Document:

Exhibit 4.1

 

	 
	 
	DUKE ENERGY CORPORATION
	 
	TO
	 
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

	Trustee
	 
	 	 	 

 

	Twenty-sixth Supplemental Indenture
 Dated as of September 28, 2021
	 
	 	 	 

 

	$500,000,000 3.250% FIXED-TO-FIXED RESET RATE JUNIOR SUBORDINATED DEBENTURES DUE 2082
	 
	 

 

     

     

    

 

TABLE OF CONTENTS1

 

ARTICLE I

 

3.250% FIXED-TO-FIXED RESET RATE JUNIOR SUBORDINATED DEBENTURES DUE 2082

 

	Section 1.01.	Establishment	1
	 
	Section 1.02.	Definitions	2
	 
	Section 1.03.	Payment of Principal and Interest	 5
	 
	Section 1.04.	Deferral of Interest Payments	5
	 
	Section 1.05.	Denominations	6
	 
	Section 1.06.	Global Securities	6
	 
	Section 1.07.	Optional Redemption	7
	 
	Section 1.08.	Subordination	8
	 
	Section 1.09.	Paying Agent and Security Registrar	8
	 
	Section 1.10.	Calculation Agent	8

 

ARTICLE II

COVENANT; EVENTS OF DEFAULT; AMENDMENTS

 

	Section 2.01.	Dividend and Other Payment Stoppages	9
	 
	Section 2.02.	Events of Default	10
	 
	Section 2.03.	Conforming Amendments	11

 

ARTICLE III

MISCELLANEOUS PROVISIONS

 

	Section 3.01.	Recitals by the Corporation	11
	 
	Section 3.02.	Ratification and Incorporation of Original Indenture	11
	 
	Section 3.03.	Tax Treatment	11
	 
	Section 3.04.	Instructions to Trustee	11
	 
	Section 3.05.	Executed in Counterparts; Electronic Signatures	12

 

	Exhibit A	–	Form of 3.250% Fixed-to-Fixed Reset Rate Junior Subordinated Debenture Due 2082
	Exhibit B	–	Certificate of Authentication

 

 

1 This Table of
Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

 

    i 

     

    

 

 

THIS TWENTY-SIXTH SUPPLEMENTAL
INDENTURE is made as of the 28th day of September, 2021, by and between DUKE ENERGY CORPORATION, a Delaware corporation,
having its principal office at 550 South Tryon Street, Charlotte, North Carolina 28202-1803 (the “Corporation”), 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,
as Trustee (herein called the “Trustee”).

 

WITNESSETH:

 

WHEREAS, the Corporation
has heretofore entered into an Indenture, dated as of June 3, 2008 (the “Original Indenture”), with The Bank of New York Mellon
Trust Company, N.A., as Trustee;

 

WHEREAS, the Original
Indenture is incorporated herein by this reference and the Original Indenture, as it may be amended and supplemented to the date hereof,
including by this Twenty-sixth Supplemental Indenture, is herein called the “Indenture”;

 

WHEREAS, under the
Indenture, a new series of Securities may at any time be established in accordance with the provisions of the Indenture and the terms
of such series may be described by a supplemental indenture executed by the Corporation and the Trustee;

 

WHEREAS, the Corporation
hereby proposes to create under the Indenture an additional series of Securities;

 

WHEREAS, additional
Securities of other series hereafter established, except as may be limited in the Indenture as at the time supplemented and modified,
may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and

 

WHEREAS, all conditions
necessary to authorize the execution and delivery of this Twenty-sixth Supplemental Indenture and to make it a valid and binding obligation
of the Corporation have been done or performed.

 

NOW, THEREFORE, in
consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE
I

 

3.250% FIXED-to-FIxed Reset Rate JUNIOR SUBORDINATED DEBENTURES DUE 2082

 

Section 1.01.     
Establishment. There is hereby established a new series of Securities to be issued under the Indenture, to be designated
as the Corporation’s 3.250% Fixed-to-Fixed Reset Rate Junior Subordinated Debentures due 2082 (the “Debentures”).

 

There are to be authenticated
and delivered initially $500,000,000 principal amount of the Debentures, and no further Debentures shall be authenticated and delivered
except as provided by Section 304, 305, 306, 906 or 1106 of the Original Indenture and the last paragraph of Section 301 thereof. 
The Debentures shall be issued in fully registered form without coupons.

 

     

     

    

 

The Debentures shall be in
substantially the form set out in Exhibit A hereto, and the form of the Trustee’s Certificate of Authentication for the Debentures
shall be in substantially the form set forth in Exhibit B hereto.

 

Each Debenture shall be dated
the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest
Payment Date to which interest has been paid or duly provided for.

 

Section 1.02.     
Definitions. The following defined terms used in this Article I shall, unless the context otherwise requires, have
the meanings specified below for purposes of the Debentures.  Capitalized terms used herein for which no definition is provided herein
shall have the meanings set forth in the Original Indenture.

 

“Additional Interest”
has the meaning set forth in Section 104.

 

“Business Day”
means a day other than (i) a Saturday or Sunday, (ii) a day on which banks in New York, New York are authorized or obligated by law or
executive order to remain closed or (iii) a day on which the Corporate Trust Office is closed for business.

 

“Calculation Agent”
means the Corporation, an Affiliate of the Corporation selected by the Corporation, or any other firm appointed by the Corporation, in
each case, in the Corporation’s sole discretion, acting as calculation agent in respect of the Debentures.

 

“Capital Stock”
means (i) with respect to any Person organized as a corporation, any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interest in (however designated) corporate stock, and (ii) with respect to any Person that
is not organized as a corporation, the partnership, membership or other equity interests or participations in such Person.

 

“Five-Year
Treasury Rate” means, as of any Reset Interest Determination Date, the average of the yields on actively traded U.S. Treasury securities
adjusted to constant maturity, for five-year maturities, for the most recent five Business Days appearing under the caption “Treasury
Constant Maturities” in the Most Recent H.15. If the Five-Year Treasury Rate cannot be determined pursuant to the preceding sentence,
the Calculation Agent, after consulting such sources as it deems comparable to any of the foregoing calculations, or any such source as
it deems reasonable from which to estimate the Five-Year Treasury Rate, will determine the Five- Year Treasury Rate in its sole discretion,
provided that if the Calculation Agent determines there is an industry-accepted successor Five-Year Treasury Rate, then the Calculation
Agent will use such successor rate. If the Calculation Agent has determined a substitute or successor base rate in accordance with the
foregoing, the Calculation Agent in its sole discretion may determine the business day convention, the definition of “Business Day”
and the Reset Interest Determination Date to be used and any other relevant methodology for calculating such substitute or successor base
rate, including any adjustment factor needed to make such substitute or successor base rate comparable to the Five-Year Treasury Rate,
in a manner that is consistent with industry-accepted practices for such substitute or successor base rate.

 

    2 

     

    

 

“H.15”
means the daily statistical release designated as such, or any successor publication as determined by the Calculation Agent in its sole
discretion, published by the Board of Governors of the Federal Reserve System.

 

“Initial
Interest Reset Date” means January 15, 2027.

 

“Interest Payment Date”
means January 15 and July 15 of each year, commencing on January 15, 2022.

 

“Interest Reset Date”
means the Initial Interest Reset Date and each date falling on the five-year anniversary of the preceding Interest Reset Date.

 

“Interest Reset Period”
means the period from and including the Initial Interest Reset Date to, but not including, the next following Interest Reset Date and
thereafter each period from and including each Interest Reset Date to, but not including, the next following Interest Reset Date.

 

“Most Recent H.15”
means the H.15 published closest in time but prior to the close of business on the applicable Reset Interest Determination Date.

 

“Optional Deferral Period”
has the meaning set forth in Section 1.04.

 

“Original Issue Date”
means September 28, 2021.

 

“Rating Agency Event”
means a change to the methodology or criteria that were employed by an applicable nationally recognized statistical rating organization
for purposes of assigning equity credit to securities such as the Debentures on the Original Issue Date (the “current methodology”),
which change either (i) shortens the period of time during which equity credit pertaining to the Debentures would have been in effect
had the current methodology not been changed, or (ii) reduces the amount of equity credit assigned to the Debentures as compared
with the amount of equity credit that such rating agency had assigned to the Debentures as of the Original Issue Date.

 

“Redemption Date,”
when used with respect to any Debenture to be redeemed, means the date fixed for such redemption by or pursuant to this Twenty-sixth Supplemental
Indenture.

 

“Regular Record Date”
means, with respect to each Interest Payment Date, the close of business (i) on the Business Day immediately preceding such Interest Payment
Date if any Debentures are issuable in the form of one or more Global Securities or (ii) on the 15th calendar day preceding such Interest
Payment Date if no Debentures are issuable in the form of one or more Global Securities (whether or not a Business Day).

 

“Rights Plan”
means a plan of the Corporation providing for the issuance by the Corporation to all holders of its common stock of rights entitling the
holders thereof to subscribe for or purchase shares of its common stock or any class or series of preferred stock, which rights (i) are
deemed to be transferred with such shares of common stock, (ii) are not exercisable and (iii) are also issued in respect of
future issuances of its common stock, in each case until the occurrence of a specified event or events.

 

    3 

     

    

 

“Reset Interest Determination
Date” means, in respect of any Interest Reset Period, the day falling two Business Days prior to the beginning of such Interest
Reset Period.

 

“Special Record Date”
means the Regular Record Date with respect to the Interest Payment Date at the end of (that is, on the day next succeeding the conclusion
of) an Optional Deferral Period.

 

“Stated Maturity”
means January 15, 2082.

 

“Subsidiary” means,
at any time, any Person the shares of stock or other ownership interests of which ordinarily have voting power to elect a majority of
the board of directors or other managers of such Person, are at the time owned or the management and policies of which are otherwise at
the time controlled, directly or indirectly through one or more intermediaries (including other Subsidiaries) or both, by another Person.

 

“Tax Event” means
receipt by the Corporation of an opinion of counsel experienced in such matters to the effect that, as a result of:

 

		(a)	any amendment to, clarification of, or change, including any announced prospective change, in the laws
or treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties;

 

		(b)	an administrative action, which means any judicial decision or any official administrative pronouncement,
ruling, regulatory procedure, notice or announcement including any notice or announcement of intent to issue or adopt any administrative
pronouncement, ruling, regulatory procedure or regulation;

 

		(c)	any amendment to, clarification of, or change in the official position or the interpretation of any administrative
action or judicial decision or any interpretation or pronouncement that provides for a position with respect to an administrative action
or judicial decision that differs from the previously generally accepted position, in each case by any legislative body, court, governmental
authority or regulatory body, regardless of the time or manner in which that amendment, clarification or change is introduced or made
known; or

 

		(d)	a threatened challenge asserted in writing in connection with an audit of the Corporation or an audit
of any of the Subsidiaries of the Corporation, or a publicly-known threatened challenge asserted in writing against any other taxpayer
that has raised capital through the issuance of securities that are substantially similar to the Debentures, which amendment, clarification, or change is effective
or the administrative action is taken or judicial decision, interpretation or pronouncement is issued or threatened challenge is asserted
or becomes publicly known after September 23, 2021, there is more than an insubstantial risk that interest payable by the Corporation
on the Debentures is not deductible, or within 90 days would not be deductible, in whole or in part, by the Corporation for United States
federal income tax purposes.

 

    4 

     

    

 

Section
1.03.      Payment of Principal and Interest. The principal of the Debentures shall be due at the Stated
Maturity (unless earlier redeemed). Except as otherwise set forth in Section 1.04, the Debentures will bear interest (i) from and
including the Original Issue Date to but excluding the Initial Interest Reset Date at the rate of 3.250% per annum and (ii) from and
including the Initial Interest Reset Date, during each Interest Reset Period, at the rate equal to the Five-Year Treasury Rate as of
the most recent Reset Interest Determination Date, plus 2.321% per annum. Subject to Section 1.04 hereof, interest shall be paid
semi-annually in arrears on each Interest Payment Date to the Person or Persons in whose name the Debentures are registered on the Regular
Record Date for such Interest Payment Date; provided that interest payable at the Stated Maturity or on a Redemption Date as provided
herein shall be paid to the Person to whom principal is payable.  So long as an Optional Deferral Period is not occurring, any such
interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record
Date and may either be paid to the Person or Persons in whose name the Debentures are registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Debentures
not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange, if any, on which the Debentures shall be listed, and upon such notice as may be required
by any such exchange, all as more fully provided in the Original Indenture.

 

Payments
of interest on the Debentures shall include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments
for the Debentures shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months.  In the event that
any date on which interest is payable on the Debentures is not a Business Day, then payment of the interest payable on such date shall
be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the
same force and effect as if made on the date the payment was originally payable.

 

Payment of principal of, premium,
if any, and interest (including Additional Interest) on the Debentures shall be made in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  Payments of principal of, premium, if
any, and interest (including Additional Interest) on Debentures represented by a Global Security shall be made by wire transfer of immediately
available funds to the Holder of such Global Security. If any of the Debentures are no longer represented by a Global Security, (i) payments
of principal, premium, if any, and interest (including Additional Interest) due at the Stated Maturity or earlier redemption of such Debentures
shall be made at the office of the Paying Agent upon surrender of such Debentures to the Paying Agent and (ii) payments of interest
shall be made, at the option of the Corporation, subject to such surrender where applicable, by (A) check mailed to the address of
the Person entitled thereto as such address shall appear in the Security Register or (B) 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 for payment by the Person entitled thereto.

 

Section
1.04.     Deferral of Interest Payments. So long as no Event of Default with respect to the Debentures has
occurred and is continuing, the Corporation shall have the right on one or more occasions, to defer payment of all or part of the current
and accrued interest otherwise due on the Debentures by extending the interest payment period for up to ten (10) consecutive years (each
period, commencing on the date that the first such interest payment would otherwise have been made, an “Optional Deferral Period”).
A deferral of interest payments may not extend beyond the Stated Maturity or end on a day other than an Interest Payment Date. Any deferred
interest on the Debentures will accrue additional interest at the rate then applicable to the Debentures from the applicable Interest
Payment Date to the date of payment, compounded semi- annually (such deferred interest and additional interest accrued thereon, “Additional
Interest”), to the extent permitted under applicable law. No interest shall be due and payable during an Optional Deferral Period,
except at the end of such Optional Deferral Period or upon a redemption of the Debentures during such Optional Deferral Period.

 

    5 

     

    

 

So long as no Event of Default
has occurred and is continuing, prior to the termination of any Optional Deferral Period, the Corporation may further defer the payment
of interest by extending such Optional Deferral Period; provided that such Optional Deferral Period together with all such previous and
further deferrals of interest payments shall not exceed ten (10) consecutive years at any one time or extend beyond the Stated Maturity.
Upon the termination of any Optional Deferral Period, which shall be an Interest Payment Date, the Corporation shall pay all interest
accrued and unpaid on the Debentures, including any Additional Interest, to the Person in whose name the Debentures are registered on
the Regular Record Date for such Interest Payment Date, provided that interest accrued and unpaid on the Debentures, including any Additional
Interest, payable at Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable. Once the Corporation
pays all interest accrued and unpaid on the Debentures, including any Additional Interest, it shall be entitled again to defer interest
payments on the Debentures as described above.

 

If the Corporation shall fail
to pay interest on the Debentures on any Interest Payment Date, the Corporation shall be deemed to have elected to defer payment of such
interest for the interest payment period immediately preceding such Interest Payment Date, unless the Corporation shall pay such interest
in full within five Business Days after any such Interest Payment Date. 

 

Section 1.05.     
Denominations. The Debentures shall be issued in denominations of 2,000 or any integral multiple of $1,000 in excess thereof.

 

Section
1.06.      Global Securities. The Debentures 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, Debentures represented by such Global Security
or Global Securities shall not be exchangeable for, and shall not otherwise be issuable as, Debentures in definitive form. The
Global Securities described in this Article I 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.

 

A
Global Security representing the Debentures shall be exchangeable for Debentures registered in the names of persons other than the Depositary
or its nominee only if (i) the Depositary notifies the Corporation 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 Corporation within 90 days of receipt by the Corporation
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
Corporation within 90 days after it becomes aware of such cessation, (ii) an Event of Default has occurred and is continuing with
respect to the Debentures and beneficial owners of a majority in aggregate principal amount of the Debentures represented by Global Securities
advise the Depositary to cease acting as Depositary, or (iii) the Corporation 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 Debentures registered in such names as the Depositary shall direct.

 

    6 

     

    

 

Section 1.07.     
Optional Redemption. At any time and from time to time during any period from and including the October 15 immediately preceding
an Interest Reset Date through and including such Interest Reset Date, the Debentures will be subject to redemption at the option of the
Corporation, in whole or in part, at a redemption price equal to 100% of the principal amount of the Debentures being redeemed plus accrued
and unpaid interest (including any Additional Interest) on the principal amount of the Debentures being redeemed to, but excluding, such
Redemption Date.

 

In addition, the Debentures
may be redeemable, in whole but not in part, at the option of the Corporation, by a notice of redemption delivered by or on behalf of
the Corporation pursuant to Section 1104 of the Original Indenture (except as otherwise provided below), following the occurrence
of a Tax Event, at a redemption price equal to 100% of the principal amount of such Debentures being redeemed plus accrued and unpaid
interest (including any Additional Interest) on the principal amount of the Debentures being redeemed to, but excluding, such Redemption
Date.

 

In addition, the Debentures
may be redeemable, in whole but not in part, at the option of the Corporation, by a notice of redemption delivered by or on behalf of
the Corporation pursuant to Section 1104 of the Original Indenture (except as otherwise provided in the immediately succeeding paragraph),
following the occurrence of a Rating Agency Event, at a redemption price equal to 102% of the principal amount of such Debentures being
redeemed plus accrued and unpaid interest (including any Additional Interest) on the principal amount of the Debentures being redeemed
to, but excluding, such Redemption Date.

 

Notice of any redemption by
the Corporation will be mailed (or, as long as the Debentures are represented by one or more Global Securities, transmitted in accordance
with the Depositary’s standard procedures therefor) at least 10 days but not more than 60 days before any Redemption Date to each
Holder of Debentures to be redeemed.

 

If less than all of the Debentures
are to be redeemed, the Trustee shall select the Debentures or portions of Debentures to be redeemed by such method as the Trustee shall
deem fair and appropriate.  The Trustee may select for redemption Debentures and portions of Debentures in amounts of $2,000 or any
integral multiple of $1,000 in excess thereof.  As long as the Debentures are represented by Global Securities, beneficial interests
in such Debentures shall be selected for redemption by the Depositary in accordance with its standard procedures therefor.

 

The Debentures shall not have
a sinking fund.

 

    7 

     

    

 

Section
1.08.      Subordination.  The Debentures are designated as Subordinated Securities under the Indenture
and the provisions of Article Fifteen of the Original Indenture shall apply to the Debentures, provided that, for the purposes
of such Article Fifteen as it applies to the Debentures, (a) the term “Senior Indebtedness” will not include (i) any
indebtedness which by its terms ranks equally with the Debentures in right of payment, including guarantees of such indebtedness, (ii) any
indebtedness which by its terms is subordinated to the Debentures in right of payment, which shall rank junior in right of payment to
the Debentures, (iii) any indebtedness owed by the Corporation to trade creditors incurred in connection with the purchase of goods,
materials or services obtained in the ordinary course of business, which shall rank equally in right of payment with the Debentures,
(iv) indebtedness owed by the Corporation to its Subsidiaries, which shall rank equally in right of payment with the Debentures
or (v) indebtedness owed by the Corporation to its employees, which shall rank equally in right of payment with the Debentures,
and (b) the first sentence of the second paragraph of Section 1502 of the Original Indenture shall not apply to the Debentures
and the following shall apply to the Debentures as if included in the Original Indenture in lieu thereof:

 

“Subject to the payment in full,
in money or money’s worth, of all Senior Indebtedness, the Holders of the Subordinated Securities (together with the holders of
any indebtedness of the Corporation which is subordinate in right of payment to the payment in full of all Senior Indebtedness and which
is not subordinate in right of payment to the Subordinated Securities) shall be subrogated to the rights of the holders of Senior Indebtedness
to receive payments or distribution of assets or securities of the Corporation applicable to Senior Indebtedness until the principal of
(and premium, if any) and interest on the Subordinated Securities shall be paid in full.”

 

Section 1.09.     
Paying Agent and Security Registrar. The Trustee shall initially serve as Paying Agent and Security Registrar with respect
to the Debentures, with the Place of Payment initially being the Corporate Trust Office.

 

Section 1.10.     
Calculation Agent. Unless the Corporation has redeemed all of the outstanding Debentures as of the Initial Interest Reset
Date, the Corporation shall appoint the Calculation Agent prior to the Reset Interest Determination Date preceding the Initial Interest
Reset Date. The Corporation or any of its Affiliates may assume the duties of the Calculation Agent. The applicable interest rate for
each Interest Reset Period will be determined by the Calculation Agent as of the applicable Reset Interest Determination Date. If the
Corporation or one of its Affiliates is not the Calculation Agent, the Calculation Agent shall notify the Corporation of the interest
rate for the relevant Interest Reset Period promptly upon such determination. The Corporation shall notify the Trustee of such interest
rate, promptly upon making or being notified of such determination. The Calculation Agent’s determination of any interest rate and
its calculation of the amount of interest for any Interest Reset Period beginning on or after the Initial Interest Reset Date will be
conclusive and binding absent manifest error, will be made in the Calculation Agent’s sole discretion and, notwithstanding anything
to the contrary in the Indenture, will become effective without consent from any other person or entity. Such determination of any interest
rate and calculation of the amount of interest shall be on file at the Corporation’s principal office and shall be made available
to any Holder upon request.

 

In no event shall the Trustee
be the Calculation Agent, nor shall it have any liability for any determination made by or on behalf of the Calculation Agent. In no event
shall the Trustee be responsible for determining any substitute or successor base rate, the business day convention or the definition
of “Business Day” and the Reset Interest Determination Date to be used and any other relevant methodology for calculating
such substitute or successor base rate. In connection with the foregoing, the Trustee will be entitled to conclusively rely on any determinations
made by the Calculation Agent and will have no liability for such actions taken at the direction of the Calculation Agent or the Corporation.

 

    8 

     

    

 

 

ARTICLE
II

COVENANT; EVENTS OF DEFAULT; AMENDMENTS

 

Section 2.01.     
Dividend and Other Payment Stoppages.  So long as any Debentures remain Outstanding, if the Corporation shall have
given notice of its election to defer interest payments on the Debentures but the related Optional Deferral Period has not yet commenced
or an Optional Deferral Period has commenced and is continuing, the Corporation shall not:

 

		(a)	declare or pay any dividends or distributions on the Capital Stock of the Corporation:

 

		(b)	redeem, purchase, acquire or make a liquidation payment with respect to any Capital Stock of the Corporation;

 

		(c)	pay any principal, interest or premium on, or repay, repurchase or redeem any debt securities of the Corporation
that are equal or junior in right of payment with the Debentures; or

 

		(d)	make any payments with respect to any guarantee by the Corporation of debt securities if such guarantee
is equal or junior in right of payment with the Debentures;

 

provided that, notwithstanding
the foregoing, during an Optional Deferral Period, the Corporation may (i) declare and pay dividends or distributions payable solely
in shares of common stock of the Corporation or options, warrants or rights to subscribe for or purchase shares of common stock of the
Corporation; (ii) declare and pay any dividend in connection with the implementation of a Rights Plan, (iii) issue any of shares
of Capital Stock of the Corporation under any Rights Plan or redeem or repurchase any rights distributed pursuant to a Rights Plan, (iv) reclassify
the Capital Stock of the Corporation or exchange or convert one class or series of the Capital Stock of the Corporation for another class
or series of the Capital Stock of the Corporation, (v) purchase fractional interests in shares of the Capital Stock of the Corporation
pursuant to the conversion or exchange provisions of such Capital Stock or the security being converted or exchanged, and (vi) purchase
common stock of the Corporation related to the issuance of such common stock or rights under any dividend reinvestment plan of the Corporation
or any benefit plan of the Corporation for the directors, officers, employees, consultants or advisors of the Corporation.

 

    9

     

    

 

Section 2.02.     
Events of Default.  Solely for purposes of the Debentures, Section 501 of the Original Indenture shall be deleted and
replaced by the following:

 

“Event of Default,” wherever
used herein with respect to the Debentures, means any one of the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):

 

(1)       default
in the payment of any interest (including any Compound Interest) upon any Debenture when it becomes due and payable, and continuance of
such default for a period of 60 days, other than during an Optional Deferral Period; or

 

(2)       default
in the payment of the principal of or any premium on any Debenture when due; or

 

(3)       the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Corporation in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or (B) a decree
or order adjudging the Corporation a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Corporation under any applicable federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Corporation or of any substantial part of its property, or
ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree
or order unstayed and in effect for a period of 90 consecutive days; or

 

(4)       the
commencement by the Corporation of a voluntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization
or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of
a decree or order for relief in respect of the Corporation in an involuntary case or proceeding under any applicable federal or state
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding
against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal or state
law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Corporation or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as
they become due, or the authorization of any such action by the Board of Directors.

 

The Trustee shall have
no right or obligation under the Indenture or otherwise to exercise any remedies on behalf of the Holders of the Debentures pursuant
to the Indenture in connection with any failure by the Corporation to comply with any covenant thereunder, which failure does not
constitute, or with the giving of notice or passage of time would not constitute, an Event of Default hereunder.

 

    10

     

    

 

Section 2.03.     
Conforming Amendments.  In addition to those supplemental indentures permitted under Section 901 of the Original
Indenture, without the consent of any Holders, the Corporation, when authorized by a Board Resolution, and the Trustee, as requested in
an Officers’ Certificate, at any time and from time to time, may enter into one or more indentures supplemental to the Original
Indenture, each in a form reasonably satisfactory to the Trustee, to modify and amend this Twenty-sixth Supplemental Indenture, and any
instruments evidencing the Debentures, if such modification or amendment only conforms the terms of this Twenty-sixth Supplemental Indenture
or such instruments to the terms thereof as contained in the prospectus supplement of the Corporation, and the accompanying prospectus,
with respect to the offering of the Debentures, filed with the Securities and Exchange Commission on September 24, 2021.

 

ARTICLE
III

MISCELLANEOUS PROVISIONS

 

Section 3.01.     
Recitals by the Corporation. The recitals in this Twenty-sixth Supplemental Indenture are made by the Corporation only and
not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers
and duties of the Trustee shall be applicable in respect of the Debentures and this Twenty-sixth Supplemental Indenture as fully and with
like effect as if set forth herein in full.

 

Section 3.02.     
Ratification and Incorporation of Original Indenture. As supplemented hereby, the Original Indenture is in all respects
ratified and confirmed, and the Original Indenture and this Twenty-sixth Supplemental Indenture shall be read, taken and construed as
one and the same instrument.

 

Section 3.03.     
Tax Treatment. The Corporation agrees, and by acceptance of a Debenture or a beneficial interest in a Debenture each Holder
of a Debenture and any Person acquiring a beneficial interest in a Debenture agrees, to treat the Debentures as indebtedness for United
States federal, state and local income tax purposes.

 

Section 3.04.      Instructions
to Trustee. The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions
(“Instructions”) given pursuant to this Twenty-sixth Supplemental Indenture and delivered using Electronic Means;
provided, however, that the Corporation shall provide to the Trustee an incumbency certificate listing officers with the authority
to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers,
which incumbency certificate shall be amended by the Corporation whenever a person is to be added or deleted from the listing. If
the Corporation elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon
such Instructions, the Trustee’s understanding of such Instructions shall be deemed controlling. The Corporation understands
and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall
conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate
provided to the Trustee have been sent by such Authorized Officer. The Corporation shall be responsible for ensuring that only
Authorized Officers transmit such Instructions to the Corporate Trustee and that the Corporation and all Authorized Officers are
solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or
authentication keys upon receipt by the Corporation. The Trustee shall not be liable for any losses, costs or expenses arising
directly or indirectly from the Trustee’s good faith reliance upon and compliance with such Instructions notwithstanding such
directions conflict or are inconsistent with a subsequent written instruction. The Corporation agrees: (i) to assume all risks
arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the
Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully
informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there
may be more secure methods of transmitting Instructions than the method(s) selected by the Corporation; (iii) that the security
procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable
degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee as soon as reasonably
practicable upon learning of any compromise or unauthorized use of the security procedures. “Electronic Means” shall
mean the following communications methods: e-mail, facsimile trans-mission, secure electronic transmission containing applicable
authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the
Trustee as available for use in connection with its services hereunder.

 

    11

     

    

 

Section 3.05.     
Executed in Counterparts. This Twenty-sixth Supplemental Indenture may be executed in several counterparts, each of which
shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. The words “execution,”
signed,” signature,” and words of like import in the Indenture shall include images of manually executed signatures transmitted
by facsimile, email or other electronic format (including, without limitation, “pdf,” “tif” or “jpg”)
and other electronic signatures (including without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic
records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic
means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping
system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law
based on the Uniform Electronic Transactions Act or the Uniform Commercial Code. Without limitation to the foregoing, and anything in
the Original Indenture to the contrary notwithstanding, (a) any Officers’ Certificate, Company Order, Opinion of Counsel, Security,
certificate of authentication appearing on or attached to any Security, supplemental indenture or other certificate, opinion of counsel,
instrument, agreement or other document delivered pursuant to the Indenture may be executed, attested and transmitted by any of the foregoing
electronic means and formats, (b) all references in Section 303 or elsewhere in the Original Indenture to the execution, attestation or
authentication of any Security or any certificate of authentication appearing on or attached to any Security by means of a manual or facsimile
signature shall be deemed to include signatures that are made or transmitted by any of the foregoing electronic means or formats, and
(c) any requirement in Section 303 or elsewhere in the Original Indenture that any signature be made under a corporate seal (or facsimile
thereof) shall not be applicable to the Securities of such series.

 

    12

     

    

 

IN WITNESS WHEREOF,
each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officer, all as of the day and
year first above written.

 

	 	Duke Energy Corporation
	 	 
	 	By:	/s/ Chris R. Bauer
	 	Name:	   Chris R. Bauer
	 	Title: 	   Assistant Treasurer

 

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

 

[Signature Page to Twenty-sixth Supplemental
Indenture]

 

     

     

    

 

EXHIBIT A

 

FORM OF

3.250% FIXED-TO-FIXED RESET RATE Junior
Subordinated Debenture DUE 2082

 

	No.	CUSIP No.  26441C BP9

 

DUKE ENERGY CORPORATION

3.250%
Fixed-to-Fixed Reset Rate Junior Subordinated Debenture DUE 2082

 

Principal Amount:   $

 

Regular Record Date:  [Close of business
on the business day immediately preceding such Interest Payment Date so long as all of the Securities (as defined herein) of this series
remain in book-entry only form] [Close of business on the 15th calendar day next preceding such Interest Payment Date (whether or not
a Business Day) if any of the Securities of this series do not remain in book-entry only form]

 

Original Issue Date:  September 28, 2021

 

Stated Maturity: January 15, 2082

 

Interest Payment Dates:  Semi-annually on
January 15 and July 15 of each year, commencing on January 15, 2022

 

Interest Rate: (i) From and including the Original
Issue Date to but excluding the Initial Interest Reset Date at the rate of 3.250% per annum and (ii) from and including the Initial Interest
Reset Date, during each Interest Reset Period, at the rate equal to the Five-Year Treasury Rate as of the most recent Reset Interest Determination
Date, plus 2.321% per annum

 

Authorized Denomination: 
$2,000 or any integral multiple of $1,000 in excess thereof

 

Duke Energy Corporation,
a Delaware corporation (the “Corporation”, which term includes any successor corporation under the Indenture referred to
on the reverse hereof), for value received, hereby promises to pay to                               ,
or registered assigns, the principal sum of                                                     
DOLLARS ($                        )
on the Stated Maturity shown above and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, subject to the following paragraph, semi-annually in arrears on each
Interest Payment Date as specified above, commencing on September 28, 2021 and on the Stated Maturity at the rate per annum shown above
until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment
of interest (other than interest the payment of which is deferred pursuant to the following paragraph, which shall be payable at the
rate set forth in such paragraph).  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
(other than an Interest Payment Date that is the Stated Maturity or a Redemption Date) will, as provided in the Indenture, be paid to
the Person in whose name this 3.250% Fixed-to-Fixed Reset Rate Junior Subordinated Debenture due 2082 (this “Security”) is
registered on the Regular Record Date as specified above next preceding such Interest Payment Date; provided that any interest
payable at Stated Maturity or on a Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise
provided in the Indenture, any such interest not so punctually paid or duly provided for (other than interest the payment of which is
deferred pursuant to the following paragraph) will forthwith cease to be payable to the Holder on such Regular Record Date and may either
be paid to the Person in whose name this Security is registered at the close of business on a Special Record Date (as defined below)
for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange, if any, on which the Securities of this series shall be listed, and upon such notice as
may be required by any such exchange, all as more fully provided in the Indenture.

 

    A-1

     

    

 

“Calculation Agent”
means the Corporation, an Affiliate of the Corporation selected by the Corporation, or any other firm appointed by the Corporation, in
each case, in the Corporation’s sole discretion, acting as calculation agent in respect of the Securities.

 

“Five-Year Treasury
Rate” means, as of any Reset Interest Determination Date, the average of the yields on actively traded U.S. Treasury securities
adjusted to constant maturity, for five-year maturities, for the most recent five Business Days appearing under the caption “Treasury
Constant Maturities” in the Most Recent H.15. If the Five-Year Treasury Rate cannot be determined pursuant to the preceding sentence,
the Calculation Agent, after consulting such sources as it deems comparable to any of the foregoing calculations, or any such source as
it deems reasonable from which to estimate the Five-Year Treasury Rate, will determine the Five- Year Treasury Rate in its sole discretion,
provided that if the Calculation Agent determines there is an industry-accepted successor Five-Year Treasury Rate, then the Calculation
Agent will use such successor rate. If the Calculation Agent has determined a substitute or successor base rate in accordance with the
foregoing, the Calculation Agent in its sole discretion may determine the business day convention, the definition of “Business Day”
and the Reset Interest Determination Date to be used and any other relevant methodology for calculating such substitute or successor base
rate, including any adjustment factor needed to make such substitute or successor base rate comparable to the Five-Year Treasury Rate,
in a manner that is consistent with industry-accepted practices for such substitute or successor base rate.

 

“H.15” means the
daily statistical release designated as such, or any successor publication as determined by the Calculation Agent in its sole discretion,
published by the Board of Governors of the Federal Reserve System.

 

“Initial Interest Reset
Date” means January 15, 2027.

 

“Interest Reset Date”
means the Initial Interest Reset Date and each date falling on the five-year anniversary of the preceding Interest Reset Date.

 

“Interest Reset Period”
means the period from and including the Initial Interest Reset Date to, but not including, the next following Interest Reset Date and
thereafter each period from and including each Interest Reset Date to, but not including, the next following Interest Reset Date.

 

“Most Recent H.15”
means the H.15 published closest in time but prior to the close of business on the applicable Reset Interest Determination Date.

 

“Reset Interest Determination
Date” means, in respect of any Interest Reset Period, the day falling two Business Days prior to the beginning of such Interest
Reset Period.

 

    A-2

     

    

 

So long as no Event of Default
with respect to the Securities of this series has occurred and is continuing, the Corporation shall have the right on one or more occasions,
to defer payment of all or part of the current and accrued interest otherwise due on this Security by extending the interest payment period
for up to ten (10) consecutive years (each period, commencing on the date that the first such interest payment would otherwise have been
made, an “Optional Deferral Period”). A deferral of interest payments may not extend beyond the Stated Maturity or end on
a day other than an Interest Payment Date. As provided in the Indenture, Additional Interest on this Security will accrue to the extent
permitted by law. No interest shall be due and payable during an Optional Deferral Period, except at the end of such Optional Deferral
Period or upon a redemption of this Security during such Optional Deferral Period.

 

So long as no Event of
Default shall have occurred and be continuing, prior to the termination of any Optional Deferral Period, the Corporation may further
defer the payment of interest by extending such Optional Deferral Period; provided that such Optional Deferral Period
together with all such previous and further deferrals of interest payments shall not exceed ten (10) consecutive years at any one
time or extend beyond the Stated Maturity. Upon the termination of any Optional Deferral Period, which shall be an Interest Payment
Date, the Corporation shall pay all interest accrued and unpaid on this Security, including any Additional Interest, to the Person
in whose name this Security is registered on the Regular Record Date for such Interest Payment Date, provided that interest accrued
and unpaid on this Security, including any Additional Interest, payable at Stated Maturity or on any Redemption Date will be paid to
the Person to whom principal is payable. Once the Corporation pays all interest accrued and unpaid on this Security, including any
Additional Interest, it shall be entitled again to defer interest payments on this Security as described above.

 

If the Corporation shall fail
to pay interest on this Security on any Interest Payment Date, the Corporation shall be deemed to have elected to defer payment of such
interest for the interest payment period immediately preceding such Interest Payment Date, unless the Corporation shall pay such interest
in full within five Business Days after any such Interest Payment Date.

 

Payments of interest (including
Additional Interest) on this Security will include interest accrued to but excluding the respective Interest Payment Dates.  Interest
payments for this Security shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months and will accrue
from September 28, 2021 or from the most recent Interest Payment Date to which interest has been paid or duly provided for.  In the
event that any date on which interest is payable on this Security is not a Business Day, then payment of the interest payable on such
date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay)
with the same force and effect as if made on the date the payment was originally payable.  “Business Day” means a day
other than (i) a Saturday or Sunday, (ii) a day on which banks in New York, New York are authorized or obligated by law or executive order
to remain closed or (iii) a day on which the Corporate Trust Office is closed for business.

 

    A-3

     

    

 

Payment of principal of, premium,
if any, and interest (including Additional Interest) on the Securities of this series shall be made in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of principal of, premium,
if any, and interest (including Additional Interest) on the Securities of this series represented by a Global Security shall be made by
wire transfer of immediately available funds to the Holder of such Global Security.  If any of the Securities of this series are
no longer represented by a Global Security, (i) payments of principal, premium, if any, and interest (including Additional Interest)
due at the Stated Maturity or earlier redemption of such Securities shall be made at the office of the Paying Agent upon surrender of
such Securities to the Paying Agent, and (ii) payments of interest shall be made, at the option of the Corporation, subject to such
surrender where applicable, by (A) check mailed to the address of the Person entitled thereto as such address shall appear in the
Security Register or (B) 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 for payment by the Person entitled thereto.

 

At any time and from time
to time during any period from and including the October 15 immediately preceding an Interest Reset Date through and including such Interest
Reset Date, the Securities of this series may be redeemable, in whole or in part, at the option of the Corporation, at a redemption price
equal to 100% of the principal amount of the Securities of this series being redeemed plus accrued and unpaid interest (including any
Additional Interest) on the principal amount of the Securities of this series being redeemed to, but excluding, such Redemption Date.

 

In addition, the Securities
of this series may be redeemable, in whole but not in part, at the option of the Corporation, by a notice of redemption delivered by or
on behalf of the Corporation pursuant to Section 1104 of the Original Indenture (except as otherwise set forth below), following
the occurrence of a Tax Event (as defined below), at a redemption price equal to 100% of the principal amount of such Securities of this
series being redeemed plus accrued and unpaid interest (including any Additional Interest) on the principal amount of the Securities of
this series being redeemed to, but excluding, such Redemption Date.

 

“Tax Event” means
receipt by the Corporation of an opinion of counsel experienced in such matters to the effect that, as a result of:

 

		(a)	any amendment to, clarification of, or change, including any announced prospective change, in the laws
or treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties;

 

		(b)	an administrative action, which means any judicial decision or any official administrative pronouncement,
ruling, regulatory procedure, notice or announcement including any notice or announcement of intent to issue or adopt any administrative
pronouncement, ruling, regulatory procedure or regulation;

 

		(c)	any amendment to, clarification of, or change in the official position or the interpretation of any administrative
action or judicial decision or any interpretation or pronouncement that provides for a position with respect to an administrative action
or judicial decision that differs from the previously generally accepted position, in each case by any legislative body, court, governmental
authority or regulatory body, regardless of the time
or manner in which that amendment, clarification or change is introduced or made known; or

 

    A-4

     

    

 

		(d)	a threatened challenge asserted in writing in connection with an audit of the Corporation or an audit
of any of the Subsidiaries of the Corporation, or a publicly-known threatened challenge asserted in writing against any other taxpayer
that has raised capital through the issuance of securities that are substantially similar to the Securities of this series,

 

which amendment, clarification, or change is effective
or the administrative action is taken or judicial decision, interpretation or pronouncement is issued or threatened challenge is asserted
or becomes publicly known after September 23, 2021, there is more than an insubstantial risk that interest payable by the Corporation
on the Securities of this series is not deductible, or within 90 days would not be deductible, in whole or in part, by the Corporation
for United States federal income tax purposes.

 

In addition, the Securities
of this series may be redeemable, in whole but not in part, at the option of the Corporation, by a notice of redemption delivered by or
on behalf of the Corporation pursuant to Section 1104 of the Original Indenture (except as otherwise set forth in the immediately
succeeding paragraph), following the occurrence of a Rating Agency Event (as defined below), at a redemption price equal to 102% of the
principal amount of such Securities of this series being redeemed plus accrued and unpaid interest (including any Additional Interest)
to, but excluding, such Redemption Date. “Rating Agency Event” means a change to the methodology or criteria that were employed
by an applicable nationally recognized statistical rating organization for purposes of assigning equity credit to securities such as the
Securities of this series on September 28, 2021 (the “current methodology”), which change either (i) shortens the period
of time during which equity credit pertaining to the Securities of this series would have been in effect had the current methodology not
been changed, or (ii) reduces the amount of equity credit assigned to the Securities of this series as compared with the amount of
equity credit that such rating agency had assigned to the Securities of this series as of September 28, 2021.

 

Notice of any redemption by
the Corporation will be mailed (or, as long as the Securities of this series are represented by one or more Global Securities, transmitted
in accordance with the Depositary’s standard procedures therefor) at least 10 days but not more than 60 days before any Redemption
Date to each Holder of Securities of this series to be redeemed.  If notice of a redemption is provided and funds are deposited as
required, interest will cease to accrue on and after the Redemption Date on the Securities of this series or portions of Securities of
this series called for redemption.  In the event that any Redemption Date is not a Business Day, the Corporation will pay the redemption
price on the next Business Day without any interest or other payment in respect of any such delay.  If less than all the Securities
of this series are to be redeemed at the option of the Corporation, the Trustee shall select, in such manner as it shall deem fair and
appropriate, the Securities of this series to be redeemed in whole or in part.  The Trustee may select for redemption Securities
of this series and portions of the Securities of this series in amounts of $2,000 or any integral multiple of $1,000 in excess thereof. 
As long as the Securities of this series are represented by Global Securities, beneficial interests in such Securities shall be selected
for redemption by the Depositary in accordance with its standard procedures therefor.

 

    A-5

     

    

 

In the event of redemption
of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the surrender hereof.

 

The Securities of this series
shall not have a sinking fund.

 

The Securities of this series
shall constitute Subordinated Securities under the Indenture and shall be subject to the subordination provisions set forth in the Indenture.

 

REFERENCE IS HEREBY MADE TO
THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME
EFFECT AS IF SET FORTH AT THIS PLACE.

 

Unless the certificate of
authentication hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

    A-6

     

    

 

 

IN WITNESS WHEREOF, the Corporation
has caused this instrument to be duly executed as of September 28, 2021.

 

	 	Duke Energy Corporation
	 	 
	 	By:	             
	 	Name:
	 	Title:

 

    A-7

     

    

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.

 

	Dated: September 28, 2021	The Bank of New York Mellon Trust Company,

N.A., as Trustee
	 	 
	 	By:	                                
	 	Authorized Signatory

 

    A-8

     

    

 

(Reverse Side of Security)

 

This 3.250% Fixed-to-Fixed
Reset Rate Junior Subordinated Debenture due 2082 is one of a duly authorized issue of Securities of the Corporation (the “Securities”),
issued and issuable in one or more series under an Indenture, dated as of June 3, 2008 (the “Original Indenture”), as
supplemented (the “Indenture”), between the Corporation and The Bank of New York Mellon Trust Company, N.A. (formerly known
as The Bank of New York Trust Company, N.A.), as Trustee (the “Trustee,” which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights,
limitation of rights, duties and immunities thereunder of the Corporation, the Trustee and the Holders of the Securities issued thereunder
and of the terms upon which said Securities are, and are to be, authenticated and delivered.  This Security is one of the series
designated on the face hereof as 3.250% Fixed-to-Fixed Reset Rate Junior Subordinated Debentures due 2082 initially in the aggregate principal
amount of $500,000,000.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth
in the Indenture.

 

If an Event of Default with
respect to the Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared
due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Corporation and
the rights of the Holders of the Securities of all series affected under the Indenture at any time by the Corporation and the Trustee
with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of all series affected thereby
(voting as one class).  The Indenture contains provisions permitting the Holders of not less than a majority in principal amount
of the Outstanding Securities of all series with respect to which a default under the Indenture shall have occurred and be continuing
(voting as one class), on behalf of the Holders of the Securities of all such series, to waive, with certain exceptions, such default
under the Indenture and its consequences.  The Indenture also permits the Holders of not less than a majority in principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance
by the Corporation with certain provisions of the Indenture affecting such series.  Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Security.

 

No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Corporation, which is absolute
and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein
prescribed.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the office or agency of the Corporation for such purpose,
duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Security
Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new
Securities of this series, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued
to the designated transferee or transferees.  No service charge shall be made for any such registration of transfer or
exchange, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

 

    A-9

     

    

 

The Indenture contains provisions
for defeasance at any time of the entire indebtedness of the Securities of this series and for covenant defeasance at any time of certain
covenants in the Indenture upon compliance with certain conditions set forth in the Indenture.

 

Prior to due presentment of
this Security for registration of transfer, the Corporation, the Trustee and any agent of the Corporation or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither
the Corporation, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Securities of this series
are issuable only in registered form without coupons in denominations of $2,000 or any integral multiple of $1,000 in excess thereof. 
As provided in the Indenture and subject to the limitations therein set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same
upon surrender of the Security or Securities to be exchanged at the office or agency of the Corporation.

 

This Security shall be governed
by, and construed in accordance with, the laws of the State of New York.

 

    A-10

     

    

 

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 Security and all rights thereunder,
hereby irrevocably constituting and appointing                     
agent to transfer said Security on the books of the Corporation, 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-11

     

    

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed
by an “eligible guarantor institution” meeting the requirements of the Security Registrar, 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 Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

    A-12

     

    

 

EXHIBIT B

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.

 

	Dated: September 28, 2021	The Bank of New York Mellon Trust Company, N.A., as
    Trustee
	 	 
	 	By:	                                      
	 	Authorized Signatory

 

    B-1Exhibit 10.6

 

 

	Office of the Senior Vice President	1 New Orchard Road
	Human Resources	Armonk, NY 10504

 

January 2, 2021

 

Dear Martin,

 

I am delighted to extend an offer of employment to you at
IBM as Chief Executive Officer, NewCo, currently the Managed Infrastructure Services unit of Global Technology Services (excluding TSS)
effective January 15, 2021 (the “Hire Date”).

 

The attachment outlines the specifics of our offer. I am extremely
excited about your joining the IBM team.

 

Please indicate your acceptance of this offer by signing and returning
the letter along with the Noncompetition Agreement to me via email.

 

Sincerely,

 

	/s/ Nickle LaMoreaux	 

Nickle LaMoreaux

Senior Vice President and Chief Human Resources Officer,

IBM Human Resources

 

     

     

    

 

January 2, 2021

Martin Schroeter

 

Attachments

 

This letter confirms our offer of IBM employment to you as
Chief Executive Officer, NewCo, reporting to Arvind Krishna, Chief Executive Officer, IBM. Your primary responsibilities will be to ensure
completion of The Transaction, as described below, and other responsibilities as agreed upon between you and IBM’s Chief Executive
Officer. The elements of your employment offer are:

 

Cash Compensation:

 

Effective on your first day of employment, your annualized
base salary will be $1,000,000.00, and you will have an opportunity to receive a $2,000,000.00 bonus as set forth below. This is in addition
to your participation in the IBM benefits plans. As an employee, you will receive a paycheck on a semi-monthly basis, on or around the
15th and 31st of each month. For 2021, your base salary will be prorated to reflect your actual IBM service.

 

In connection with IBM’s announced intention to spin-off
the Managed Infrastructure Services unit of its IBM Global Technology Services (GTS) business and organization (excluding TSS) as a separate
publicly listed company with IBM no longer owning any stake in the new company (the separate publicly listed company referred to as “NewCo”,
and the spin-off referred to as “The Transaction”), which will occur on the date of the closing of such spin-off (referred
to as “The Closing Date”), your bonus payment will depend on your successful completion of The Transaction. If achieved, your
bonus will be paid no later than February 1, 2022. You must be an active employee on The Closing Date in order to be eligible to receive
the bonus payout.

 

While IBM intends for The Transaction to be completed by December
31, 2021, if The Transaction is not completed by such date, IBM’s Chief Executive Officer may in his discretion decide to pay the
bonus in full and such payment shall be made no later than February 1, 2022, provided you are an active employee of IBM or Newco on such
payment date.

 

Additionally, you shall receive the bonus if the Transaction
is not completed by December 31, 2021 for reasons beyond your reasonable control and your employment is terminated without Cause (as defined
in the Noncompetition Agreement).

 

Please note, if prior to December 31, 2021 for strategic business reasons,
(A) IBM unilaterally determines and formally announces that it will not complete The Transaction, or (B) if NewCo is sold to another buyer,
and in both cases, the IBM CEO determines that the decision not to complete The Transaction or sell to another buyer was not made as a
result of your performance in moving The Transaction to closure, you will be eligible to receive the bonus payment one month following
the later of: (1) IBM’s formal announcement to not complete The Transaction (“Announcement Date”), or, (2) the closing
date of the sale of NewCo (“Sale Date”). You must be an active employee on the Announcement Date or the Sale Date, as applicable, in order
to be eligible to receive the bonus payout.

 

    2 

     

    

 

January 2, 2021

Martin Schroeter

 

New Hire Equity:

 

You will be awarded a new hire equity grant of
$10,500,000.00 in planned value. You will receive 100% of this planned value as a special Performance Share Unit (PSU) award. Your award
will be granted on the 1st of the month following your Hire Date, or as soon as practical thereafter. The number of PSUs granted will
be determined by dividing the planned grant value by the average of IBM’s closing stock price for the 30 active trading days prior
to the date of grant.

 

In order to vest in your PSU award, you must meet
two performance criteria (“Performance Criteria”), or be excused for the non-performance:

 

		1.	You (a) successfully complete The Transaction as envisaged by
no later than January 1, 2023 or (b) you are excused from completing the Transaction as envisaged for reasons beyond your reasonable
control as described in the Terms and Conditions document provided with this offer letter; or (c) your employment is terminated without
Cause (as such term is defined in your Noncompetition Agreement) by IBM.

 

		2.	Immediately following The Closing Date you accept employment
as the Chief Executive Officer of NewCo, provided this performance criterion is excused if the NewCo Board of Directors does not appoint
you as Chairman of the Board of Directors, or if NewCo’s offer of employment is not comparable in the aggregate to the terms of
this offer letter, including your annual salary, bonus, and equity award.

 

PSUs are subject to the terms and conditions of
the applicable IBM Long-Term Performance Plan, along with the Preliminary Award Agreement and Terms and Conditions document that is being
provided with this offer letter. A final Award Agreement that indicates the number of PSUs granted will be provided after the grant date
of your PSU award.

 

If the performance
criteria described above are satisfied or excused, your award will generally vest and be released 33% on the six month anniversary of
The Closing Date, 33% on the 1st anniversary of The
Closing Date, and 34% on the 2nd anniversary of The
Closing Date, assuming all other conditions in your equity award agreement and its incorporated terms and conditions are met.

 

If as of The Closing Date the fair market
value of the IBM shares underlying your PSU award (the “ IBM PSU Share Value”) is less than $10,500,000 by $50,000 or
more, then immediately after The Closing Date, provided that the Performance Criteria have been met, or excused, NewCo shall grant
an RSU award to you with respect to a number of shares of NewCo common stock with a value on the date of grant equal to the
difference between (a) $10,500,000; and (b) IBM PSU Share Value (“Value Difference”). Such RSU grant shall be released
on the same schedule as the PSU award described above.

 

    3 

     

    

 

January 2, 2021

Martin Schroeter

 

If instead of The Transaction, NewCo is sold to
another buyer, and as of the Sale Date the IBM PSU Share Value is less than $10,500,000 by $50,000 or more, and you accept employment
with the buyer, then the buyer shall grant an RSU award, or substantially equivalent cash or equity based award in an affiliate of buyer,
with a value equal to the Value Difference (determined using the IBM PSU Share Value on the Sale Date), with the award being released
on the same schedule as the PSU award.

 

Termination Notice

 

Your employment is at-will but you may not resign
for any reason and your employment may not be terminated for any reason without first having given the other party 60 days written notice
of resignation or termination. Payments that would ordinarily be made during that 60 day notice period shall continue to be made during
such notice period, awards that are scheduled to vest under the applicable award agreement and terms and conditions document during the
60 day notice period, shall vest as scheduled, and employee benefits shall continue in accordance with the terms of such plans during
that 60 day notice period.

 

Benefits:

 

During your employment, you will be eligible
to participate in the various benefit plans which IBM generally makes available to its regular employees, including medical and dental
coverage, accident, disability and life insurance, as well as the IBM 401(k) Plus Plan. After you complete one year of IBM service, this
Plan offers a 100% Company match, up to 5% of eligible pay, plus a 1% automatic contribution. In addition, if you meet certain eligibility
requirements during the annual enrollment period held each fall, you may also be eligible to participate in the IBM Excess 401(k) Plus
Plan that provides benefits in excess of the IRS limits. Additional details on these programs will be provided separately. For detailed
information on IBM Health Care benefits, visit the Health Care Benefits at IBM site at http://www.ibm.com/employment/us/benefits/.

 

If you have additional benefits questions after visiting
our website, please contact Paul Dunkle.

 

Additionally, the Affordable Care Act
(ACA) requires companies to provide employees with a Notice of Exchanges which discusses the Health Insurance Marketplace; a public option
where individuals may purchase health care coverage. This notice is attached for your information.

 

    4 

     

    

 

January 2, 2021

Martin Schroeter

 

As is customary at IBM, this offer is contingent upon the completion
of our pre-employment process, including verification of your application materials and your ability to work for IBM without restriction
(which means you do not have non-compete obligations or other restrictive clause with your current or former employer; or any non-compete
or other restrictions have been disclosed by you and resolved to IBM's satisfaction).

 

IBM employees are required to comply with IBM’s Business
Conduct Guidelines. Once you have authorized access to the IBM Intranet, you will be able to read and/or print the contents of these documents,
and will be required to acknowledge receipt and compliance with the guidelines.

 

U.S. Laws and regulations prohibit the unauthorized release of restricted
technology to certain persons. IBM, in order to comply with these legal requirements, must ascertain whether someone who may be given
access to restricted technology is a “Foreign Person” subject to these export control restrictions. If someone is a Foreign
Person for export control purposes, then he/she may need to be granted an export license or other government authorization before starting
in a position with access to restricted technology. Therefore, if you indicated that you are a Foreign Person on your employment application
(by answering “no” to the question “Are you a U.S. citizen or national, a permanent resident? or “yes” to
the question “Are you a refugee, an asylee or authorized to work under the amnesty provisions of U.S. immigration law?”),
you will be contacted by a member of IBM's Recruitment organization who will ask for your country(s) of citizenship and permanent residence.
Your country(s) of citizenship and permanent residence will enable IBM to determine the type of export license which would be required,
should you be placed in a position with access to restricted technology. Our ability to obtain an export license for you may be a factor
in IBM’s decision to continue with your pre-employment process, depending on the staffing needs of the hiring manager.

 

For tax and payroll purposes, you will require a Social Security
Number. If you do not have one, you must apply for a number at your Social Security Administration Office before your first day of employment.
Also, please note that IBM may be required to withhold federal tax at a different rate based upon your alien residency tax filing status.
For more information on this, please review IRS Publication 519 before completing the W4 from, http://www.irs.gov/publications/p519/ch01.html.
If you are a nonresident alien, you will need to complete the W-4 form using the provided instructions on your first day of work, http://www.irs.gov/publications/p519/ch08.html.

 

 

    5 

     

    

 

January 2, 2021

Martin Schroeter

 

Your employment is also contingent upon your compliance
with the U.S. immigration law. The law requires you to complete the U.S. Government Employment Eligibility Verification form (I-9)
and to provide on your first day of employment documents that verify your identity and employment eligibility. By accepting this
offer, you will be required to comply with this law. The terms of this letter are not a contract of employment and do not imply
employment for any specific period of time. Rather, employment at IBM is at-will, which means that either you or IBM may terminate
your employment at any time, for any reason and without prior notice, subject to the provisions of this offer letter. No
modification of this at-will status is valid unless contained in writing signed by two authorized representatives of IBM.

 

On your first day of employment you will be required
to sign IBM's form regarding confidential information and intellectual property. If you would like to review or discuss this document
in advance, please contact Paul Dunkle.

 

	Accepted:	/s/
    Martin Schroeter	 

 

	Date:	1/3/21	 

 

	Projected
    Start Date:	Jan.
    15, 2021	 

 

    6 

     

    

 

Long-Term Incentive Award Acceptance Information

 

Dear Martin Schroeter:

 

IBM's grants to you become effective only after, and are conditioned
upon your accepting the terms and conditions of the award agreements, the accompanying "Terms and Conditions of Your Equity Award
Effective December 15, 2020" (“Terms and Conditions”) document attached below and the Long-Term Performance Plan (“LTPP”)
under which these long-term incentive awards are granted, including those provisions relating to the cancellation and rescission of awards.

 

If you have not read the LTPP prospectus that governs your equity
awards, please do so by viewing the “Prospectuses” section of the executive compensation web site ( http://w3.ibm.com/hr/exec/comp/eq_prospectus.html).
The prospectus contains the terms of the LTPP and is the legal offering document covering IBM's stock-based awards, and you should read
it before accepting your grant. In the event of any conflict between the terms of the LTPP and the information provided on this screen,
the LTPP shall govern.

 

To record your acceptance and agreement to the terms and conditions
of your award, you must press the ACCEPT button below. By pressing the ACCEPT button below, you are certifying that you have read and
understand the terms and conditions of each award agreement, the Terms and Conditions document and the LTPP covering each stock-based
award listed here, and that you accept and agree to all the relevant terms and conditions.

 

Until you formally accept your award, Restricted Stock
Units and/or Performance Share Units will not be released to you or settled at vesting and Stock Options will not be exercisable. In
addition, after you accept your award and your RSU or PSU award vests, the shares (net of taxes where applicable) will typically be available
for sale, and/or transfer at https://www.stockplanconnect.com/ within 2 business days from the
vesting and/or payout date, as applicable. As described in the plan documents, the Company withholds taxes from your award (and/or reports
income) as required by local laws. In some countries, the Company does not withhold taxes because there is no requirement to do so. Irrespective
of any withholding and/or reporting by the Company, it is important for you to consult with your personal tax advisor to satisfy your
individual tax obligations.

 

	Award Type	 	Award Date	 	Shares / Units	 	 	Long-Term
    Performance Plan	 
	Performance Share Units (PSUs)	 	February 1, 2021	 	 	83,723	 	 	 	1999	 

 

     

     

    

 

	 	International
    Business Machines Corporation ("IBM")
	 	 
	 	Equity Award Agreement

                                                              IBM Confidential

	 	 
	Plan	IBM
    1999 Long-Term Performance Plan (the "Plan")
	 	 
	Award
    Type	Performance
    Share Units (PSUs)
	 	 
	Purpose	The
    purpose of this Award is to retain selected executives. You recognize that this Award represents a potentially significant benefit
    to you and is awarded for the purpose stated here .
	 	 
	Awarded
    to	Martin
    Schroeter
	 	 
	Home
    Country	United
    States (USA) 0216989
	 	 
	Award
    Agreement	This Equity Award Agreement,
    together with the “Terms and Conditions of Your Equity Award: Effective December 15, 2020” (“Terms and Conditions”)
    document and the Plan http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml , both of which are incorporated herein by reference,
    together constitute the entire agreement between you and IBM with respect to your Award . This Equity Award Agreement shall be governed
    by the laws of the State of New York, without regard to conflicts or choice of law rules or principles.

 

	Grant	Date of Grant	# PSUs Awarded	 
	 	February 1, 2021	83,723	 

 

	Vesting	In
    connection with IBM’s announced intention to spin-off the Managed Infrastructure Services Unit of its IBM Global Technology
    Services (GTS) business and organization (excluding TSS) as a separate publicly listed company (the separate publicly listed company
    referred to as “NewCo” and the spin-off referred to as “The Transaction”), which will occur on the date of
    the closing of such spin-off (referred to as “The Closing Date”). You can earn the PSUs awarded above, provided both
    of the following “Performance Criteria” have been met:
	 	 
	 	1.        You ensure successful completion of The Transaction as envisaged (for the avoidance of doubt, as a spin-off of the Managed Infrastructure Services Unit of the GTS business (excluding TSS)), with IBM no longer owning any equity stake in NewCo following The Closing Date of The Transaction ; and
	 	 
	 	2.        You accept employment as Chief Executive Officer of NewCo immediately following The Closing Date of The Transaction

 

	 	If both of the above Performance Criteria are satisfied as determined by the IBM Chief Executive Officer, your awards will be converted
into shares of NewCo Restricted Stock Units (RSUs) according to the stated conversion formula for all unvested IBM equity awards on or
around The Closing Date, and will vest in accordance with the following schedule:

 

		•	33% on the six-month anniversary of The Closing Date
		•	33% on the 1st anniversary of The Closing Date
		•	34% on the 2nd anniversary of The Closing Date

 

	Payout of Awards	Following the vesting dates described above, the Company or NewCo shall deliver to you a number of shares of Capital Stock equal to the number of your earned RSUs, net of any applicable tax withholding, and the respective PSUs shall thereafter be canceled.
	 	 
	 	All payouts under this Award are subject to the provisions of the Plan, this Agreement and the Terms and Conditions document, including those relating to the cancellation and rescission of awards.

 

    	Page 1 of 3	 	IBM Confidential

     

    

 

  

	 	International Business Machines Corporation
    ("IBM")
	 	 
	 	Equity Award Agreement

 

	
    Terms and 

    Conditions of Your 

    Equity Award 
	
    Refer to the Terms and Conditions document attached for an
    explanation of the terms and conditions applicable to your Award, including those relating to:

     

	 	
    

    ꞏ        Cancellation
and rescission of awards (also see below) 

    •           
    Jurisdiction, governing law, expenses and taxes  

    •          
    Non-solicitation of Company employees and clients,
    if applicable  

    •          
    Treatment of your award in the event the Performance
    Criteria above cannot be met , including Performance Criteria that cannot be met by no fault of your own 

    •          
    Treatment of your Award in the event of death or
    disability or leave of absence  

    •          
Treatment of your Award upon termination of employment,
including for cause, and under all  other circumstances.

     

    It is strongly recommended that you print the Terms and Conditions document
    for later reference .

     

	
    Cancellation and 

    Rescission

     
	
    You understand that IBM may cancel, modify, rescind, suspend,
    withhold or otherwise limit or restrict this Award in accordance with the terms of the Plan, including, without limitation, canceling
    or rescinding this Award if you render services for a competitor prior to, or during the Rescission Period. You understand that the Rescission
    Period that has been established is 12 months. Refer to the Terms and Conditions document and the Plan for further details.

     

	
    Data Privacy, 

    Electronic Delivery

     
	
    By accepting this Award, you agree that data, including your
    personal data, necessary to administer this Award may be exchanged among IBM and its subsidiaries and affiliates as necessary, and with
    any vendor engaged by IBM to administer this Award, subject to the Terms and Conditions document; you also consent to receiving information
    and materials in connection with this Award or any subsequent awards under IBM's long-term performance plans, including without limitation
    any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation
    by e-mail, by Web site access and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you.

     

	
    Extraordinary 

    Compensation

     
	
    Your participation in the Plan is voluntary. The value of this Award
    is an extraordinary item of income, is not part of your normal or expected compensation and shall not be considered in calculating any
    severance, redundancy, end of service payments, bonus, long-service awards, pension, retirement or other benefits or similar payments.
    The Plan is discretionary in nature. This Award is a one-time benefit that does not create any contractual or other right to receive additional
    awards or other benefits in the future. Future grants, if any, are at the sole grace and discretion of IBM, including but not limited
    to, the timing of the grant, the number of units and vesting provisions. This Equity Award Agreement is not part of your employment agreement,
    if any.

     

 

    Page 2 of 3              IBM Confidential

     

    

   

	 	International Business Machines Corporation
    ("IBM")
	 	 
	 	Equity Award Agreement

 

	Accept Your Award	This Award is considered
valid when you accept it. This Award will be cancelled unless you accept it by 11:59 p.m. Eastern time two business days prior to The
Closing Date. By pressing the Accept button below to accept your Award, you acknowledge having received and read this Equity Award Agreement,
the Terms and Conditions document and the Plan under which this Award was granted and you agree (i) not to hedge the economic risk of
this Award or any previously-granted outstanding awards, which includes entering into any derivative transaction on IBM securities (e.g.,
any short sale, put, swap, forward, option, collar, etc.), (ii) to comply with the terms of the Plan, this Equity Award Agreement and
the Terms and Conditions document, including those provisions relating to cancellation and rescission of awards and jurisdiction and governing
law, and (iii) that by your acceptance of this Award, all awards previously granted to you under the Plan or other IBM Long -Term Performance
Plans are subject to (A) jurisdiction, governing law, expenses, taxes and administration section of the Terms and Conditions document
(unless you are, and have been for at least 30 days immediately preceding, a resident of or an employee in Massachusetts at the time of
the termination of your employment with IBM, in which case the jurisdiction, governing law, expenses, taxes and administration terms of
your previous awards shall apply) and (B) any cancellation, rescission or recovery required by applicable laws, rules, regulations or
standards, including without limitation any requirements or standards of the U.S. Securities and Exchange Commission or the New York Stock
Exchange.

                  

    Page 3 of 3              IBM Confidential

     

    

 

IBM 

 

TERMS AND CONDITIONS OF YOUR EQUITY

AWARD:

EFFECTIVE December 15, 2020

 

     

     

    

 

Terms and Conditions of Your Equity Award

   

Table of Contents

 

	Introduction	3
	 	 
	How to Use This Document	3
	 	 
	Definition of Terms	4
	 	 
	Provisions that apply to all countries	6
	 	 
	Provisions that apply to select countries	8
	 	 
	Provisions that apply to the Performance Share Units
    (PSUs)	9
	 	 
	a.  Performance Share Units (“PSUs”)
    including Cash-Settled PSUs	9
	 	 
	Provisions that apply to specific countries	10
	 	 
	a.  Denmark	10
	 	 
	b.  Israel	10
	 	 
	c.  United States	10

 

	Equity Awards: December 15, 2020	Page 2 of 11

 

     

     

    

 

 

 

 

 

 

Terms
and Conditions of Your Equity Award

 

Introduction

 

This
document provides you with the terms and conditions of your Award that are in addition to the terms and conditions contained in your
Equity Award Agreement for your specific Award. Also, your Award is subject to the terms and conditions in the governing plan document;
the applicable document is indicated in your Equity Award Agreement and can be found at https://w3cms.s3-api.us-geo.objectstorage.softlayer.net/inline-files/LTPP_1999_august_2007_prospectus.pdf.

 

How to Use This Document

 

Terms and conditions that apply to all awards in all countries can
be found on page 6. Review these in addition to any award- or country-specific terms and conditions that may be listed. Once you have
reviewed these general terms, check in your Equity Award Agreement for any award-specific and/or country-specific terms that apply to
your Award. 

 

    
	Equity Awards: December 15, 2020	Page 3 of 11

     

    

 

Terms and Conditions of Your Equity Award:

 

Definition of Terms

 

The following are defined terms from the Long-Term Performance
Plan, your Equity Award Agreement, or this Terms and Conditions document. These are provided for your information. In addition to this
document, see the Plan prospectus and your Equity Award Agreement for more details.

 

“Awards” -- The grant of any form of stock option,
stock appreciation right, stock or cash award, whether granted singly, in combination or in tandem, to a Participant pursuant to such
terms, conditions, performance requirements, limitations and restrictions as the Committee may establish in order to fulfill the objectives
of the Plan.

 

"Board" -- The Board of Directors of International Business
Machines Corporation ("IBM").

 

"Capital Stock" -- Authorized and issued or unissued
Capital Stock of IBM, at such par value as may be established from time to time.

 

“Committee” -- The committee designated by the Board to
administer the Plan.

 

"Company" -- IBM and its affiliates and subsidiaries
including subsidiaries of subsidiaries and partnerships and other business ventures in which IBM has an equity interest.

 

“Engage in or Associate with” includes, without
limitation, engagement or association as a sole proprietor, owner, employer, director, partner, principal, joint venture, associate, employee,
member, consultant, or contractor. This also includes engagement or association as a shareholder or investor during the course of your
employment with the Company, and includes beneficial ownership of five percent (5%) or more of any class of outstanding stock of a competitor
of the Company following the termination of your employment with the Company.

 

“Equity Award Agreement” -- The document provided
to the Participant which provides the grant details.

 

"Fair Market Value" -- The average of the high and
low prices of Capital Stock on the New York Stock Exchange for the date in question, provided that, if no sales of Capital Stock were
made on said exchange on that date, the average of the high and low prices of Capital Stock as reported for the most recent preceding
day on which sales of Capital Stock were made on said exchange.

 

“NewCo” – Referred to as the working name of the
envisaged new company that is created as a result of IBM spinning-off the Managed Infrastructure Services Unit of its IBM Global Technology
Services (GTS) business and organization (excluding TSS) as a separate publicly listed company, with IBM no longer owning any equity stake
in the new company.

 

"Participant" -- An individual to whom an Award
has been made under the Plan. Awards may be made to any employee of, or any other individual providing services to, the Company. However,
incentive stock options may be granted only to individuals who are employed by IBM or by a subsidiary corporation (within the meaning
of section 424(f) of the Code) of IBM, including a subsidiary that becomes such after the adoption of the Plan.

 

    
	Equity Awards: December 15, 2020	Page 4 of 11

     

    

 

“Performance Team” -- For
purposes of the Plan, the Performance Team refers to the team of IBM’s senior leaders who run IBM Business Units or geographies,
including the chairman and CEO. The CEO selects and invites these senior leaders to join the Performance Team.

 

“Plan” -- Any IBM Long-Term Performance Plan.

 

“Termination of Employment” -- For
the purposes of determining when you cease to be an employee for the cancellation of any Award, a Participant will be deemed to be terminated
if the Participant is no longer employed by IBM or a subsidiary corporation that employed the Participant when the Award was granted unless
approved by a method designated by those administering the Plan.

 

“The Announcement Date” – If applicable,
the date that IBM formally announces that it will not complete the spin-off of the Managed Infrastructure Services Unit of its IBM Global
Technology Services business and organization (excluding TSS) as a separate publicly listed company, with IBM no longer owning any equity
stake in the new company.

 

“The Closing Date” –
The date that IBM completes the spin-off of the Managed Infrastructure Services Unit of its IBM Global Technology Services (GTS) business
and organization (excluding TSS) as a separate publicly listed Company, with IBM no longer owning any equity stake in the new company.

 

“The Sale Date” – If applicable, the date
that IBM completes the sale of the Managed Infrastructure Services Unit of its IBM Global Technology Services business and organization
(excluding TSS) to another buyer (rather than being spun-off as a separate publicly listed company).

 

“The Transaction” – The spin-off of the
Managed Infrastructure Services Unit of IBM’s Global Technology Services business and organization (excluding TSS) as a separate
publicly listed company, with IBM no longer owning any equity stake in the new company.

 

    
	Equity Awards: December 15, 2020	Page 5 of 11

     

    

 

Terms and Conditions of Your Equity Award:

 

Provisions that apply to all countries

 

The following provisions apply to all countries and for the
following Award types: Performance Share Units and Cash-Settled Performance Share Units.

 

Cancellation and Rescission

 

All determinations regarding enforcement, waiver or modification
of the cancellation and rescission and other provisions of the Plan and your Equity Award Agreement (including the provisions relating
to termination of employment, death and disability) shall be made in IBM’s sole discretion. Determinations made under your Equity
Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly
situated.

 

You
agree that the cancellation and rescission provisions of the Plan and your Equity Award Agreement are reasonable and agree not to challenge
the reasonableness of such provisions, even where forfeiture of your Award is the penalty for violation. Engaging in Detrimental Activity
(as defined in the Plan) may result in cancellation or rescission of your Award. Detrimental Activity includes your acceptance of an offer
to Engage in or Associate with any business which is or becomes competitive with the Company.

 

Jurisdiction, Governing Law, Expenses, Taxes and Administration

 

Your Equity Award Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York, without regard to its conflict of law rules. You agree that any action or proceeding
with respect to your Equity Award Agreement shall be brought exclusively in the state and federal courts sitting in New York County or,
Westchester County, New York. You agree to the personal jurisdiction thereof, and irrevocably waive any objection to the venue of such
action, including any objection that the action has been brought in an inconvenient forum.

 

If any court of competent jurisdiction finds any provision
of your Equity Award Agreement, or portion thereof, to be unenforceable, that provision shall be enforced to the maximum extent permissible
so as to effect the intent of the parties, and the remainder of your Equity Award Agreement shall continue in full force and effect.

 

If you or the Company brings an action
to enforce your Equity Award Agreement and the Company prevails, you will pay all costs and expenses incurred by the Company in connection
with that action and in connection with collection, including reasonable attorneys’ fees.

 

If the Company, in its sole discretion, determines that
it has incurred or will incur any obligation to withhold taxes as a result of your Award, without limiting the Company’s rights
under Section 9 of the Plan, the Company may withhold the number of shares that it determines is required to satisfy such liability and/or
the Company may withhold amounts from other compensation to the extent required to satisfy such liability under federal, state, provincial,
local, foreign or other tax laws. To the extent that such amounts are not withheld, the Company may require you to pay to the Company
any amount demanded by the Company for the purpose of satisfying such liability.

 

    
	Equity Awards: December 15, 2020	Page 6 of 11

     

    

 

If the Company changes the vendor engaged to administer the
Plan, you consent to moving all of the shares you have received under the Plan that is in an account with such vendor (including unvested
and previously vested shares), to the new vendor that the Company engages to administer the Plan. Such consent will remain in effect
unless and until revoked in writing by you.

 

    
	Equity Awards: December 15, 2020	Page 7 of 11

     

    

 

Terms and Conditions of Your Equity Award:

 

Provisions that apply to select countries

 

The following provisions apply to select countries and for
the following Award types, Performance Share Units and Cash-Settled Performance Share Units, granted to all individuals in all countries
except those with a home country of Latin America, specifically: Argentina, Bolivia, Brazil, Chile, Columbia, Costa Rica, Ecuador, Mexico,
Paraguay, Peru, Uruguay, and Venezuela.

 

Non-Solicitation

 

In consideration of your Award, you agree that during
your employment with the Company and for two years following the termination of your employment for any reason, you will not directly
or indirectly hire, solicit or make an offer to any employee of the Company to be employed or perform services outside of the Company.
Also, you agree that during your employment with the Company and for one year following the termination of your employment for any reason,
you will not directly or indirectly, solicit, for competitive business purposes, any customer of the Company with which you were involved
as part of your job responsibilities during the last year of your employment with the Company. By accepting your Award, you acknowledge
that the Company would suffer irreparable harm if you fail to comply with the foregoing, and that the Company would be entitled to any
appropriate relief, including money damages, equitable relief and attorneys’ fees.

 

    
	Equity Awards: December 15, 2020	Page 8 of 11

     

    

 

Terms and Conditions of Your Equity Award:

 

Provisions
that apply to the Performance Share Units (PSUs) for all countries 

 

a. Performance Share Units (“PSUs”) including
Cash-Settled PSUs

 

Treatment of your Award in the Event that the Performance
Criteria cannot be met

 

Performance Criteria are not met because IBM unilaterally
determines that The Transaction will no longer be completed as envisaged

 

If for strategic business reasons, IBM unilaterally decides
to formally change course and announces that it will not move forward with The Transaction as envisaged (The Announcement Date), and
the IBM Chief Executive Officer determines that the decision to change course was not made as a result of your performance in moving
The Transaction to closure, IBM agrees that you satisfied the Performance Criteria of your Equity Award Agreement upon your termination
of employment with IBM, and your PSUs will be released on the following schedule after The Announcement Date:

 

		•	33%
                                            on the 6 month anniversary of The Announcement Date 
		•	33%
                                            on the 1st anniversary of The Announcement Date 
		•	34%
                                            on the 2nd anniversary of The Announcement Date 

 

Performance Criteria are not met because NewCo is purchased
by another buyer

 

 If, during the course of completing The Transaction, NewCo is purchased by another buyer, and you are selected and
agree to become NewCo’s Chief Executive Officer immediately following the sale of NewCo, IBM agrees that you satisfied the Performance
Criteria of your Equity Award Agreement and your PSUs will convert to NewCo RSUs or a substantially equivalent cash or equity-based award
in an affiliate of buyer and vest in accordance with your Equity Award agreement.

 

If, however, if NewCo is purchased by another buyer, and
the IBM Chief Executive Officer determines that the decision to sell to another buyer was not made as a result of your performance in
moving The Transaction to closure, but you were either (1) NOT selected to become NewCo’s Chief Executive Officer, or (2) were selected
to become NewCo’s Chief Executive Officer but you decline the offer, IBM agrees that you satisfied the Performance Criteria of your
Equity Award agreement upon your termination of employment with IBM, and your PSUs will be released on the following schedule after The
Sale Date:

 

		•	33%
                                            on the 6 month anniversary of the Sale Date
		•	33%
                                            on the 1st anniversary of The Sale Date
		•	34%
                                            on the 2nd anniversary of The Sale Date

 

Performance Criteria not met Due to Termination by IBM
without Cause

 

    
	Equity Awards: December 15, 2020	Page 9 of 11

     

    

 

 

If prior to completion of The Transaction or prior to The
Sale Date, IBM terminates your employment without Cause (as such term is defined in section 2 of your Noncompetition Agreement), IBM agrees
that you satisfied the Performance Criteria of your Equity Award Agreement upon your termination of employment, and your PSUs will be
released on the following schedule after the date of your termination from employment (the “Termination Date”):

 

		•	33% on the 6 month anniversary of The Termination Date 
		•	33% on the 1st
anniversary of The Termination Date 
		•	34% on the 2nd
anniversary of The Termination Date 

 

Performance Criteria not met Due Lack of Comparable Offer
of Employment or Not Selected to be Chairman of the Board:

 

If The Transaction is completed, and you do not accept employment
with NewCo because

(i) you are not selected to be NewCo’s Chairman of the
Board; or (ii) the offer of employment is not comparable in the aggregate with your annual salary, bonus and equity award in effect at
the time of the Transaction, IBM agrees that you satisfied the Performance Criteria of your Equity Award Agreement upon your termination
of employment, and your PSUs will be released on the following schedule after the date of your termination from employment (the “Termination
Date”):

 

		•	33% on the 6 month anniversary of The Termination Date 
		•	33% on the 1st
anniversary of The Termination Date 
		•	34% on the 2nd
anniversary of The Termination Date 

 

Performance Criteria not met for other reasons

 

If, other than by death or disability
described below, your performance conditions are not met for any other reason by January 1, 2023, your PSUs will be cancelled when the
performance criteria have been determined to have not been met.

 

Termination of Employment, including Death and Disability,
and Leave of Absence

 

Termination of Employment and Leave of Absence

 

If you cease to be an active employee for any reason
(other than on account of death or are disabled as described in Section 12 of the Plan) before they vest in accordance with the terms
of your Equity Award Agreement, all PSUs are canceled immediately.

 

Death or Disability

 

Prior to the Date of Payout, (i) in the event of your death
or (ii) if you are disabled (as described in Section 12 of the Plan), all PSUs shall continue to vest and be released according to the
terms of your Equity Award Agreement. In the event The Transaction does not occur as envisaged by January 1, 2023, the PSUs would be released
by January 1, 2023.

  

 

    
	Equity Awards: December 15, 2020	Page 10 of 11

     

    

Terms and Conditions of Your Equity Award:

 

Provisions that apply to specific countries

 

a. Denmark

 

i. All Awards

 

Non-Solicitation

The following part of the above non-solicitation provision
does not apply to those individuals with the home country of Denmark: “In consideration of your Award, you agree that during your
employment with the Company and for two years following the termination of your employment for any reason, you will not directly or indirectly
hire, solicit or make an offer to any employee of the Company to be employed or perform services outside of the Company.”

 

b. Israel

 

i. All Awards

 

Data Privacy

In addition to the data privacy provisions in your Equity
Award Agreement, you agree that data, including your personal data, necessary to administer this Award may be exchanged among IBM and
its subsidiaries and affiliates as necessary (including transferring such data out of the country of origin both in and out of the EEA),
and with any vendor engaged by IBM to administer this Award.

 

c. United
States

 

i. All Awards

 

Nothing in the Plan prospectus, your Equity Award Agreement
or this Document affects your rights, immunities, or obligations under any federal, state, or local law, including under the Defend Trade
Secrets Act of 2016, as described in Company policies, or prohibits you from reporting possible violations of law or regulation to a government
agency, as protected by law.

 

If you are, and have been for at least 30 days immediately
preceding, a resident of, or an employee in Massachusetts at the time of the termination of your employment with IBM, cancellation and
rescission provisions of the Plan will not apply if you engage in competitive activities after your employment relationship has ended
with IBM. For the avoidance of doubt, cancellation and rescission provisions of the Plan will apply if you engage in (1) any Detrimental
Activity prior to your employment relationship ending with IBM or (2) any Detrimental Activity described in Section 13(a) of the Plan
other than engaging in competitive activities after your employment relationship has ended with IBM.

   

    
	Equity Awards: December 15, 2020	Page 11 of 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00333-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00333-of-00352.parquet"}]]