Document:

Exhibit 10.5

 

ASSET REPRESENTATIONS REVIEW AGREEMENT

 

among

 

HYUNDAI AUTO RECEIVABLES TRUST 2022-A,

as Issuer,

 

HYUNDAI CAPITAL AMERICA,

as Servicer

 

and

 

CLAYTON FIXED INCOME SERVICES LLC,

 

as Asset Representations Reviewer

 

Dated as of March 16, 2022

 

    (2022-A Asset Representations Review Agreement)

     

    

 

Table
of Contents

 

Page

 

	ARTICLE I	USAGE AND DEFINITIONS	2

 

	 	Section 1.1.	Usage and Definitions	2
	 	 	 	
	 	Section 1.2.	Additional Definitions	2

 

	ARTICLE II	ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER	3

 

	 	Section 2.1.	Engagement; Acceptance	3
	 	 	 	 
	 	Section 2.2.	Confirmation of Scope	3

 

	ARTICLE III	ASSET REPRESENTATIONS REVIEW PROCESS	3

 

	 	Section 3.1.	Review Notices	 3
	 	 	 	 
	 	Section 3.2.	Identification of Subject Receivables	 3
	 	 	 	 
	 	Section 3.3.	Review Materials	 4
	 	 	 	 
	 	Section 3.4.	Performance of Reviews	 4
	 	 	 	 
	 	Section 3.5.	Review Reports	 5
	 	 	 	 
	 	Section 3.6.	Limitations on Review Obligations	6
	 	 	 	 
	 	Section 3.7.	Dispute Resolution	 6

 

	ARTICLE IV	ASSET REPRESENTATIONS REVIEWER	6

 

	 	Section 4.1.	Representations and Warranties	6
	 	Section 4.2.	Covenants	7
	 	Section 4.3.	Fees, Expenses and Indemnities	8
	 	Section 4.4.	Limitation on Liability	9
	 	Section 4.5.	Indemnification by Asset Representations Reviewer	9
	 	Section 4.6.	Indemnification of Asset Representations Reviewer	9
	 	Section 4.7.	Inspections of Asset Representations Reviewer	10
	 	Section 4.8.	Delegation of Obligations	10
	 	Section 4.9.	Confidential Information	10
	 	Section 4.10.	Personally Identifiable Information	12

 

	ARTICLE V	RESIGNATION AND REMOVAL; SUCCESSOR ASSET REPRESENTATIONS REVIEWER	14

 

	 	Section 5.1.	Eligibility Requirements for Asset Representations Reviewer	14
	 	Section 5.2.	Resignation and Removal of Asset Representations Reviewer	14
	 	Section 5.3.	Successor Asset Representations Reviewer	15
	 	Section 5.4.	Merger, Consolidation or Succession	15

 

    	i	(2022-A Asset Representations Review Agreement)

     

    

 

Table
of Contents

(continued)

Page

 

	ARTICLE VI	OTHER AGREEMENTS	15

 

	 	Section 6.1.	Independence of Asset Representations Reviewer	15
	 	Section 6.2.	No Petition	15
	 	Section 6.3.	Limitation of Liability of Owner Trustee	16
	 	Section 6.4.	Termination of Agreement	16

 

	ARTICLE VII	MISCELLANEOUS PROVISIONS	16

 

	 	Section 7.1.	Amendments	16
	 	Section 7.2.	Assignment; Benefit of Agreement; Third Party Beneficiaries	17
	 	Section 7.3.	Notices	17
	 	Section 7.4.	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	18
	 	Section 7.5.	No Waiver; Remedies	18
	 	Section 7.6.	Severability	19
	 	Section 7.7.	Headings	19
	 	Section 7.8.	Counterparts; Electronic Signatures and Transmission	19

 

	 	Schedule A	Representations and Warranties, Review Materials and Tests

 

    	ii	(2022-A Asset Representations Review Agreement)

     

    

 

ASSET REPRESENTATIONS REVIEW AGREEMENT, dated as
of March 16, 2022 (this “Agreement”), among HYUNDAI AUTO RECEIVABLES TRUST 2022-A, a Delaware statutory trust, as issuer
(the “Issuer”), HYUNDAI CAPITAL AMERICA, a California corporation (“HCA”), as servicer (the “Servicer”),
and CLAYTON FIXED INCOME SERVICES LLC , a Delaware limited liability company, as asset representations reviewer (the “Asset Representations
Reviewer”).

 

WHEREAS, the Issuer desires to engage the Asset
Representations Reviewer to perform reviews of certain Receivables for compliance with the representations and warranties made by HCA,
as seller, about the Receivables in the pool.

 

NOW, THEREFORE, in consideration of the foregoing,
other good and valuable consideration, and the mutual terms and conditions contained herein, the parties hereto agree as follows.

 

ARTICLE
I

USAGE AND DEFINITIONS

 

Section 1.1.         
Usage and Definitions. (a) Except as otherwise specified herein or if the context may otherwise require, capitalized terms
not defined in this Agreement shall have the respective meanings assigned such terms set forth in Appendix A to the Sale and Servicing
Agreement, dated as of the date hereof (the “Sale and Servicing Agreement”), by and among the Depositor, HCA, as seller
and servicer, Hyundai Auto Receivables Trust 2022-A, as issuer and Citibank, N.A., as indenture trustee (the “Indenture Trustee”).

 

(b)              
With respect to all terms in this Agreement, the singular includes the plural and the plural the singular; words importing any
gender include the other genders; references to “writing” include printing, typing, lithography and other means of reproducing
words in a visible form; references to agreements and other contractual instruments include all subsequent amendments, amendments and
restatements, and supplements thereto or changes therein entered into in accordance with their respective terms and not prohibited by
this Agreement; references to Persons include their permitted successors and assigns; references to laws include their amendments and
supplements, the rules and regulations thereunder and any successors thereto; the term “including” means “including
without limitation;” and the term “or” is not exclusive.

 

Section 1.2.         
Additional Definitions. The following terms have the meanings given below:

 

“Asset Representations Review”
means the performance by the Asset Representations Reviewer of the testing procedures for each Test and each Subject Receivable according
to Section 3.4.

 

“Confidential Information” has
the meaning stated in Section 4.9(b).

 

“Information Recipients” has
the meaning stated in Section 4.9(a).

 

“Issuer PII” has the meaning
stated in Section 4.10.

 

    	2	(2022-A Asset Representations Review Agreement)

     

    

 

“Personally Identifiable Information”
or “PII” has the meaning stated in Section 4.10(a).

 

“Review Fee” has the meaning
stated in Section 4.3(b).

 

“Review Materials” means, for
an Asset Representations Review and a Subject Receivable, the documents and other materials for each Test listed under “Review Materials”
in Schedule A.

 

“Review Report” means, for an
Asset Representations Review, the report of the Asset Representations Reviewer prepared according to Section 3.5.

 

“Test” has the meaning stated
in Section 3.4(a).

 

“Test Complete” has the meaning
stated in Section 3.4(c).

 

“Test Fail” has the meaning
stated in Section 3.4(a).

 

“Test Incomplete” has the meaning
stated in Section 3.4(a).

 

“Test Pass” has the meaning
stated in Section 3.4(a).

 

ARTICLE
II

ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

 

Section 2.1.         
Engagement; Acceptance. The Issuer engages Clayton Fixed Income Services LLC to act as the Asset Representations Reviewer
for the Issuer. Clayton Fixed Income Services LLC accepts the engagement and agrees to perform the obligations of the Asset Representations
Reviewer on the terms in this Agreement.

 

Section 2.2.         
Confirmation of Scope. The parties confirm that the Asset Representations Reviewer is not responsible for (a) reviewing
the Receivables for compliance with the representations and warranties under the Basic Documents, except as described in this Agreement
or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Basic Documents.

 

ARTICLE
III

ASSET REPRESENTATIONS REVIEW PROCESS

 

Section 3.1.         
Review Notices. On receipt of a Review Notice in accordance with Section 7.05 of the Indenture, the Asset Representations
Reviewer will commence an Asset Representations Review. The Asset Representations Reviewer will have no obligation to start an Asset Representations
Review until a Review Notice is received.

 

Section 3.2.         
Identification of Subject Receivables. Within ten (10) Business Days after receipt of a Review Notice, the Servicer will
deliver to the Asset Representations Reviewer a list of the Subject Receivables.

 

    	3	(2022-A Asset Representations Review Agreement)

     

    

 

Section 3.3.         
Review Materials.

 

(a)              
Access to Review Materials. The Servicer will give the Asset Representations Reviewer access to the Review Materials for
all of the Subject Receivables within sixty (60) calendar days after receipt of the Review Notice in one or more of the following ways
in the Servicer’s reasonable discretion: (i) by electronic posting of Review Materials to a password-protected website to which
the Asset Representations Reviewer has access, (ii) by providing originals or photocopies of documents relating to the Subject Receivables
at one of the properties of the Servicer or (iii) in another manner agreed by the Servicer and the Asset Representations Reviewer. The
Servicer may redact or remove PII from the Review Materials so long as all information in the Review Materials necessary for the Asset
Representations Reviewer to complete the Asset Representations Review remains intact and unchanged.

 

(b)              
Missing or Insufficient Review Materials. The Asset Representations Reviewer will review the Review Materials to determine
if any Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test. If the Asset Representations
Reviewer reasonably determines that any of the Review Materials are missing or insufficient for the Asset Representations Reviewer to
perform any Test, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than twenty (20) calendar
days before completing the Review, and the Servicer will use reasonable efforts to provide the Asset Representations Reviewer access to
such missing Review Materials or other documents or information to correct the insufficiency within fifteen (15) calendar days. If the
missing or insufficient Review Materials have not been provided by the Servicer within sixty (60) calendar days, the parties agree that
the Subject Receivable will have a Test Incomplete for the related Test(s) and the Review Report will indicate the reason for the Test
Incomplete.

 

Section 3.4.         
Performance of Reviews.

 

(a)              
Test Procedures. For an Asset Representations Review, the Asset Representations Reviewer will perform for each Subject Receivable
the procedures listed under “Tests” in Schedule A for each representation and warranty (each, a “Test”),
using the Review Materials listed for each such Test in Schedule A. For each Test and Subject Receivable, the Asset Representations
Reviewer will determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”), if the Test has
not been satisfied (a “Test Fail”) or if the Test could not be concluded as a result of missing or incomplete Review
Materials (a “Test Incomplete”). The Asset Representations Reviewer will use such determination for all Subject Receivables
that are subject to the same Test.

 

(b)              
Review Period. The Asset Representations Reviewer will complete the Asset Representations Review of all of the Subject Receivables
within sixty (60) calendar days after receiving access to the Review Materials under Section 3.3(a). However, if missing or additional
Review Materials are provided to the Asset Representations Reviewer under Section 3.3(b), the review period will be extended for
an additional thirty (30) calendar days.

 

(c)               Completion
of Review for Certain Subject Receivables. Following the delivery of the list of the Subject Receivables and before the delivery
of the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Subject
Receivable is paid in full by the Obligor or purchased from the Issuer by the Seller or the Servicer according to the applicable
Basic Document. On receipt of notice, the Asset Representations Reviewer will immediately terminate all Tests of such Receivables
and the Review of such Receivables will be considered complete (a “Test Complete”). In this case, the Review
Report will indicate a Test Complete for the Receivables and the related reason.

 

    	4	(2022-A Asset Representations Review Agreement)

     

    

 

(d)              
Previously Reviewed Receivable. If a Subject Receivable was included in a prior Asset Representations Review, the Asset
Representations Reviewer will not conduct additional Tests on any such duplicate Subject Receivable unless such Subject Receivable was
deemed a Test Incomplete as a result of the failure of the Servicer to provide missing Review Material for such Subject Receivable and
the Servicer elects to have such Subject Receivable included in the current Asset Representations Review. The Asset Representations Reviewer
will include the previously reported Test results for any such duplicate Subject Receivable within the Review Report for the current Asset
Representations Review.

 

(e)              
Duplicative Tests. If the same Test is required for more than one representation or warranty listed on Schedule A,
the Asset Representations Reviewer will only perform the Test once for each Subject Receivable but will report the results of the Test
for each applicable representation or warranty on the Review Report.

 

(f)               
Termination of Review. If an Asset Representations Review is in process and all of the Notes will be paid in full on the
next Payment Date, the Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten days before
that Payment Date. On receipt of notice, the Asset Representations Reviewer will terminate the Asset Representations Review immediately
and will have no obligation to deliver a Review Report.

 

Section 3.5.         
Review Reports. (a) Within ten (10) calendar days after the end of the Asset Representations Review period under Section
3.4(b), the Asset Representations Reviewer will deliver to the Issuer, the Servicer and the Indenture Trustee a Review Report indicating
for each Subject Receivable whether there was a Test Pass, a Test Incomplete or a Test Fail for each Test, or whether the Subject Receivable
was a Test Complete and the related reason. The Review Report will contain a summary of the findings and conclusions of the Asset Representations
Reviewer with respect to the Asset Representations Review to be included in the Issuer’s Form 10-D report for the Collection Period
in which the Review Report is received. The Asset Representations Reviewer will ensure that the Review Report does not contain any Issuer
PII. On the reasonable request of the Servicer, the Asset Representations Reviewer will provide additional details on the Test results.

 

(b)              
Questions About Review. The Asset Representations Reviewer will make appropriate personnel available to respond in writing
to written questions or requests for clarification of any Review Report from the Servicer until payment of the Notes in full. The Asset
Representations Reviewer will have no obligation to respond to questions or requests for clarification from Noteholders or any Person
other than the Servicer and will direct such Persons to submit written questions or requests to the Servicer.

 

    	5	(2022-A Asset Representations Review Agreement)

     

    

 

Section 3.6.          Limitations
on Review Obligations. The Asset Representations Reviewer may rely on the information in any Review Notice, the list(s) of the
Subject Receivables provided by the Servicer, and the accuracy and completeness of the Review Materials. The Asset Representations
Reviewer will have no obligation:

 

(a)              
to determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct an
Asset Representations Review under the Indenture;

 

(b)              
to determine which Receivables are Subject Receivables;

 

(c)              
to confirm the validity of the Review Materials; or

 

(d)              
to take any action or cause any other party to take any action under any of the Basic Documents or otherwise to enforce any remedies
against any Person for breaches of representations or warranties about the Subject Receivables.

 

Section 3.7.         
Dispute Resolution. The Asset Representations Reviewer acknowledges and agrees that any Review Report may be used by the
Issuer, the Seller or the Servicer in any dispute resolution proceeding related to the Subject Receivables. No additional fees or reimbursement
of expenses shall be paid to the Asset Representations Reviewer regarding the Issuer’s, the Seller’s or the Servicer’s
use of any Review Report; provided that the Asset Representations Reviewer will be reimbursed for its out-of-pocket expenses incurred
in its participation in any dispute resolution proceeding.

 

ARTICLE
IV

ASSET REPRESENTATIONS REVIEWER

 

Section 4.1.         
Representations and Warranties. The Asset Representations Reviewer represents and warrants as of the Closing Date:

 

(a)              
Organization and Qualification. The Asset Representations Reviewer is duly organized and validly existing as a limited liability
company in good standing under the laws of the State of Delaware. The Asset Representations Reviewer is qualified as a foreign limited
liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or
lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain
the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Asset Representations
Reviewer’s ability to perform its obligations under this Agreement.

 

(b)              
Power, Authority and Enforceability. The Asset Representations Reviewer has the power and authority to execute, deliver
and perform its obligations under this Agreement. The Asset Representations Reviewer has authorized the execution, delivery and performance
of this Agreement. This Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against
the Asset Representations Reviewer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement
of creditors’ rights or by general equitable principles.

 

(c)               No
Conflicts and No Violation. The execution, delivery and performance by the Asset Representations Reviewer of the transactions
contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under this Agreement
will not (A) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or
other agreement or instrument under which the Asset Representations Reviewer is a party, (B) result in the creation or imposition of
any Lien on any of the properties or assets of the Asset Representations Reviewer under the terms of any indenture, mortgage, deed
of trust, loan agreement, guarantee or other agreement or instrument, (C) violate the organizational documents of the Asset
Representations Reviewer or (D) violate any law or any order, rule or regulation of a federal or state court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its
properties that applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material
adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

    	6	(2022-A Asset Representations Review Agreement)

     

    

 

(d)              
No Consent Required. No approval or authorization by, or filing with, any Governmental Authority is required in connection
with the execution, delivery and performance by the Asset Representations Reviewer of this Agreement other than (i) approvals and authorizations
that have previously been obtained and filings that have previously been made and (ii) approvals, authorizations or filings which, if
not obtained or made, would not have a material adverse effect on the ability of the Asset Representations Reviewer to perform its obligations
under this Agreement.

 

(e)              
No Proceedings. There are no proceedings or investigations pending or, to the knowledge of the Asset Representations Reviewer,
threatened in writing before a federal or state court, regulatory body, administrative agency or other governmental instrumentality having
jurisdiction over the Asset Representations Reviewer or its properties (A) asserting the invalidity of this Agreement, (B) seeking to
prevent the completion of the transactions contemplated by this Agreement or (C) seeking any determination or ruling that would reasonably
be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under,
or the validity or enforceability of, this Agreement.

 

(f)               
Eligibility. The Asset Representations Reviewer meets the eligibility requirements in Section 5.1 and will notify
the Issuer and the Servicer promptly if it no longer meets, or reasonably expects that it will no longer meet, the eligibility requirements
in Section 5.1.

 

Section 4.2.         
Covenants. The Asset Representations Reviewer covenants and agrees that:

 

(a)              
Eligibility. It will notify the Issuer and the Servicer promptly if it no longer meets the eligibility requirements in Section
5.1.

 

(b)               Review
Systems; Personnel. It will maintain business process management and/or other systems necessary to ensure that it can perform
each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer will
ensure that these systems allow for each Subject Receivable and the related Review Materials to be individually tracked and stored
as contemplated by this Agreement. The Asset Representations Reviewer will maintain adequate staff that is properly trained to
conduct Asset Representations Reviews as required by this Agreement.

 

    	7	(2022-A Asset Representations Review Agreement)

     

    

 

(c)              
Maintenance of Review Materials. It will maintain copies of any Review Materials, Review Reports and other documents relating
to an Asset Representations Review, including internal correspondence and work papers, for a period of two years after the termination
of this Agreement or repayment of the Notes in full, whichever comes first.

 

Section 4.3.         
Fees, Expenses and Indemnities.

 

(a)              
Annual Fee. The Servicer will pay the Asset Representations Reviewer, as compensation for agreeing to act as the Asset Representations
Reviewer under this Agreement, an annual fee of $5,000.00. The annual fee will be payable by the Servicer on the Closing Date and on each
anniversary thereof until this Agreement is terminated, provided, that in the year in which all public Notes are paid in full,
the annual fee shall be reduced pro rata by an amount equal to the days of the year in which the public Notes are no longer outstanding.

 

(b)              
Review Fee. Following the completion of an Asset Representations Review and the delivery to the Indenture Trustee, the Issuer
and the Servicer of the Review Report, or the termination of an Asset Representations Review in accordance with Section 3.4(f),
and the delivery to the Servicer of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee of $200 for each
Subject Receivable for which the Asset Representations Review was started (the “Review Fee”), to be paid as agreed
in Section 4.3(e). However, no Review Fee will be charged for any Tests that were performed in a prior Asset Representations Review
or for any Asset Representations Review in which no Tests were completed prior to the Asset Representations Reviewer being notified of
a termination of the Asset Representations Review in accordance with Section 3.4(f). The Servicer will pay the Review Fee to the
Asset Representations Reviewer in accordance with the terms of the detailed invoice from the Asset Representations Reviewer. If an Asset
Representations Review is terminated in accordance with Section 3.4(f), the Asset Representations Reviewer must submit its invoice
for the Review Fee for the terminated Asset Representations Review no later than five Business Days before the final Payment Date in order
to be reimbursed no later than the final Payment Date.

 

(c)              
Reimbursement of Travel Expenses. If the Servicer provides access to the Review Materials at one of its properties, the
Asset Representations Reviewer will be reimbursed for its reasonable travel expenses incurred in connection with the Review in accordance
with Section 4.3(e).

 

(d)              
Dispute Resolution Expenses. If the Asset Representations Reviewer participates in a dispute resolution proceeding and its
reasonable expenses for participating in the proceeding are not paid by a party to the dispute resolution within ninety (90) days after
the end of the proceeding, the Servicer will reimburse the Asset Representations Reviewer for such expenses in accordance with Section
4.3(e).

 

(e)               Payment
of Fees, Expenses and Indemnities. The Asset Representations Reviewer shall submit reasonably detailed invoices to the Servicer
for any amounts owed to it under this Agreement. To the extent not paid by the Servicer within sixty (60) calendar days following
the receipt of a detailed invoice on the due date therefor hereunder, the fees provided for in this Section 4.3 and the
indemnities provided for in Section 4.6(a) shall be paid by the Issuer pursuant to the priority of payments set forth in
Section 5.05(b) of the Sale and Servicing Agreement; provided, that prior to any such payment pursuant to the Sale and
Servicing Agreement, the Asset Representations Reviewer shall notify the Servicer in writing that such payments have been
outstanding for at least sixty (60) calendar days. For the avoidance of doubt, to the extent that such owed amounts are not paid in
full by the Servicer or any other party, upon receipt of a detailed invoice, the Asset Representations Reviewer shall be entitled to
payment by the Servicer of incurred but otherwise unpaid amounts.

 

    	8	(2022-A Asset Representations Review Agreement)

     

    

 

Section 4.4.         
Limitation on Liability. The Asset Representations Reviewer will not be liable to any Person for any action taken, or not
taken, in good faith under this Agreement, including without limitation such actions that are based upon the exercise of judgment or discretion.
Subject to the foregoing, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith, breach of this Agreement
or negligence in performing its obligations under this Agreement. In no event will the Asset Representations Reviewer be liable for special,
indirect or consequential losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the
likelihood of the loss or damage and regardless of the form of action.

 

Section 4.5.         
Indemnification by Asset Representations Reviewer. The Asset Representations Reviewer will indemnify each of the Issuer,
the Servicer, the Depositor, the Seller, the Sponsor, the Owner Trustee and the Indenture Trustee and their respective directors, officers,
employees and agents for all costs, expenses, losses, damages and liabilities (including any reasonable legal fees and expenses incurred
by an Indemnified Party in connection with the enforcement of any indemnification or other obligation of the Asset Representations Reviewer)
resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations
under this Agreement, (b) the Asset Representations Reviewer’s failure to comply with the requirements of applicable federal, state
or local laws and regulations in the performance of its duties hereunder or (c) the Asset Representations Reviewer’s breach of any
of its representations, warranties, covenants or other obligations in this Agreement. The Asset Representations Reviewer’s obligations
under this Section 4.5 will survive the termination of this Agreement, the termination of the Issuer and the permitted resignation
or removal of the Asset Representations Reviewer.

 

Section 4.6.         
Indemnification of Asset Representations Reviewer.

 

(a)              
Indemnification. The Servicer will indemnify the Asset Representations Reviewer and its officers, directors, employees and
agents (each, an “Indemnified Person”), for all costs, expenses, losses, damages and liabilities resulting from the
performance of its obligations under this Agreement (including the costs and expenses of defending itself against any loss, damage or
liability), but excluding any cost, expense, loss, damage or liability resulting from (i) the Asset Representations Reviewer’s willful
misconduct, bad faith or negligence, (ii) the Asset Representations Reviewer’s failure to comply with the requirements of applicable
federal, state and local laws and regulations in the performance of its duties hereunder or (iii) the Asset Representations Reviewer’s
breach of any of its representations, warranties, covenants or other obligations in this Agreement.

 

    	9	(2022-A Asset Representations Review Agreement)

     

    

 

(b)              
 Proceedings. Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person
will, if a claim is to be made under Section 4.6(a), notify the Servicer of the Proceeding. The Servicer may participate in and
assume the defense and settlement of a Proceeding at its expense. If the Servicer notifies the Indemnified Person of its intention to
assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, the Servicer will not be liable for
legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Servicer, and an Indemnified
Person. If there is a conflict, the Servicer will pay for the reasonable fees and expenses of separate counsel to the Indemnified Person.
No settlement of a Proceeding may be made without the approval of the Servicer and the Indemnified Person, which approval will not be
unreasonably withheld.

 

(c)              
Survival of Obligations. The Servicer’s obligations under this Section 4.6 will survive the permitted resignation
or removal of the Asset Representations Reviewer and the termination of this Agreement.

 

(d)              
Repayment. If the Servicer makes any payment under this Section 4.6 and the Indemnified Person later collects any
of the amounts for which the payments were made to it from others, the Indemnified Person will promptly repay the amounts to the Servicer.

 

Section 4.7.         
Inspections of Asset Representations Reviewer. The Asset Representations Reviewer agrees that, with reasonable prior notice
not more than once during any year, it will permit authorized representatives of the Issuer or the Servicer, during the Asset Representations
Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials
of the Asset Representations Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under
this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) any claim made by
the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit the Issuer’s
or the Servicer’s representatives to make copies and extracts of any of those documents and to discuss them with the Asset Representations
Reviewer’s officers and employees. Each of the Issuer and the Servicer will, and will cause its authorized representatives to, hold
in confidence the information except if disclosure may be required by law or if the Issuer or the Servicer reasonably determines that
it is required to make the disclosure under this Agreement or the other Basic Documents. The Asset Representations Reviewer will maintain
all relevant books, records, reports and other documents and materials for a period of at least two years after the termination of its
obligations under this Agreement.

 

Section 4.8.         
Delegation of Obligations. The Asset Representations Reviewer may not delegate or subcontract its obligations under this
Agreement to any Person without the consent of the parties to this Agreement.

 

Section 4.9.         
Confidential Information.

 

(a)               Treatment.
The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in confidence
and under the terms and conditions of this Section 4.9, and will implement and maintain safeguards to further assure the
confidentiality of the Confidential Information. The Confidential Information will not, without the prior consent of the Servicer,
be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or
affiliates, including legal counsel (collectively, the “Information Recipients”) other than for the purposes of
performing Asset Representations Reviews of Subject Receivables or performing its obligations under this Agreement. The Asset
Representations Reviewer agrees that it will not, and will cause its Affiliates to not (i) purchase or sell securities issued by the
Sponsor or its affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential
Information for the preparation of research reports, newsletters or other publications or similar communications.

 

    	10	(2022-A Asset Representations Review Agreement)

     

    

 

(b)              
Definition. “Confidential Information” means oral, written and electronic materials (irrespective of
its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer, including:

 

(i)                
lists of Subject Receivables and any related Review Materials;

 

(ii)             
origination and servicing guidelines, policies and procedures and form contracts; and

 

(iii)           
notes, analyses, compilations, studies or other documents or records prepared by the Servicer, which contain information supplied
by or on behalf of the Servicer or its representatives.

 

However, Confidential Information will not include information that
(A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was available
to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other than the Issuer or the
Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a confidentiality
agreement with the Issuer or the Servicer and is not prohibited from transmitting the information to the Information Recipients, (C) is
independently developed by the Information Recipients without the use of the Confidential Information, as shown by the Information Recipients’
files and records or other evidence in the Information Recipients’ possession or (D) the Issuer or the Servicer provides permission
to the applicable Information Recipients to release.

 

(c)              
Protection. The Asset Representations Reviewer will use best efforts to protect the secrecy of and avoid disclosure and
unauthorized use of Confidential Information, including those measures that it takes to protect its own confidential information and not
less than a reasonable standard of care. The Asset Representations Reviewer acknowledges that Personally Identifiable Information is also
subject to the additional requirements in Section 4.10.

 

(d)               Disclosure.
If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative,
governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential
Information. However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or
order, will use its reasonable efforts to provide the Issuer and the Servicer with notice of the requirement and will cooperate, at
the Servicer’s expense, in the Issuer’s and the Servicer’s pursuit of a proper protective order or other relief
for the disclosure of the Confidential Information. If the Issuer or the Servicer is unable to obtain a protective order or other
proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only
that part of the Confidential Information that it is advised by its legal counsel it is legally required to disclose.

 

    	11	(2022-A Asset Representations Review Agreement)

     

    

 

(e)              
Responsibility for Information Recipients. The Asset Representations Reviewer will be responsible for a breach of this Section
4.9 by its Information Recipients.

 

(f)               
Violation. The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury to
the Issuer and the Servicer and the Issuer, the Issuer and the Servicer may seek injunctive relief in addition to legal remedies. If an
action is initiated by the Issuer or the Servicer to enforce this Section 4.9, the prevailing party will be entitled to reimbursement
of costs and expenses, including reasonable attorney’s fees, incurred by it for the enforcement.

 

Section 4.10.     
Personally Identifiable Information.

 

(a)              
Definitions. “Personally Identifiable Information” or “PII” means information in any
format about an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s),
vehicle identification number or “VIN”, any other actual or assigned attribute associated with or identifiable to an individual
and any information that when used separately or in combination with other information could identify an individual. “Issuer
PII” means PII furnished by the Issuer, the Servicer or their Affiliates to the Asset Representations Reviewer and PII developed
or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement.

 

(b)              
Use of Issuer PII. The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII. The Asset Representations
Reviewer will use Issuer PII only to perform its obligations under this Agreement or as specifically directed in writing by the Issuer
and will only reproduce Issuer PII to the extent necessary for these purposes. The Asset Representations Reviewer must comply with all
laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally required codes of conduct,
including those relating to privacy, security and data protection. The Asset Representations Reviewer will protect and secure Issuer PII.
The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable laws
and regulations and this Agreement. The Asset Representations Reviewer will implement and maintain reasonable and appropriate practices,
procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and integrity
of Issuer PII, (ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized
access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement. These safeguards include a written
data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection,
data storage protection and data transmission protection) and physical security measures.

 

    	12	(2022-A Asset Representations Review Agreement)

     

    

 

(c)              
Additional Limitations. In addition to the use and protection requirements described in Section 4.10(b), the Asset
Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements:

 

(i)                
 The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII except
(A) for the Asset Representations Reviewer personnel who require Issuer PII to perform an Asset Representations Review, (B) with the prior
consent of the Issuer or (C) as required by applicable law. When permitted, the disclosure of or access to Issuer PII will be limited
to the specific information necessary for the individual to complete the assigned task. The Asset Representations Reviewer will inform
personnel with access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel with access to Issuer
PII on the proper use and protection of Issuer PII.

 

(ii)             
The Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without the
prior consent of the Issuer.

 

(d)              
Notice of Breach. The Asset Representations Reviewer will notify the Issuer promptly in the event of an actual or reasonably
suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of
Issuer PII and, where applicable, immediately take action to prevent any further breach.

 

(e)              
Return or Disposal of Issuer PII. Except where return or disposal is prohibited by applicable law, promptly on the earlier
of the completion of the Asset Representations Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations
Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its recovery or restoration or (ii) if
so directed by the Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable copies,
in both cases, without charge to the Issuer. Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations Reviewer
will limit the Asset Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law.

 

(f)               
Compliance; Modification. The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding
the Asset Representations Reviewer’s compliance with this Section 4.10. The Asset Representations Reviewer and the Issuer
agree to modify this Section 4.10 as necessary from time to time for either party to comply with applicable law.

 

(g)              
Audit of Asset Representations Reviewer. The Asset Representations Reviewer will permit the Issuer and its authorized representatives
to audit the Asset Representations Reviewer’s compliance with this Section 4.10 during the Asset Representations Reviewer’s
normal business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once during any year unless
circumstances necessitate additional audits. The Issuer agrees to make reasonable efforts to schedule any audit described in this Section
4.10(g) with the inspections described in Section 4.7. The Asset Representations Reviewer will also permit the Issuer and its
authorized representatives during normal business hours on reasonable advance written notice to audit any service providers used by the
Asset Representations Reviewer to fulfill the Asset Representations Reviewer’s obligations under this Agreement.

 

(h)               Affiliates
and Third Parties. If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates or a third party
when performing an Asset Representations Review, and if such Affiliate or third party is identified to the Asset Representations
Reviewer, such Affiliate or third party is an intended third-party beneficiary of this Section 4.10, and this Agreement is
intended to benefit the Affiliate or third party. The Affiliate or third party will be entitled to enforce the PII related terms of
this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this Agreement.

 

    	13	(2022-A Asset Representations Review Agreement)

     

    

 

ARTICLE
V

RESIGNATION AND REMOVAL;

SUCCESSOR ASSET REPRESENTATIONS REVIEWER

 

Section 5.1.         
Eligibility Requirements for Asset Representations Reviewer. The Asset Representations Reviewer must be a Person who (a)
is not Affiliated with the Sponsor, the Depositor, the Servicer, the Indenture Trustee, the Owner Trustee or any of their Affiliates and
(b) was not, and is not Affiliated with a Person that was, engaged by the Sponsor or any underwriter to perform any due diligence on the
Receivables prior to the Closing Date.

 

Section 5.2.         
Resignation and Removal of Asset Representations Reviewer.

 

(a)              
No Resignation of Asset Representations Reviewer. The Asset Representations Reviewer will not resign as Asset Representations
Reviewer unless the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1. The Asset Representations
Reviewer will notify the Issuer and the Servicer of its resignation as soon as practicable after it determines it is required to resign
and stating the resignation date and including an Opinion of Counsel supporting its determination.

 

(b)              
Removal of Asset Representations Reviewer. If any of the following events occur, the Issuer, by notice to the Asset Representations
Reviewer, may, and in the case of clause (i) below, shall, remove the Asset Representations Reviewer and terminate its rights and obligations
under this Agreement:

 

(i)                
the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1;

 

(ii)             
the Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this Agreement;
or

 

(iii)           
an Insolvency Event of the Asset Representations Reviewer occurs.

 

(c)              
Notice of Resignation or Removal. The Issuer will notify the Servicer and the Indenture Trustee of any resignation or removal
of the Asset Representations Reviewer.

 

(d)              
Continue to Perform After Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be
effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset
Representations Reviewer has accepted its engagement according to Section 5.3(b).

 

    	14	(2022-A Asset Representations Review Agreement)

     

    

 

Section 5.3.         
Successor Asset Representations Reviewer.

 

(a)              
Engagement of Successor Asset Representations Reviewer. Following the resignation or removal of the Asset Representations
Reviewer, the Issuer will appoint a successor Asset Representations Reviewer who meets the eligibility requirements of Section 5.1.

 

(b)              
Effectiveness of Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be effective
until the successor Asset Representations Reviewer has executed and delivered to the Issuer and the Servicer an agreement accepting its
engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or entered into a new agreement
with the Issuer on substantially the same terms as this Agreement.

 

(c)              
Transition and Expenses. If the Asset Representations Reviewer resigns or is removed, the Asset Representations Reviewer
will cooperate with the Issuer and take all actions reasonably requested to assist the Issuer in making an orderly transition of the Asset
Representations Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer. The Asset
Representations Reviewer will pay the reasonable expenses (including the fees and expenses of counsel) of transitioning the Asset Representations
Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer to take on such obligations
on receipt of an invoice with reasonable detail of the expenses from the Issuer or the successor Asset Representations Reviewer.

 

Section 5.4.         
Merger, Consolidation or Succession. Any Person (a) into which the Asset Representations Reviewer is merged or consolidated,
(b) resulting from any merger or consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business
of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 5.1, will be the successor
to the Asset Representations Reviewer under this Agreement. Such Person will execute and deliver to the Issuer and the Servicer an agreement
to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption happens by operation of law).

 

ARTICLE
VI

OTHER AGREEMENTS

 

Section 6.1.         
Independence of Asset Representations Reviewer. The Asset Representations Reviewer will be an independent contractor and
will not be subject to the supervision of the Issuer, the Indenture Trustee or the Owner Trustee for the manner in which it accomplishes
the performance of its obligations under this Agreement. Nothing in this Agreement will make the Asset Representations Reviewer and the
Issuer members of any partnership, joint venture or other separate entity or impose any liability as such on any of them.

 

Section 6.2.          No
Petition. Each of the parties, by entering into this Agreement, agrees that, before the date that is one year and one day (or,
if longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor or by a trust for
which the Depositor was a depositor (including, without limitation, the Issuer) or (b) the Notes, it will not start or pursue
against, or join any other Person in starting or pursuing against (i) the Depositor or (ii) the Issuer, respectively, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar
law. This Section 6.2 will survive the termination of this Agreement.

 

    	15	(2022-A Asset Representations Review Agreement)

     

    

 

Section 6.3.         
Limitation of Liability of Owner Trustee. Notwithstanding anything contained herein to the contrary, (a) this instrument
is executed and delivered by U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee of Hyundai
Auto Receivables Trust 2022-A, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and
agreements by U.S. Bank Trust National Association but is made and intended for the purpose for binding only the Issuer, (c) nothing herein
contained shall be construed as creating any liability on U.S. Bank Trust National Association individually or personally, to perform
any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and
by any Person claiming by, through or under the parties hereto, (d) U.S. Bank Trust National Association has made no investigation as
to the accuracy or completeness of any representations or warranties made by the Issuer in this instrument and (e) under no circumstances
shall U.S. Bank Trust National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable
for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this instrument
or any other related documents. In no event will U.S. Bank Trust National Association in its individual capacity or a beneficial owner
of the Issuer be liable for the Issuer’s obligations under this Agreement. For all purposes under this Agreement, the Owner Trustee
will be subject to, and entitled to the benefits of, the Trust Agreement.

 

Section 6.4.         
Termination of Agreement. This Agreement will terminate, except for the obligations under Section 4.5 or as otherwise
stated in this Agreement, on the earlier of (a) the payment in full of all outstanding Notes and the satisfaction and discharge of the
Indenture and (b) the date the Issuer is terminated under the Trust Agreement.

 

ARTICLE
VII

MISCELLANEOUS PROVISIONS

 

Section 7.1.         
Amendments.

 

(a)              
This Agreement may be amended by the parties hereto, but without the consent of the Depositor, the Indenture Trustee, the Owner
Trustee, any of the Noteholders or the Certificateholders, to cure any ambiguity, to correct or supplement any provisions in this Agreement,
or for the purpose of correcting any inconsistency with the Prospectus or for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders,
subject to one of the following conditions:

 

(i)                 the
Servicer delivers an Opinion of Counsel or an Officer’s Certificate to the Indenture Trustee to the effect that such amendment
will not materially and adversely affect the interests of the Noteholders (and, if the Certificates are then held by anyone other
than the Depositor or a U.S. Affiliate of the Depositor, the Certificateholders); or

 

    	16	(2022-A Asset Representations Review Agreement)

     

    

 

(ii)             
 the Rating Agency Condition is satisfied (other than with respect to S&P, but with satisfaction of the Rating Agency Notification
with respect to S&P if S&P is rating any Outstanding Class of Notes) with respect to such action.

 

(b)              
With respect to any amendment for which clauses (a)(i) or (a)(ii) above cannot be satisfied, this Agreement can be amended with
the consent of the Noteholders holding not less than a majority of the Outstanding Amount of the Controlling Class of Notes. It shall
not be necessary for the consent of Noteholders pursuant to this Section to approve the particular form of any proposed amendment, but
it shall be sufficient if such approval shall be with respect to the substance thereof.

 

(c)              
Promptly after the execution of any amendment, the Administrator shall furnish written notification of the substance of such amendment
to each Noteholder and each Rating Agency.

 

Section 7.2.         
Assignment; Benefit of Agreement; Third Party Beneficiaries.

 

(a)              
Assignment. Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations Reviewer
without the consent of the Servicer.

 

(b)              
Benefit of Agreement; Third-Party Beneficiaries. This Agreement is for the benefit of and will be binding on the parties
and their permitted successors and assigns. The Owner Trustee and the Indenture Trustee, for the benefit of the Noteholders, will each
be a third-party beneficiary of this Agreement and entitled to enforce this Agreement against the Asset Representations Reviewer. No other
Person will have any right or obligation under this Agreement.

 

Section 7.3.         
Notices.

 

(a)              
Delivery of Notices. All notices, requests, demands, consents, waivers or other communications to or from the parties must
be in writing and will be considered given:

 

(i)                
For overnight mail, on delivery or, for a letter mailed by registered first class mail, postage prepaid, three days after deposit
in the mail;

 

(ii)             
for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iii)           
for an electronic posting to a password-protected website to which the recipient has access, on delivery (without the requirement
of confirmation of receipt) of an email to that recipient stating that the electronic posting has occurred.

 

(b)               Notice
Addresses. Any notice, request, demand, consent, waiver or other communication will be delivered or addressed to: (i) (a) in the
case of the Servicer, to Hyundai Capital America, 3161 Michelson Drive, Suite 1900, Irvine, California 92612, Attention: Treasurer,
(b) in the case of the Issuer, to Hyundai Auto Receivables Trust 2022-A, c/o Hyundai Capital America, 3161 Michelson Drive, Suite
1900, Irvine, California 92612, Attention: Treasurer, (c) in the case of the Indenture Trustee, to Citibank, N.A., 388 Greenwich
Street, New York, New York, 10013, Attention: Agency & Trust – HART 2022-A, and (d) in the case of the Asset
Representations Reviewer, to Clayton Fixed Income Services LLC, 2638 South Falkenburg Road, Riverview, FL 33578, Email:
ARRNotices@clayton.com; with a copy to Clayton Fixed Income Services LLC, c/o Covius Services, LLC, 720 S. Colorado Blvd., Suite
200, Glendale, CO 80246 or, (ii) as to each party, at such other address or email as shall be designated by such party in a written
notice to each other party.

 

    	17	(2022-A Asset Representations Review Agreement)

     

    

 

Section 7.4.         
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

EACH OF THE PARTIES HERETO HEREBY SUBMITS TO
THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING
IN NEW YORK CITY FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
EACH OF THE PARTIES HERETO HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH PARTY, AND AGREES
NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT IN ANY OF THE AFORESAID COURTS, THAT ANY SUCH
COURT LACKS JURISDICTION OVER SUCH PARTY. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

Section 7.5.         
No Waiver; Remedies. No party’s failure or delay in exercising a power, right or remedy under this Agreement will
operate as a waiver. No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power,
right or remedy or the exercise of any other power, right or remedy. The powers, rights and remedies under this Agreement are in addition
to any powers, rights and remedies under law.

 

    	18	(2022-A Asset Representations Review Agreement)

     

    

 

 

Section 7.6.         
Severability. If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from
the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

 

Section 7.7.         
Headings. The headings in this Agreement are included for convenience and will not affect the meaning or interpretation
of this Agreement.

 

Section 7.8.         
Counterparts; Electronic Signatures and Transmission.

 

(a)              
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same instrument. Delivery of an executed counterpart of a signature
page of this Agreement by Electronic Transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

(b)              
For purposes of this Agreement, any reference to “written” or “in writing” means any form of written communication,
including, without limitation, electronic signatures, and any such written communication may be transmitted by Electronic Transmission.
The Indenture Trustee and the Issuer are authorized to accept written instructions, directions, reports, notices or other communications
signed manually, by way of facsimiled signatures, or delivered by Electronic Transmission. In the absence of bad faith or negligence on
its part, each of the Indenture Trustee and the Issuer may conclusively rely on the fact that the Person sending instructions, directions,
reports, notices or other communications or information by Electronic Transmission is, in fact, a Person authorized to give such instructions,
directions, reports, notices or other communications or information on behalf of the party purporting to send such Electronic Transmission
and, in the absence of bad faith or negligence, shall not have any liability for any losses, liabilities, costs or expenses incurred or
sustained by any party as a result of such reliance upon or compliance with such instructions, directions, reports, notices or other communications
or information to the Indenture Trustee or the Issuer, including, without limitation, the risk of either the Indenture Trustee or Issuer
acting on unauthorized instructions, notices, reports or other communications or information, and the risk of interception and misuse
by third parties.

 

(c)              
The words “execution,” “signed,” “signature,” “delivery,” and words of like import
in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed
to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act or any other similar state laws based on the Uniform Electronic Transactions Act.

 

(d)              
Notwithstanding anything to the contrary in this Agreement, any and all communications (both text and attachments) by or from the
Indenture Trustee that the Indenture Trustee in its sole discretion deems to contain confidential, proprietary and/or sensitive information
and sent by Electronic Transmission will be encrypted. The recipient of the Electronic Transmission may be required to complete a one-time
registration process.

 

    	 	19	(2022-A Asset Representations Review Agreement)

     

    

 

[Remainder of Page Left Blank]

 

    	 	20	(2022-A Asset Representations Review Agreement)

     

    

 

EXECUTED BY:

 

	 	HYUNDAI AUTO RECEIVABLES TRUST 2022-A,
	 	 	as Issuer
	 	 
	 	By:	U.S. Bank Trust National Association,
    not in _ its individual capacity, but solely as Owner Trustee
	 	 
	 	By:	 /s/ Mark Esposito
	 	 	Name: Mark Esposito
	 	 	Title:   Vice President
	 	 
	 	HYUNDAI CAPITAL AMERICA,
	 	 	as Servicer
	 	 
	 	By:	 /s/ Ross C. Williams
	 	 	Name: Ross C. Williams
	 	 	Title:   President and Chief Executive Officer
	 	 
	 	CLAYTON FIXED INCOME SERVICES LLC,
	 	 	as Asset Representations Reviewer
	 	 
	 	By:	 /s/ Anthony Neske
	 	 	Name: Anthony Neske
	 	 	Title:   Senior Vice President

 

    	 	S-1	(2022-A Asset Representations Review Agreement)

     

    

 

Schedule A

 

Representations and Warranties, Review Materials
and Tests

 

Review Materials

 

		·	Retail Installment Contract

		·	Any assignment if not included in Contract

		·	Documents which evidence the security interest in the Financed Vehicle (Certificate of Title, E-Title, Application for Title, etc)
(the “Title Documents’)

		·	List of Approved Contracts form numbers and revision dates

		·	Servicing System screen prints or data fields within the Data Tape (As of the Cutoff Date) showing (the “Cutoff Date Data File”)

		o	Receivable Active/Satisfied

		o	Scheduled Monthly Payment amount

		o	Annual Percentage Rate

		o	Original Balance

		o	Unpaid Balance

		o	Maturity Date

		o	Days Delinquent

		o	Bankruptcy Flag

		o	Litigation/Attorney Involvement Flag

		o	Vehicle Repossessed Flag

		o	Days Delinquent

 

    	 	A-1	(2022-A Asset Representations Review Agreement)

     

    

 

		·	Applicable Dealer Agreement

		·	List of Seller Affiliates

		·	Schedule of Receivables to Receivables Purchase Agreement and Sale and Servicing Agreement

		·	Receivable File

 

	 	Representation 	Method of Testing
	(i)(a)	
    (i)       Characteristics
    of Receivables. Each Receivable:

     

    (a)      was
    originated by a Dealer located in the United States of America for the retail sale of a Financed Vehicle, is payable in United States
    dollars, has been signed or electronically authenticated by the Obligor and the Dealer thereto, has been purchased by the Seller from
    such Dealer under an existing Dealer Agreement and has been validly assigned by such Dealer to the Seller,

     

     

     
	
    1.    
    Confirm that Dealer’s location, indicated in the Receivable File, is in United States.

     

    2.    
    Confirm that the Receivable is payable in US Dollars.

     

    3.    
    Confirm that the Receivable has been signed by the Obligor and the Dealer.

     

    4.    
    Confirm that there is a Dealer Agreement between the applicable Dealer and the Seller.

     

    5.    
    Confirm the assignment section of the Receivable is signed by the Dealer and the Seller is listed as the assignee.

     

 

    	 	A-2	(2022-A Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(i)(b)	
    (b)       has
    created or shall create a first priority security interest in favor of the Seller in the Financed Vehicle, which security interest has
    been assigned by the Seller to the Depositor and by the Depositor to the Issuer,

     

     

     
	
    1.    
    Confirm that the Receivable contains security interest language in favor of the Seller in the Financed Vehicle.

     

    2.    
    Confirm that a Certificate of Title or other suitable documentation lists Seller as lienholder or that an application for a Certificate
    of Title or other suitable documentation has been filed in the applicable state listing the Seller as lienholder.

     

    3.    
    Confirm that the Receivable is listed on Schedules of Receivables to the Receivables Purchase Agreement and the Sale and Servicing
    Agreement.

     

	(i)(c)	(c)      contains provisions that permit the repossession and sale of the Financed Vehicle upon a default under the Receivable by the Obligor,	1. Review the Receivable to confirm that its terms permit repossession and sale of the Financed Vehicle upon default by Obligor.
	(i)(d)	(d)      provided, at origination, for fixed level monthly payments (provided that the first and last payments may be different from but in no event more than three times the level payments) that fully amortize the Amount Financed over the original term,	
    1. Review the Receivable in order to confirm all
    payments at origination were scheduled as fixed monthly payments, with the possible exception of the first and last payments, which may
    be three times the level payment.

     

    2. Using the Truth in Lending section of the Receivable,
    confirm that payment schedule fully amortizes the Amount Financed over the original term at the applicable APR.

     

	(i)(e)	
    (e)       amortizes
    using the simple interest method,

     

     

     
	1. Confirm the Receivable employs a simple interest method of amortization.
	(i)(f)	(f)       has an Obligor which is not an affiliate of the Seller,	1. Confirm that the Obligor’s name does not appear on a list provided by the Seller of the Seller’s affiliates.

 

    	 	A-3	(2022-A Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(i)(g)	(g)      has an Obligor which is not listed on Seller’s electronic records related to receivables as a government or governmental subdivision or agency, and	1. Confirm the Cutoff Date Data File does not indicate the Obligor was a government entity.
	(i)(h)	(h)      has an Obligor which is not shown on the Servicer’s electronic records related to receivables as a debtor in pending bankruptcy proceeding,	1. Confirm the Cutoff Date Data File does not indicate the Obligor was in bankruptcy.
	(ii)	(ii)      Compliance
with Law.  Each Receivable complied at the time it was originated or made in all material respects with all requirements
of law in effect at that time and applicable to such Receivable.	1. Confirm that the contract form number and revision date are on a list of approved contract forms provided by the Seller.
	(iii)	(iii)      Binding
Obligation.  Each Receivable represents the legal and binding payment obligation of the Obligor, enforceable in all material
respects by the holder of the Receivable, except as may be limited by bankruptcy, insolvency, reorganization or other laws relating to
the enforcement of creditors’ rights or by general equitable principles, consumer protection laws and the Servicemembers Civil
Relief Act.	
    1. Confirm that the contract form number and revision
    date are on a list of approved contract forms provided by the Seller.

     

    2. Confirm that the buyer and co-buyer, if applicable,
    have signed the Contract.

     

	(iv)	(iv)      Chattel Paper.  Each Receivable constitutes either “tangible chattel paper” or “electronic chattel paper” within the meaning of the UCC as in effect in the state of origination. If such Receivable constitutes electronic chattel paper, the Seller has “control” of such electronic chattel paper within the meaning of Section 9-105 of the applicable UCC.	
    1. Confirm that the contract form number and revision
    date are on a list of approved contract forms provided by the Seller.

     

    2. Confirm that there is a signature under the appropriate
    buyer, co-buyer, if applicable, and Seller signature lines within the contract.

     

    3. Confirm the Receivable contains security interest
    language in favor of the Seller in the Financed Vehicle?

     

 

    	 	A-4	(2022-A Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(v)	(v)      One Original.  There is only one executed original, electronically authenticated original or authoritative copy of the “contract” (within the meaning of the UCC) related to each Receivable.	1. Confirm the Contract was signed by the buyer and co-buyer, if applicable.
	(vi)	(vi)      Receivables in Force.  As of the Cutoff Date, the Servicer’s electronic records related to receivables do not indicate that any Receivable was satisfied, subordinated or rescinded, or that any Financed Vehicle was released from the Lien of the related Receivable.  As of the Cutoff Date, none of the material terms of any Receivable has been expressly waived, altered or modified in any material respect since its origination, except by instruments or documents identified in the Seller’s receivable system.	
    1. Review the Cutoff Data File and confirm
    there is no evidence that the Receivable was satisfied, subordinated or rescinded or that the Financed Vehicle was released from the lien
    prior to the Cutoff Date.

     

    2. Review Receivable File and the records in Seller’s receivable
    system for evidence of express waivers prior to the Cutoff Date that were neither identified in the Receivable File nor identified in
    the receivable system as of that date.

     

     

     

	(vii)	(vii)      Lawful Assignment.  The terms of the Receivable do not prohibit the sale, transfer and assignment of such Receivable under this Agreement, the Sale and Servicing Agreement or the pledge of such Receivable under the Indenture.	
    1. Confirm that the contract form number and revision
    date are on a list of approved contract forms provided by the Seller.

     

     

     

     

     

	(viii)	(viii)      Title.  Immediately prior to the transfers and assignments herein contemplated, the Seller has good and marketable title to each Receivable free and clear of all Liens (except Permitted Liens and any Lien that will be released prior to the assignment of such Receivable hereunder), and, immediately upon the transfer thereof, the Depositor shall have good and marketable title to each Receivable, free and clear of all Liens except Permitted Liens.	
    1. Review the Title Documents and confirm that the
    Seller is listed as a first priority lien holder for the Financed Vehicle and that no other lienholder is listed.

     

    2. Confirm that the Title Documents indicate that
    the Receivable has not been sold, assigned or transferred to any other entity

     

 

    	 	A-5	(2022-A Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(ix)	(ix)      No Defenses.  The Servicer’s electronic records related to receivables do not reflect any right of rescission, setoff, counterclaim or defense asserted or threatened by any Obligor for any Receivable indicated in the Seller’s receivable system.	1. Confirm the Cutoff Date Data File does not contain any indication of any right of rescission, counterclaim or defense asserted or threatened by any Obligor as of the Cutoff Date.
	(x)	(x)      No Default.  As of the Cutoff Date, the Servicer’s receivable system did not disclose that there was any payment default under the terms of any Receivable (other than payment delinquencies of not more than 30 days).	1. Review the records in Seller’s receivable system to confirm that Receivable was not more than 30 days past due as of Cutoff Date.
	(xi)	(xi)      Insurance.  Under the terms of each Receivable, the Obligor is required to maintain physical damage insurance covering the related Financed Vehicle.	1. Confirm the Receivable contains language that requires the Obligor to obtain and maintain insurance against physical damage to the Financed Vehicle.
	(xii)(a)	
    (xii)       Individual
    Characteristics. Each Receivable has the following individual characteristics as of the Cutoff Date:

     

    (a)       each
    Receivable had an original number of scheduled payments of not less than 24 or more than 75,

     
	1. Review the Receivable, as amended by documents in the Receivable File and notations in the records in Seller’s receivable system, had an original number of scheduled payments within the allowable limits as of the Cutoff Date.
	(xii)(b)	(b)      no Receivable was more than 30 days past due as of the Cutoff Date,	1. Review the records in Seller’s receivable system to confirm the Receivable was not more than the maximum allowable days past due as of the Cutoff Date.
	(xii)(c)	(c)      no Receivable has a final scheduled payment date after March 27, 2028,	1. Confirm that the final scheduled payment date specified in the Receivable, as amended by documents in the Receivable File and notations in the records in Seller’s receivable system, was not later than latest allowable final scheduled payment date as of the Cutoff Date.

 

    	 	A-6	(2022-A Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(xii)(d)	(d)      no Receivable has an APR of less than 0.00%,	1. Review the records in Seller’s receivable system to confirm the Receivable did not have an APR less than the minimum allowable percentage rate as of the Cutoff Date.
	(xii)(e)	(e)      each Receivable has a remaining number of scheduled payments of at least 7 and not more than 74,	1. Review the records in Seller’s receivable system to confirm the Receivable had a remaining number of scheduled payments within the allowable limits as of the Cutoff Date.
	(xii)(f)	(f)      each Receivable has a remaining balance of at least $5,000.00 and not greater than $80,000.00, and	1. Review the records in Seller’s receivable system to confirm the Receivable had a remaining balance within the allowable limits as of the Cutoff date.
	(xii)(g)	(g)      each Receivable is secured by a new or used automobile, light-duty truck or minivan.	1. Confirm that the Receivable’s terms indicate the Receivable is secured by a new or used automobile, light-duty truck or minivan.

 

    	 	A-7	(2022-A Asset Representations Review Agreement)Exhibit 4.1

 

Counterpart __ of 75 Counterparts

 

 

DUKE ENERGY PROGRESS, LLC

(formerly Duke Energy Progress, Inc.)

 

TO

 

THE BANK OF NEW YORK MELLON

(formerly The Bank of New York (formerly Irving
Trust Company))

 

AND

 

CHRISTIE LEPPERT

(successor to Frederick G. Herbst, Richard
H. West, J.A. Austin, E.J. McCabe,

G. White, D.W. May, J.A. Vaughan, Joseph J.
Arney, Wafaa Orfy,

W.T. Cunningham, Douglas J. MacInnes, Ming Ryan
and Tina D. Gonzalez)

 

	 	as Trustees under Duke Energy Progress, LLC’s 

Mortgage and Deed of Trust, dated as of May 1,1940

 

 

 

Ninety-second Supplemental Indenture

 

Providing among other things for

First Mortgage Bonds, 3.40%
Series due 2032 (One Hundred-eighth Series)

First Mortgage Bonds, 4.00%
Series due 2052 (One Hundred-ninth Series)

 

Dated as of March 1, 2022

 

Prepared by and Return to:

Hunton Andrews Kurth LLP

c/o Brendan P. Harney

200 Park Avenue, 52nd Floor

New York, New York 10166

 

     

     

    

 

NINETY-SECOND
SUPPLEMENTAL INDENTURE

 

INDENTURE,
dated as of March 1, 2022, by and between DUKE ENERGY PROGRESS, LLC (formerly Duke Energy Progress, Inc.), a limited liability
company of the State of North Carolina, whose post office address is 410 South Wilmington Street, Raleigh, North Carolina 27601-1748 (hereinafter
sometimes referred to as the “Company”), and THE BANK OF NEW YORK MELLON (formerly The Bank of New York (formerly Irving Trust
Company)), a corporation of the State of New York, whose post office address is 240 Greenwich Street, New York, New York 10286 (hereinafter
sometimes referred to as the “Corporate Trustee”), and CHRISTIE LEPPERT (successor to Frederick G. Herbst, Richard H. West,
J.A. Austin, E.J. McCabe, G. White, D.W. May, J.A. Vaughan, Joseph J. Arney, Wafaa Orfy, W.T. Cunningham, Douglas J. MacInnes, Ming Ryan
and Tina D. Gonzalez), whose post office address is 4655 Salisbury Road, Suite 300, Jacksonville, Florida 32256 (hereinafter sometimes
referred to as the “Individual Trustee”; the Corporate Trustee and the Individual Trustee being hereinafter together sometimes
referred to as the “Trustees”), as Trustees under the Mortgage and Deed of Trust, dated as of May 1, 1940 (hereinafter
referred to as the “Original Mortgage” and, as supplemented from time to time by the ninety-one supplemental indentures mentioned
below, by this Indenture, and by all other indentures, if any, supplemental to the Original Mortgage, hereinafter referred to as the “Mortgage”),
which Original Mortgage was executed and delivered by the Company to Irving Trust Company (now The Bank of New York Mellon) and Frederick
G. Herbst to secure the payment of bonds issued or to be issued under and in accordance with the provisions of the Original Mortgage,
reference to which Original Mortgage is hereby made, this Indenture (hereinafter sometimes referred to as the “Ninety-second Supplemental
Indenture”) being supplemental thereto:

 

WHEREAS, the Original Mortgage
was recorded in various Counties in the States of North Carolina and South Carolina; and

 

WHEREAS, the Original Mortgage
was indexed and cross-indexed in the real and chattel mortgage records in various Counties in the States of North Carolina and South Carolina;
and

 

WHEREAS, an instrument, dated
as of June 25, 1945, was executed by the Company appointing Richard H. West as Individual Trustee in succession to said Frederick
G. Herbst (deceased) under the Original Mortgage, as theretofore supplemented, and by Richard H. West accepting said appointment, which
instrument was recorded in various Counties in the States of North Carolina and South Carolina; and

 

WHEREAS, an instrument, dated
as of December 12, 1957, was executed by the Company appointing J.A. Austin as Individual Trustee in succession to said Richard H.
West (resigned) under the Original Mortgage, as theretofore supplemented, and by J.A. Austin accepting said appointment, which instrument
was recorded in various Counties in the States of North Carolina and South Carolina; and

 

WHEREAS, an instrument, dated
as of April 15, 1966, was executed by the Company appointing E.J. McCabe as Individual Trustee in succession to said J.A. Austin
(resigned) under the Original Mortgage, as theretofore supplemented, and by E.J. McCabe accepting said appointment, which instrument was
recorded in various Counties in the States of North Carolina and South Carolina; and

 

WHEREAS, by the Seventeenth
Supplemental Indenture mentioned below, the Company, among other things, appointed G. White as Individual Trustee in succession to said
E.J. McCabe (resigned), and G. White accepted said appointment; and

 

     

     

    

 

WHEREAS, by the Nineteenth
Supplemental Indenture mentioned below, the Company, among other things, appointed D.W. May as Individual Trustee in succession to
said G. White (resigned), and D.W. May accepted said appointment; and

 

WHEREAS, by the Thirty-fifth
Supplemental Indenture mentioned below, the Company, among other things, appointed J.A. Vaughan as Individual Trustee in succession to
said D.W. May (resigned), and J.A. Vaughan accepted said appointment; and

 

WHEREAS, an instrument, dated
as of June 27, 1988, was executed by the Company appointing Joseph J. Arney as Individual Trustee in succession to said J.A. Vaughan
(resigned) under the Original Mortgage, as theretofore supplemented, and by Joseph J. Arney accepting said appointment, which instrument
was recorded in various Counties in the States of North Carolina and South Carolina; and

 

WHEREAS, by the Forty-fifth
Supplemental Indenture mentioned below, the Company, among other things, appointed Wafaa Orfy as Individual Trustee in succession to said
Joseph J. Arney (resigned), and Wafaa Orfy accepted said appointment; and

 

WHEREAS, by the Forty-ninth
Supplemental Indenture mentioned below, the Company, among other things, appointed W.T. Cunningham as Individual Trustee in succession
to said Wafaa Orfy (resigned), and W.T. Cunningham accepted said appointment; and

 

WHEREAS, by the Sixty-sixth
Supplemental Indenture mentioned below, the Company, among other things, appointed Douglas J. MacInnes as Individual Trustee in succession
to said W.T. Cunningham (resigned), and Douglas J. MacInnes accepted said appointment; and

 

WHEREAS, by the Seventy-sixth
Supplemental Indenture mentioned below, the Company, among other things, appointed Ming Ryan as Individual Trustee in succession to said
Douglas J. MacInnes (resigned), and Ming Ryan accepted said appointment; and

 

WHEREAS, by the Seventy-ninth
Supplemental Indenture mentioned below, the Company, among other things, appointed Tina D. Gonzalez as Individual Trustee in succession
to said Ming Ryan (resigned), and Tina D. Gonzalez accepted said appointment; and

 

WHEREAS, by the Eighty-seventh
Supplemental Indenture mentioned below, the Company, among other things, appointed Christie Leppert as Individual Trustee in succession
to said Tina D. Gonzalez (resigned), and Christie Leppert accepted said appointment; and

 

WHEREAS, such instruments
were indexed and cross-indexed in the real and chattel mortgage records in various Counties in the States of North Carolina and South
Carolina; and

 

WHEREAS,
effective January 1, 2003, the Company began doing business under the name Progress Energy Carolinas, Inc., without changing
the legal name of the Company; and certificates of doing business by the Company under such name were recorded in all counties in the
States of North Carolina and South Carolina in which this Ninety-second Supplemental Indenture is to be recorded and were filed
and indexed and cross-indexed in the real property records in each of such counties; and

 

WHEREAS,
effective April 29, 2013, the Company changed its name to Duke Energy Progress, Inc. and evidence of such name change was (i) recorded
in all counties in the States of North Carolina and South Carolina in which this Ninety-second Supplemental Indenture is to be
recorded and (ii) filed and indexed and cross-indexed in the real property records in each of such counties; and

 

    2 

     

    

 

WHEREAS,
the Company converted its form of organization effective August 1, 2015 from a North Carolina corporation to a North Carolina limited
liability company named “Duke Energy Progress, LLC,” and evidence of such conversion was (i) recorded in all counties
in the States of North Carolina and South Carolina in which this Ninety-second Supplemental Indenture is to be recorded and (ii) filed
and indexed and cross-indexed in the real property records in each of such counties; and

 

WHEREAS, by the Original Mortgage,
the Company covenanted that it would execute and deliver such supplemental indenture or indentures and such further instruments and do
such further acts as might be necessary or proper to carry out more effectually the purposes of the Mortgage and to make subject to the
lien of the Original Mortgage any property thereafter acquired intended to be subject to the lien thereof; and

 

WHEREAS, for said purposes,
among others, the Company executed and delivered to the Trustees the following supplemental indentures:

 

	Designation	 	Dated as of
	First Supplemental Indenture	 	January 1, 1949
	Second Supplemental Indenture	 	December 1, 1949
	Third Supplemental Indenture	 	February 1, 1951
	Fourth Supplemental Indenture	 	October 1, 1952
	Fifth Supplemental Indenture	 	March 1, 1958
	Sixth Supplemental Indenture	 	April 1, 1960
	Seventh Supplemental Indenture	 	November 1, 1961
	Eighth Supplemental Indenture	 	July 1, 1964
	Ninth Supplemental Indenture	 	April 1, 1966
	Tenth Supplemental Indenture	 	October 1, 1967
	Eleventh Supplemental Indenture	 	October 1, 1968
	Twelfth Supplemental Indenture	 	January 1, 1970
	Thirteenth Supplemental Indenture	 	August 1, 1970
	Fourteenth Supplemental Indenture	 	January 1, 1971
	Fifteenth Supplemental Indenture	 	October 1, 1971
	Sixteenth Supplemental Indenture	 	May 1, 1972
	Seventeenth Supplemental Indenture	 	May 1, 1973
	Eighteenth Supplemental Indenture	 	November 1, 1973
	Nineteenth Supplemental Indenture	 	May 1, 1974
	Twentieth Supplemental Indenture	 	December 1, 1974
	Twenty-first Supplemental Indenture	 	April 15, 1975
	Twenty-second Supplemental Indenture	 	October 1, 1977
	Twenty-third Supplemental Indenture	 	June 1, 1978
	Twenty-fourth Supplemental Indenture	 	May 15, 1979
	Twenty-fifth Supplemental Indenture	 	November 1, 1979
	Twenty-sixth Supplemental Indenture	 	November 1, 1979
	Twenty-seventh Supplemental Indenture	 	April 1, 1980
	Twenty-eighth Supplemental Indenture	 	October 1, 1980
	Twenty-ninth Supplemental Indenture	 	October 1, 1980
	Thirtieth Supplemental Indenture	 	December 1, 1982
	Thirty-first Supplemental Indenture	 	March 15, 1983
	Thirty-second Supplemental Indenture	 	March 15, 1983
	Thirty-third Supplemental Indenture	 	December 1, 1983
	Thirty-fourth Supplemental Indenture	 	December 15, 1983
	Thirty-fifth Supplemental Indenture	 	April 1, 1984
	Thirty-sixth Supplemental Indenture	 	June 1, 1984
	Thirty-seventh Supplemental Indenture	 	June 1, 1984
	Thirty-eighth Supplemental Indenture	 	June 1, 1984
	Thirty-ninth Supplemental Indenture	 	April 1, 1985

 

    3 

     

    

 

	Designation	 	Dated as of
	Fortieth Supplemental Indenture	 	October 1, 1985
	Forty-first Supplemental Indenture	 	March 1, 1986
	Forty-second Supplemental Indenture	 	July 1, 1986
	Forty-third Supplemental Indenture	 	January 1, 1987
	Forty-fourth Supplemental Indenture	 	December 1, 1987
	Forty-fifth Supplemental Indenture	 	September 1, 1988
	Forty-sixth Supplemental Indenture	 	April 1, 1989
	Forty-seventh Supplemental Indenture	 	August 1, 1989
	Forty-eighth Supplemental Indenture	 	November 15, 1990
	Forty-ninth Supplemental Indenture	 	November 15, 1990
	Fiftieth Supplemental Indenture	 	February 15, 1991
	Fifty-first Supplemental Indenture	 	April 1, 1991
	Fifty-second Supplemental Indenture	 	September 15, 1991
	Fifty-third Supplemental Indenture	 	January 1, 1992
	Fifty-fourth Supplemental Indenture	 	April 15, 1992
	Fifty-fifth Supplemental Indenture	 	July 1, 1992
	Fifty-sixth Supplemental Indenture	 	October 1, 1992
	Fifty-seventh Supplemental Indenture	 	February 1, 1993
	Fifty-eighth Supplemental Indenture	 	March 1, 1993
	Fifty-ninth Supplemental Indenture	 	July 1, 1993
	Sixtieth Supplemental Indenture	 	July 1, 1993
	Sixty-first Supplemental Indenture	 	August 15, 1993
	Sixty-second Supplemental Indenture	 	January 15, 1994
	Sixty-third Supplemental Indenture	 	May 1, 1994
	Sixty-fourth Supplemental Indenture	 	August 15, 1997
	Sixty-fifth Supplemental Indenture	 	April 1, 1998
	Sixty-sixth Supplemental Indenture	 	March 1, 1999
	Sixty-seventh Supplemental Indenture	 	March 1, 2000
	Sixty-eighth Supplemental Indenture	 	April 1, 2000
	Sixty-ninth Supplemental Indenture	 	June 1, 2000
	Seventieth Supplemental Indenture	 	July 1, 2000
	Seventy-first Supplemental Indenture	 	February 1, 2002
	Seventy-second Supplemental Indenture	 	September 1, 2003
	Seventy-third Supplemental Indenture	 	March 1, 2005
	Seventy-fourth Supplemental Indenture	 	November 1, 2005
	Seventy-fifth Supplemental Indenture	 	March 1, 2008
	Seventy-sixth Supplemental Indenture	 	January 1, 2009
	Seventy-seventh Supplemental Indenture	 	June 18, 2009
	Seventy-eighth Supplemental Indenture	 	September 1, 2011
	Seventy-ninth Supplemental Indenture	 	May 1, 2012
	Eightieth Supplemental Indenture	 	March 1, 2013
	Eighty-first Supplemental Indenture	 	June 1, 2013
	Eighty-second Supplemental Indenture	 	March 1, 2014
	Eighty-third Supplemental Indenture	 	November 1, 2014
	Eighty-fourth Supplemental Indenture	 	August 1, 2015
	Eighty-fifth Supplemental Indenture	 	August 1, 2015
	Eighty-sixth Supplemental Indenture	 	September 1, 2016
	Eighty-seventh Supplemental Indenture	 	September 1, 2017
	Eighty-eighth Supplemental Indenture	 	August 1, 2018
	Eighty-ninth Supplemental Indenture	 	March 1, 2019
	Ninetieth Supplemental Indenture	 	August 1, 2020
	Ninety-first Supplemental Indenture 	 	August 1, 2021

 

    4 

     

    

 

which supplemental indentures (other than said
Sixty-fifth Supplemental Indenture and said Sixty-seventh Supplemental Indenture) were recorded in various Counties in the States of North
Carolina and South Carolina, and were indexed and cross-indexed in the real and chattel mortgage or security interest records in various
Counties in the States of North Carolina and South Carolina; and

 

WHEREAS, no recording or filing
of said Sixty-fifth Supplemental Indenture in any manner or place is required by law in order to fully preserve and protect the security
of the bondholders and all rights of the Trustees or is necessary to make effective the lien intended to be created by the Original Mortgage
or said Sixty-fifth Supplemental Indenture; and said Sixty-seventh Supplemental Indenture was recorded only in Rowan County, North Carolina
to make subject to the lien of the Mortgage certain property of the Company located in said County intended to be subject to the lien
of the Original Mortgage, all in accordance with Section 42 of the Mortgage; and

 

WHEREAS,
the Original Mortgage and said First through Ninety-second Supplemental Indentures (other than said Sixty-fifth and said Sixty-seventh
Supplemental Indentures) were or are to be recorded in all Counties in the States of North Carolina and South Carolina in which this Ninety-second
Supplemental Indenture is to be recorded; and

 

WHEREAS, in addition to the
property described in the Original Mortgage, as heretofore supplemented, the Company has acquired certain other property, rights and interests
in property; and

 

WHEREAS, the Company has heretofore
issued, in accordance with the provisions of the Original Mortgage, as from time to time then supplemented, the following series of First
Mortgage Bonds:

 

	Series	 	Principal

Amount

Issued	 	Principal

Amount

Outstanding	 
	3-3/4% Series due 1965	 	
    $
	46,000,000
		None	 
	3-1/8% Series due 1979		20,100,000	 	None	 
	3-1/4% Series due 1979	 	43,930,000	 	None	 
	2-7/8% Series due 1981	 	15,000,000	 	None	 
	3-1/2% Series due 1982	 	20,000,000	 	None	 
	4-1/8% Series due 1988	 	20,000,000	 	None	 
	4-7/8% Series due 1990	 	25,000,000	 	None	 
	4-1/2% Series due 1991	 	25,000,000	 	None	 
	4-1/2% Series due 1994	 	30,000,000	 	None	 
	5-1/8% Series due 1996	 	30,000,000	 	None	 
	6-3/8% Series due 1997	 	40,000,000	 	None	 
	6-7/8% Series due 1998	 	40,000,000	 	None	 
	8-3/4% Series due 2000	 	40,000,000	 	None	 
	8-3/4% Series due August 1, 2000	 	50,000,000	 	None	 
	7-3/8% Series due 2001	 	65,000,000	 	None	 
	7-3/4% Series due October 1, 2001	 	70,000,000	 	None	 
	7-3/4% Series due 2002	 	100,000,000	 	None	 
	7-3/4% Series due 2003	 	100,000,000	 	None	 
	8-1/8% Series due November 1, 2003	 	100,000,000	 	None	 
	9-3/4% Series due 2004	 	125,000,000	 	None	 
	11-1/8% Series due 1994	 	50,000,000	 	None	 
	11% Series due April 15, 1984	 	100,000,000	 	None	 
	8-1/2% Series due October 1, 2007	 	100,000,000	 	None	 
	9-1/4% Series due June 1, 2008	 	100,000,000	 	None	 
	10-1/2% Series due May 15, 2009	 	125,000,000	 	None	 
	12-1/4% Series due November 1, 2009	 	100,000,000	 	None	 

 

    5 

     

    

 

	Series	 	Principal

Amount

Issued	 	Principal

Amount

Outstanding		 
	Pollution Control Series A	 	63,000,000	 	None	 
	14-1/8% Series due April 1, 1987	 	125,000,000	 	None	 
	Pollution Control Series B	 	50,000,000	 	None	 
	Pollution Control Series C	 	6,000,000	 	None	 
	11-5/8% Series due December 1, 1992	 	100,000,000	 	None	 
	Pollution Control Series D	 	48,485,000	 	None	 
	Pollution Control Series E	 	5,970,000	 	None	 
	12-7/8% Series due December 1, 2013	 	100,000,000	 	None	 
	Pollution Control Series F	 	34,700,000	 	None	 
	13-3/8% Series due April 1, 1994	 	100,000,000	 	None	 
	Pollution Control Series G	 	122,615,000	 	None	 
	Pollution Control Series H	 	70,000,000	 	None	 
	Pollution Control Series I	 	70,000,000	 	None	 
	Pollution Control Series J	 	6,385,000	 	None	 
	Pollution Control Series K	 	2,580,000	 	None	 
	Extendible Series due April 1, 1995	 	125,000,000	 	None	 
	11-3/4% Series due October 1, 2015	 	100,000,000	 	None	 
	8-7/8% Series due March 1, 2016	 	100,000,000	 	None	 
	8-1/8% Series due July 1, 1996	 	125,000,000	 	None	 
	8-1/2% Series due January 1, 2017	 	100,000,000	 	None	 
	9.174% Series due December 1, 1992	 	100,000,000	 	None	 
	9% Series due September 1, 1993	 	100,000,000	 	None	 
	9.60% Series due April 1, 1991	 	100,000,000	 	None	 
	Secured Medium-Term Notes, Series A	 	200,000,000	 	None	 
	8-1/8% Series due November 15, 1993	 	100,000,000	 	None	 
	Secured Medium-Term Notes, Series B	 	100,000,000	 	None	 
	8-7/8% Series due February 15, 2021	 	125,000,000	 	None	 
	9% Series due April 1, 2022	 	100,000,000	 	None	 
	8-5/8% Series due September 15, 2021	 	100,000,000	 	None	 
	5.20% Series due January 1, 1995	 	125,000,000	 	None	 
	7-7/8% Series due April 15, 2004	 	150,000,000	 	None	 
	8.20% Series due July 1, 2022	 	150,000,000	 	None	 
	6-3/4% Series due October 1, 2002	 	100,000,000	 	None	 
	6-1/8% Series due February 1, 2000	 	150,000,000	 	None	 
	7-1/2% Series due March 1, 2023	 	150,000,000	 	None	 
	5-3/8% Series due July 1, 1998	 	100,000,000	 	None	 
	Secured Medium-Term Notes, Series C	 	200,000,000	 	None	 
	6-7/8% Series due August 15, 2023	 	100,000,000	 	None	 
	5-7/8% Series due January 15, 2004	 	150,000,000	 	None	 
	Pollution Control Series L	 	72,600,000	 	72,600,000	 
	Pollution Control Series M	 	50,000,000	 	50,000,000	 
	6.80% Series due August 15, 2007	 	200,000,000	 	None	 
	5.95% Senior Note Series due March 1, 2009	 	400,000,000	 	None	 
	7.50% Senior Note Series due April 1, 2005	 	300,000,000	 	None	 
	Pollution Control Series N	 	67,300,000	 	None	 
	Pollution Control Series O	 	55,640,000	 	None	 
	Pollution Control Series P	 	50,000,000	 	50,000,000	 
	Pollution Control Series Q	 	50,000,000	 	50,000,000	 
	Pollution Control Series R	 	45,600,000	 	45,600,000	 
	Pollution Control Series S	 	41,700,000	 	41,700,000	 
	Pollution Control Series T	 	50,000,000	 	50,000,000	 
	Pollution Control Series U	 	50,000,000	 	50,000,000	 
	Pollution Control Series V	 	87,400,000	 	87,400,000	 

 

    6 

     

    

 

	Series	 	Principal

Amount

Issued	 	Principal

Amount

Outstanding		 
	Pollution Control Series W	 	48,485,000	 	48,485,000	 
	5.125% Series due 2013	 	400,000,000	 	None	 
	6.125% Series due 2033	 	200,000,000	 	200,000,000	 
	5.15% Series due 2015	 	300,000,000	 	None	 
	5.70% Series due 2035	 	200,000,000	 	200,000,000	 
	5.25% Series due 2015	 	400,000,000	 	None	 
	6.30% Series due 2038	 	325,000,000	 	325,000,000	 
	5.30% Series due 2019	 	600,000,000	 	None	 
	3.00% Series due 2021	 	500,000,000	 	None	 
	2.80% Series due 2022	 	500,000,000	 	500,000,000	 
	4.10% Series due 2042	 	500,000,000	 	500,000,000	 
	4.10% Series due 2043	 	500,000,000	 	500,000,000	 
	Pollution Control Series X	 	48,485,000	 	48,485,000	 
	Floating Rate Series due 2017	 	250,000,000	 	None	 
	4.375% Series due 2044	 	400,000,000	 	400,000,000	 
	Second Floating Rate Series due 2017	 	200,000,000	 	None	 
	4.15% Series due 2044	 	500,000,000	 	500,000,000	 
	3.25% Series due 2025	 	500,000,000	 	500,000,000	 
	4.20% Series due 2045	 	700,000,000	 	700,000,000	 
	3.70% Series due 2046	 	450,000,000	 	450,000,000	 
	Floating Rate Series due 2020	 	300,000,000	 	None	 
	3.60% Series due 2047	 	500,000,000	 	500,000,000	 
	3.375% Series due 2023	 	300,000,000	 	300,000,000	 
	3.700% Series due 2028	 	500,000,000	 	500,000,000	 
	3.45% Series due 2029	 	600,000,000	 	600,000,000	 
	2.50% Series due 2050	 	600,000,000	 	600,000,000	 
	2.00% Series due 2031	 	650,000,000	 	650,000,000	 
	2.90% Series due 2051	 	450,000,000	 	450,000,000	 

 

which bonds are herein sometimes referred to as
bonds of the First through One Hundred-seventh Series, respectively; and

 

WHEREAS, Section 8 of
the Original Mortgage, as heretofore supplemented, provides that the form of each series of bonds (other than the First Series) issued
thereunder and of the coupons to be attached to coupon bonds of such series shall be established by Resolution of the Board of Directors
of the Company and that the form of such series, as established by said Board of Directors, shall specify the descriptive title of the
bonds and various other terms thereof, and may also contain such provisions not inconsistent with the provisions of the Mortgage as said
Board of Directors may, in its discretion, cause to be inserted therein expressing or referring to the terms and conditions upon which
such bonds are to be issued and/or secured under the Mortgage; and

 

WHEREAS, Section 120
of the Original Mortgage, as heretofore supplemented, provides, among other things, that any power, privilege or right expressly or impliedly
reserved to or in any way conferred upon the Company by any provision of the Mortgage, whether such power, privilege or right is in any
way restricted or is unrestricted, may be in whole or in part waived or surrendered or subjected to any restriction if at the time unrestricted
or to additional restriction if already restricted, and the Company may enter into any further covenants, limitations or restrictions
for the benefit of any one or more series of bonds issued thereunder, or the Company may cure any ambiguity contained therein, or in any
supplemental indenture, or may establish the terms and provisions of any series of bonds other than said First Series, by an instrument
in writing executed and acknowledged by the Company in such manner as would be necessary to entitle a conveyance of real estate to record
in all of the states in which any property at the time subject to the lien of the Mortgage shall be situated; and

 

    7 

     

    

 

WHEREAS, the Company now desires
to create one new series of bonds and to add to its covenants and agreements contained in the Original Mortgage, as heretofore supplemented,
certain other covenants and agreements to be observed by it; and

 

WHEREAS,
the execution and delivery by the Company of this Ninety-second Supplemental Indenture, and the terms of the bonds of the One Hundred-eighth
and One Hundred-ninth Series, hereinafter referred to, have been duly authorized by the Board of Directors of the Company by appropriate
resolutions of said Board of Directors;

 

NOW, THEREFORE, THIS INDENTURE
WITNESSETH:

 

That
the Company, in consideration of the premises and of One Dollar to it duly paid by the Trustees at or before the ensealing and delivery
of these presents, the receipt whereof is hereby acknowledged, and in further evidence of assurance of the estate, title and rights of
the Trustees and in order further to secure the payment of both the principal of and interest and premium, if any, on the bonds from time
to time issued under the Mortgage, according to their tenor and effect and the performance of all the provisions of the Original Mortgage
(including any instruments supplemental thereto and any modification made as in the Mortgage provided) and of said bonds, hereby grants,
bargains, sells, releases, conveys, assigns, transfers, mortgages, pledges, sets over and confirms (subject, however, to Excepted Encumbrances
as defined in Section 6 of the Original Mortgage, as heretofore supplemented) unto The Bank of New York Mellon and Christie
Leppert, as Trustees under the Mortgage, and to their successor or successors in said trust, and to said Trustees and their successors
and assigns forever, all the following described properties of the Company:

 

All electric generating plants, stations,
transmission lines, and electric distribution systems, including permanent improvements, extensions or additions to or about such electrical
plants, stations, transmission lines and distribution systems of the Company; all dams, power houses, power sites, buildings, generators,
reservoirs, pipe lines, flumes, structures and works; all substations, transformers, switchboards, towers, poles, wires, insulators, and
other appliances and equipment, and the Company’s rights or interests in the land upon which the same are situated, and all other
property, real or personal, forming a part of or appertaining to, or used, occupied or enjoyed in connection with said generating plants,
stations, transmission lines, and distribution systems; together with all rights of way, easements, permits, privileges, franchises and
rights for or related to the construction, maintenance, or operation thereof, through, over, under or upon any public streets or highways,
or the public lands of the United States, or of any State or other lands; and all water appropriations and water rights, permits and privileges;
including all property, real, personal, and mixed, acquired by the Company after the date of the execution and delivery of the Original
Mortgage, in addition to property covered by the above-mentioned supplemental indentures (except any herein or in the Original Mortgage,
as heretofore supplemented, expressly excepted), now owned or, subject to the provisions of Section 87 of the Mortgage, hereafter
acquired by the Company and wheresoever situated, including (without in anywise limiting or impairing by the enumeration of the same the
scope and intent of the foregoing or of any general description contained in this Ninety-second Supplemental Indenture) all lands, power
sites, flowage rights, water rights, flumes, raceways, dams, rights of way and roads; all steam and power houses, gas plants, street lighting
systems, standards and other equipment incidental thereto, telephone, radio and television systems, air-conditioning systems and equipment
incidental thereto, water works, steam heat and hot water plants, lines, service and supply systems, bridges, culverts, tracks, ice or
refrigeration plants and equipment, street and interurban railway systems, offices, buildings and other structures and the equipment thereof;
all machinery, engines, boilers, dynamos, electric and gas machines, regulators, meters, transformers, generators, motors, electrical,
gas and mechanical appliances, conduits, cables, water, steam, heat, gas or other pipes, gas mains and pipes, service pipes, fittings,
valves and connections, pole and transmission lines, wires, cables, tools, implements, apparatus, furniture, chattels and choses in action;
all municipal and other franchises, consents or permits; all lines for the transmission and distribution of electric current, gas, steam
heat or water for any purpose including poles, wires, cables, pipes, conduits, ducts and all apparatus for use in connection therewith;
all real estate, lands, easements, servitudes, licenses, permits, franchises, privileges, rights of way and other rights in or relating
to real estate or the occupancy of the same and (except as herein or in the Original Mortgage, as heretofore supplemented, expressly excepted)
all the right, title and interest of the Company in and to all other property of any kind or nature appertaining to and/or used and/or
occupied and/or enjoyed in connection with any property hereinbefore or in the Original Mortgage, as heretofore supplemented, described.

 

    8 

     

    

 

TOGETHER WITH all and singular
the tenements, hereditaments and appurtenances belonging or in any wise appertaining to the aforesaid property or any part thereof, with
the reversion and reversions, remainder and remainders and (subject to the provisions of Section 57 of the Original Mortgage, as
heretofore supplemented) the tolls, rents, revenues, issues, earnings, income, product and profits thereof, and all the estate, right,
title and interest and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and to the
aforesaid property and franchises and every part and parcel thereof.

 

IT IS HEREBY AGREED by the
Company that, subject to the provisions of Section 87 of the Original Mortgage, as heretofore supplemented, all the property, rights,
and franchises acquired by the Company after the date hereof (except any herein or in the Mortgage, as heretofore supplemented, expressly
excepted) shall be and are as fully granted and conveyed hereby and as fully embraced within the lien hereof and the lien of the Original
Mortgage as if such property, rights and franchises were now owned by the Company and were specifically described herein and conveyed
hereby.

 

PROVIDED
THAT the following are not and are not intended to be now or hereafter granted, bargained, sold, released, conveyed, assigned, transferred,
mortgaged, pledged, set over or confirmed hereunder and are hereby expressly excepted from the lien and operation of this Ninety-second
Supplemental Indenture and from the lien and operation of the Mortgage, namely: (1) cash, shares of stock and obligations (including
bonds, notes and other securities) not hereafter specifically pledged, paid, deposited or delivered under the Mortgage or covenanted so
to be; (2) merchandise, equipment, materials or supplies held for the purpose of sale in the usual course of business and fuel, oil
and similar materials and supplies consumable in the operation of any properties of the Company; rolling stock, buses, motor coaches,
vehicles and automobiles; (3) bills, notes and accounts receivable, and all contracts, leases and operating agreements not specifically
pledged under the Mortgage or this Ninety-second Supplemental Indenture or covenanted so to be; (4) electric energy and other materials
or products generated, manufactured, produced or purchased by the Company for sale, distribution or use in the ordinary course of its
business; (5) any property which does not constitute Property Additions, Funded Property or Funded Cash (each as defined in the Original
Mortgage as supplemented) and (6) any property and rights heretofore released from the lien of the Original Mortgage, as heretofore
supplemented; provided, however, that the property and rights expressly excepted from the lien and operation of the Original Mortgage,
as heretofore supplemented, and this Ninety-second Supplemental Indenture in the above subdivisions (2) and (3) shall (to the
extent permitted by law) cease to be so excepted in the event and as of the date that either or both of the Trustees or a receiver or
trustee shall enter upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XII of the Mortgage
by reason of the occurrence of a Default as defined in said Article XII.

 

    9 

     

    

 

TO HAVE AND TO HOLD all such
properties, real, personal and mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over
or confirmed by the Company as aforesaid, or intended so to be, unto the Trustees, their successors and assigns forever.

 

IN
TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and
covenants as are set forth in the Original Mortgage, as heretofore supplemented, this Ninety-second Supplemental Indenture being
supplemental to the Original Mortgage.

 

AND IT IS HEREBY COVENANTED
by the Company that all the terms, conditions, provisos, covenants and provisions contained in the Mortgage, as heretofore supplemented,
shall affect and apply to the property hereinbefore described and conveyed and to the estate, rights, obligations and duties of the Company
and the Trustees and the beneficiaries of the trust with respect to said property, and to the Trustees and their successors as Trustees
of said property in the same manner and with the same effect as if the said property had been owned by the Company at the time of the
execution of the Original Mortgage and had been specifically and at length described in and conveyed to the Trustees by the Original Mortgage
as a part of the property therein stated to be conveyed.

 

The Company further covenants
and agrees to and with the Trustees and their successor or successors in such trust under the Mortgage as follows:

 

ARTICLE I 

ONE HUNDRED-EIGHTH SERIES OF BONDS

 

SECTION 1.
(A) There shall be a series of bonds designated “3.40% Series due 2032” (herein sometimes referred to as
the “One Hundred-eighth Series”), which shall also bear the descriptive title “First Mortgage Bond”, and the form
thereof, which shall be established by Resolution of the Board of Directors of the Company, shall contain suitable provisions with respect
to the matters hereinafter in this Section specified. Bonds of the One Hundred-eighth Series shall be initially issued in the
aggregate principal amount of $500,000,000, mature on April 1, 2032, bear interest at the rate of 3.40% per annum, payable from March 17,
2022, if the date of said bonds is on or prior to October 1, 2022, or, if the date of said bonds is after October 1, 2022, from
the April 1 or October 1 next preceding the date of said bonds, semi-annually on April 1 and October 1 of each year
commencing on October 1, 2022, be issued as fully registered bonds in the denominations of Two Thousand Dollars and in any integral
multiple of One Thousand Dollars in excess thereof and be dated as in Section 10 of the Mortgage provided, the principal of and interest
on each said bond to be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin
or currency of the United States of America as at the time of payment is legal tender for public and private debts.

 

Interest
on bonds of the One Hundred-eighth Series will be computed on the basis of a 360-day year comprised of twelve 30-day months.
If a due date for the payment of interest, principal or any Redemption Price (as defined below) on the bonds of the One Hundred-eighth
Series, falls on a day that is not a Business Day, then the payment will be made on the next succeeding Business Day, and no interest
will accrue on the amounts payable for the period from and after the original due date and until the next Business Day. The term “Business
Day” means any day other than a Saturday or Sunday or day on which banking institutions in The City of New York are required or
authorized to close.

 

    10 

     

    

 

(B)            On
or after January 1, 2032 (the “2032 Par Call Date”), the Company may redeem the bonds of the One Hundred-eighth Series at
the option of the Company, or with the Proceeds of Released Property (as contemplated by clause (4) of Section 61 of the Mortgage),
in whole or in part, at any time and from time to time, upon notice as provided in Sections 52 and 54 of the Mortgage (given by mail or,
if the bonds of the One Hundred-eighth Series are represented by one or more One Hundred-eighth Series Global Bonds (as hereinafter
defined), given in accordance with the procedures of DTC (as hereinafter defined), not less than 30 days and not more than 90 days prior
to the date fixed for redemption), at a redemption price equal to 100% of the principal amount of the bonds then Outstanding to be redeemed,
plus accrued and unpaid interest thereon to, but excluding, the redemption date.

 

Prior
to the 2032 Par Call Date, the Company may redeem the bonds of the One Hundred-eighth Series at the option of the Company,
or with the Proceeds of Released Property (as contemplated by clause (4) of Section 61 of the Mortgage), in whole or in part,
at any time and from time to time, upon notice as provided in Sections 52 and 54 of the Mortgage (given by mail or, if the bonds of the
One Hundred-eighth Series are represented by one or more One Hundred-eighth Series Global Bonds (as hereinafter defined), given
in accordance with the procedures of DTC (as hereinafter defined), not less than 30 days and not more than 90 days prior to the date fixed
for redemption (together with the date fixed for redemption referred to in the preceding sentence, each a “2032 Redemption Date”)),
at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places (hereinafter sometimes referred
to as the “2032 Make-Whole Redemption Price” and, together with the redemption price referred to in the preceding sentence,
each a “2032 Redemption Price”) equal to the greater of: (i)(a) the sum of the present values of the remaining scheduled
payments of principal and interest thereon discounted to the redemption date (assuming such bonds matured on the 2032 Par Call Date),
on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis
points less (b) interest accrued to such 2032 Redemption Date; and (ii) 100% of the principal amount of the bonds then Outstanding
to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, such 2032 Redemption Date. On and after any
2032 Redemption Date, if sufficient cash shall have been deposited with the Corporate Trustee (and/or if the Company has irrevocably directed
the Corporate Trustee to apply, from moneys held by it available to be used for the redemption of bonds, sufficient cash) to redeem all
of the bonds of the One Hundred-eighth Series called for redemption, interest on the bonds of the One Hundred-eighth Series, or the
portions of them so called for redemption, shall cease to accrue.

 

“Treasury
Rate” means, with respect to any redemption date, the yield determined by the Company in accordance with the following two
paragraphs.

 

The Treasury Rate shall be determined by the Company
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors
of the Federal Reserve System), on the third business day preceding the redemption date based upon the yield or yields for the most recent
day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal
Reserve System designated as “Selected Interest Rates (Daily)—H.15” (or any successor designation or publication) (“H.15”)
under the caption “U.S. government securities—Treasury constant maturities — Nominal” (or any successor
caption or heading). In determining the Treasury Rate, the Company shall select, as applicable:

 

		•	the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the 2032 Par Call Date
(the “2032 Remaining Life”); or

 

		•	if there is no such Treasury constant maturity on H.15 exactly equal to the 2032 Remaining Life, the two yields—one yield corresponding
to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15
immediately longer than such 2032 Remaining Life—and shall interpolate to the 2032 Par Call Date, on a straight-line basis (using
the actual number of days) using such yields and rounding the result to three decimal places; or

 

    11 

     

    

 

		•	if there is no such Treasury constant maturity on H.15 shorter than or longer than the 2032 Remaining Life, the yield for the single
Treasury constant maturity on H.15 closest to the 2032 Remaining Life. For purposes of this clause, the applicable Treasury constant maturity
or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such
Treasury constant maturity from the redemption date.

 

If on the third business day preceding the redemption
date H.15 or any successor designation or publication is no longer published, the Company shall calculate the Treasury Rate based on the
rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding
such redemption date of the United States Treasury security maturing on, or with a maturity that is closest to, the 2032 Par Call Date.
If there is no United States Treasury security maturing on the 2032 Par Call Date, but there are two or more United States Treasury securities
with a maturity date equally distant from the 2032 Par Call Date, one with a maturity date preceding the 2032 Par Call Date and one with
a maturity date following the 2032 Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding
the 2032 Par Call Date. If there are two or more United States Treasury securities maturing on the 2032 Par Call Date, as applicable,
or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these
two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average
of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury
Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security
shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City
time, of such United States Treasury security, and rounded to three decimal places.

 

The Company’s actions and determinations
in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.

 

The Trustee shall have no obligation or duty whatsoever
to determine, or to verify the Company’s calculations of, the redemption price.

 

In
case of a redemption of only a part of the bonds of the One Hundred-eighth Series, absent any written agreement of the registered
holders of all of the bonds of the One Hundred-eighth Series satisfactory to the Corporate Trustee specifying the particular bonds
of the One Hundred-eighth Series to be redeemed, the Corporate Trustee shall draw by lot, according to such method as it shall deem
proper in its discretion, or portions of them, to be redeemed, provided, that if the bonds of the One Hundred-eighth Series are represented
by one or more One Hundred-eighth Series Global Bonds, interests in the bonds of the One Hundred-eighth Series shall be selected
for redemption by DTC in accordance with its standard procedures therefor.

 

In
case of any bonds of the One Hundred-eighth Series called for redemption in whole or in part prior to the 2032 Par Call Date,
the Company shall deliver to the Corporate Trustee promptly upon its calculation thereof, but in any event prior to the related 2032 Redemption
Date, a Treasurer’s Certificate setting forth its calculation of the 2032 Make-Whole Redemption Price applicable to such redemption.
The Corporate Trustee shall be under no duty to inquire into, may conclusively presume the correctness of, and shall be fully protected
in relying upon the Company’s calculation of any 2032 Make-Whole Redemption Price of the bonds of the One Hundred-eighth Series.

 

    12 

     

    

 

In
lieu of stating any 2032 Make-Whole Redemption Price, notices of redemption of the bonds of the One Hundred-eighth Series called
for redemption in whole or in part shall state substantially the following: “The redemption price of the bonds to be redeemed shall
equal the greater of (i) 100% of the principal amount of the bonds then Outstanding to be redeemed and (ii) the sum of the present
values of the remaining scheduled payments of principal and interest thereon being redeemed that would be due if such bonds matured on
the 2032 Par Call Date, computed by discounting such payments, in each case, to the 2032 Redemption Date on a semi-annual basis (assuming
a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in this Ninety-second Supplemental Indenture) plus
20 basis points, plus, in each case, accrued and unpaid interest on the principal amount thereof called for redemption to, but excluding,
the 2032 Redemption Date.”

 

Except
as provided herein, Article X of the Mortgage shall apply to redemptions of bonds of the One Hundred-eighth Series.

 

(C)            Subject
to the provisions set forth below with respect to One Hundred-eighth Series Global Bonds, at the option of the registered owner,
any bonds of the One Hundred-eighth Series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough
of Manhattan, The City of New York, shall be exchangeable for a like aggregate principal amount of bonds of the same series of other authorized
denominations. The bonds of the One Hundred-eighth Series may bear such legends as may be necessary to comply with any law or with
any rules or regulations made pursuant thereto or with the rules or regulations of any stock exchange or to conform to usage
or agreement with respect thereto.

 

Subject
to the provisions set forth below with respect to One Hundred-eighth Series Global Bonds, bonds of the One Hundred-eighth
Series shall be transferable upon the surrender thereof for cancellation, together with a written instrument of transfer in form
approved by the registrar duly executed by the registered owner or by his duly authorized attorney, at the office or agency of the Company
in the Borough of Manhattan, The City of New York.

 

Upon
any exchange or transfer of bonds of the One Hundred-eighth Series, the Company may make a charge therefor sufficient to reimburse
it for any tax or taxes or other governmental charge required to be paid by the Company, as provided in Section 12 of the Mortgage,
but the Company hereby waives any right to make a charge in addition thereto for any exchange or transfer of bonds of said Series.

 

(D)            The
bonds of the One Hundred-eighth Series shall be issued in registered form without coupons and shall be issued initially in the form
of one or more global bonds (each such global bond hereinafter sometimes referred to as a “One Hundred-eighth Series Global
Bond”) to or on behalf of The Depository Trust Company (hereinafter sometimes referred to as “DTC”), as depositary therefor,
and registered in the name of such depositary or its nominee. Any bonds of the One Hundred-eighth Series to be issued or transferred
to, or to be held by or on behalf of DTC as such depositary or such nominee (or any successor of such depositary or nominee) for such
purpose shall bear the depositary legends as required or otherwise agreed to by the Corporate Trustee and the Company, and in the case
of a successor depositary, such legend or legends as such depositary and/or the Company shall require and to which each shall agree, in
each case such agreement to be confirmed in writing to the Corporate Trustee. Notwithstanding any other provision in this Ninety-second
Supplemental Indenture, payment of interest on the bonds of the One Hundred-eighth Series may be made at the option of the Company
by check mailed to the registered holders thereof at their registered address, and, with respect to a One Hundred-eighth Series Global
Bond, the Company may make payments of principal of, any Redemption Price and interest on such One Hundred-eighth Series Global Bond
pursuant to and in accordance with such arrangements as are agreed upon by the Company and the depositary for such One Hundred-eighth
Series Global Bond.

 

    13 

     

    

 

 

Except
under the limited circumstances described below, bonds of the One Hundred-eighth Series represented by a One Hundred-eighth
Series Global Bond or Bonds shall not be exchangeable for, and shall not otherwise be issuable as, bonds of the One Hundred-eighth
Series in definitive form. The One Hundred-eighth Series Global Bond or Bonds described in this Section 1(D) 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
One Hundred-eighth Series Global Bond shall be exchangeable for bonds of the One Hundred-eighth Series registered in
the names of persons other than the depositary or its nominee only if (i) the depositary notifies the Company that it is unwilling
or unable to continue as a depositary for such One Hundred-eighth Series Global Bond and no successor depositary shall have been
appointed by the Company within 90 days of receipt by the Company of such notification, or if at any time the depositary ceases to be
a clearing agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) at a time when the
depositary is required to be so registered to act as such depositary and no successor depositary shall have been appointed by the Company
within 90 days after it becomes aware of such cessation, (ii) a Default has occurred and is continuing with respect to the bonds
of the One Hundred-eighth Series or (iii) the Company in its sole discretion, and subject to the procedures of the depositary,
determines that such One Hundred-eighth Series Global Bond shall be so exchangeable. Any One Hundred-eighth Series Global Bond
that is exchangeable pursuant to the preceding sentence shall be exchangeable for bonds of the One Hundred-eighth Series registered
in such names as the depositary shall direct.

 

In
any exchange provided in the preceding paragraph the Company shall execute, and the Corporate Trustee, upon receipt of a Company request
for the authentication and delivery of bonds of the One Hundred-eighth Series in the form of definitive certificates in exchange
in whole or in part for such One Hundred-eighth Series Global Bond or Bonds, shall authenticate and deliver, without service charge,
to each person specified by the depositary, bonds of the One Hundred-eighth Series in the form of definitive certificates of like
tenor and terms in an aggregate principal amount equal to the principal amount of such One Hundred-eighth Series Global Bond or the
aggregate principal amount of such One Hundred-eighth Series Global Bonds in exchange for such One Hundred-eighth Series Global
Bond or Bonds. Upon the exchange of the entire principal amount of a One Hundred-eighth Series Global Bond for bonds of the One Hundred-eighth
Series in the form of definitive certificates, such One Hundred-eighth Series Global Bond shall be canceled by the Corporate
Trustee. Bonds of the One Hundred-eighth Series issued in exchange for a One Hundred-eighth Series Global Bond shall be registered
in such names and in such authorized denominations as the depositary for such One Hundred-eighth Series Global Bond, acting pursuant
to instructions from its direct or indirect participants or otherwise, shall instruct the Corporate Trustee. Provided that the Company
and the Corporate Trustee have so agreed, the Corporate Trustee shall deliver such bonds of the One Hundred-eighth Series to the
persons in whose names the bonds of the One Hundred-eighth Series are so to be registered.

 

Any
endorsement of a One Hundred-eighth Series Global Bond to reflect the principal amount thereof, or any increase or decrease
in such principal amount, shall be made in such manner and by such person or persons as shall be specified in or pursuant to any applicable
letter of representations or other arrangement entered into with, or procedures of, the depositary with respect to such One Hundred-eighth
Series Global Bond or in a Company request. Subject to the terms of the Mortgage, the Corporate Trustee shall deliver and redeliver
any such One Hundred-eighth Series Global Bond in the manner and upon instructions given by the person or persons specified in or
pursuant to any applicable letter of representations or other arrangement entered into with, or procedures of, the depositary with respect
to such One Hundred-eighth Series Global Bond or in any applicable Company request. If a Company request is so delivered, any instructions
by the Company with respect to such One Hundred-eighth Series Global Bond contained therein shall be in writing but need not be accompanied
by or contained in a Treasurer’s Certificate and need not be accompanied by an opinion of counsel.

 

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The
depositary or, if there be one, its nominee, shall be the holder of a One Hundred-eighth Series Global Bond for all purposes
under the Mortgage and the bonds of the One Hundred-eighth Series and beneficial owners with respect to such One Hundred-eighth Series Global
Bond shall hold their interests pursuant to applicable procedures of such depositary. The Company, the Corporate Trustee, any bond registrar,
any paying agent and any other agent of the Company or the Corporate Trustee shall be entitled to deal with such depositary for all purposes
of the Mortgage relating to such One Hundred-eighth Series Global Bond (including the payment of principal, the Redemption Price,
if applicable, and interest and the giving of instructions or directions by or to the beneficial owners of such One Hundred-eighth Series Global
Bond as the sole holder of such One Hundred-eighth Series Global Bond and shall have no obligations to the beneficial owners thereof
(including any direct or indirect participants in such depositary)). None of the Company, the Corporate Trustee, any paying agent, any
bond registrar or any other agent of the Company or the Corporate Trustee shall have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership interests of a beneficial owner in or pursuant to any applicable
letter of representations or other arrangement or transaction entered into with, or procedures of, the depositary with respect to such
One Hundred-eighth Series Global Bond or for maintaining, supervising or reviewing any records relating to such beneficial ownership
interests, or for any acts or omissions of a depositary.

 

ARTICLE II

ONE HUNDRED-NINTH SERIES OF BONDS

 

SECTION 2.
(A) There shall be a series of bonds designated “4.00% Series due 2052” (herein sometimes referred to as
the “One Hundred-ninth Series”), which shall also bear the descriptive title “First Mortgage Bond”, and the form
thereof, which shall be established by Resolution of the Board of Directors of the Company, shall contain suitable provisions with respect
to the matters hereinafter in this Section specified. Bonds of the One Hundred-ninth Series shall be initially issued in the
aggregate principal amount of $400,000,000, mature on April 1, 2052, bear interest at the rate of 4.00% per annum, payable from March 17,
2022, if the date of said bonds is on or prior to October 1, 2022, or, if the date of said bonds is after October 1, 2022, from
the April 1 or October 1 next preceding the date of said bonds, semi-annually on April 1 and October 1 of each year
commencing on October 1, 2022, be issued as fully registered bonds in the denominations of Two Thousand Dollars and in any integral
multiple of One Thousand Dollars in excess thereof and be dated as in Section 10 of the Mortgage provided, the principal of and interest
on each said bond to be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin
or currency of the United States of America as at the time of payment is legal tender for public and private debts.

 

Interest
on bonds of the One Hundred-ninth Series will be computed on the basis of a 360-day year comprised of twelve 30-day months.
If a due date for the payment of interest, principal or any Redemption Price (as defined below) on the bonds of the One Hundred-ninth
Series, falls on a day that is not a Business Day, then the payment will be made on the next succeeding Business Day, and no interest
will accrue on the amounts payable for the period from and after the original due date and until the next Business Day. The term “Business
Day” means any day other than a Saturday or Sunday or day on which banking institutions in The City of New York are required or
authorized to close.

 

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(B)            On
or after October 1, 2051 (the “2052 Par Call Date”), the Company may redeem the bonds of the One Hundred-ninth Series at
the option of the Company, or with the Proceeds of Released Property (as contemplated by clause (4) of Section 61 of the Mortgage),
in whole or in part, at any time and from time to time, upon notice as provided in Sections 52 and 54 of the Mortgage (given by mail or,
if the bonds of the One Hundred-ninth Series are represented by one or more One Hundred-ninth Series Global Bonds (as hereinafter
defined), given in accordance with the procedures of DTC (as hereinafter defined), not less than 30 days and not more than 90 days prior
to the date fixed for redemption), at a redemption price equal to 100% of the principal amount of the bonds then Outstanding to be redeemed,
plus accrued and unpaid interest thereon to, but excluding, the redemption date.

 

Prior
to the 2052 Par Call Date, the Company may redeem the bonds of the One Hundred-ninth Series at the option of the Company,
or with the Proceeds of Released Property (as contemplated by clause (4) of Section 61 of the Mortgage), in whole or in part,
at any time and from time to time, upon notice as provided in Sections 52 and 54 of the Mortgage (given by mail or, if the bonds of the
One Hundred-ninth Series are represented by one or more One Hundred-ninth Series Global Bonds (as hereinafter defined), given
in accordance with the procedures of DTC (as hereinafter defined), not less than 30 days and not more than 90 days prior to the date fixed
for redemption (together with the date fixed for redemption referred to in the preceding sentence, each a “2052 Redemption Date”)),
at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places (hereinafter sometimes referred
to as the “2052 Make-Whole Redemption Price” and, together with the redemption price referred to in the preceding sentence,
each a “2052 Redemption Price”) equal to the greater of: (i)(a) the sum of the present values of the remaining scheduled
payments of principal and interest thereon discounted to the redemption date (assuming such bonds matured on the 2052 Par Call Date),
on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 25 basis
points less (b) interest accrued to such 2052 Redemption Date; and (ii) 100% of the principal amount of the bonds then Outstanding
to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, such 2052 Redemption Date. On and after any
2052 Redemption Date, if sufficient cash shall have been deposited with the Corporate Trustee (and/or if the Company has irrevocably directed
the Corporate Trustee to apply, from moneys held by it available to be used for the redemption of bonds, sufficient cash) to redeem all
of the bonds of the One Hundred-ninth Series called for redemption, interest on the bonds of the One Hundred-eighth Series, or the
portions of them so called for redemption, shall cease to accrue.

 

“Treasury
Rate” means, with respect to any redemption date, the yield determined by the Company in accordance with the following two
paragraphs.

 

The Treasury Rate shall be determined by the Company
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors
of the Federal Reserve System), on the third business day preceding the redemption date based upon the yield or yields for the most recent
day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal
Reserve System designated as “Selected Interest Rates (Daily)—H.15” (or any successor designation or publication) (“H.15”)
under the caption “U.S. government securities—Treasury constant maturities — Nominal” (or any successor
caption or heading). In determining the Treasury Rate, the Company shall select, as applicable:

 

		•	the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the 2052 Par Call Date
(the “2052 Remaining Life”); or

 

		•	if there is no such Treasury constant maturity on H.15 exactly equal to the 2052 Remaining Life, the two yields—one yield corresponding
to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15
immediately longer than such 2052 Remaining Life—and shall interpolate to the 2052 Par Call Date, on a straight-line basis (using
the actual number of days) using such yields and rounding the result to three decimal places; or

 

    16 

     

    

 

		•	if there is no such Treasury constant maturity on H.15 shorter than or longer than the 2052 Remaining Life, the yield for the single
Treasury constant maturity on H.15 closest to the 2052 Remaining Life. For purposes of this clause, the applicable Treasury constant maturity
or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such
Treasury constant maturity from the redemption date.

 

If on the third business day preceding the redemption
date H.15 or any successor designation or publication is no longer published, the Company shall calculate the Treasury Rate based on the
rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding
such redemption date of the United States Treasury security maturing on, or with a maturity that is closest to, the 2052 Par Call Date.
If there is no United States Treasury security maturing on the 2052 Par Call Date, but there are two or more United States Treasury securities
with a maturity date equally distant from the 2052 Par Call Date, one with a maturity date preceding the 2052 Par Call Date and one with
a maturity date following the 2052 Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding
the 2052 Par Call Date. If there are two or more United States Treasury securities maturing on the 2052 Par Call Date, as applicable,
or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these
two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average
of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury
Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security
shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City
time, of such United States Treasury security, and rounded to three decimal places.

 

The Company’s actions and determinations
in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.

 

The Trustee shall have no obligation or duty whatsoever
to determine, or to verify the Company’s calculations of, the redemption price.

 

In
case of a redemption of only a part of the bonds of the One Hundred-ninth Series, absent any written agreement of the registered
holders of all of the bonds of the One Hundred-ninth Series satisfactory to the Corporate Trustee specifying the particular bonds
of the One Hundred-ninth Series to be redeemed, the Corporate Trustee shall draw by lot, according to such method as it shall deem
proper in its discretion, or portions of them, to be redeemed, provided, that if the bonds of the One Hundred-ninth Series are represented
by one or more One Hundred-ninth Series Global Bonds, interests in the bonds of the One Hundred-ninth Series shall be selected
for redemption by DTC in accordance with its standard procedures therefor.

 

In
case of any bonds of the One Hundred-ninth Series called for redemption in whole or in part prior to the 2052 Par Call Date,
the Company shall deliver to the Corporate Trustee promptly upon its calculation thereof, but in any event prior to the related 2052 Redemption
Date, a Treasurer’s Certificate setting forth its calculation of the 2052 Make-Whole Redemption Price applicable to such redemption.
The Corporate Trustee shall be under no duty to inquire into, may conclusively presume the correctness of, and shall be fully protected
in relying upon the Company’s calculation of any 2052 Make-Whole Redemption Price of the bonds of the One Hundred-ninth Series.

 

    17 

     

    

 

In
lieu of stating any 2052 Make-Whole Redemption Price, notices of redemption of the bonds of the One Hundred-ninth Series called
for redemption in whole or in part shall state substantially the following: “The redemption price of the bonds to be redeemed shall
equal the greater of (i) 100% of the principal amount of the bonds then Outstanding to be redeemed and (ii) the sum of the present
values of the remaining scheduled payments of principal and interest thereon being redeemed that would be due if such bonds matured on
the 2052 Par Call Date, computed by discounting such payments, in each case, to the 2052 Redemption Date on a semi-annual basis (assuming
a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in this Ninety-second Supplemental Indenture) plus
25 basis points, plus, in each case, accrued and unpaid interest on the principal amount thereof called for redemption to, but excluding,
the 2052 Redemption Date.”

 

Except
as provided herein, Article X of the Mortgage shall apply to redemptions of bonds of the One Hundred-ninth Series.

 

(C)            Subject
to the provisions set forth below with respect to One Hundred-ninth Series Global Bonds, at the option of the registered owner, any
bonds of the One Hundred-ninth Series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of
Manhattan, The City of New York, shall be exchangeable for a like aggregate principal amount of bonds of the same series of other authorized
denominations. The bonds of the One Hundred-ninth Series may bear such legends as may be necessary to comply with any law or with
any rules or regulations made pursuant thereto or with the rules or regulations of any stock exchange or to conform to usage
or agreement with respect thereto.

 

Subject
to the provisions set forth below with respect to One Hundred-ninth Series Global Bonds, bonds of the One Hundred-ninth Series shall
be transferable upon the surrender thereof for cancellation, together with a written instrument of transfer in form approved by the registrar
duly executed by the registered owner or by his duly authorized attorney, at the office or agency of the Company in the Borough of Manhattan,
The City of New York.

 

Upon
any exchange or transfer of bonds of the One Hundred-ninth Series, the Company may make a charge therefor sufficient to reimburse
it for any tax or taxes or other governmental charge required to be paid by the Company, as provided in Section 12 of the Mortgage,
but the Company hereby waives any right to make a charge in addition thereto for any exchange or transfer of bonds of said Series.

 

(D)            The
bonds of the One Hundred-ninth Series shall be issued in registered form without coupons and shall be issued initially in the form
of one or more global bonds (each such global bond hereinafter sometimes referred to as a “One Hundred-ninth Series Global
Bond”) to or on behalf of The Depository Trust Company (hereinafter sometimes referred to as “DTC”), as depositary therefor,
and registered in the name of such depositary or its nominee. Any bonds of the One Hundred-ninth Series to be issued or transferred
to, or to be held by or on behalf of DTC as such depositary or such nominee (or any successor of such depositary or nominee) for such
purpose shall bear the depositary legends as required or otherwise agreed to by the Corporate Trustee and the Company, and in the case
of a successor depositary, such legend or legends as such depositary and/or the Company shall require and to which each shall agree, in
each case such agreement to be confirmed in writing to the Corporate Trustee. Notwithstanding any other provision in this Ninety-second
Supplemental Indenture, payment of interest on the bonds of the One Hundred-ninth Series may be made at the option of the Company
by check mailed to the registered holders thereof at their registered address, and, with respect to a One Hundred-ninth Series Global
Bond, the Company may make payments of principal of, any Redemption Price and interest on such One Hundred-ninth Series Global Bond
pursuant to and in accordance with such arrangements as are agreed upon by the Company and the depositary for such One Hundred-ninth Series Global
Bond.

 

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Except
under the limited circumstances described below, bonds of the One Hundred-ninth Series represented by a One Hundred-ninth
Series Global Bond or Bonds shall not be exchangeable for, and shall not otherwise be issuable as, bonds of the One Hundred-ninth
Series in definitive form. The One Hundred-ninth Series Global Bond or Bonds described in this Section 1(D) 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
One Hundred-ninth Series Global Bond shall be exchangeable for bonds of the One Hundred-ninth Series registered in the
names of persons other than the depositary or its nominee only if (i) the depositary notifies the Company that it is unwilling or
unable to continue as a depositary for such One Hundred-ninth Series Global Bond and no successor depositary shall have been appointed
by the Company within 90 days of receipt by the Company of such notification, or if at any time the depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) at a time when the depositary
is required to be so registered to act as such depositary and no successor depositary shall have been appointed by the Company within
90 days after it becomes aware of such cessation, (ii) a Default has occurred and is continuing with respect to the bonds of the
One Hundred-ninth Series or (iii) the Company in its sole discretion, and subject to the procedures of the depositary, determines
that such One Hundred-ninth Series Global Bond shall be so exchangeable. Any One Hundred-ninth Series Global Bond that is exchangeable
pursuant to the preceding sentence shall be exchangeable for bonds of the One Hundred-ninth Series registered in such names as the
depositary shall direct.

 

In
any exchange provided in the preceding paragraph the Company shall execute, and the Corporate Trustee, upon receipt of a Company request
for the authentication and delivery of bonds of the One Hundred-ninth Series in the form of definitive certificates in exchange
in whole or in part for such One Hundred-ninth Series Global Bond or Bonds, shall authenticate and deliver, without service charge,
to each person specified by the depositary, bonds of the One Hundred-ninth Series in the form of definitive certificates of like
tenor and terms in an aggregate principal amount equal to the principal amount of such One Hundred-ninth Series Global Bond or the
aggregate principal amount of such One Hundred-ninth Series Global Bonds in exchange for such One Hundred-ninth Series Global
Bond or Bonds. Upon the exchange of the entire principal amount of a One Hundred-ninth Series Global Bond for bonds of the One Hundred-ninth
Series in the form of definitive certificates, such One Hundred-ninth Series Global Bond shall be canceled by the Corporate
Trustee. Bonds of the One Hundred-ninth Series issued in exchange for a One Hundred-ninth Series Global Bond shall be registered
in such names and in such authorized denominations as the depositary for such One Hundred-ninth Series Global Bond, acting pursuant
to instructions from its direct or indirect participants or otherwise, shall instruct the Corporate Trustee. Provided that the Company
and the Corporate Trustee have so agreed, the Corporate Trustee shall deliver such bonds of the One Hundred-ninth Series to the persons
in whose names the bonds of the One Hundred-ninth Series are so to be registered.

 

Any
endorsement of a One Hundred-ninth Series Global Bond to reflect the principal amount thereof, or any increase or decrease
in such principal amount, shall be made in such manner and by such person or persons as shall be specified in or pursuant to any applicable
letter of representations or other arrangement entered into with, or procedures of, the depositary with respect to such One Hundred-ninth
Series Global Bond or in a Company request. Subject to the terms of the Mortgage, the Corporate Trustee shall deliver and redeliver
any such One Hundred-ninth Series Global Bond in the manner and upon instructions given by the person or persons specified in or
pursuant to any applicable letter of representations or other arrangement entered into with, or procedures of, the depositary with respect
to such One Hundred-ninth Series Global Bond or in any applicable Company request. If a Company request is so delivered, any instructions
by the Company with respect to such One Hundred-ninth Series Global Bond contained therein shall be in writing but need not be accompanied
by or contained in a Treasurer’s Certificate and need not be accompanied by an opinion of counsel.

 

    19 

     

    

 

The
depositary or, if there be one, its nominee, shall be the holder of a One Hundred-ninth Series Global Bond for all purposes
under the Mortgage and the bonds of the One Hundred-ninth Series and beneficial owners with respect to such One Hundred-ninth Series Global
Bond shall hold their interests pursuant to applicable procedures of such depositary. The Company, the Corporate Trustee, any bond registrar,
any paying agent and any other agent of the Company or the Corporate Trustee shall be entitled to deal with such depositary for all purposes
of the Mortgage relating to such One Hundred-ninth Series Global Bond (including the payment of principal, the Redemption Price,
if applicable, and interest and the giving of instructions or directions by or to the beneficial owners of such One Hundred-ninth Series Global
Bond as the sole holder of such One Hundred-ninth Series Global Bond and shall have no obligations to the beneficial owners thereof
(including any direct or indirect participants in such depositary)). None of the Company, the Corporate Trustee, any paying agent, any
bond registrar or any other agent of the Company or the Corporate Trustee shall have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership interests of a beneficial owner in or pursuant to any applicable
letter of representations or other arrangement or transaction entered into with, or procedures of, the depositary with respect to such
One Hundred-ninth Series Global Bond or for maintaining, supervising or reviewing any records relating to such beneficial ownership
interests, or for any acts or omissions of a depositary.

 

ARTICLE III

DIVIDEND COVENANT

 

SECTION 3.
The Company covenants and agrees that, so long as any of the bonds of the One Hundred-eighth or One Hundred-ninth Series remain
Outstanding, the Company will not declare or pay any dividends upon its common stock (other than dividends in common stock) or make any
other distributions on its common stock or purchase or otherwise retire any shares of its common stock, unless immediately after such
declaration, payment, purchase, retirement or distribution (hereinafter in this Section referred to as “Restricted Payments”),
and giving effect thereto, the amount arrived at by adding:

 

(a)            the
aggregate amount of all such Restricted Payments (other than the dividend of fifty cents ($.50) per share declared on December 8,
1948 and paid on February 1, 1949 to holders of common stock) made by the Company during the period from December 31, 1948,
to and including the effective date of the Restricted Payment in respect of which the determination is being made, plus

 

(b)            an
amount equal to the aggregate amount of cumulative dividends for such period (whether or not paid) on all preferred stock of the Company
from time to time outstanding during such period, at the rate or rates borne by such preferred stock, plus

 

(c)            an
amount equal to the amount, if any, by which fifteen per centum (15%) of the Gross Operating Revenues of the Company for such period shall
exceed the aggregate amount during such period expended and/or accrued on its books for maintenance and/or appropriated on its books out
of income for property retirement, in each case in respect of the Mortgaged and Pledged Property and/or automotive equipment used primarily
in the electric utility business of the Company (but excluding any provisions for amortization of any amounts included in utility plant
acquisition adjustment accounts or utility plant adjustment accounts), will not exceed the amount of the aggregate net income of the Company
for said period available for dividends (computed and ascertained in accordance with sound accounting practice, on a cumulative basis,
including the making of proper deductions for any deficits occurring during any part of such period), plus $3,000,000.

 

    20 

     

    

 

The Company further covenants
and agrees that not later than May 1 of each year beginning with the year 2022 it will furnish to the Corporate Trustee a Treasurer’s
Certificate stating whether or not the Company has fully observed the restrictions imposed upon it by the covenant contained in this Section 2.

 

The terms (i) “dividend”
shall be interpreted so as to include distributions and (ii) “common stock” and “shares of common stock”
shall be interpreted so as to include membership interests.

 

ARTICLE IV

CERTAIN PROVISIONS WITH RESPECT TO FUTURE ADVANCES

 

SECTION 4.
Upon the filing of this Ninety-second Supplemental Indenture for record in all counties in which the Mortgaged and Pledged Property
is located, and until a further indenture or indentures supplemental to the Mortgage shall be executed and delivered by the Company to
the Trustees pursuant to authorization by the Board of Directors of the Company and filed for record in all counties in which the Mortgaged
and Pledged Property is located further increasing or decreasing the amount of future advances which may be secured by the Mortgage, the
Mortgage may secure future advances and other indebtedness and sums not to exceed in the aggregate $2,500,000,000, in addition to $9,820,785,000
in aggregate principal amount of bonds to be Outstanding at the time of such filing, and all such advances and other indebtedness and
sums shall be secured by the Mortgage, equally, to the same extent and with the same priority, as the amount originally advanced on the
security of the Original Mortgage, namely, $46,000,000, and such advances and other indebtedness and sums may be made or become owing
and may be repaid and again made or become owing and the amount so stated shall be considered only as the total amount of such advances
and other indebtedness and sums as may be outstanding at one time.

 

ARTICLE V

MISCELLANEOUS PROVISIONS

 

SECTION 5.
Subject to any amendments provided for in this Ninety-second Supplemental Indenture, the terms defined in the Original Mortgage,
as heretofore supplemented, shall, for all purposes of this Ninety-second Supplemental Indenture, have the meanings specified in the Original
Mortgage, as heretofore supplemented.

 

SECTION 6.
The Trustees hereby accept the trusts herein declared, provided, created or supplemented and agree to perform the same upon the
terms and conditions herein and in the Original Mortgage, as heretofore supplemented, set forth and upon the following terms and conditions:

 

The
Trustees shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Ninety-second
Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely. In
general each and every term and condition contained in Article XVI of the Original Mortgage, as heretofore supplemented, shall apply
to and form part of this Ninety-second Supplemental Indenture with the same force and effect as if the same were herein set forth in full
with such omissions, variations and insertions, if any, as may be appropriate to make the same conform to the provisions of this Ninety-second
Supplemental Indenture.

 

SECTION 7.
Subject to the provisions of Article XV and Article XVI of the Mortgage, whenever in this Ninety-second Supplemental
Indenture either of the parties hereto is named or referred to, this shall be deemed to include the successors or assigns of such party,
and all the covenants and agreements in this Ninety-second Supplemental Indenture contained by or on behalf of the Company or by or on
behalf of the Trustees shall bind and inure to the benefit of the respective successors and assigns of such parties whether so expressed
or not.

 

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SECTION 8.
Nothing in this Ninety-second Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon,
or to give to, any person, firm or corporation, other than the parties hereto and the holders of the Outstanding bonds and coupons, any
right, remedy or claim under or by reason of this Ninety-second Supplemental Indenture or any covenant, condition, stipulation, promise
or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Ninety-second Supplemental Indenture
contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the holders of the
Outstanding bonds and coupons.

 

SECTION 9.
The Corporate Trustee shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”)
given pursuant to this Ninety-second Supplemental Indenture and delivered using Electronic Means; provided, however, that the Company
shall provide to the Corporate 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
Company whenever a person is to be added or deleted from the listing. If the Company elects to give the Corporate Trustee Instructions
using Electronic Means and the Corporate Trustee in its discretion elects to act upon such Instructions, the Corporate Trustee’s
understanding of such Instructions shall be deemed controlling. The Company understands and agrees that the Corporate Trustee cannot determine
the identity of the actual sender of such Instructions and that the Corporate Trustee shall conclusively presume that directions that
purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Corporate Trustee have been sent
by such Authorized Officer. The Company shall be responsible for ensuring that only Authorized Officers transmit such Instructions to
the Corporate Trustee and that the Company 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 Company. The Corporate Trustee shall
not be liable for any losses, costs or expenses arising directly or indirectly from the Corporate Trustee’s good faith reliance
upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction.
The Company agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Corporate Trustee,
including without limitation the risk of the Corporate 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 Corporate Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected
by the Company; (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 Corporate
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 Corporate Trustee, or another method or system specified
by the Corporate Trustee as available for use in connection with its services hereunder.

 

    22 

     

    

 

SECTION 10.
This Ninety-second Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same instrument. The words “execution,”
signed,” signature,” and words of like import in the Mortgage 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 Mortgage to the contrary notwithstanding, (a) any officers’ certificate, Opinion of Counsel, Trustee’s Certificate,
Engineer’s Certificate, Net Earning Certificate, bond, certificate of authentication appearing on or attached to any bond, or other
certificate, opinion of counsel, instrument, agreement or other document delivered pursuant to the Mortgage may be executed, attested
and transmitted by any of the foregoing electronic means and formats, (b) all references in Article II or elsewhere in the Mortgage
to the execution, attestation or authentication of any bond or any certificate of authentication appearing on or attached to any bond
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 Article II or elsewhere in the Mortgage that any signature be made under
a corporate seal (or facsimile thereof) shall not be applicable to the bonds of the One Hundred-six or One Hundred seventh Series.

 

[SIGNATURES
ON THE FOLLOWING PAGES]

 

    23 

     

    

 

The laws of South Carolina
provide that in any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within thirty
days after the sale of the mortgaged property apply to the court for an order of appraisal. The statutory appraisal value as approved
by the court would be substituted for the high bid and may decrease the amount of any deficiency owing in connection with the transaction.
THE COMPANY HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS, WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE
WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED PROPERTY.

 

IN WITNESS WHEREOF, Duke Energy
Progress, LLC has caused its name to be hereunto affixed, and this instrument to be signed and sealed by its President or one of its Vice
Presidents or its Treasurer and its company seal to be attested by its Corporate Secretary or one of its Assistant Secretaries, and The
Bank of New York Mellon has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by one of its
Vice Presidents, Senior Associates or Associates and its corporate seal to be attested by one of its Vice Presidents, Senior Associates
or Associates, and Christie Leppert (who is appointed as successor Individual Trustee effective immediately) has hereunto set her hand
and seal, all as of the day and year first above written.

 

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

 

Executed, sealed and delivered by DUKE

ENERGY PROGRESS, LLC by Karl W. Newlin,

one of its Senior Vice Presidents, and

attested by Robert T. Lucas III, one of its

Assistant Secretaries, in the presence of:

 

	 	ATTEST:
	 	 
	 	/s/ Robert T. Lucas III
	 	Robert T. Lucas III
	 	Assistant Secretary

 

	/s/
    Carol Melendez	 	 
	Carol Melendez	 	 
	 	 	 
	/s/ Jenny Pattana	 	 
	Jenny Pattana	 	 

 

[COMPANY’S SIGNATURE PAGE]

 

[NINETY-SECOND SUPPLEMENTAL INDENTURE DATED AS OF MARCH 1, 2022

TO THE DUKE ENERGY PROGRESS, LLC MORTGAGE
AND DEED OF TRUST

DATED AS OF MAY 1, 1940]

 

     

     

    

 

	 	THE BANK OF NEW YORK MELLON,
	 	as Corporate Trustee
	 	 
	 	By: 	/s/ Francine Kincaid
	 	 	Francine Kincaid
	 	 	Vice President

 

Executed, sealed and delivered

by THE BANK OF NEW YORK

MELLON, as Corporate Trustee, by Francine Kincaid,

one of its Vice Presidents,

and attested by Michael D. Commisso,

one of its Vice Presidents, in the

	presence
    of:	ATTEST:
	 	 
		/s/
    Michael D. Commisso 
		Michael D. Commisso 
		Vice President 

 

	/s/ Ignazio Tamburello	 
	Ignazio Tamburello	 
	 	 
	/s/ Thomas Hacker	 
	Thomas Hacker	 

 

[CORPORATE TRUSTEE’S SIGNATURE PAGE]

 

[NINETY-SECOND SUPPLEMENTAL INDENTURE DATED AS OF MARCH 1, 2022

TO THE DUKE ENERGY PROGRESS,
LLC MORTGAGE AND DEED OF TRUST

DATED AS OF MAY 1, 1940]

 

     

     

    

 

	 	/s/ Christie Leppert
	 	Christie Leppert, as successor Individual
Trustee

 

Executed and delivered by

CHRISTIE
LEPPERT, as successor Individual Trustee, in the presence of:

 

	/s/ Sharon Setterlund	 
	Sharon Setterlund	 
	 	 
	/s/ Jose Torres	 
	Jose Torres	 

 

[INDIVIDUAL TRUSTEE’S SIGNATURE PAGE]

 

[NINETY-SECOND SUPPLEMENTAL INDENTURE DATED AS OF MARCH 1, 2022

TO THE DUKE ENERGY PROGRESS,
LLC MORTGAGE AND DEED OF TRUST

DATED AS OF MAY 1, 1940]

 

     

     

    

 

	STATE OF NORTH CAROLINA	)
	 	) SS.:
	COUNTY OF MECKLENBURG	)

 

This 15 day of March, A.D.
2022, personally came before me, Jenny Pattana, a Notary Public, KARL W. NEWLIN, who, being by me duly sworn, acknowledged before me
that he is Treasurer and Senior Vice President, Corporate Development of DUKE ENERGY PROGRESS, LLC, and that the seal affixed to the
foregoing instrument in writing is the company seal of said company, and that said writing was signed and sealed by him in behalf of
said limited liability company by its authority duly given. And the said KARL W. NEWLIN acknowledged the said writing to be the act and
deed of said limited liability company.

 

On the 15 day of March,
in the year of 2022, before me personally came KARL W. NEWLIN, to me known, who, being by me duly sworn, did depose and say that he resides
at 2132 Brookwood Road, Charlotte, NC 28211; that he is Treasurer and Senior Vice President, Corporate Development of DUKE ENERGY PROGRESS,
LLC, one of the limited liability companies described in and which executed the above instrument; that he knows the seal of said limited
liability company; that the seal affixed to said instrument is such company seal; that it was so affixed by order of the Board of Directors
of said limited liability company, and that he signed his name thereto by like order.

 

	 	/s/ Jenny Pattana
	 	Jenny Pattana
	 	NOTARY PUBLIC, State of North Carolina
	 	Mecklenburg County
	 	My Commission Expires: June 8,
    2025

 

	STATE OF NORTH CAROLINA	)
	 	) SS.:
	COUNTY OF MECKLENBURG	)

 

This 15 day of March, A.D.
2022, personally came before me, Jenny Pattana, a Notary Public, ROBERT T. LUCAS III, who, being by me duly sworn, acknowledged before
me that he is the Assistant Secretary of DUKE ENERGY PROGRESS, LLC, and that the seal affixed to the foregoing instrument in writing
is the company seal of said company, and that said writing was signed and attested by him on behalf of said limited liability company
by its authority duly given.

 

On the 15 day of March,
in the year of 2022, before me personally came ROBERT T. LUCAS III, to me known, who, being by me duly sworn, did depose and say that
he resides at 1650 Myers Park Drive, Charlotte, NC 28207; that he is the Assistant Secretary of DUKE ENERGY PROGRESS, LLC, one of the
limited liability companies described in and which executed the above instrument; that he knows the seal of said limited liability company;
that the seal affixed to said instrument is such company seal; that it was so affixed by order of the Board of Directors of said limited
liability company, and that he signed and attested his name thereto by the authority of the Board of Directors of said limited liability
company.

 

	 	/s/ Jenny Pattana
	 	Jenny Pattana
	 	NOTARY PUBLIC, State of North Carolina
	 	Mecklenburg County
	 	My Commission Expires: June 8,
    2025

 

     

     

    

 

	STATE OF NEW YORK	)
	 	) SS.:
	COUNTY OF NEW YORK	)

 

On March 15, 2022 before me, the undersigned, personally appeared Francine Kincaid, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she
signed the same in her capacity as a Vice President of THE BANK OF NEW YORK MELLON, a New York banking corporation, as Corporate Trustee,
and that by her signature on the instrument, the individual, or the person upon behalf of which the individual acted, signed the instrument.

 

I, Rafal Bar, a Notary Public
of the State of New York, certify that Francine Kincaid personally came before me this day and acknowledged that she is a Vice President
of THE BANK OF NEW YORK MELLON, a New York banking corporation, as Corporate Trustee, and that she, as Vice President, being authorized
to do so, signed the foregoing on behalf of the corporation.

 

Witness my hand and official
seal, this the 15th day of March, 2022.

 

	 	/s/ Rafal Bar
	 	Rafal Bar

 

	STATE OF NEW YORK	)
	 	) SS.:
	COUNTY OF NEW YORK	)

 

On March 15, 2022 before
me, the undersigned, personally appeared Michael D. Commisso, personally known to me or proved to me on the basis of satisfactory evidence
to be the individual whose name is subscribed to the within instrument and acknowledged to me that he signed and attested the same in
his capacity as a Vice President of THE BANK OF NEW YORK MELLON, a New York banking corporation, as Corporate Trustee, and that by his
signature on the instrument, the individual, or the person upon behalf of which the individual acted, signed and attested the instrument.

 

I, Rafal Bar, a Notary Public
of the State of New York, certify that Michael D. Commisso personally came before me this day and acknowledged that he is a Vice President
of THE BANK OF NEW YORK MELLON, a New York banking corporation, as Corporate Trustee, and that he, as Vice President, being authorized
to do so, signed and attested the foregoing on behalf of the corporation.

 

Witness my hand and official
seal, this the 15th day of March, 2022.

 

	 	/s/
    Rafal Bar
	 	Rafal Bar

 

     

     

    

 

	STATE OF FLORIDA	)
	 	) SS.:
	COUNTY OF DUVAL	)

 

On March 9, 2022 before
me, the undersigned, personally appeared CHRISTIE LEPPERT, personally known to me or proved to me on the basis of satisfactory evidence
to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity
as successor Individual Trustee, and that by her signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

 

I, Cindy Sheldon, a Notary
Public of the State of Florida, do hereby certify that CHRISTIE LEPPERT, as successor Individual Trustee, personally appeared before me
this day and acknowledged the due execution of the foregoing instrument.

 

Witness my hand and official
seal, this the 9th day of March, 2022.

 

	 	/s/
    Cindy A. Sheldon
	 	Cindy A. Sheldon

 

     

     

    

 

 

THIS SECURITY IS A ONE HUNDRED-EIGHTH SERIES GLOBAL
BOND WITHIN THE MEANING OF THE MORTGAGE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN
PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE MORTGAGE.

 

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

 

THIS FIRST MORTGAGE BOND, 3.40% SERIES DUE 2032
MAY, UNDER CONDITIONS PROVIDED IN THE MORTGAGE, BE EXCHANGED FOR FIRST MORTGAGE BONDS, 3.40% SERIES DUE 2032 IN THE FORM OF DEFINITIVE
CERTIFICATES OF LIKE TENOR AND OF AN EQUAL AGGREGATE PRINCIPAL AMOUNT, IN AUTHORIZED DENOMINATIONS, REGISTERED IN THE NAMES OF SUCH
PERSONS AS THE DEPOSITARY SHALL INSTRUCT THE CORPORATE TRUSTEE. ANY SUCH EXCHANGE SHALL BE MADE UPON RECEIPT BY THE CORPORATE TRUSTEE
OF A REQUEST BY DUKE ENERGY PROGRESS, LLC THEREFOR AND A WRITTEN INSTRUCTION FROM THE DEPOSITARY SETTING FORTH THE NAME OR NAMES IN WHICH
THE CORPORATE TRUSTEE IS TO REGISTER SUCH FIRST MORTGAGE BONDS, 3.40% SERIES DUE 2032 IN THE FORM OF DEFINITIVE CERTIFICATES.

 

	REGISTERED BOND	CUSIP: 26442U AN4
	
    
	 

 

DUKE ENERGY PROGRESS, LLC 

First Mortgage Bond, 

3.40% Series due 2032

 

	No. R-1	$500,000,000

 

     

     

    

 

DUKE ENERGY PROGRESS, LLC,
a North Carolina limited liability company (the “Company”), for value received, hereby promises to pay to

 

Cede & Co.

 

or registered assigns, at the office or agency
of the Company in the Borough of Manhattan, The City of New York,

 

FIVE HUNDRED MILLION ($500,000,000)

 

on April 1, 2032, in such coin or currency
of the United States of America as at the time of payment is legal tender for public and private debts, and to pay to the registered owner
hereof interest thereon from March 17, 2022, if the date of this bond is on or prior to October 1, 2022, or, if the date of
this bond is after October 1, 2022, from the April 1 or October 1 next preceding the date of this bond, at the rate of
3.40% per annum (with interest on overdue principal and overdue installments of interest payable in accordance with the terms of the Mortgage
(as hereinafter defined)) in like coin or currency semi-annually at said office or agency, on April 1 and October 1 in each
year until the principal of this bond shall have become due and payable (each an “Interest Payment Date”). If the date
of this bond is on or prior to October 1, 2022, such payments shall commence on October 1, 2022. Interest on this bond will
be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

Any interest on this bond
which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the person in whose name
this bond (or one or more predecessor bonds) is registered at the close of business on the tenth calendar day next preceding such Interest
Payment Date (i.e., March 22 and September 21, respectively) (each a “Regular Record Date”), provided,
however, that so long as this bond is registered in the name of The Depository Trust Company, a New York corporation, its nominee or a
successor depositary, the Regular Record Date shall be the close of business on the business day (as defined in the Ninety-second Supplemental
Indenture mentioned below) immediately preceding such Interest Payment Date.

 

Any interest on this bond
which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to
the registered holder on the relevant Regular Record Date solely by virtue of such holder having been such holder; and such interest,
together with any interest thereon as provided in the Mortgage (collectively, “Defaulted Interest”), may be paid by
the Company, at its election in each case, as provided in Subsection A or B below:

 

A.            The
Company may elect to make payment of any Defaulted Interest on the bonds of this series (as defined below) to the persons in whose names
such bonds (or their respective predecessor bonds) are registered at the close of business on a special record date for the payment of
such Defaulted Interest, which shall be fixed in the following manner (a “Special Record Date”). The Company shall
notify the Corporate Trustee referred to below in writing of the amount of Defaulted Interest proposed to be paid on each bond and the
date of the proposed payment (which date shall be such as will enable the Corporate Trustee to comply with the next two sentences hereof),
and at the same time the Company shall deposit with the Corporate Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Corporate Trustee for such deposit prior
to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the persons entitled to such Defaulted
Interest as in this Subsection provided and not to be deemed otherwise part of the trust estate or trust moneys. Thereupon the Corporate
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days
prior to the date of the proposed payment and not less than 10 days after the receipt by the Corporate Trustee of the notice of the proposed
payment. The Corporate Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each holder of a bond of this series at such holder’s address as it appears in the bond register not less than
10 days prior to such Special Record Date. The Corporate Trustee may, in its discretion in the name and at the expense of the Company,
cause a similar notice to be published at least once in a newspaper approved by the Company in each place of payment of the bonds of this
series, but such publication shall not be a condition precedent to the establishment of such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall
be paid to the persons in whose names the bonds of this series (or their respective predecessor bonds) are registered on such Special
Record Date and shall no longer be payable pursuant to the following Subsection B.

 

     

     

    

 

B.            The
Company may make payment of any Defaulted Interest on the bonds of this series in any other lawful manner not inconsistent with the requirements
of any securities exchange on which such bonds may be listed and upon such notice as may be required by such exchange, if, after notice
given by the Company to the Corporate Trustee of the proposed payment pursuant to this Subsection, such payment shall be deemed practicable
by the Corporate Trustee.

 

Subject to the foregoing,
each bond of this series delivered under the Mortgage hereinafter mentioned upon transfer of or in exchange for or in lieu of any other
bond of this series shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other bond.

 

This
bond is one of an issue of bonds of the Company issuable in series and is one of a series known as its First Mortgage Bonds, 3.40%
Series due 2032 (the “bonds of this series”), all bonds of all series issued and to be issued under and equally
secured (except in so far as any sinking fund or other fund, established in accordance with the provisions of the Mortgage hereinafter
mentioned, may afford additional security for the bonds of any particular series) by a Mortgage and Deed of Trust (together with any indenture
supplemental thereto, including the Ninety-second Supplemental Indenture, dated as of March 1, 2022, the “Mortgage”),
dated as of May 1, 1940, executed by the Company to The Bank of New York Mellon (formerly Irving Trust Company), as Corporate Trustee,
and Christie Leppert (successor to Frederick G. Herbst), as Individual Trustee. Reference is made to the Mortgage for a description of
the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of the bonds and of the Trustees
in respect thereof, the duties and immunities of the Trustees and the terms and conditions upon which the bonds are and are to be secured
and the circumstances under which additional bonds may be issued. With the consent of the Company and to the extent permitted by and as
provided in the Mortgage, the rights and obligations of the Company and/or the rights of the holders of the bonds and/or coupons and/or
the terms and provisions of the Mortgage may be modified or altered by affirmative vote of the holders of at least 66 2/3% in principal
amount of the bonds then outstanding under the Mortgage and, if the rights of one or more, but less than all, series of bonds then outstanding
are to be affected, then also by affirmative vote of the holders of at least 66 2/3% in principal amount of the bonds then outstanding
of each series of bonds so to be affected (excluding in any case bonds disqualified from voting by reason of the Company’s interest
therein as provided in the Mortgage); provided that, without the consent of the holder hereof, no such modification or alteration, among
other things, shall impair or affect the right of the holder to receive payment of the principal of and interest on this bond, on or after
the respective due dates expressed herein, or permit the creation of any lien equal or prior to the lien of the Mortgage or deprive the
holder of a lien on the mortgaged and pledged property.

 

     

     

    

 

The principal hereof may be
declared or may become due prior to the maturity date hereinbefore named on the conditions, in the manner and at the time set forth in
the Mortgage, upon the occurrence of a default as in the Mortgage provided.

 

This bond is transferable
as prescribed in the Mortgage by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of
the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this bond, and thereupon a new fully
registered temporary or definitive bond of the same series for a like principal amount will be issued to the transferee in exchange herefor
as provided in the Mortgage. The Company and the Trustees may deem and treat the person in whose name this bond is registered as the absolute
owner hereof for the purpose of receiving payment and for all other purposes.

 

In the manner prescribed in
the Mortgage, any bonds of this series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough
of Manhattan, The City of New York, are exchangeable for a like aggregate principal amount of bonds of the same series of other authorized
denominations.

 

On
or after January 1, 2032 (the “Par Call Date”), the Company may redeem the bonds of this series at the option
of the Company, in whole or in part, at any time and from time to time, upon notice as provided in the Mortgage (given not less than 30
days and not more than 90 days prior to the date fixed for redemption), at a redemption price equal to 100% of the principal amount of
the bonds then outstanding to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date.

 

Prior
to the Par Call Date, the Company may redeem the bonds of this series at the option of the Company, in whole or in part, at any
time and from time to time, upon notice as provided in the Mortgage (given not less than 30 days and not more than 90 days prior to the
date fixed for redemption (together with the date fixed for redemption referred to in the preceding sentence, each a “Redemption
Date”)), at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places (together
with the redemption price referred to in the preceding sentence, each a “Redemption Price”)) equal to the greater of:
(i)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption
date (assuming such bonds matured on the Par Call Date), on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate (as defined in the Ninety-second Supplemental Indenture mentioned above) plus 20 basis points less (b) interest
accrued to such Redemption Date; and (ii) 100% of the principal amount of the bonds then outstanding to be redeemed, plus, in either
case, accrued and unpaid interest thereon to, but excluding, such Redemption Date. On and after any Redemption Date, if sufficient cash
shall have been deposited with Corporate Trustee (and/or if the Company has irrevocably directed the Corporate Trustee to apply, from
moneys held by it available to be used for the redemption of bonds, sufficient cash) to redeem all of the bonds of this series called
for redemption, interest on the bonds of this series, or the portions of them so called for redemption, shall cease to accrue. Reference
is made to said Ninety-second Supplemental Indenture for the full terms of the redemption provisions applicable to the bonds of this series.

 

No recourse shall be had for
the payment of the principal or any Redemption Price of or interest on this bond against any incorporator or any past, present or future
subscriber to the capital stock, stockholder, officer or director of the Company or of any predecessor or successor corporation, as such,
either directly or through the Company or any predecessor or successor corporation, under any rule of law, statute or constitution
or by the enforcement of any assessment or otherwise, all such liability of incorporators, subscribers, stockholders, officers and directors
being released by the holder or owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the
Mortgage.

 

     

     

    

 

This bond shall not become
obligatory until The Bank of New York Mellon (formerly Irving Trust Company), the Corporate Trustee under the Mortgage, or its successor
thereunder, shall have signed the form of certificate endorsed hereon.

 

[Signature Page Follows]

 

    

     

    

 

IN WITNESS WHEREOF, DUKE ENERGY
PROGRESS, LLC has caused this bond to be signed in its name with the manual or facsimile signature of its President or one of its Vice
Presidents and its company seal to be impressed or imprinted hereon and attested by its Secretary or one of its Assistant Secretaries.

 

	 	DUKE ENERGY PROGRESS, LLC
	 	 
	DATED: March 17, 2022	 

 

	 	By:	 
	 	 	Karl W. Newlin 
	 	 	Senior Vice President, Corporate Development and
    Treasurer

 

ATTEST:

 

	 	 
	Robert T. Lucas III	 
	Assistant Secretary	 

 

     

     

    

 

CORPORATE
TRUSTEE’S CERTIFICATE

 

This bond is one of the bonds,
of the series herein designated, described or provided for in the within-mentioned Mortgage.

 

	 	THE BANK OF NEW YORK MELLON, 

Corporate Trustee

 

	 	By:	 
	 	 	Authorized Officer

 

     

     

    

 

THIS SECURITY IS A ONE HUNDRED-NINTH SERIES GLOBAL
BOND WITHIN THE MEANING OF THE MORTGAGE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN
PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE MORTGAGE.

 

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

 

THIS FIRST MORTGAGE BOND, 4.00% SERIES DUE 2052
MAY, UNDER CONDITIONS PROVIDED IN THE MORTGAGE, BE EXCHANGED FOR FIRST MORTGAGE BONDS, 4.00% SERIES DUE 2052 IN THE FORM OF DEFINITIVE
CERTIFICATES OF LIKE TENOR AND OF AN EQUAL AGGREGATE PRINCIPAL AMOUNT, IN AUTHORIZED DENOMINATIONS, REGISTERED IN THE NAMES OF SUCH
PERSONS AS THE DEPOSITARY SHALL INSTRUCT THE CORPORATE TRUSTEE. ANY SUCH EXCHANGE SHALL BE MADE UPON RECEIPT BY THE CORPORATE TRUSTEE
OF A REQUEST BY DUKE ENERGY PROGRESS, LLC THEREFOR AND A WRITTEN INSTRUCTION FROM THE DEPOSITARY SETTING FORTH THE NAME OR NAMES IN WHICH
THE CORPORATE TRUSTEE IS TO REGISTER SUCH FIRST MORTGAGE BONDS, 4.00% SERIES DUE 2052 IN THE FORM OF DEFINITIVE CERTIFICATES.

 

	REGISTERED BOND	CUSIP: 26642U AP9
	
    
	 

 

DUKE ENERGY PROGRESS, LLC 

First Mortgage Bond, 

4.00% Series due 2052

 

	No. R-1	$400,000,000

 

     

     

    

 

DUKE ENERGY PROGRESS, LLC,
a North Carolina limited liability company (the “Company”), for value received, hereby promises to pay to

 

Cede & Co.

 

or registered assigns, at the office or agency
of the Company in the Borough of Manhattan, The City of New York,

 

FOUR HUNDRED MILLION ($400,000,000])

 

on April 1, 2052, in such coin or currency
of the United States of America as at the time of payment is legal tender for public and private debts, and to pay to the registered owner
hereof interest thereon from March 17, 2022, if the date of this bond is on or prior to October 1, 2022, or, if the date of
this bond is after October 1, 2022, from the April 1 or October 1 next preceding the date of this bond, at the rate of
4.00% per annum (with interest on overdue principal and overdue installments of interest payable in accordance with the terms of the Mortgage
(as hereinafter defined)) in like coin or currency semi-annually at said office or agency, on April 1 and October 1 in each
year until the principal of this bond shall have become due and payable (each an “Interest Payment Date”). If the date
of this bond is on or prior to October 1, 2022, such payments shall commence on October 1, 2022. Interest on this bond will
be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

Any interest on this bond
which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the person in whose name
this bond (or one or more predecessor bonds) is registered at the close of business on the tenth calendar day next preceding such Interest
Payment Date (i.e., March 22 and September 21, respectively) (each a “Regular Record Date”), provided,
however, that so long as this bond is registered in the name of The Depository Trust Company, a New York corporation, its nominee or a
successor depositary, the Regular Record Date shall be the close of business on the business day (as defined in the Ninety-second Supplemental
Indenture mentioned below) immediately preceding such Interest Payment Date.

 

Any interest on this bond
which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to
the registered holder on the relevant Regular Record Date solely by virtue of such holder having been such holder; and such interest,
together with any interest thereon as provided in the Mortgage (collectively, “Defaulted Interest”), may be paid by
the Company, at its election in each case, as provided in Subsection A or B below:

 

A.            The
Company may elect to make payment of any Defaulted Interest on the bonds of this series (as defined below) to the persons in whose names
such bonds (or their respective predecessor bonds) are registered at the close of business on a special record date for the payment of
such Defaulted Interest, which shall be fixed in the following manner (a “Special Record Date”). The Company shall
notify the Corporate Trustee referred to below in writing of the amount of Defaulted Interest proposed to be paid on each bond and the
date of the proposed payment (which date shall be such as will enable the Corporate Trustee to comply with the next two sentences hereof),
and at the same time the Company shall deposit with the Corporate Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Corporate Trustee for such deposit prior
to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the persons entitled to such Defaulted
Interest as in this Subsection provided and not to be deemed otherwise part of the trust estate or trust moneys. Thereupon the Corporate
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days
prior to the date of the proposed payment and not less than 10 days after the receipt by the Corporate Trustee of the notice of the proposed
payment. The Corporate Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each holder of a bond of this series at such holder’s address as it appears in the bond register not less than
10 days prior to such Special Record Date. The Corporate Trustee may, in its discretion in the name and at the expense of the Company,
cause a similar notice to be published at least once in a newspaper approved by the Company in each place of payment of the bonds of this
series, but such publication shall not be a condition precedent to the establishment of such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall
be paid to the persons in whose names the bonds of this series (or their respective predecessor bonds) are registered on such Special
Record Date and shall no longer be payable pursuant to the following Subsection B.

 

     

     

    

 

B.            The
Company may make payment of any Defaulted Interest on the bonds of this series in any other lawful manner not inconsistent with the requirements
of any securities exchange on which such bonds may be listed and upon such notice as may be required by such exchange, if, after notice
given by the Company to the Corporate Trustee of the proposed payment pursuant to this Subsection, such payment shall be deemed practicable
by the Corporate Trustee.

 

Subject to the foregoing,
each bond of this series delivered under the Mortgage hereinafter mentioned upon transfer of or in exchange for or in lieu of any other
bond of this series shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other bond.

 

This
bond is one of an issue of bonds of the Company issuable in series and is one of a series known as its First Mortgage Bonds, 4.00%
Series due 2052 (the “bonds of this series”), all bonds of all series issued and to be issued under and equally
secured (except in so far as any sinking fund or other fund, established in accordance with the provisions of the Mortgage hereinafter
mentioned, may afford additional security for the bonds of any particular series) by a Mortgage and Deed of Trust (together with any indenture
supplemental thereto, including the Ninety-second Supplemental Indenture, dated as of March 1, 2022, the “Mortgage”),
dated as of May 1, 1940, executed by the Company to The Bank of New York Mellon (formerly Irving Trust Company), as Corporate Trustee,
and Christie Leppert (successor to Frederick G. Herbst), as Individual Trustee. Reference is made to the Mortgage for a description of
the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of the bonds and of the Trustees
in respect thereof, the duties and immunities of the Trustees and the terms and conditions upon which the bonds are and are to be secured
and the circumstances under which additional bonds may be issued. With the consent of the Company and to the extent permitted by and as
provided in the Mortgage, the rights and obligations of the Company and/or the rights of the holders of the bonds and/or coupons and/or
the terms and provisions of the Mortgage may be modified or altered by affirmative vote of the holders of at least 66 2/3% in principal
amount of the bonds then outstanding under the Mortgage and, if the rights of one or more, but less than all, series of bonds then outstanding
are to be affected, then also by affirmative vote of the holders of at least 66 2/3% in principal amount of the bonds then outstanding
of each series of bonds so to be affected (excluding in any case bonds disqualified from voting by reason of the Company’s interest
therein as provided in the Mortgage); provided that, without the consent of the holder hereof, no such modification or alteration, among
other things, shall impair or affect the right of the holder to receive payment of the principal of and interest on this bond, on or after
the respective due dates expressed herein, or permit the creation of any lien equal or prior to the lien of the Mortgage or deprive the
holder of a lien on the mortgaged and pledged property.

 

     

     

    

 

The principal hereof may be
declared or may become due prior to the maturity date hereinbefore named on the conditions, in the manner and at the time set forth in
the Mortgage, upon the occurrence of a default as in the Mortgage provided.

 

This bond is transferable
as prescribed in the Mortgage by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of
the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this bond, and thereupon a new fully
registered temporary or definitive bond of the same series for a like principal amount will be issued to the transferee in exchange herefor
as provided in the Mortgage. The Company and the Trustees may deem and treat the person in whose name this bond is registered as the absolute
owner hereof for the purpose of receiving payment and for all other purposes.

 

In the manner prescribed in
the Mortgage, any bonds of this series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough
of Manhattan, The City of New York, are exchangeable for a like aggregate principal amount of bonds of the same series of other authorized
denominations.

 

On
or after October 1, 2051 (the “Par Call Date”), the Company may redeem the bonds of this series at the option
of the Company, in whole or in part, at any time and from time to time, upon notice as provided in the Mortgage (given not less than 30
days and not more than 90 days prior to the date fixed for redemption), at a redemption price equal to 100% of the principal amount of
the bonds then outstanding to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date.

 

Prior
to the Par Call Date, the Company may redeem the bonds of this series at the option of the Company, in whole or in part, at any
time and from time to time, upon notice as provided in the Mortgage (given not less than 30 days and not more than 90 days prior to the
date fixed for redemption (together with the date fixed for redemption referred to in the preceding sentence, each a “Redemption
Date”)), at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places (together
with the redemption price referred to in the preceding sentence, each a “Redemption Price”)) equal to the greater of:
(i)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption
date (assuming such bonds matured on the Par Call Date), on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate (as defined in the Ninety-second Supplemental Indenture mentioned above) plus 25 basis points less (b) interest
accrued to such Redemption Date; and (ii) 100% of the principal amount of the bonds then outstanding to be redeemed, plus, in either
case, accrued and unpaid interest thereon to, but excluding, such Redemption Date. On and after any Redemption Date, if sufficient cash
shall have been deposited with Corporate Trustee (and/or if the Company has irrevocably directed the Corporate Trustee to apply, from
moneys held by it available to be used for the redemption of bonds, sufficient cash) to redeem all of the bonds of this series called
for redemption, interest on the bonds of this series, or the portions of them so called for redemption, shall cease to accrue. Reference
is made to said Ninety-second Supplemental Indenture for the full terms of the redemption provisions applicable to the bonds of this series.

 

No recourse shall be had for
the payment of the principal or any Redemption Price of or interest on this bond against any incorporator or any past, present or future
subscriber to the capital stock, stockholder, officer or director of the Company or of any predecessor or successor corporation, as such,
either directly or through the Company or any predecessor or successor corporation, under any rule of law, statute or constitution
or by the enforcement of any assessment or otherwise, all such liability of incorporators, subscribers, stockholders, officers and directors
being released by the holder or owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the
Mortgage.

 

     

     

    

 

This bond shall not become
obligatory until The Bank of New York Mellon (formerly Irving Trust Company), the Corporate Trustee under the Mortgage, or its successor
thereunder, shall have signed the form of certificate endorsed hereon.

 

[Signature Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF, DUKE ENERGY
PROGRESS, LLC has caused this bond to be signed in its name with the manual or facsimile signature of its President or one of its Vice
Presidents and its company seal to be impressed or imprinted hereon and attested by its Secretary or one of its Assistant Secretaries.

 

	 	DUKE ENERGY PROGRESS, LLC
	 	 
	DATED: March 17, 2022	 

 

	 	By:	 
	 	 	Karl W. Newlin
	 	 	Senior Vice President, Corporate Development and Treasurer

 

ATTEST:

 

	 	 
	Robert T. Lucas III 	 
	Assistant Secretary	 

 

     

     

    

 

CORPORATE
TRUSTEE’S CERTIFICATE

 

This bond is one of the bonds,
of the series herein designated, described or provided for in the within-mentioned Mortgage.

 

	 	THE BANK OF NEW YORK MELLON, 

Corporate Trustee

 

	 	By:	 
	 	 	Authorized Officer

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