the record date (as defined below) for
such interest payment date, which will be (i) the close of business on the business day immediately preceding such interest payment
date so long as the bonds of the 2.45% Series remain in book-entry only form or (ii) the close of business on the fifteenth calendar
day, whether or not a business day, immediately preceding such interest payment date if any of the bonds of the 2.45% Series do
not remain in book-entry only form (each of (i) or (ii), a “record date”) (subject to certain exceptions provided in
the Indenture hereinafter mentioned), at his last address as it shall appear upon the bond register of the Company.

 

The provisions of this
bond are continued on the reverse hereof and such continued provisions shall for all purposes have the same effect as though fully
set forth in this place.

 

This bond shall not
become or be valid or obligatory for any purpose until the Trustee shall have signed the form of certificate endorsed hereon.

 

    A-1

     

    

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be signed in its name by its President or one of its Vice Presidents, manually or by
facsimile signature, and its company seal to be hereto affixed, or a facsimile thereof to be hereon engraved, lithographed or printed,
and to be attested by the manual or facsimile signature of its Secretary or one of its Assistant Secretaries.

 

Dated:

  

	 	DUKE ENERGY CAROLINAS, LLC
	 	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:
	 	 	 
	ATTEST:		 
	 	 	 
	 	 	 
	Name:		 
	Title:		 

 

    A-2

     

    

 

 

CERTIFICATE
OF AUTHENTICATION

 

This bond is one of
the bonds, of the series designated therein, described in the within-mentioned Indenture.

 

	 	The Bank of New York Mellon Trust
    Company, N.A.,
 as Trustee
	 	 	 
	 	By:  	 
	 	 	Authorized
    Signatory

 

    A-3

     

    

 

[REVERSE
SIDE OF BOND]

 

This bond is one of
the bonds of a series, designated specially as First and Refunding Mortgage Bonds, 2.45% Series due 2030, of an authorized issue
of bonds of the Company, without limit as to aggregate principal amount, designated generally as First and Refunding Mortgage Bonds,
all issued and to be issued under and equally and ratably secured by a First and Refunding Mortgage dated as of December 1, 1927,
duly executed by Duke Power Company, a New Jersey corporation (hereinafter called the “New Jersey Company”), to Guaranty
Trust Company of New York, as Trustee (The Bank of New York Mellon Trust Company, N.A., as successor trustee), as supplemented
and modified by indentures supplemental thereto, including a supplemental indenture dated as of January 8, 2020 providing for said
series (said First and Refunding Mortgage as so supplemented and modified being hereinafter referred to as the “Indenture”),
to which Indenture reference is made for a description of the property mortgaged, the nature and extent of the security, the rights
of the holders of the bonds in respect thereof, the terms and conditions upon which the bonds are secured and the restrictions
subject to which additional bonds secured thereby may be issued. To the extent permitted by, and as provided in, the Indenture,
modifications or alterations of the Indenture, or of any indenture supplemental thereto, and of the rights and obligations of the
Company and of the holders of the bonds, may be made with the consent of the Company by the affirmative vote, or with the written
consent, of the holders of not less than 66 2/3% in principal amount of the bonds then outstanding, and by the affirmative vote,
or with the written consent, of the holders of not less than 66 2/3% in principal amount of the bonds of any series then outstanding
and affected by such modification or alteration, in case one or more but less than all of the series of bonds then outstanding
under the Indenture are so affected, evidenced, in each case, as provided in the Indenture; provided that any supplemental
indenture may be modified in accordance with the provisions contained therein for its modification; and provided, further, that
no such modification or alteration shall be made which will affect the terms of payment of the principal of, or interest or premium
on, this bond, or the right of any bondholder to institute suit for the enforcement of any such payment on or after the respective
due dates expressed in this bond, or reduce the percentage required for the taking of any such action. Any such affirmative vote
of, or written consent given by, any holder of this bond is binding upon all subsequent holders hereof as provided in the Indenture.

 

In case an event of
default as defined in the Indenture shall occur, the principal of all the bonds outstanding thereunder may become or be declared
due and payable at the time, in the manner and with the effect provided in the Indenture.

 

At any time before
November 1, 2029 (the “Par Call Date”), the bonds of this series may be redeemed at the option of the Company, in whole
or in part and from time to time, at a redemption price equal to the greater of (1) 100% of the principal amount of the bonds
of this series to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest
on such bonds being redeemed that would be due if the bonds of this series matured on the Par Call Date (exclusive of interest
accrued to the redemption date), discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate plus 12.5 basis points, plus, in either case, accrued and unpaid interest on the principal
amount of the bonds of this series being redeemed to, but excluding, the date of such redemption.

 

At any time on or after
the Par Call Date, the bonds of this series may be redeemed at the option of the Company, in whole or in part and from time to
time, at a redemption price equal to 100% of the principal amount of the bonds of this series to be redeemed plus accrued and unpaid
interest on the principal amount being redeemed to, but excluding, the date of such redemption.

 

“Business day” means
any day other than a day on which banks in New York City are required or authorized to be closed.

 

    A-4

     

    

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable
to the remaining term of the bonds of this series to be redeemed (assuming, for this purpose, that the bonds of this series matured
on the Par Call Date), that would be utilized at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such bonds.

 

“Comparable Treasury Price”
means, with respect to any redemption date, (A) the average of the Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer
than four of such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations as determined
by the Company.

 

“Quotation Agent”
means one of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury Dealer”
means each of (i) BofA Securities, Inc., Citigroup Global Markets Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC,
and (ii) a Primary Treasury Dealer (as defined below) selected by each of MUFG Securities Americas Inc. and SMBC Nikko Securities
America, Inc.; or, in each case, their respective affiliates or successors, each of which is a primary U.S. Government securities
dealer in the United States (a “Primary Treasury Dealer”); provided, however, that if any of the foregoing or their
affiliates or successors shall cease to be a Primary Treasury Dealer, the Company shall substitute therefor another Primary Treasury
Dealer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by
the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time,
on the third business day preceding such redemption date.

 

“Treasury Rate” means,
with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity
(on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

The bonds of this series
are also subject to redemption for the Replacement Fund for bonds of this series provided for in the supplemental indenture dated
as of January 8, 2020, providing for this series, or upon application of moneys arising from a taking of any of the mortgaged property
by eminent domain or similar action, at any time or from time to time prior to maturity, at 100% of their principal amount, in
each case together with accrued and unpaid interest to, but excluding, the date fixed for redemption.

 

Redemption is in every
case to be effected at the office or agency of the Company in the Borough of Manhattan, The City of New York, upon at least ten,
but not more than sixty, days’ prior notice, given by mail as more fully provided in the Indenture.

 

If this bond or any
portion hereof ($2,000 and integral multiples of $1,000 in excess thereof) is called for redemption and payment is duly provided,
this bond or such portion thereof shall cease to bear interest from and after the date fixed for such redemption.

 

    A-5

     

    

 

This bond is
transferable, as provided in the Indenture, by the registered owner hereof in person or by duly authorized attorney, at the
office or agency of the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this
bond, and thereupon a new bond of the same series and of like aggregate principal amount will be issued to the transferee in
exchange herefor as provided in the Indenture; or the registered owner of this bond, at his option, may surrender the same
for cancellation at said office or agency of the Company and receive in exchange herefor the same aggregate principal amount
of bonds of the same series of authorized denominations; all subject to the terms of the Indenture but without payment of any
charges other than a sum sufficient to reimburse the Company for any stamp taxes or other governmental charges incident
thereto.

 

This bond is a company
obligation only and no recourse whatsoever, either directly or through the Company or any trustee, receiver, assignee or any other
person, shall be had for the payment of the principal of or premium, if any, or interest on this bond, or for the enforcement of
any claim based hereon, or otherwise in respect hereof or of the Indenture, against any promoter, subscriber to the capital stock,
incorporator, or any past, present or future stockholder, member, officer or director of the Company as such, or of any successor
or predecessor corporation or entity, whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement
of any assessment, penalty, subscription or otherwise, any and all such liability of promoters, subscribers, incorporators, stockholders,
members, officers and directors being waived and released by each successive holder hereof by the acceptance of this bond, and
as a part of the consideration for the issue hereof, and being likewise waived and released by the terms of the Indenture.

 

[END
OF BOND FORM]

 

    A-6

     

    

 

ABBREVIATIONS

 

The following abbreviations, when used
in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable
laws or regulations:

 

	TEN COM — as tenants in common	 	
        UNIF GIFT MIN ACT -
	 	Custodian
	 
	 	 	 	(Cust) 	 	(Minor)
	 	 	 
	TEN ENT — as tenants by the entireties	 	 
	 	 	 
	 	 	 
	JT TEN — as joint tenants with rights of survivorship and not as tenants in common	 	 	
        under Uniform Gifts to Minors Act

	 	 	 	(State)

 

Additional abbreviations may also be used
though not on the above list.

 

FOR VALUE RECEIVED, the undersigned hereby
sell(s) and transfer(s) unto (please insert Social Security or other identifying number of assignee)

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING
POSTAL ZIP CODE OF ASSIGNEE

 

the within bond and all rights thereunder,
hereby irrevocably constituting and appointing agent to transfer said bond on the books of the Company, with full power of substitution
in the premises.

 

	Dated:  	 	 	 	 
	 	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.
	 	 	 	 
	 	 	 	 
	 	 	Signature
    Guarantee:  	 

 

    A-7

     

    

 

SIGNATURE
GUARANTEE

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of the Trustee, which requirements include
membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Trustee in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 

    A-8

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