Document:

Exhibit 4.2

 

 

 

DUKE
ENERGY Progress, LLC

 

 

TO

 

 

THE BANK OF NEW YORK MELLON

 

 

 

Trustee and Calculation Agent

 

 

 

First Supplemental Indenture

Dated as of August 1, 2020

 

 

 

$700,000,000
Series A Floating Rate Notes Due 2022

 

 

 

     

     

    

 

TABLE OF
CONTENTS1

 

	ARTICLE I

 

SERIES A FLOATING RATE NOTES DUE 2022
	 	 	 
	Section 1.01.   Establishment	 	1
	Section 1.02.   Certain Definitions	 	2
	Section 1.04.   Payment of Principal and Interest	 	9
	Section 1.05.   Denominations	 	9
	Section 1.06.   Global Securities	 	9
	Section 1.07.   Optional Redemption	 	10
	Section 1.08.   Paying Agent	 	10
	 	 	 
	ARTICLE II

 

CALCULATION AGENT FOR THE SERIES A FLOATING RATE NOTES
	 
	Section 2.01.   Appointment	 	10
	Section 2.02.   Duties and Obligations	 	10
	Section 2.03.   Terms and Conditions	 	10
	Section 2.04.   Qualifications	 	12
	Section 2.05.   Resignation and Removal	 	12
	Section 2.06.   Successors	 	12
	Section 2.07.   Trustee Deemed Calculation Agent Upon Certain Circumstances	 	12
	Section 2.08.   Merger, Conversion, Consolidation, Sale or Transfer	 	13
	Section 2.09.   Notice	 	13
	Section 2.10.   Waiver of Jury Trial	 	13
	Section 2.11.   USA PATRIOT Act	 	14
	Section 2.12.   Calculation of Interest Rate for First Interest Period	 	14
	Section 2.13.   FATCA	 	14
	 	 	 
	ARTICLE III

 

MISCELLANEOUS PROVISIONS
	 
	Section 3.01.   Recitals by the Company	 	14
	Section 3.02.   Ratification and Incorporation of Original Indenture	 	14
	Section 3.03.   Executed in Counterparts	 	15
	 	 	 

Exhibit A – Form of Series A Floating Rate Note Due 2022

Exhibit B – Certificate of Authentication

 

 

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

 

     

     

    

 

THIS FIRST SUPPLEMENTAL
INDENTURE is made as of the 1st day of August, 2020 (this “Supplemental Indenture”), by and among DUKE ENERGY
PROGRESS, LLC (formerly Duke Energy Progress, Inc.), a limited liability company of the State of North Carolina (the “Company”),
and THE BANK OF NEW YORK MELLON (successor in interest to The Chase Manhattan Bank), a national banking association, as
Trustee (herein called the “Trustee”) and Calculation Agent.

 

WITNESSETH:

 

WHEREAS, Carolina
Power & Light Company, a predecessor to the Company, has heretofore entered into an Indenture (for Debt Securities), dated
as of October 28, 1999 (the “Original Indenture”);

 

WHEREAS, on
August 1, 2015, the Company converted its form of organization from a North Carolina corporation to a North Carolina limited liability
company named “Duke Energy Progress, LLC”;

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE
I

SERIES A FLOATING RATE NOTES DUE 2022

 

Section 1.01.         
Establishment. There is hereby established a new series of Debt Securities to be issued under the Indenture, to be
designated as the Company’s Series A Floating Rate Notes due 2022 (the “Notes”).

 

There are to be authenticated
and delivered initially $700,000,000 principal amount of the Notes, and no further Notes shall be authenticated and delivered except
as provided by Section 301, 304, 305, 306 or 1206 of the Original Indenture.  The Notes shall be issued in fully registered
form without coupons.

 

     

     

    

 

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

 

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

 

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

 

“BBAM”
means the display that appears on Bloomberg L.P.’s page “BBAM” or any page as may replace such page on such service
(or any successor service) for the purpose of displaying the London Interbank Offered rate for U.S. dollar deposits.

 

“Benchmark”
means, initially, LIBOR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
with respect to LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.

 

“Benchmark Replacement”
means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment for such
Benchmark; provided that if the Company (or its Designee) cannot determine the Interpolated Benchmark as of the Benchmark Replacement
Date, then “Benchmark Replacement” means the first alternative set forth in the order below that can be determined
by the Company (or its Designee) as of the Benchmark Replacement Date:

 

(1) the sum of: (a) Term
SOFR and (b) the Benchmark Replacement Adjustment;

 

(2) the sum of: (a) Compounded
SOFR and (b) the Benchmark Replacement Adjustment;

 

(3) the sum of: (a) the
alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current
Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;

 

(4) the sum of: (a) the
ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; and

 

(5) the sum of: (a) the
alternate rate of interest that has been selected by the Company (or its Designee) as the replacement for the then-current Benchmark
for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for
the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (b) the Benchmark Replacement
Adjustment.

 

“Benchmark Replacement
Adjustment” means the first alternative set forth in the order below that can be determined by the Company (or its Designee)
as of the Benchmark Replacement Date:

 

(1) the spread adjustment,
or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), that has been
selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

 

    2 

     

    

 

(2) if the applicable
Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and

 

(3) the spread adjustment
(which may be a positive or negative value or zero) that has been selected by the Company (or its Designee) giving due consideration
to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement
of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes
at such time.

 

The Benchmark Replacement
Adjustment shall not include the Margin specified herein and such Margin shall be applied to the Benchmark Replacement to determine
the interest payable on the Notes.

 

“Benchmark Replacement
Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes
(including changes to the definition of “Interest Period,” timing and frequency of determining rates and making payments
of interest, rounding of amounts or tenor, and other administrative matters) that the Company (or its Designee) decides may be
appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or,
if the Company (or its Designee) decides that adoption of any portion of such market practice is not administratively feasible
or if the Company (or its Designee) determines that no market practice for use of the Benchmark Replacement exists, in such other
manner as the Company (or its Designee) determines is reasonably necessary).

 

“Benchmark Replacement
Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

(1) in the case of
clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the
public statement or publication of information referenced therein and (b) the date on which the administrator of the Benchmark
permanently or indefinitely ceases to provide the Benchmark; or

 

(2) in the case of
clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein.

 

For the avoidance of
doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time
in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for
such determination.

 

“Benchmark Transition
Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

(1) a public statement
or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased
or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that will continue to provide the Benchmark;

 

(2) a public statement
or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency
of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with
jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over
the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the
Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator
that will continue to provide the Benchmark; or

 

    3 

     

    

 

(3) a public statement
or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark
is no longer representative.

 

“Business Day”
means any day other than a Saturday or Sunday that is neither a Legal Holiday nor a day on which banking institutions in New York,
New York are authorized or required by law, regulation or executive order to close, or a day on which the Corporate Trust Office
is closed for business.

 

“Calculation
Agent” means initially The Bank of New York Mellon, as appointed pursuant to Section 2.01 of this Supplemental Indenture,
or its successor appointed by the Company pursuant to Article Two hereof, acting as calculation agent.

 

“Compounded SOFR”
means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and
conventions for this rate being established by the Company (or its Designee) in accordance with:

 

(1) the rate, or methodology
for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining Compounded
SOFR; provided that:

 

(2) if, and to the
extent that, the Company (or its Designee) determines that Compounded SOFR cannot be determined in accordance with clause (1) above,
then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company (or its Designee)
giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

 

For the avoidance of
doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the Margin.

 

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding
business day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Designee”
has the meaning set forth in Section 1.03.

 

“Federal Reserve
Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“Interest Determination
Date” means the second London Business Day immediately preceding the first day of the relevant Interest Period.

 

“Interest Payment
Date” means each February 18, May 18, August 18 and November 18 of each year, commencing on November 18, 2020.

 

“Interest Period”
means the period commencing on an Interest Payment Date for the Notes (or, with respect to the initial Interest Period only, commencing
on the Original Issue Date for the Notes) and ending on the day before the next succeeding Interest Payment Date for the Notes.

 

“Interpolated
Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear
basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding
Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding
Tenor.

 

    4 

     

    

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto,
as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from
time to time.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor. 

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Legal Holiday”
means any day that is a legal holiday in New York, New York.

 

“London Business
Day” means a day that is a Business Day and a day on which dealings in deposits in U.S. dollars are transacted, or
with respect to any future date are expected to be transacted, in the London interbank market.

 

“Margin”
has the meaning set forth in Section 1.03.

 

“Original Issue
Date” means August 20, 2020.

 

“Redemption Date”
has the meaning set forth in Section 1.06.

 

“Reference Time”
with respect to any determination of the Benchmark means (1) if the Benchmark is LIBOR, 11:00 a.m., London time, on the
Interest Determination Date, and (2) if the Benchmark is not LIBOR, the time determined by the Company (or its Designee) in
accordance with the Benchmark Replacement Conforming Changes.

 

“Regular Record
Date” means, with respect to each Interest Payment Date, the close of business on (i) the business day immediately preceding
such Interest Payment Date so long as all of the Notes remain in book-entry only form or (ii) the 15th calendar day
immediately preceding such Interest Payment Date (whether or not a Business Day) if any of the Notes do not remain in book-entry
only form.

 

“Relevant Governmental
Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or
convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“Reuters LIBOR01
Page” means the display designated as Reuters LIBOR01 on the Reuters 3000 Xtra (or such other page as may replace the Reuters
LIBOR01 Page on that service, or such other service as may be nominated for the purpose of displaying rates or prices comparable
to the London Interbank Offered rate for U.S. dollar deposits by ICE Benchmark Administration Limited (“IBA”) or its
successor or such other entity assuming the responsibility of IBA or its successor in calculating the London Interbank Offered
rate in the event IBA or its successor no longer does so).

 

    5 

     

    

 

“SOFR”
with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York,
as the administrator of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s Website.

 

“Stated Maturity”
means February 18, 2022.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Unadjusted Benchmark
Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

Section 1.03.         
Payment of Principal and Interest. The principal of the
Notes shall be due at Stated Maturity.  The Notes shall bear interest from the Original Issue Date or from the most recent
Interest Payment Date to which interest has been paid or provided for at the rates set quarterly pursuant to this Section 1.03,
payable quarterly in arrears on each Interest Payment Date to the Person or Persons in whose name each Note is registered on the
Regular Record Date for such Interest Payment Date; provided that interest payable at the Stated Maturity as provided herein shall
be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for
shall forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons
in whose name the Notes are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest
to be fixed by the Trustee (“Special Record Date”), notice whereof shall be given to Holders of the Notes not less
than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange, if any, on which the Notes may be listed, and upon such notice as may be required
by any such exchange, all as more fully provided in the Original Indenture.

 

Interest on the Notes
shall be computed on the basis of the actual number of days elapsed over a 360-day year consisting of twelve 30-day months. In
the event that any Interest Payment Date (other than the Interest Payment Date that is a Redemption Date or the Stated Maturity)
would otherwise be a day that is not a Business Day, any such Interest Payment Date will be postponed to the next succeeding Business
Day, unless the next succeeding Business Day is in the next succeeding calendar month, in which case, such Interest Payment Date
shall be the immediately preceding Business Day. In the event that a Redemption Date or the Stated Maturity falls on a day that
is not a Business Day, then the payment of the principal and interest otherwise payable on any such date shall be made on the next
succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and
effect as if made on the date the payment was originally payable, and no interest on such payment will accrue from and after such
Redemption Date or the Stated Maturity.

 

The Notes will bear
interest for each quarterly Interest Period at a per annum rate determined by the Calculation Agent, except as provided below.
The interest rate applicable during each quarterly Interest Period will be equal to LIBOR on the Interest Determination Date for
such Interest Period plus 18 basis points (0.18%) (0.18%, the “Margin”), subject to the provisions set forth below.
Promptly upon such determination, the Calculation Agent will notify the Company and the Trustee, if the Trustee is not then serving
as the Calculation Agent, or in certain circumstances described below in this Section 1.03, the Company or its Designee (which
may be an independent financial advisor or any other designee of the Company (any of such entities, a “Designee”))
will notify the Trustee, of the interest rate for the new Interest Period. In no event shall the initial Calculation Agent (The
Bank of New York Mellon) be the Designee. Absent manifest error, the calculation of the applicable interest rate for each Interest
Period by the Calculation Agent, or in certain circumstances described below in this Section 1.03, by the Company or its Designee,
shall be binding and conclusive upon the beneficial owners and Holders of the Notes, the Company and the Trustee.

 

    6 

     

    

 

Upon the request of
a Holder of the Notes, the Calculation Agent will provide to such Holder the interest rate in effect on the date of such request
and, if determined, the interest rate for the next Interest Period.

 

The accrued interest
on the Notes for any period is calculated by multiplying the principal amount of the Notes by an accrued interest factor. The accrued
interest factor is computed by adding the interest factor calculated for each day in the period for which accrued interest is being
calculated. The interest factor (expressed as a decimal rounded upwards if necessary) is computed by dividing the interest rate
(expressed as a decimal rounded upwards if necessary) applicable to such date by 360.

 

In no event shall the
Calculation Agent be responsible for determining whether a Benchmark Transition Event has occurred or be responsible for determining
any substitute for LIBOR, or for making any adjustments to any alternative benchmark or spread thereon, the business day convention,
Interest Determination Dates or any other relevant methodology for calculating any such substitute or successor benchmark. In connection
with the foregoing, the Calculation Agent will be entitled to conclusively rely on any determinations made by the Company or its
Designee and will have no liability for such actions taken at the direction of the Company.

 

Any determination,
decision or election that may be made by the Company or its Designee in connection with a Benchmark Transition Event or a Benchmark
Replacement, including any determination with respect to a rate or adjustment or of the occurrence or non-occurrence of an event,
circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding
absent manifest error, may be made in the Company’s or its Designee’s sole discretion, and, notwithstanding anything
to the contrary in the transaction documents relating to the Notes, will become effective without consent from any other party.
Neither the Trustee nor the Calculation Agent will have any liability for any determination made by or on behalf of the Company
or its Designee in connection with a Benchmark Transition Event or a Benchmark Replacement.

 

All percentages resulting
from any calculation of the interest rate on the Notes will be rounded, if necessary, to the nearest one-hundred thousandth of
a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 0.567845% (or .00567845) being
rounded to 0.56785% (or .0056785) and 0.567844% (or .00567844) being rounded to 0.56784% (or .0056784)), and all dollar amounts
used in or resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upwards). Any
percentage resulting from any calculation of any interest rate for the Notes less than 0.00% will be deemed to be 0.00% (or 0.0000).

 

Payment of principal
of and interest on the Notes shall be made in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.  Payments of principal of and interest on Notes represented by a Global
Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security.  If any of the
Notes are no longer represented by a Global Security, (i) payments of principal and interest due at a Redemption Date or the Stated
Maturity of such Notes shall be made at the office of the Paying Agent upon surrender of such Notes to the Paying Agent and (ii) payments
of interest shall be made, at the option of the Company, subject to such surrender where applicable, by (A) check mailed to
the address of the Person entitled thereto as such address shall appear in the Security Register or (B) wire transfer at such
place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least
sixteen (16) days prior to the date for payment by the Person entitled thereto.

 

    7 

     

    

 

(a) Determining
the Floating Rate. “LIBOR” will be determined by the Calculation Agent in accordance with the following provisions:

 

(1)       With
respect to any Interest Period, the rate (expressed as a percentage per annum) for deposits in U.S. dollars for a three-month period
commencing on the first day of that Interest Period and ending on the next Interest Payment Date for the Notes that appears on
Bloomberg L.P.’s page “BBAM” and, if such page is not available, from the Reuters LIBOR01 Page as of 11:00 a.m.
(London time) on the Interest Determination Date for that Interest Period.

 

(2)        If
LIBOR cannot be determined as described above in clause (1), LIBOR will be determined on the basis of the rates at which deposits
in U.S. dollars for the Interest Period and in a principal amount of not less than $1,000,000 are offered to prime banks in the
London interbank market by four major banks in the London interbank market, which may include affiliates of one or more of the
underwriters of the Notes, selected by the Company, at approximately 11:00 a.m., London time, on the Interest Determination Date
for that Interest Period. The Company will request the principal London office of each such bank to provide a quotation of its
rate to the Calculation Agent. If at least two such quotations are provided, LIBOR with respect to that Interest Period will be
the arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR with respect to that Interest Period will
be the arithmetic mean of the rates quoted by three major banks in New York City, which may include affiliates of one or more of
the underwriters of the Notes, selected by the Company, at approximately 11:00 a.m., New York City time, on the Interest Determination
Date for that Interest Period for loans in U.S. dollars to leading European banks for that Interest Period and in a principal amount
of not less than $1,000,000. The Company will request the principal New York City office of each such bank to provide a quotation
of its rate to the Calculation Agent. However, if fewer than three banks selected by the Company to provide quotations are quoting
as described above, LIBOR for that Interest Period will be the same as LIBOR as determined for the previous Interest Period.

 

Notwithstanding clauses
(1) and (2) above in the immediately preceding paragraph, if the Company (or its Designee) determines on or prior to the relevant
Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect
to LIBOR (or the then-current Benchmark, as applicable), then the provisions set forth below in Section 1.03(b), which are referred
to as the benchmark transition provisions, will thereafter apply to all determinations of the rate of interest payable on the Notes.
In accordance with the benchmark transition provisions, after a Benchmark Transition Event and its related Benchmark Replacement
Date have occurred, the amount of interest that will be payable for each Interest Period will be an annual rate equal to the sum
of the Benchmark Replacement and the Margin. However, if the Company (or its Designee) determines that a Benchmark Transition Event
and its related Benchmark Replacement Date have occurred with respect to the then-current Benchmark, but for any reason the Benchmark
Replacement has not been determined as of the relevant Interest Determination Date, the interest rate for the applicable interest
period will be equal to the interest rate for the immediately preceding Interest Period, as determined by the Company (or its Designee).

 

(b) Effect of Benchmark
Transition Event.

 

(i) Benchmark Replacement.   If
the Company (or its Designee) determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
prior to the Reference Time in respect of any determination of the Benchmark on any date, the Benchmark Replacement will replace
the then-current Benchmark for all purposes relating to the Notes in respect of such determination on such date and all determinations
on all subsequent dates.

 

    8 

     

    

 

(ii) Benchmark Replacement
Conforming Changes.   In connection with the implementation of a Benchmark Replacement, the Company (or its
Designee) will have the right to make Benchmark Replacement Conforming Changes from time to time.

 

(iii) Decisions
and Determinations.   Any determination, decision or election that may be made by the Company (or its Designee)
pursuant to this Section 1.03(b), including any determination with respect to tenor, rate or adjustment or of the occurrence or
non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will
be conclusive and binding absent manifest error, will be made in the Company’s (or its Designee’s) sole discretion,
and, notwithstanding anything to the contrary in the transaction documents relating to the Notes, shall become effective without
consent from the Holders of the Notes or any other party.

 

Section 1.04.         
Denominations. The Notes shall be issued in denominations of $2,000 or any integral multiple of $1,000 in excess
thereof.

 

Section 1.05.         
Global Securities. The Notes shall initially be issued in the form of one or more Global Securities registered in
the name of the Depositary (which initially shall be The Depository Trust Company) or its nominee.  Except under the limited
circumstances described below, Notes represented by such Global Security or Global Securities shall not be exchangeable for, and
shall not otherwise be issuable as, Notes in definitive form.  The Global Securities described in this Article I may not be
transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or to a successor Depositary or its nominee.

 

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

 

Section 1.06.         
Optional Redemption. The Notes shall be redeemable at the option of the Company at any time on or after February
18, 2021 (each, a “Redemption Date”), in whole or in part and from time to time, at a redemption price equal to 100%
of the principal amount of the Notes being redeemed plus accrued and unpaid interest on the principal amount of such Notes being
redeemed to, but excluding, such Redemption Date.

 

Notice of any optional
redemption of Notes of this series (or any portion thereof) will be given to Holders at their addresses, as shown in the Debt Security
Register for such Notes, not less than 10 nor more than 30 days prior to the Redemption Date. The notice of redemption will specify,
among other items, the method of calculation of the redemption price and the principal amount of the Notes held by such Holder
to be redeemed. If less than all of the Notes are to be redeemed at the option of the Company, the
Notes or portions of such Notes being redeemed shall be selected for redemption in accordance with the Depositary’s standard
procedures.

 

    9 

     

    

 

If notice has been
given as provided herein and funds for the redemption of any Notes (or any portion thereof) called for redemption shall have been
made available on the Redemption Date referred to in such notice, such Notes (or any portion thereof) will cease to bear interest
on the date fixed for such redemption specified in such notice and the only right of the Holders of such Notes will be to receive
payment of the redemption price. 

 

The Notes shall not
have a sinking fund.

 

Section 1.07.         
Paying Agent. The Trustee shall initially serve as Paying Agent with respect to the Notes, with the Place of Payment
initially being the Corporate Trust Office.

 

ARTICLE
II

CALCULATION AGENT FOR THE SERIES A FLOATING RATE NOTES

 

Section
2.01.          Appointment. Upon
the terms and subject to the conditions contained herein, the Company hereby appoints The Bank of New York Mellon as the Company’s
calculation agent for the Notes (the “Calculation Agent”) and The Bank of New York Mellon hereby accepts such appointment
as the Company’s agent for the purpose of calculating the applicable interest rates on the Notes in accordance with the provisions
set forth herein.

 

Section
2.02.          Duties and Obligations.
The Calculation Agent shall: (a) calculate the applicable interest rates
on the Notes in accordance with the provisions set forth herein, and (b) exercise due care to determine the interest rates on the
Notes and shall communicate the same to the Company and the Trustee (if the Trustee is not then serving as the Calculation Agent)
as soon as practicable after each determination.

 

The Calculation Agent
will, upon the request of a Holder of the Notes, provide to such Holder the interest rate in effect on the date of such request
and, if determined, the interest rate for the next Interest Period (as defined in Section 1.02).

 

Section
2.03.          Terms and Conditions.
The Calculation Agent accepts its obligations set forth herein, upon the
terms and subject to the conditions hereof, including the following, to all of which the Company agrees:

 

(a) The Calculation
Agent shall be entitled to such compensation as may be agreed upon with the Company for all services rendered by the Calculation
Agent, and the Company promises to pay such compensation and to reimburse the Calculation Agent for the reasonable out-of-pocket
expenses (including attorneys’ fees and expenses) incurred by it in connection with the services rendered by it hereunder
upon receipt of such invoices as the Company shall reasonably require. The Company also agrees to indemnify the Calculation Agent
for, and to hold it harmless against, any and all loss, liability, damage, claim or expense (including the costs and expenses of
defending against any claim (regardless of who asserts such claim) of liability) incurred by the Calculation Agent that arises
out of or in connection with its accepting appointment as, or acting as, Calculation Agent hereunder, except such as may result
from the willful misconduct or gross negligence of the Calculation Agent or any of its agents or employees. Except as provided
in the preceding sentence, the Calculation Agent shall incur no liability and shall be indemnified and held harmless by the Company
for, or in respect of, any actions taken, omitted to be taken or suffered to be taken in good faith by the Calculation Agent in
reliance upon (i) the opinion or advice of counsel or (ii) written instructions from the Company. The Calculation Agent shall not
be liable for any error resulting from the use of or reliance on a source of information used in good faith and with due care to
calculate any interest rate hereunder. The provisions of this clause (a) shall survive the payment in full of the Notes and the
resignation or removal of the Calculation Agent.

 

    10 

     

    

 

(b) In acting under
this Supplemental Indenture, the Calculation Agent is acting solely as agent of the Company and does not assume any obligations
to or relationship of agency or trust for or with any of the beneficial owners or Holders of the Notes.

 

(c) The Calculation
Agent shall be protected and shall incur no liability for or in respect of any action taken or omitted to be taken or anything
suffered by it in reliance upon the terms of the Notes or this Supplemental Indenture or any notice, direction, certificate, affidavit,
statement or other paper, document or communication reasonably believed by it to be genuine and to have been approved or signed
by the proper party or parties.

 

(d) The Calculation
Agent, its officers, directors, employees and shareholders may become the owners or pledgee of, or acquire any interest in, any
Notes, with the same rights that it or they would have if it were not the Calculation Agent, and may engage or be interested in
any financial or other transaction with the Company as freely as if it were not the Calculation Agent.

 

(e) Neither the Calculation
Agent nor its officers, directors, employees, agents or attorneys shall be liable to the Company for any act or omission hereunder,
or for any error of judgment made in good faith by it or them, except in the case of its or their willful misconduct or gross negligence.

 

(f) The Calculation
Agent may consult with counsel of its selection and the advice of such counsel or any opinion of such counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon.

 

(g) The Calculation
Agent shall be obligated to perform such duties and only such duties as are herein specifically set forth, and no implied duties
or obligations shall be read into this Supplemental Indenture against the Calculation Agent.

 

(h) Unless herein otherwise
specifically provided, any order, certificate, notice, request, direction or other communication from the Company made or given
by it under any provision of this Supplemental Indenture shall be sufficient if signed by any officer of the Company.

 

(i) The Calculation
Agent may perform any duties hereunder either directly or by or through its agents or attorneys, and the Calculation Agent shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

 

(j) The Company will
not, without first obtaining the prior written consent of the Calculation Agent, make any change to this Supplemental Indenture
or the Notes if such change would materially and adversely affect the Calculation Agent’s duties and obligations hereunder
or thereunder.

 

(k) In no event shall
the Calculation Agent be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including,
but not limited to, loss of profit) irrespective of whether it has been advised of the likelihood of such loss or damage and regardless
of the form of action.

 

(l) In no event shall
the Calculation Agent be responsible or liable for any failure or delay in the performance of its obligations under this Supplemental
Indenture arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including without limitation
strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or
acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services.

 

    11 

     

    

 

(m) Under certain circumstances,
the Calculation Agent may be required to determine the interest rates on the Notes on the basis of quotations received from banks
or other financial institutions (the “Reference Banks”) selected by the Company for the purpose of quoting such rates.
The Calculation Agent shall not be responsible to the Company or any third party for any failure of the Reference Banks to fulfill
their duties or meet their obligations as Reference Banks or as a result of the Calculation Agent having acted (except in the event
of gross negligence or willful misconduct) on any quotation or other information given by any Reference Bank which subsequently
may be found to be incorrect.

 

Section 2.04.         
Qualifications. The Calculation Agent shall be authorized
by law to perform all the duties imposed upon it by this Supplemental Indenture, and shall at all times have a capitalization of
at least $50,000,000. The Calculation Agent may not be an affiliate of the Company.

 

Section
2.05.          Resignation and Removal.
The Calculation Agent may at any time resign as Calculation Agent by giving
written notice to the Company of such intention on its part, specifying the date on which its desired resignation shall become
effective; provided, however, that such date shall never be earlier than 45 days after the receipt of such notice by the Company,
unless the Company otherwise agrees in writing. The Calculation Agent may be removed at any time by the filing with it of any instrument
in writing signed on behalf of the Company and specifying such removal and the date when it is intended to become effective. Such
resignation or removal shall take effect upon the date of the appointment by the Company, as hereinafter provided, of a successor
Calculation Agent. If within 30 days after notice of resignation or removal has been given, a successor Calculation Agent has not
been appointed, the Calculation Agent may, at the expense of the Company, petition a court of competent jurisdiction to appoint
a successor Calculation Agent. If at any time the Calculation Agent shall resign or be removed, or be dissolved, or if the property
or affairs of the Calculation Agent shall be taken under the control of any state or federal court or administrative body because
of bankruptcy or insolvency or for any other reason, then a successor Calculation Agent shall as soon as practicable be appointed
by the Company by an instrument in writing filed with the predecessor Calculation Agent, the successor Calculation Agent and the
Trustee. Upon the appointment of a successor Calculation Agent and acceptance by it of such appointment, the Calculation Agent
so succeeded shall cease to be such Calculation Agent hereunder. Upon its resignation or removal, the Calculation Agent shall be
entitled to the payment by the Company of its compensation, if any is owed to it, for services rendered hereunder and to the reimbursement
of all reasonable out-of-pocket expenses (including reasonable counsel fees) incurred in connection with the services rendered
by it hereunder and to the payment of all other amounts owed to it hereunder.

 

Section
2.06.          Successors. Any
successor Calculation Agent appointed hereunder shall execute and deliver to its predecessor, the Company and the Trustee an instrument
accepting such appointment hereunder, and thereupon such successor Calculation Agent, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with
like effect as if originally named as such Calculation Agent hereunder, and such predecessor, upon payment of its charges and disbursements
then unpaid, shall thereupon become obliged to transfer and deliver, and such successor Calculation Agent shall be entitled to
receive, copies of any relevant records maintained by such predecessor Calculation Agent.

 

Section
2.07.          Trustee Deemed Calculation
Agent Upon Certain Circumstances. In the event that the Calculation
Agent shall resign or be removed, or be dissolved, or if the property or affairs of the Calculation Agent shall be taken under
the control of any state or federal court or administrative body because of bankruptcy or insolvency or for any other reason, and
the Company shall not have made a timely appointment of a successor Calculation Agent, the Trustee, notwithstanding the provisions
of this Article Two, shall be deemed to be the Calculation Agent for all purposes of this Supplemental Indenture until the appointment
by the Company of the successor Calculation Agent.

 

    12 

     

    

 

Section
2.08.          Merger, Conversion,
Consolidation, Sale or Transfer. Any corporation into which the Calculation
Agent may be merged or converted, or any corporation with which the Calculation Agent may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Calculation Agent shall be a party or to which the Calculation Agent
shall sell or otherwise transfer all or substantially all of its corporate trust assets or business shall, to the extent permitted
by applicable law, be the successor Calculation Agent under this Supplemental Indenture without the execution or filing of any
paper or any further act on the part of any of the parties hereto. Notice of any such merger, conversion or consolidation or sale
shall forthwith be given to the Company and the Trustee (if the Trustee is not then serving as the Calculation Agent).

 

Section
2.09.          Notice. Any
request, demand, authorization, direction, notice, consent, waiver or other document provided or permitted hereby to be given or
furnished to the Calculation Agent shall be delivered in person, sent by letter or fax or communicated by telephone (subject, in
the case of communication by telephone, to confirmation dispatched within 24 hours by letter or by fax) as follows:

 

The Bank of New York Mellon

Attention: Corporate Trust Administration

240 Greenwich Street

New York, New York 10286

Fax: (212) 495-2546

 

or to any other address of which the Calculation Agent
shall have notified the Company and the Trustee (if the Trustee is not then serving as the Calculation Agent) in writing as herein
provided.

 

The Calculation Agent
agrees to accept and act upon instructions or directions pursuant to this Supplemental Indenture sent by unsecured e-mail, pdf,
facsimile transmission or other similar unsecured electronic methods, provided, however, that the Calculation Agent shall have
received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures
of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or
deleted from the listing. If the Company elects to give the Calculation Agent e-mail or facsimile instructions (or instructions
by a similar electronic method) and the Calculation Agent in its discretion elects to act upon such instructions, the Calculation
Agent’s understanding of such instructions shall be deemed controlling. The Calculation Agent shall not be liable for any
losses, costs or expenses arising directly or indirectly from the Calculation Agent’s reliance upon and compliance with such
instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The Company
agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Calculation
Agent including without limitation the risk of the Calculation Agent acting on unauthorized instructions, and the risk of interception
and misuse by third parties.

 

Section
2.10.          WAIVER OF JURY TRIAL.
EACH OF THE COMPANY, THE CALCULATION AGENT AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

    13 

     

    

 

Section
2.11.          USA PATRIOT Act.
In order to comply with laws, rules, regulations and executive orders
in effect from time to time applicable to banking institutions, including those relating to the funding of terrorist activities
and money laundering and the Customer Identification Program (“CIP”) requirements under the USA PATRIOT Act and its
implementing regulations, pursuant to which the Calculation Agent must obtain, verify and record information that allows the Calculation
Agent to identify customers (“Applicable Law”), the Calculation Agent is required to obtain, verify and record certain
information relating to individuals and entities which maintain a business relationship with the Calculation Agent. Accordingly,
the Company agrees to provide to the Calculation Agent upon its request from time to time such identifying information and documentation
as may be available for such party in order to enable the Calculation Agent to comply with Applicable Law, including, but not limited
to, information as to name, physical address, tax identification number and other information that will help the Calculation Agent
to identify and verify such Corporation such as organizational documents, certificates of good standing, licenses to do business
or other pertinent identifying information. The Company understands and agrees that the Calculation Agent cannot determine the
interest rates on the Notes unless and until the Calculation Agent verifies the identities of the Company in accordance with its
CIP.

 

Section
2.12.          Calculation of Interest
Rate for First Interest Period. The Calculation Agent, at the request
of the Company, has determined, prior to the date of execution and delivery of this Supplemental Indenture, the interest rate for
the initial Interest Period for the Notes. In connection with such determination, the Calculation Agent shall be entitled to the
same rights, protections, exculpations and immunities otherwise available to it under this Supplemental Indenture.

 

Section
2.13.          FATCA. The
Company agrees (i) to provide the Trustee with such reasonable tax information as it has in its possession to enable the Trustee
to determine whether any payments pursuant to this Supplemental Indenture are subject to the withholding requirements described
in Section 1471(b) of the US Internal Revenue Code of 1986 (the “Code”) or otherwise imposed pursuant to Sections 1471
through 1474 of the Code and any regulations, or agreements thereunder or official interpretations thereof (“FATCA”)
and (ii) that the Trustee shall be entitled to make any withholding or deduction from payments under this Supplemental Indenture
to the extent necessary to comply with FATCA.

 

ARTICLE
III

MISCELLANEOUS PROVISIONS

 

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

 

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

 

    14 

     

    

 

Section 3.03.         
Executed in Counterparts; Electronic Signatures. This Supplemental Indenture may be executed in several counterparts,
each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.
The words “execution,” signed,” signature,” and words of like import in this Indenture shall include images
of manually executed signatures transmitted by facsimile, email or other electronic format (including, without limitation, “pdf,”
“tif” or “jpg”) and other electronic signatures (including without limitation, DocuSign and AdobeSign).
The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated,
sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as
a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records
Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act
or the Uniform Commercial Code. Without limitation to the foregoing, and anything in the Original Indenture to the contrary notwithstanding,
(a) any Officer’s Certificate, Company Order, Company Request, Opinion of Counsel, Debt Security, certificate of authentication
appearing on or attached to any Debt Security, supplemental indenture or other certificate, opinion of counsel, instrument, agreement
or other document delivered pursuant to the Original Indenture may be executed, attested and transmitted by any of the foregoing
electronic means and formats, (b) all references in Section 303 of the Original Indenture or elsewhere in the Indenture to the
execution, attestation or authentication of any Debt Security or any certificate of authentication appearing on or attached to
any Debt Security by means of a manual or facsimile signature shall be deemed to include signatures that are made or transmitted
by any of the foregoing electronic means or formats, and (c) any requirement in Section 303 of the Original Indenture or elsewhere
in the Indenture that any signature be made under a corporate seal (or facsimile thereof) shall not be applicable to the Debt Securities
of such series.

 

    15 

     

    

 

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

 

	 	Duke Energy Progress, LLC
	 	 
	 	By:	/s/ John L. Sullivan, III
	 	Name:	 John L. Sullivan, III
	 	Title: 	Assistant Treasurer
	 	 
	 	 
	 	The Bank of New York Mellon, as Trustee and Calculation Agent
	 	 
	 	 
	 	By:	/s/ Francine Kincaid
	 	Name:	Francine Kincaid
	 	Title:	Vice President

 

Signature Page to First Supplemental
Indenture 

(Duke Energy Progress, LLC)

 

     

     

    

 

EXHIBIT A

 

FORM OF

series
A floating rate Note Due 2022

 

	No.	CUSIP No.  26442U AJ3 

 

DUKE ENERGY PROGRESS, LLC

series
a floating rate Note Due 2022

 

Principal Amount:   $

 

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

 

Original Issue Date:  August 20, 2020

 

Stated Maturity: February 18, 2022

 

Interest Payment Dates:  Quarterly
on February 18, May 18, August 18 and November 18 of each year, commencing on November 18, 2020

 

Interest Rate: Floating per annum rate
reset quarterly based on LIBOR plus 18 basis points (0.18%), (0.18%, the “Margin), subject to the provisions set forth herein.

 

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

 

Duke Energy Progress,
LLC, a limited liability company of the State of North Carolina (the “Company”, which term includes any successor Person
under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to                               ,
or registered assigns, the principal sum of                                                     
DOLLARS ($                        )
on the Stated Maturity shown above and to pay interest thereon from the Original Issue Date shown above, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears on each Interest Payment Date
as specified above, commencing on November 18, 2020 and on the Stated Maturity at the rate per annum described below until the
principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment
of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than
an Interest Payment Date that is a Redemption Date or the Stated Maturity) will, as provided in the Indenture, be paid to the Person
in whose name this Series A Floating Rate Note due 2022 (this “Security”) is registered on the Regular Record Date
as specified above next preceding such Interest Payment Date; provided that any interest payable at Redemption Date or Stated
Maturity will be paid to the Person to whom principal is payable.  Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Debt Securities) is registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of
this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.

 

    	 	A-1	 

     

    

 

Interest on this Security
shall be computed and paid on the basis of the actual number of days elapsed over a 360-day year consisting of twelve 30-day months
and will accrue from August 20, 2020 or from the most recent Interest Payment Date to which interest has been paid or duly provided
for.  In the event that any Interest Payment Date (other than the Interest Payment Date that is a Redemption Date or the Stated
Maturity) would otherwise be a day that is not a Business Day, such Interest Payment Date will be postponed to the next succeeding
Business Day, unless the next succeeding Business Day is in the next succeeding calendar month, in which case, such Interest Payment
Date shall be the immediately preceding Business Day. In the event that a Redemption Date or the Stated Maturity is not a Business
Day, then the payment of the principal and interest payable on any such date will be made on the next succeeding day that is a
Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the
date the payment was originally payable, and no interest on such payment will accrue from and after such Redemption Date or the
Stated Maturity.  “Business Day” means any day other than a Saturday or Sunday that is neither a Legal Holiday
nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order
to close, or a day on which the Corporate Trust Office is closed for business.  “Legal Holiday” means any day
that is a legal holiday in New York, New York.

 

This Security will
bear interest for each quarterly Interest Period at a per annum rate determined by the Calculation Agent, except as provided below.
The interest rate applicable during each quarterly Interest Period will be equal to LIBOR on the Interest Determination Date for
such Interest Period plus 18 basis points (0.18%) (0.18%, the “Margin”), subject to the provisions provided below.
Promptly upon such determination, the Calculation Agent will notify the Company and the Trustee, if the Trustee is not then serving
as the Calculation Agent, or in certain circumstances described below, the Company or its Designee (which may be an independent
financial advisor or any other designee of the Company (any of such entities, a “Designee”)) will notify the Trustee,
of the interest rate for the new Interest Period. In no event shall the initial Calculation Agent (The Bank of New York Mellon)
be the Designee. Absent manifest error, the calculation of the applicable interest rate for each Interest Period by the Calculation
Agent, or in certain circumstances described below, by the Company or its Designee, shall be binding and conclusive upon the beneficial
owners and Holders of this Security, the Company and the Trustee.

 

Upon the request of
a Holder of this Security, the Calculation Agent will provide to such Holder the interest rate in effect on the date of such request
and, if determined, the interest rate for the next Interest Period.

 

In no event shall the
Calculation Agent be responsible for determining whether a Benchmark Transition Event has occurred or be responsible for determining
any substitute for LIBOR, or for making any adjustments to any alternative benchmark or spread thereon, the business day convention,
Interest Determination Dates or any other relevant methodology for calculating any such substitute or successor benchmark. In connection
with the foregoing, the Calculation Agent will be entitled to conclusively rely on any determinations made by the Company or its
Designee and will have no liability for such actions taken at the direction of the Company.

 

Any determination,
decision or election that may be made by the Company or its Designee in connection with a Benchmark Transition Event or a Benchmark
Replacement, including any determination with respect to a rate or adjustment or of the occurrence or non-occurrence of an event,
circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding
absent manifest error, may be made in the Company’s or its Designee’s sole discretion, and, notwithstanding anything
to the contrary in the transaction documents relating to the Securities, will become effective without consent from any other party.
Neither the Trustee nor the Calculation Agent will have any liability for any determination made by or on behalf of the Company
or its Designee in connection with a Benchmark Transition Event or a Benchmark Replacement.

 

    	 	A-2	 

     

    

 

The accrued interest
on this Security for any period is calculated by multiplying the principal amount of this Security by an accrued interest factor.
The accrued interest factor is computed by adding the interest factor calculated for each day in the period for which accrued interest
is being calculated. The interest factor (expressed as a decimal rounded upwards if necessary) is computed by dividing the interest
rate (expressed as a decimal rounded upwards if necessary) applicable to such date by 360.

 

All percentages resulting
from any calculation of the interest rate on this Security will be rounded, if necessary, to the nearest one-hundred thousandth
of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 0.567845% (or .00567845) being rounded
to 0.56785% (or .0056785) and 0.567844% (or .00567844) being rounded to 0.56784% (or .0056784)), and all dollar amounts used in
or resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upwards). Any percentage
resulting from any calculation of any interest rate for this Security less than 0.00% will be deemed to be 0.00% (or 0.0000).

 

Payment of principal
of and interest on this Security shall be made in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts.  Payments of principal of and interest on this Security represented
by a Global Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security. 
If any of the Securities represented by this Security are no longer represented by a Global Security, (i) payments of principal
and interest due at a Redemption Date or the Stated Maturity of such Securities shall be made at the office of the Paying Agent
upon surrender of such Securities to the Paying Agent, and (ii) payments of interest shall be made, at the option of the Company,
subject to such surrender where applicable, by (A) check mailed to the address of the Person entitled thereto as such address
shall appear in the Debt Security Register or (B) wire transfer at such place and to such account at a banking institution
in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by
the Person entitled thereto.

 

For purposes of this
Security, except as otherwise expressly provided or unless the context otherwise requires, the following terms have the following
meanings:

 

“BBAM”
means the display that appears on Bloomberg L.P.’s page “BBAM” or any page as may replace such page on such service
(or any successor service) for the purpose of displaying the London Interbank Offered rate for U.S. dollar deposits.

 

“Calculation
Agent” means initially The Bank of New York Mellon, as appointed pursuant to Section 2.01 of the First Supplemental Indenture,
dated as of August 1, 2020, among the Company, the Trustee and the Calculation Agent, or such calculation agent’s successor
appointed by the Company pursuant to Article Two of such supplemental indenture, acting as calculation agent.

 

“Interest Determination
Date” means the second London Business Day immediately preceding the first day of the relevant Interest Period.

 

“Interest Period”
means the period commencing on an Interest Payment Date for this Security (or, with respect to the initial Interest Period only,
commencing on the Original Issue Date for this Security) and ending on the day before the next succeeding Interest Payment Date
for this Security.

 

    	 	A-3	 

     

    

 

“London Business
Day” means a day that is a Business Day and a day on which dealings in deposits in U.S. dollars are transacted, or with respect
to any future date are expected to be transacted, in the London interbank market.

 

“Reuters LIBOR01
Page” means the display designated as Reuters LIBOR01 on the Reuters 3000 Xtra (or such other page as may replace the Reuters
LIBOR01 Page on that service, or such other service as may be nominated for the purpose of displaying rates or prices comparable
to the London Interbank Offered rate for U.S. dollar deposits by ICE Benchmark Administration Limited (“IBA”) or its
successor or such other entity assuming the responsibility of IBA or its successor in calculating the London Interbank Offered
rate in the event IBA or its successor no longer does so).

 

Determining the Floating
Rate

 

“LIBOR”
will be determined by the Calculation Agent in accordance with the following provisions:

 

(1)       With
respect to any Interest Period, the rate (expressed as a percentage per annum) for deposits in U.S. dollars for a three-month period
commencing on the first day of that Interest Period and ending on the next Interest Payment Date for this Security that appears
on Bloomberg L.P.’s page “BBAM” and, if such page is not available, from the Reuters LIBOR01 Page as of 11:00
a.m. (London time) on the Interest Determination Date for that Interest Period:

 

(2)       If
LIBOR cannot be determined as described above in clause (1), LIBOR will be determined on the basis of the rates at which deposits
in U.S. dollars for the Interest Period and in a principal amount of not less than $1,000,000 are offered to prime banks in the
London interbank market by four major banks in the London interbank market, which may include affiliates of one or more of the
underwriters of this Security, selected by the Company, at approximately 11:00 a.m., London time, on the Interest Determination
Date for that Interest Period. The Company will request the principal London office of each such bank to provide a quotation of
its rate to the Calculation Agent. If at least two such quotations are provided, LIBOR with respect to that Interest Period will
be the arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR with respect to that Interest Period
will be the arithmetic mean of the rates quoted by three major banks in New York City, which may include affiliates of one or more
of the underwriters of this Security, selected by the Company, at approximately 11:00 a.m., New York City time, on the Interest
Determination Date for that Interest Period for loans in U.S. dollars to leading European banks for that Interest Period and in
a principal amount of not less than $1,000,000. The Company will request the principal New York City office of each such bank to
provide a quotation of its rate to the Calculation Agent. However, if fewer than three banks selected by the Company to provide
quotations are quoting as described above, LIBOR for that Interest Period will be the same as LIBOR as determined for the previous
Interest Period.

 

Notwithstanding clauses
(1) and (2) above in the immediately preceding paragraph, if the Company (or its Designee) determines on or prior to the relevant
Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each as defined herein)
have occurred with respect to LIBOR (or the then-current Benchmark (as defined herein), as applicable), then the provisions set
forth below under “Effect of Benchmark Transition Event,” which are referred to as the benchmark transition provisions,
will thereafter apply to all determinations of the rate of interest payable on this Security. In accordance with the benchmark
transition provisions, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, the amount
of interest that will be payable for each Interest Period will be an annual rate equal to the sum of the Benchmark Replacement
and the Margin. However, if the Company (or its Designee) determines that a Benchmark Transition Event and its related Benchmark
Replacement Date have occurred with respect to the then-current Benchmark, but for any reason the Benchmark Replacement has not
been determined as of the relevant Interest Determination Date, the interest rate for the applicable interest period will be equal
to the interest rate for the immediately preceding Interest Period, as determined by the Company (or its Designee).

 

    	 	A-4	 

     

    

 

Effect of Benchmark
Transition Event

 

Benchmark Replacement.   If
the Company (or its Designee) determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
prior to the Reference Time (as defined below) in respect of any determination of the Benchmark on any date, the Benchmark Replacement
will replace the then-current Benchmark for all purposes relating to the Securities of this series in respect of such determination
on such date and all determinations on all subsequent dates.

 

Benchmark Replacement
Conforming Changes.   In connection with the implementation of a Benchmark Replacement, the Company (or its
Designee) will have the right to make Benchmark Replacement Conforming Changes (as defined below) from time to time.

 

Decisions and Determinations.   Any
determination, decision or election that may be made by the Company (or its Designee) pursuant to this subsection, “Effect
of Benchmark Transition Event,” including any determination with respect to tenor, rate or adjustment or of the occurrence
or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection,
will be conclusive and binding absent manifest error, will be made in the Company’s (or its Designee’s) sole discretion,
and, notwithstanding anything to the contrary in the transaction documents relating to the Securities of this series, shall become
effective without consent from the Holders of the Securities or any other party.

 

For purposes of this
subsection, “ Effect of Benchmark Transition Event,” the following terms have the following meanings:

 

“Benchmark”
means, initially, LIBOR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
with respect to LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.

 

“Benchmark Replacement”
means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment for such
Benchmark; provided that if the Company (or its Designee) cannot determine the Interpolated Benchmark as of the Benchmark Replacement
Date, then “Benchmark Replacement” means the first alternative set forth in the order below that can be determined
by the Company (or its Designee) as of the Benchmark Replacement Date:

 

(1) the sum of: (a) Term
SOFR and (b) the Benchmark Replacement Adjustment;

 

(2) the sum of: (a) Compounded
SOFR and (b) the Benchmark Replacement Adjustment;

 

(3) the sum of: (a) the
alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current
Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;

 

(4) the sum of: (a) the
ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; and

 

(5) the sum of: (a) the
alternate rate of interest that has been selected by the Company (or its Designee) as the replacement for the then-current Benchmark
for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for
the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (b) the Benchmark Replacement
Adjustment.

 

    	 	A-5	 

     

    

 

“Benchmark Replacement
Adjustment” means the first alternative set forth in the order below that can be determined by the Company (or its Designee)
as of the Benchmark Replacement Date:

 

(1) the spread adjustment,
or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), that has been
selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

 

(2) if the applicable
Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and

 

(3) the spread adjustment
(which may be a positive or negative value or zero) that has been selected by the Company (or its Designee) giving due consideration
to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement
of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes
at such time.

 

The Benchmark Replacement
Adjustment shall not include the Margin specified herein and such Margin shall be applied to the Benchmark Replacement to determine
the interest payable on the Notes.

 

“Benchmark Replacement
Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes
(including changes to the definition of “Interest Period,” timing and frequency of determining rates and making payments
of interest, rounding of amounts or tenor, and other administrative matters) that the Company (or its Designee) decides may be
appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or,
if the Company (or its Designee) decides that adoption of any portion of such market practice is not administratively feasible
or if the Company (or its Designee) determines that no market practice for use of the Benchmark Replacement exists, in such other
manner as the Company (or its Designee) determines is reasonably necessary).

 

“Benchmark Replacement
Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

(1) in the case of
clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the
public statement or publication of information referenced therein and (b) the date on which the administrator of the Benchmark
permanently or indefinitely ceases to provide the Benchmark; or

 

(2) in the case of
clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein.

 

For the avoidance of
doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time
in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for
such determination.

 

“Benchmark Transition
Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

    	 	A-6	 

     

    

 

(1) a public statement
or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased
or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that will continue to provide the Benchmark;

 

(2) a public statement
or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency
of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with
jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over
the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the
Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator
that will continue to provide the Benchmark; or

 

(3) a public statement
or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark
is no longer representative.

 

“Compounded SOFR”
means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and
conventions for this rate being established by the Company (or its Designee) in accordance with:

 

(1) the rate, or methodology
for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining Compounded
SOFR; provided that:

 

(2) if, and to the
extent that, the Company (or its Designee) determines that Compounded SOFR cannot be determined in accordance with clause (1) above,
then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company (or its Designee)
giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

 

For the avoidance of
doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the Margin.

 

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding
business day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Federal Reserve
Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“Interpolated
Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear
basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding
Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding
Tenor.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto,
as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from
time to time.

 

    	 	A-7	 

     

    

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor. 

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Reference Time”
with respect to any determination of the Benchmark means (1) if the Benchmark is LIBOR, 11:00 a.m., London time, on the
Interest Determination Date, and (2) if the Benchmark is not LIBOR, the time determined by the Company (or its Designee) in
accordance with the Benchmark Replacement Conforming Changes.

 

“Relevant Governmental
Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or
convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“SOFR”
with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York,
as the administrator of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s Website.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Unadjusted Benchmark
Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

Optional Redemption

 

The Securities of this
series shall be redeemable at the option of the Company at any time on or after February 18, 2021, in whole or in part and from
time to time, at a redemption price equal to 100% of the principal amount of the Securities of this series being redeemed plus
accrued and unpaid interest on the principal amount of such Securities of this series being redeemed to, but excluding, such Redemption
Date.

 

Notice of any optional
redemption of Securities of this series (or any portion thereof) will be given to Holders at their addresses, as shown in the Debt
Security Register for such Securities of this series, not less than 10 nor more than 30 days prior to the Redemption Date. The
notice of redemption will specify, among other items, the method of calculation of the redemption price and the principal amount
of the Securities of this series held by such Holder to be redeemed. If less than all of the Securities of this series are to be
redeemed at the option of the Company, the Securities of this series or portions of such Securities being redeemed shall be selected
for redemption in accordance with the Depositary’s standard procedures.

 

If notice has been
given as provided herein and funds for the redemption of any Securities of this series (or any portion thereof) called for redemption
shall have been made available on the redemption date referred to in such notice, such Securities (or any portion thereof) will
cease to bear interest on the Redemption Date specified in such notice and the only right of the Holders of such Securities will
be to receive payment of the redemption price.

 

    	 	A-8	 

     

    

 

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

 

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

 

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

 

    	 	A-9	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed as of August 20, 2020.

 

	 	Duke Energy Progress, LLC
	 	By:	 
	 	Name:
	 	Title:

 

	Attest:	 
	By:	 	 
	Name:	 
	Title:	 

 

    	 	A-10	 

     

    

 

CERTIFICATE OF AUTHENTICATION

 

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

 

	Dated:	 	 	The Bank of New York Mellon, as Trustee

 

	 	By:	 
	 	 	Authorized Signatory

 

    	 	A-11	 

     

    

 

(Reverse Side of Security)

 

This Series A Floating
Rate Note due 2022 is one of a duly authorized issue of Debt Securities of the Company (the “Securities”), issued and
issuable in one or more series under an Indenture (For Debt Securities), dated as of October 28, 1999 (the “Original Indenture”),
as supplemented (as so supplemented, the “Indenture”), between the Company and The Bank of New York Mellon (successor
in interest to The Chase Manhattan Bank), as Trustee (the “Trustee,” which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Debt Securities
issued thereunder and of the terms upon which said Debt Securities are, and are to be, authenticated and delivered.  This
Security is one of the series designated on the face hereof as Series A Floating Rate Notes due 2022 initially in the aggregate
principal amount of $700,000,000.  Capitalized terms used herein for which no definition is provided herein shall have the
meanings set forth in the Indenture.

 

Events of Default

 

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

 

Certain Indenture
Provisions

 

The Securities are
unsecured and unsubordinated obligations of the Company and rank equally with all of the Company’s other unsecured and unsubordinated
indebtedness from time to time outstanding. The Company may, from time to time, without the consent of the Holder of this Security,
provide for the issuance of Securities or other Debt Securities under the Indenture in addition to this Security.

 

 The Indenture
permits, in certain circumstances therein specified, the amendment thereof without the consent of the Holders of any of the Debt
Securities. The Indenture also permits, with certain exceptions as therein provided, the amendment thereof and the modification
of the rights and obligations under the Indenture of the Company and the rights of Holders of the Debt Securities of each series
to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a specified percentage
in aggregate principal amount of the Debt Securities at the time Outstanding of each series to be affected. The Indenture also
contains provisions permitting the Holders of a specified percentage in aggregate principal amount of the Debt Securities of each
series at the time Outstanding, on behalf of the Holders of all the Debt Securities of such series, to waive compliance by the
Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security.

 

 As provided in
and subject to the provisions of the Indenture, a Holder of Debt Securities shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Debt Securities of
this series, the Holders of not less than a specified percentage in aggregate principal amount of the Debt Securities of all series
at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing shall have made written request
to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity,
and the Trustee shall not have received from the Holders of a majority in principal amount of Debt Securities of all series at
the time Outstanding in respect of which an Event of Default shall have occurred and be continuing a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer
of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment
of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

    	 	A-12	 

     

    

 

No reference herein
to the Indenture and no provision of this Security, subject to the provisions for satisfaction and discharge in Article VII of
the Original Indenture, shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

 The Indenture
permits the Company, by irrevocably depositing, in amounts and maturities sufficient to pay and discharge at the Stated Maturity
or Redemption Date, as the case may be, the entire indebtedness on all Outstanding Debt Securities, cash or U.S. Government Obligations
with the Trustee in trust solely for the benefit of the Holders of all Outstanding Debt Securities, to defease the Indenture with
respect to such Debt Securities, and upon such deposit the Company shall be deemed to have paid and discharged its entire indebtedness
on such Debt Securities. Thereafter, Holders would be able to look only to such trust fund for payment of principal and interest
at the Stated Maturity or Redemption Date, as the case may be. 

 

The Securities of this
series are issuable only in registered form without coupons in denominations of $2,000 or any integral multiple of $1,000 in excess
thereof.  As provided in the Indenture and subject to certain limitations therein set forth, the transfer of Securities of
this series is registrable in the Debt Security Register, upon surrender of this Security for registration of transfer at the Corporate
Trust Office of the Trustee or at such other offices or agencies of the Trustee from time to time designated for such purpose,
or at such other offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Debt Security Registrar duly executed by, the Holder thereof or his attorney
duly authorized in writing, and thereupon one or more new Securities of this series, of authorized denominations and for the same
aggregate principal amount, shall be issued to the designated transferee or transferees.

 

 No service charge
shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

 

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

 

All undefined terms
used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

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

 

    	 	A-13	 

     

    

 

ABBREVIATIONS

 

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

 

	TEN COM — as tenants in common	 	
        UNIF GIFT MIN ACT - ______Custodian ______

        (Cust)                
        (Minor)

	 	 	 
	TEN ENT — as tenants by the entireties	 	 
	 	 	 
	 	 	 
	JT TEN — as joint tenants with rights of survivorship and not as tenants in common	 	 	
        under Uniform Gifts to

        Minors Act

        ____________________

	 	 	 	                     (State)

 

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

 

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

 

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

 

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

 

	Dated:	 	 	 

 

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

 

	 	Signature Guarantee:	 

 

    	 	A-14	 

     

    

 

SIGNATURE GUARANTEE

 

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

 

    	 	A-15	 

     

    

 

EXHIBIT B

 

CERTIFICATE OF AUTHENTICATION

 

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

 

	Dated:	 	 	The Bank of New York Mellon, as Trustee

 

	 	By:	 
	 	 	Authorized Signatory

 

    	 	B-1Exhibit 4.1

 

WARRANT AGREEMENT

 

between

 

STAR PEAK ENERGY TRANSITION CORP.

 

and

 

CONTINENTAL STOCK TRANSFER & TRUST
COMPANY

 

THIS WARRANT AGREEMENT (this “Agreement”),
dated as of August 20, 2020, is by and between Star Peak Energy Transition Corp., a Delaware corporation (the “Company”),
and Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent (in such capacity, the “Warrant
Agent”).

 

WHEREAS, on August 17, 2020 the Company entered into that
certain Private Placement Warrants Purchase Agreement, with Star Peak Sponsor LLC, a Delaware limited liability company (the “Sponsor”),
pursuant to which the Sponsor will purchase an aggregate of 6,733,333 warrants (or up 7,433,333 warrants if the underwriters in
the Public Offering (as defined below) exercise their Over-allotment Option (as defined below) in full) at a price of $1.50 per
warrant, simultaneously with the closing of the Offering (and the closing of the Over-allotment Option, if applicable), bearing
the legend set forth in Exhibit B hereto (the “Private Placement Warrants”) at a purchase
price of $1.50 per Private Placement Warrant. Each Private Placement Warrant entitles the holder thereof to purchase one share
of Common Stock (as defined below) at a price of $11.50 per share, subject to adjustment as described herein; and

 

WHEREAS, in order to finance the Company’s transaction
costs in connection with an intended initial merger, capital stock exchange, asset acquisition, stock purchase, reorganization
or similar business combination, involving the Company and one or more businesses (a “Business Combination”),
the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated
to, loan the Company funds as the Company may require, of which up to $1,500,000 of such loans may be convertible into up to an
additional 1,000,000 Private Placement Warrants at a price of $1.50 per Private Placement Warrant; and

 

WHEREAS, the Company is engaged in an initial public offering
(the “Offering”) of units of the Company’s equity securities, each such unit comprised of one share
of Common Stock and one-third of one Public Warrant (as defined below) (the “Units”) and, in connection
therewith, has determined to issue and deliver up to 11,666,667 warrants (including up to 13,416,667 warrants subject to the Over-allotment
Option) to public investors in the Offering (the “Public Warrants” and, together with the Private Placement
Warrants, the “Warrants”). Each whole Warrant entitles the holder thereof to purchase one share of Class A
common stock of the Company, par value $0.0001 per share (“Common Stock”), for $11.50 per share, subject
to adjustment as described herein. Only whole Warrants are exercisable. A holder of the Public Warrants will not be able to exercise
any fraction of a Warrant; and

 

WHEREAS, the Company has filed with the Securities and Exchange
Commission (the “Commission”) a registration statement on Form S-1, No. 333-240267 (the “Registration
Statement”) and prospectus (the “Prospectus”), for the registration, under the Securities
Act of 1933, as amended (the “Securities Act”), of the Units, the Public Warrants and the Common Stock
included in the Units; and

 

WHEREAS, the Company desires the Warrant Agent to act on behalf
of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration, transfer, exchange,
redemption and exercise of the Warrants; and

 

WHEREAS, the Company desires to provide for the form and provisions
of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights, limitation of rights, and
immunities of the Company, the Warrant Agent and the holders of the Warrants; and

 

    	 	 	 

     

    

 

WHEREAS, all acts and things have been done and performed which
are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant Agent
(if a physical certificate is issued), as provided herein, the valid, binding and legal obligations of the Company, and to authorize
the execution and delivery of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows:

 

1. Appointment of Warrant Agent. The Company hereby appoints
the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and agrees
to perform the same in accordance with the terms and conditions set forth in this Agreement.

 

2. Warrants.

 

2.1 Form of Warrant. Each Warrant shall initially
be issued in registered form only.

 

2.2 Effect of Countersignature. If a physical certificate
is issued, unless and until countersigned by the Warrant Agent pursuant to this Agreement, a certificated Warrant shall be invalid
and of no effect and may not be exercised by the holder thereof.

 

2.3 Registration.

 

2.3.1 Warrant Register. The Warrant Agent shall maintain
books (the “Warrant Register”), for the registration of original issuance and the registration of transfer
of the Warrants. Upon the initial issuance of the Warrants in book-entry form, the Warrant Agent shall issue and register the Warrants
in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered to
the Warrant Agent by the Company. Ownership of beneficial interests in the Public Warrants shall be shown on, and the transfer
of such ownership shall be effected through, records maintained by institutions that have accounts with The Depository Trust Company
(the “Depositary”) (such institution, with respect to a Warrant in its account, a “Participant”).
If the Depositary subsequently ceases to make its book-entry settlement system available for the Public Warrants, the Company may
instruct the Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Public Warrants
are not eligible for, or it is no longer necessary to have the Public Warrants available in, book-entry form, the Warrant Agent
shall provide written instructions to the Depositary to deliver to the Warrant Agent for cancellation each book-entry Public Warrant,
and the Company shall instruct the Warrant Agent to deliver to the Depositary definitive certificates in physical form evidencing
such Warrants (“Definitive Warrant Certificates”) which shall be in the form annexed hereto as Exhibit A.
Physical certificates, if issued, shall be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief Executive
Officer, President, Chief Financial Officer, Chief Operating Officer, General Counsel, Secretary or other principal officer of
the Company. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the
capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he
or she had not ceased to be such at the date of issuance.

 

2.3.2 Registered Holder. Prior to due presentment for
registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant
is registered in the Warrant Register (the “Registered Holder”) as the absolute owner of such Warrant
and of each Warrant represented thereby, for the purpose of any exercise thereof, and for all other purposes, and neither the Company
nor the Warrant Agent shall be affected by any notice to the contrary.

 

2.4 Detachability of Warrants. The Common Stock and Public
Warrants comprising the Units shall begin separate trading on the 52nd day following the date of the Prospectus or, if such 52nd
day is not on a day, other than a Saturday, Sunday or federal holiday, on which banks in New York City are generally open for normal
business (a “Business Day”), then on the immediately succeeding Business Day following such date, or
earlier (the “Detachment Date”) with the consent of Credit Suisse Securities (USA) LLC, but in no event
shall the Common Stock and the Public Warrants comprising the Units be separately traded until (A) the Company has filed a
Current Report on Form 8-K with the Commission containing an audited balance sheet reflecting the receipt by the Company of
the gross proceeds of the Offering, including the proceeds then received by the Company from the exercise by the underwriters of
their right to purchase additional Units in the Offering (the “Over-allotment Option”), if the Over-allotment
Option is exercised prior to the filing of the Current Report on Form 8-K, and (B) the Company issues a press release
announcing when such separate trading shall begin.

 

    	 	 	 

     

    

 

2.5 Fractional Warrants. The Company shall not issue
fractional Warrants other than as part of the Units, each of which is comprised of one share of Common Stock and one-third of one
whole Public Warrant. If, upon the detachment of Public Warrants from the Units or otherwise, a holder of Warrants would be entitled
to receive a fractional Warrant, the Company shall round down to the nearest whole number the number of Warrants to be issued to
such holder.

 

2.6 Private Placement Warrants. The Private Placement
Warrants shall be identical to the Public Warrants, except that so long as they are held by the Sponsor or any of its Permitted
Transferees (as defined below), the Private Placement Warrants: (i) may be exercised for cash or on a “cashless basis,”
pursuant to subsection 3.3.1(c) hereof, (ii) including the shares of Common Stock issuable upon exercise of the
Private Placement Warrants, may not be transferred, assigned or sold until thirty (30) days after the completion by the Company
of an initial Business Combination, (iii) shall not be redeemable by the Company pursuant to Section 6.1 hereof
and (iv) shall only be redeemable by the Company pursuant to Section 6.2 if the Reference Value (as defined below)
is less than $18.00 per share (subject to adjustment in compliance with Section 4 hereof); provided, however,
that in the case of (ii), the Private Placement Warrants and any shares of Common Stock issued upon exercise of the Private Placement
Warrants may be transferred by the holders thereof:

 

(a) to the Company’s employees, officers or directors,
any affiliates or family members of any of the Company’s officers or directors, any employees, officers, directors or members
of the Sponsor (or former Sponsor if such transfer occurs after a dissolution of the Sponsor) or their affiliates, or any affiliates
of the Sponsor (or former Sponsor if such transfer occurs after a dissolution of the Sponsor);

 

(b) in the case of an individual, by gift to a member of
one of the individual’s immediate family, an estate planning vehicle or to a trust, the beneficiary of which is a member
of the individual’s immediate family, an affiliate of such person or to a charitable organization;

 

(c) in the case of an individual, by virtue of laws of
descent and distribution upon death of the individual;

 

(d) in the case of an individual, pursuant to a qualified
domestic relations order;

 

(e) by pro rata distributions from the Sponsor to its members,
partners, or shareholders pursuant to the Sponsor’s organizational documents;

 

(f) by virtue of the laws of Delaware or the Sponsor’s
organizational documents upon liquidation or dissolution of the Sponsor;

 

(g) by private sales or transfers made in connection with
the consummation of the Company’s Business Combination at prices no greater than the price at which the Private Placement
Warrants or Common Stock, as applicable, were originally purchased;

 

(h) to the Company for no value for cancellation in connection
with the consummation of our initial Business Combination;

 

(i) in the event of the Company’s liquidation prior
to the completion of its initial Business Combination; or

 

(j) in the event of the Company’s completion of
a liquidation, merger, share exchange or other similar transaction which results in all of the public stockholders having the
right to exchange their shares of common stock for cash, securities or other property subsequent to the completion of the
Company’s initial Business Combination; provided, however, that in the case of clauses (a) through
(g), these permitted transferees (the “Permitted Transferees”) must enter into a written agreement
with the Company agreeing to be bound by the transfer restrictions in this Agreement.

 

    	 	 	 

     

    

 

3. Terms and Exercise of Warrants.

 

3.1 Warrant Price. Each whole Warrant shall entitle the
Registered Holder thereof, subject to the provisions of such Warrant and of this Agreement, to purchase from the Company the number
of shares of Common Stock stated therein, at the price of $11.50 per share, subject to the adjustments provided in Section 4
hereof and in the last sentence of this Section 3.1. The term “Warrant Price” as used in
this Agreement shall mean the price per share (including in cash or by payment of Warrants pursuant to a “cashless exercise,”
to the extent permitted hereunder) described in the prior sentence at which Common Stock may be purchased at the time a Warrant
is exercised. The Company in its sole discretion may lower the Warrant Price at any time prior to the Expiration Date (as defined
below) for a period of not less than fifteen Business Days (unless otherwise required by the Commission, any national securities
exchange on which the Warrants are listed or applicable law); provided, that the Company shall provide at least five days’
prior written notice of such reduction to Registered Holders of the Warrants; and provided further, that any such reduction shall
be identical among all of the Warrants.

 

3.2 Duration of Warrants. A Warrant may be exercised
only during the period (the “Exercise Period”) (A) commencing on the later of: (i) the date
that is thirty (30) days after the first date on which the Company completes a Business Combination, and (ii) the date that
is twelve (12) months from the date of the closing of the Offering, and (B) terminating at the earliest to occur of (x) 5:00
p.m., New York City time on the date that is five (5) years after the date on which the Company completes its initial Business
Combination, (y) the liquidation of the Company in accordance with the Company’s amended and restated certificate of
incorporation, as amended from time to time, if the Company fails to complete a Business Combination, and (z) other than with
respect to the Private Placement Warrants then held by the Sponsor or its Permitted Transferees with respect to a redemption pursuant
to Section 6.1 hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance
with Section 4 hereof), Section 6.2 hereof, 5:00 p.m., New York City time on the Redemption Date (as defined
below) as provided in Section 6.3 hereof (the “Expiration Date”); provided, however,
that the exercise of any Warrant shall be subject to the satisfaction of any applicable conditions, as set forth in subsection
3.3.2 below, with respect to an effective registration statement or a valid exemption therefrom being available. Except with
respect to the right to receive the Redemption Price (as defined below) (other than with respect to a Private Placement Warrant
then held by the Sponsor or its Permitted Transferees in connection with a redemption pursuant to Section 6.1 hereof
or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof)
, Section 6.2 hereof) in the event of a redemption (as set forth in Section 6 hereof), each Warrant (other
than a Private Placement Warrant then held by the Sponsor or its Permitted Transferees in the event of a redemption pursuant to
Section 6.1 hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance
with Section 4 hereof) , Section 6.2 hereof) not exercised on or before the Expiration Date shall become
void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at 5:00 p.m. New York City
time on the Expiration Date. The Company in its sole discretion may extend the duration of the Warrants by delaying the Expiration
Date; provided that the Company shall provide at least twenty (20) days prior written notice of any such extension to Registered
Holders of the Warrants and, provided further that any such extension shall be identical in duration among all the Warrants.

 

3.3 Exercise of Warrants.

 

3.3.1 Payment. Subject to the provisions of the Warrant
and this Agreement, a Warrant may be exercised by the Registered Holder thereof by delivering to the Warrant Agent at its corporate
trust department (i) the Definitive Warrant Certificate evidencing the Warrants to be exercised, or, in the case of a Warrant
represented by a book-entry, the Warrants to be exercised (the “Book-Entry Warrants”) on the records
of the Depositary to an account of the Warrant Agent at the Depositary designated for such purposes in writing by the Warrant Agent
to the Depositary from time to time, (ii) an election to purchase (“Election to Purchase”) any Ordinary
Shares pursuant to the exercise of a Warrant, properly completed and executed by the Registered Holder on the reverse of the Definitive
Warrant Certificate or, in the case of a Book-Entry Warrant, properly delivered by the Participant in accordance with the Depositary’s
procedures, and (iii) the payment in full of the Warrant Price for each share of Common Stock as to which the Warrant is exercised
and any and all applicable taxes due in connection with the exercise of the Warrant, the exchange of the Warrant for the shares
of Common Stock and the issuance of such shares of Common Stock, as follows:

 

(a) in lawful money of the United States, in good certified
check or good bank draft payable to the Warrant Agent;

 

    	 	 	 

     

    

 

(b) [Reserved];

 

(c) with respect to any Private Placement Warrant, so long
as such Private Placement Warrant is held by the Sponsor or a Permitted Transferee, by surrendering the Warrants for that number
of shares of Common Stock equal to (i) if in connection with a redemption of Private Placement Warrants pursuant to Section 6.2
hereof, as provided in Section 6.2 hereof with respect to a Make-Whole Exercise and (ii) in all other scenarios
the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants, multiplied
by the excess of the “Sponsor Exercise Fair Market Value” (as defined in this subsection 3.3.1(c))
less the Warrant Price by (y) the Sponsor Exercise Fair Market Value. Solely for purposes of this subsection 3.3.1(c),
the “Sponsor Exercise Fair Market Value” shall mean the average last reported sale price of the Common
Stock for the ten (10) trading days ending on the third (3rd) trading day prior to the date on which notice of exercise of
the Private Placement Warrant is sent to the Warrant Agent;

 

(d) as provided in Section 6.2 hereof with
respect to a Make-Whole Exercise; or

 

(e) as provided in Section 7.4 hereof.

 

3.3.2 Issuance of Shares of Common Stock on Exercise.
As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Warrant Price (if payment
is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered Holder of such Warrant a book-entry position
or certificate, as applicable, for the number of shares of Common Stock to which he, she or it is entitled, registered in such
name or names as may be directed by him, her or it on the share transfer books of the Company, and if such Warrant shall not have
been exercised in full, a new book-entry position or countersigned Warrant, as applicable, for the number of shares of Common Stock
as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, the Company shall not be obligated to deliver
any shares of Common Stock pursuant to the exercise of a Warrant and shall have no obligation to settle such Warrant exercise unless
a registration statement under the Securities Act with respect to the shares of Common Stock underlying the Public Warrants is
then effective and a prospectus relating thereto is current, subject to the Company’s satisfying its obligations under Section 7.4
or a valid exemption from registration is available. No Warrant shall be exercisable and the Company shall not be obligated to
issue shares of Common Stock upon exercise of a Warrant unless the Common Stock issuable upon such Warrant exercise have been registered,
qualified or deemed to be exempt from registration or qualification under the securities laws of the state of residence of the
Registered Holder of the Warrants. Subject to Section 4.6 of this Agreement, a Registered Holder of Warrants may exercise
its Warrants only for a whole number of shares of Common Stock. The Company may require holders of Public Warrants to settle the
Warrant on a “cashless basis” pursuant to Section 7.4. If, by reason of any exercise of Warrants on a “cashless
basis”, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest
in a share of Common Stock, the Company shall round down to the nearest whole number, the number of shares of Common Stock to be
issued to such holder.

 

3.3.3 Valid Issuance. All shares of Common Stock issued
upon the proper exercise of a Warrant in conformity with this Agreement shall be validly issued, fully paid and non-assessable.

 

3.3.4 Date of Issuance. Each person in whose name any
book-entry position or certificate, as applicable, for shares of Common Stock is issued and who is registered in the share transfer
books of the Company shall for all purposes be deemed to have become the holder of record of such shares of Common Stock on the
date on which the Warrant, or book-entry position representing such Warrant, was surrendered and payment of the Warrant Price was
made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant, except that, if the date
of such surrender and payment is a date when the share transfer books of the Company or book-entry system of the Warrant Agent
are closed, such person shall be deemed to have become the holder of such shares of Common Stock at the close of business on the
next succeeding date on which the share transfer books or book-entry system are open.

 

    	 	 	 

     

    

 

3.3.5 Maximum Percentage. A holder of a Warrant may notify
the Company in writing in the event it elects to be subject to the provisions contained in this subsection 3.3.5; however,
no holder of a Warrant shall be subject to this subsection 3.3.5 unless he, she or it makes such election. If the election
is made by a holder, the Warrant Agent shall not effect the exercise of the holder’s Warrant, and such holder shall not have
the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person (together with such person’s
affiliates), to the Warrant Agent’s actual knowledge, would beneficially own in excess of 9.8% (or such other amount as a
holder may specify) (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by such person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of the Warrant
with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock that would be
issuable upon (x) exercise of the remaining, unexercised portion of the Warrant beneficially owned by such person and its
affiliates and (y) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company
beneficially owned by such person and its affiliates (including, without limitation, any convertible notes or convertible preferred
stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of the Warrant, in
determining the number of outstanding shares of Common Stock, the holder may rely on the number of outstanding shares of Common
Stock as reflected in (1) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q,
Current Report on Form 8-K or other public filing with the Commission as the case may be, (2) a more recent public announcement
by the Company or (3) any other notice by the Company or Continental Stock Transfer & Trust Company, as transfer
agent (in such capacity, the “Transfer Agent”), setting forth the number of shares of Common Stock outstanding.
For any reason at any time, upon the written request of the holder of the Warrant, the Company shall, within two (2) Business
Days, confirm orally and in writing to such holder the number of shares of Common Stock then outstanding. In any case, the number
of issued and outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of equity
securities of the Company by the holder and its affiliates since the date as of which such number of issued and outstanding shares
of Common Stock was reported. By written notice to the Company, the holder of a Warrant may from time to time increase or decrease
the Maximum Percentage applicable to such holder to any other percentage specified in such notice; provided, however,
that any such increase shall not be effective until the sixty-first (61st) day after such notice is delivered to the Company.

 

4. Adjustments.

 

4.1 Stock Dividends.

 

4.1.1 Split-Ups. If after the date hereof, and subject
to the provisions of Section 4.6 below, the number of issued and outstanding shares of Common Stock is increased by
a stock dividend payable in shares of Common Stock, or by a split-up of shares of Common Stock or other similar event, then, on
the effective date of such stock dividend, split-up or similar event, the number of shares of Common Stock issuable on exercise
of each Warrant shall be increased in proportion to such increase in the issued and outstanding shares of Common Stock. A rights
offering made to all or substantially all holders of the Common Stock entitling holders to purchase shares of Common Stock at a
price less than the “Historical Fair Market Value” (as defined below) shall be deemed a stock dividend of a number
of shares of Common Stock equal to the product of (i) the number of shares of Common Stock actually sold in such rights offering
(or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for the Common
Stock) multiplied by (ii) one (1) minus the quotient of (x) the price per share of Common Stock paid in such rights
offering divided by (y) the Historical Fair Market Value. For purposes of this subsection 4.1.1, (i) if the rights
offering is for securities convertible into or exercisable for Common Stock, in determining the price payable for Common Stock,
there shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise
or conversion and (ii) “Historical Fair Market Value” means the volume weighted average price of
the Common Stock during the ten (10) trading day period ending on the trading day prior to the first date on which the shares
of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.
No shares of Common Stock shall be issued at less than their par value.

 

    	 	 	 

     

    

 

4.1.2 Extraordinary Dividends. If the Company, at any
time while the Warrants are outstanding and unexpired, pays to all or substantially all of the holders of the Ordinary Shares a
dividend or make a distribution in cash, securities or other assets of such shares of Common Stock (or other shares into which
the Warrants are convertible), other than (a) as described in subsection 4.1.1 above, (b) Ordinary Cash Dividends
(as defined below), (c) to satisfy the redemption rights of the holders of the Common Stock in connection with a proposed
initial Business Combination, (d) to satisfy the redemption rights of the holders of Common Stock in connection with a stockholder
vote to amend the Company’s amended and restated certificate of incorporation (i) to modify the substance or timing
of the Company’s obligation to provide holders of shares of Common Stock the right to have their shares redeemed in connection
with the Company’s initial Business Combination or to redeem 100% of the Company’s public shares if it does not complete
its initial Business Combination within the time period required by the Company’s amended and restated certificate of incorporation,
as amended from time to time, or (ii) with respect to any other provision relating to the rights of holders of Common Stock,
(e) as a result of the repurchase of Common Stock by the Company if a proposed initial Business Combination is presented to
the stockholders of the Company for approval or (f) in connection with the redemption of public shares upon the failure of
the Company to complete its initial Business Combination and any subsequent distribution of its assets upon its liquidation (any
such non-excluded event being referred to herein as an “Extraordinary Dividend”), then the Warrant Price
shall be decreased, effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash and/or
the fair market value (as determined by the Company’s board of directors (the “Board”), in good
faith) of any securities or other assets paid on each share of Common Stock in respect of such Extraordinary Dividend. For purposes
of this subsection 4.1.2, “Ordinary Cash Dividends” means any cash dividend or cash distribution
which, when combined on a per share basis, with the per share amounts of all other cash dividends and cash distributions paid on
the Common Stock during the 365-day period ending on the date of declaration of such dividend or distribution to the extent it
does not exceed $0.50 (which amount shall be adjusted to appropriately reflect any of the events referred to in other subsections
of this Section 4 and excluding cash dividends or cash distributions that resulted in an adjustment to the Warrant
Price or to the number of shares of Common Stock issuable on exercise of each Warrant).

 

4.2 Aggregation of Shares. If after the date hereof,
and subject to the provisions of Section 4.6 hereof, the number of issued and outstanding shares of Common Stock is
decreased by a consolidation, combination, reverse stock split or reclassification of shares of Common Stock or other similar event,
then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number
of shares of Common Stock issuable on exercise of each Warrant shall be decreased in proportion to such decrease in issued and
outstanding shares of Common Stock.

 

4.3 Adjustments in Exercise Price. Whenever the number
of shares of Common Stock purchasable upon the exercise of the Warrants is adjusted, as provided in subsection 4.1.1 or
Section 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately
prior to such adjustment by a fraction (x) the numerator of which shall be the number of shares of Common Stock purchasable
upon the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number
of shares of Common Stock so purchasable immediately thereafter.

 

4.4 Raising of the Capital in Connection with the Initial
Business Combination. If (x) the Company issues additional shares of Common Stock or equity-linked securities for capital
raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price
of less than $9.20 per share (with such issue price or effective issue price to be determined in good faith by the Board and, in
the case of any such issuance to the Sponsor or its affiliates, without taking into account any shares of Class B common stock
of the Company, par value $0.0001 per share, of the Company held by the Sponsor or such affiliates, as applicable, prior to such
issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent
more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business
Combination on the date of the completion of the Company’s initial Business Combination (net of redemptions), and (z) the
volume weighted average trading price of Common Stock during the twenty (20) trading day period starting on the trading day prior
to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”)
is below $9.20 per share, the Warrant Price shall be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market
Value and the Newly Issued Price, the $18.00 per share redemption trigger price described in Section 6.1 and Section 6.2
shall be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price and the
$10.00 per share redemption trigger price described in Section 6.2 shall be adjusted (to the nearest cent) to be equal
to the higher of the Market Value and the Newly Issued Price.

 

    	 	 	 

     

    

 

4.5 Replacement of Securities upon Reorganization, etc.
In case of any reclassification or reorganization of the issued and outstanding shares of Common Stock (other than a change under
Sections 4.1 or 4.2 hereof or that solely affects the par value of such shares of Common Stock), or in the case of
any merger or consolidation of the Company with or into another corporation (other than a consolidation or merger in which the
Company is the continuing corporation and that does not result in any reclassification or reorganization of the issued and outstanding
shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property
of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the holders of
the Warrants shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified
in the Warrants and in lieu of the shares of Common Stock of the Company immediately theretofore purchasable and receivable upon
the exercise of the rights represented thereby, the kind and amount of shares or stock or other securities or property (including
cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such
sale or transfer, that the holder of the Warrants would have received if such holder had exercised his, her or its Warrant(s) immediately
prior to such event (the “Alternative Issuance” ); provided, however, that (i) if
the holders of the Common Stock were entitled to exercise a right of election as to the kind or amount of securities, cash or other
assets receivable upon such consolidation or merger, then the kind and amount of securities, cash or other assets constituting
the Alternative Issuance for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind
and amount received per share by the holders of the Common Stock in such consolidation or merger that affirmatively make such election,
and (ii) if a tender, exchange or redemption offer shall have been made to and accepted by the holders of the Common Stock
(other than a tender, exchange or redemption offer made by the Company in connection with redemption rights held by stockholders
of the Company as provided for in the Company’s amended and restated certificate of incorporation or as a result of the repurchase
of shares of Common Stock by the Company if a proposed initial Business Combination is presented to the stockholders of the Company
for approval) under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with
members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and
together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members
of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under
the Exchange Act) more than 50% of the outstanding shares of Common Stock, the holder of a Warrant shall be entitled to receive
as the Alternative Issuance, the highest amount of cash, securities or other property to which such holder would actually have
been entitled as a stockholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange
offer, accepted such offer and all of the Common Stock held by such holder had been purchased pursuant to such tender or exchange
offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible
to the adjustments provided for in this Section 4; provided further that if less than 70% of the consideration
receivable by the holders of the Common Stock in the applicable event is payable in the form of shares of Common Stock in the successor
entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or
is to be so listed for trading or quoted immediately following such event, and if the Registered Holder properly exercises the
Warrant within thirty (30) days following the public disclosure of the consummation of such applicable event by the Company pursuant
to a Current Report on Form 8-K filed with the Commission, the Warrant Price shall be reduced by an amount (in dollars) equal
to the difference of (i) the Warrant Price in effect prior to such reduction minus (ii) (A) the Per Share Consideration
(as defined below) (but in no event less than zero) minus (B) the Black-Scholes Warrant Value (as defined below). The “Black-Scholes
Warrant Value” means the value of a Warrant immediately prior to the consummation of the applicable event based on
the Black-Scholes Warrant Model for a Capped American Call on Bloomberg Financial Markets (assuming zero dividends) (“Bloomberg”).
For purposes of calculating such amount, (i) Section 6 of this Agreement shall be taken into account, (ii) the
price of each share of Common Stock shall be the volume weighted average price of the Common Stock during the ten (10) trading
day period ending on the trading day prior to the effective date of the applicable event, (iii) the assumed volatility shall
be the 90 day volatility obtained from the HVT function on Bloomberg determined as of the trading day immediately prior to the
day of the announcement of the applicable event and (iv) the assumed risk-free interest rate shall correspond to the U.S.
Treasury rate for a period equal to the remaining term of the Warrant. “Per Share Consideration” means (i) if
the consideration paid to holders of the Common Stock consists exclusively of cash, the amount of such cash per share of Common
Stock, and (ii) in all other cases, the volume weighted average price of the Common Stock as reported during the ten (10) trading
day period ending on the trading day prior to the effective date of the applicable event. If any reclassification or reorganization
also results in a change in shares of Common Stock covered by subsection 4.1.1, then such adjustment shall be made pursuant
to subsection 4.1.1 or Sections 4.2, 4.3 and this Section 4.4. The provisions of this Section 4.4
shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. In
no event shall the Warrant Price be reduced to less than the par value per share issuable upon exercise of such Warrant.

 

    	 	 	 

     

    

 

4.6 Notices of Changes in Warrant. Upon every adjustment
of the Warrant Price or the number of shares of Common Stock issuable upon exercise of a Warrant, the Company shall give written
notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment and the increase
or decrease, if any, in the number of shares of Common Stock purchasable at such price upon the exercise of a Warrant, setting
forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of
any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, the Company shall give written notice
of the occurrence of such event to each holder of a Warrant, at the last address set forth for such holder in the Warrant Register,
of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such event.

 

4.7 No Fractional Shares. Notwithstanding any provision
contained in this Agreement to the contrary, the Company shall not issue fractional shares of Common Stock upon the exercise of
Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be entitled,
upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round down
to the nearest whole number the number of shares of Common Stock to be issued to such holder.

 

4.8 Form of Warrant. The form of Warrant need not
be changed because of any adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state
the same Warrant Price and the same number of shares of Common Stock as is stated in the Warrants initially issued pursuant to
this Agreement; provided, however, that the Company may at any time in its sole discretion make any change in the
form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter
issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so
changed.

 

5. Transfer and Exchange of Warrants.

 

5.1 Registration of Transfer. The Warrant Agent shall
register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register, upon surrender of such Warrant
for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon
any such transfer, a new Warrant representing an equal aggregate number of Warrants shall be issued and the old Warrant shall be
cancelled by the Warrant Agent. In the case of certificated Warrants, the Warrants so cancelled shall be delivered by the Warrant
Agent to the Company from time to time upon request.

 

5.2 Procedure for Surrender of Warrants. Warrants may
be surrendered to the Warrant Agent, together with a written request for exchange or transfer, and thereupon the Warrant Agent
shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the Warrants so surrendered,
representing an equal aggregate number of Warrants; provided, however, that except as otherwise provided herein or
with respect to any Book-Entry Warrant, each Book-Entry Warrant may be transferred only in whole and only to the Depositary, to
another nominee of the Depositary, to a successor depository, or to a nominee of a successor depository; provided further, however
that in the event that a Warrant surrendered for transfer bears a restrictive legend (as in the case of the Private Placement Warrants),
the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange thereof until the Warrant Agent has received
an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new Warrants must also
bear a restrictive legend.

 

5.3 Fractional Warrants. The Warrant Agent shall not
be required to effect any registration of transfer or exchange which shall result in the issuance of a warrant certificate or book-entry
position for a fraction of a warrant, except as part of the Units.

 

5.4 Service Charges. No service charge shall be made
for any exchange or registration of transfer of Warrants.

 

5.5 Warrant Execution and Countersignature. The Warrant
Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required
to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the Warrant Agent,
shall supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

 

    	 	 	 

     

    

 

5.6 Transfer of Warrants. Prior to the Detachment Date,
the Public Warrants may be transferred or exchanged only together with the Unit in which such Warrant is included, and only for
the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit. Furthermore, each transfer of a Unit on
the register relating to such Units shall operate also to transfer the Warrants included in such Unit. Notwithstanding the foregoing,
the provisions of this Section 5.6 shall have no effect on any transfer of Warrants on and after the Detachment Date.

 

6. Redemption.

 

6.1 Redemption of Warrants for Cash. Subject to Section 6.5
hereof, not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the Exercise
Period, at the office of the Warrant Agent, upon notice to the Registered Holders of the Warrants, as described in Section 6.3
below, at a Redemption Price of $0.01 per Warrant, provided that (a) the Reference Value equals or exceeds $18.00 per
share (subject to adjustment in compliance with Section 4 hereof) and (b) there is an effective registration statement
covering the issuance of the shares of Common Stock issuable upon exercise of the Warrants, and a current prospectus relating thereto,
available throughout the 30-day Redemption Period (as defined in Section 6.3 below).

 

6.2 Redemption of Warrants for $0.10 per Warrant or Common
Stock. Subject to Section 6.5 hereof, not less than all of the outstanding Warrants may be redeemed, at the option
of the Company, at any time during the Exercise Period, at the office of the Warrant Agent, upon notice to the Registered Holders
of the Warrants, as described in Section 6.3 below, at a Redemption Price of $0.10 per Warrant, provided that
(i) the Reference Value equals or exceeds $10.00 per share (subject to adjustment in compliance with Section 4
hereof) and (ii) if the Reference Value is less than $18.00 per share (subject to adjustment in compliance with Section 4
hereof), the Private Placement Warrants are also concurrently called for redemption on the same terms as the outstanding Public
Warrants. During the 30-day Redemption Period in connection with a redemption pursuant to this Section 6.2, Registered
Holders of the Warrants may elect to exercise their Warrants on a “cashless basis” pursuant to subsection 3.3.1
and receive a number of shares of Common Stock determined by reference to the table below, based on the Redemption Date (calculated
for purposes of the table as the period to expiration of the Warrants) and the “Redemption Fair Market Value” (as such
term is defined in this Section 6.2) (a “Make-Whole Exercise”). Solely for purposes of this
Section 6.2, the “Redemption Fair Market Value” shall mean the volume weighted average price
of the Common Stock for the ten (10) trading days immediately following the date on which notice of redemption pursuant to
this Section 6.2 is sent to the Registered Holders. In connection with any redemption pursuant to this Section 6.2,
the Company shall provide the Registered Holders with the Redemption Fair Market Value no later than one (1) Business Day
after the ten (10) trading day period described above ends.

 

	 	 	Redemption Fair Market Value of Class A Common Stock 
 (period to expiration of warrants)	 
	Redemption Date	 	£10.00	 	 	11.00	 	 	12.00	 	 	13.00	 	 	14.00	 	 	15.00	 	 	16.00	 	 	17.00	 	 	318.00	 
	60 months	 	 	0.261	 	 	 	0.280	 	 	 	0.297	 	 	 	0.311	 	 	 	0.324	 	 	 	0.337	 	 	 	0.348	 	 	 	0.358	 	 	 	0.361	 
	57 months	 	 	0.257	 	 	 	0.277	 	 	 	0.294	 	 	 	0.310	 	 	 	0.324	 	 	 	0.337	 	 	 	0.348	 	 	 	0.358	 	 	 	0.361	 
	54 months	 	 	0.252	 	 	 	0.272	 	 	 	0.291	 	 	 	0.307	 	 	 	0.322	 	 	 	0.335	 	 	 	0.347	 	 	 	0.357	 	 	 	0.361	 
	51 months	 	 	0.246	 	 	 	0.268	 	 	 	0.287	 	 	 	0.304	 	 	 	0.320	 	 	 	0.333	 	 	 	0.346	 	 	 	0.357	 	 	 	0.361	 
	48 months	 	 	0.241	 	 	 	0.263	 	 	 	0.283	 	 	 	0.301	 	 	 	0.317	 	 	 	0.332	 	 	 	0.344	 	 	 	0.356	 	 	 	0.361	 
	45 months	 	 	0.235	 	 	 	0.258	 	 	 	0.279	 	 	 	0.298	 	 	 	0.315	 	 	 	0.330	 	 	 	0.343	 	 	 	0.356	 	 	 	0.361	 
	42 months	 	 	0.228	 	 	 	0.252	 	 	 	0.274	 	 	 	0.294	 	 	 	0.312	 	 	 	0.328	 	 	 	0.342	 	 	 	0.355	 	 	 	0.361	 
	39 months	 	 	0.221	 	 	 	0.246	 	 	 	0.269	 	 	 	0.290	 	 	 	0.309	 	 	 	0.325	 	 	 	0.340	 	 	 	0.354	 	 	 	0.361	 
	36 months	 	 	0.213	 	 	 	0.239	 	 	 	0.263	 	 	 	0.285	 	 	 	0.305	 	 	 	0.323	 	 	 	0.339	 	 	 	0.353	 	 	 	0.361	 
	33 months	 	 	0.205	 	 	 	0.232	 	 	 	0.257	 	 	 	0.280	 	 	 	0.301	 	 	 	0.320	 	 	 	0.337	 	 	 	0.352	 	 	 	0.361	 
	30 months	 	 	0.196	 	 	 	0.224	 	 	 	0.250	 	 	 	0.274	 	 	 	0.297	 	 	 	0.316	 	 	 	0.335	 	 	 	0.351	 	 	 	0.361	 
	27 months	 	 	0.185	 	 	 	0.214	 	 	 	0.242	 	 	 	0.268	 	 	 	0.291	 	 	 	0.313	 	 	 	0.332	 	 	 	0.350	 	 	 	0.361	 
	24 months	 	 	0.173	 	 	 	0.204	 	 	 	0.233	 	 	 	0.260	 	 	 	0.285	 	 	 	0.308	 	 	 	0.329	 	 	 	0.348	 	 	 	0.361	 
	21 months	 	 	0.161	 	 	 	0.193	 	 	 	0.223	 	 	 	0.252	 	 	 	0.279	 	 	 	0.304	 	 	 	0.326	 	 	 	0.347	 	 	 	0.361	 
	18 months	 	 	0.146	 	 	 	0.179	 	 	 	0.211	 	 	 	0.242	 	 	 	0.271	 	 	 	0.298	 	 	 	0.322	 	 	 	0.345	 	 	 	0.361	 
	15 months	 	 	0.130	 	 	 	0.164	 	 	 	0.197	 	 	 	0.230	 	 	 	0.262	 	 	 	0.291	 	 	 	0.317	 	 	 	0.342	 	 	 	0.361	 
	12 months	 	 	0.111	 	 	 	0.146	 	 	 	0.181	 	 	 	0.216	 	 	 	0.250	 	 	 	0.282	 	 	 	0.312	 	 	 	0.339	 	 	 	0.361	 
	9 months	 	 	0.090	 	 	 	0.125	 	 	 	0.162	 	 	 	0.199	 	 	 	0.237	 	 	 	0.272	 	 	 	0.305	 	 	 	0.336	 	 	 	0.361	 
	6 months	 	 	0.065	 	 	 	0.099	 	 	 	0.137	 	 	 	0.178	 	 	 	0.219	 	 	 	0.259	 	 	 	0.296	 	 	 	0.331	 	 	 	0.361	 
	3 months	 	 	0.034	 	 	 	0.065	 	 	 	0.104	 	 	 	0.150	 	 	 	0.197	 	 	 	0.243	 	 	 	0.286	 	 	 	0.326	 	 	 	0.361	 
	0 months	 	 	—	 	 	 	—	 	 	 	0.042	 	 	 	0.115	 	 	 	0.179	 	 	 	0.233	 	 	 	0.281	 	 	 	0.323	 	 	 	0.361	 

 

    	 	 	 

     

    

 

The exact Redemption Fair Market Value and Redemption Date may
not be set forth in the table above, in which case, if the Redemption Fair Market Value is between two values in the table or the
Redemption Date is between two redemption dates in the table, the number of shares of Common Stock to be issued for each Warrant
exercised in a Make-Whole Exercise shall be determined by a straight-line interpolation between the number of shares set forth
for the higher and lower Redemption Fair Market Values and the earlier and later redemption dates, as applicable, based on a 365-
or 366-day year, as applicable.

 

The stock prices set forth in the column headings of the table
above shall be adjusted as of any date on which the number of shares issuable upon exercise of a Warrant or the Exercise Price
is adjusted pursuant to Section 4 hereof. If the number of shares of Common Stock issuable upon exercise of a Warrant
is adjusted pursuant to Section 4 hereof, the adjusted stock prices in the column headings shall equal the stock prices
immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the number of shares deliverable upon
exercise of a Warrant immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon
exercise of a Warrant as so adjusted. The number of shares in the table above shall be adjusted in the same manner and at the same
time as the number of shares issuable upon exercise of a Warrant. If the Exercise Price of a warrant is adjusted, (a) in the
case of an adjustment pursuant to Section 4.4 hereof, the adjusted stock prices in the column headings shall equal
the stock prices immediately prior to such adjustment multiplied by a fraction, the numerator of which is the higher of the Market
Value and the Newly Issued Price and the denominator of which is $10.00 and (b) in the case of an adjustment pursuant to Section 4.1.2
hereof, the adjusted stock prices in the column headings shall equal the stock prices immediately prior to such adjustment less
the decrease in the Exercise Price pursuant to such Exercise Price adjustment. In no event shall the number of shares issued in
connection with a Make-Whole Exercise exceed 0.361 shares of Common Stock per Warrant (subject to adjustment).

 

6.3 Date Fixed for, and Notice of, Redemption; Redemption
Price; Reference Value. In the event that the Company elects to redeem the Warrants pursuant to Sections 6.1 or 6.2,
the Company shall fix a date for the redemption (the “Redemption Date”). Notice of redemption shall be
mailed by first class mail, postage prepaid, by the Company not less than thirty (30) days prior to the Redemption Date (the “30-day
Redemption Period”) to the Registered Holders of the Warrants to be redeemed at their last addresses as they shall
appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly
given whether or not the Registered Holder received such notice. As used in this Agreement, (a) “Redemption Price”
shall mean the price per Warrant at which any Warrants are redeemed pursuant to Sections 6.1 or 6.2 and (b) “Reference
Value” shall mean the last reported sales price of the Common Stock for any twenty (20) trading days within the thirty
(30) trading-day period ending on the third trading day prior to the date on which notice of the redemption is given.

 

6.4 Exercise After Notice of Redemption. The Warrants
may be exercised, for cash (or on a “cashless basis” in accordance with Section 6.2 of this Agreement)
at any time after notice of redemption shall have been given by the Company pursuant to Section 6.3 hereof and prior
to the Redemption Date. On and after the Redemption Date, the record holder of the Warrants shall have no further rights except
to receive, upon surrender of the Warrants, the Redemption Price.

 

6.5 Exclusion of Private Placement Warrants. The Company
agrees that (a) the redemption rights provided in Section 6.1 hereof shall not apply to the Private Placement
Warrants if at the time of the redemption such Private Placement Warrants continue to be held by the Sponsor or its Permitted Transferees
and (b) if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4
hereof), the redemption rights provided in Section 6.2 hereof shall not apply to the Private Placement Warrants if
at the time of the redemption such Private Placement Warrants continue to be held by the Sponsor or its Permitted Transferees.
However, once such Private Placement Warrants are transferred (other than to Permitted Transferees in accordance with Section 2.6
hereof), the Company may redeem the Private Placement Warrants pursuant to Section 6.1 or 6.2 hereof, provided
that the criteria for redemption are met, including the opportunity of the holder of such Private Placement Warrants to exercise
the Private Placement Warrants prior to redemption pursuant to Section 6.4 hereof. Private Placement Warrants that
are transferred to persons other than Permitted Transferees shall upon such transfer cease to be Private Placement Warrants and
shall become Public Warrants under this Agreement, including for purposes of Section 9.8 hereof.

 

    	 	 	 

     

    

 

7. Other Provisions Relating to Rights of Holders of Warrants.

 

7.1 No Rights as Stockholder. A Warrant does not entitle
the Registered Holder thereof to any of the rights of a stockholder of the Company, including, without limitation, the right to
receive dividends, or other distributions, exercise any preemptive rights to vote or to consent or to receive notice as stockholders
in respect of the meetings of stockholders or the election of directors of the Company or any other matter.

 

7.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If
any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or otherwise
as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue
a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant
shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed
Warrant shall be at any time enforceable by anyone.

 

7.3 Reservation of Common Stock. The Company shall at
all times reserve and keep available a number of its authorized but unissued shares of Common Stock that shall be sufficient to
permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

 

7.4 Registration of Common Stock; Cashless Exercise at Company’s
Option.

 

7.4.1 Registration of the Common Stock. The Company agrees
that as soon as practicable, but in no event later than twenty (20) Business Days after the closing of its initial Business Combination,
it shall use its commercially reasonable efforts to file with the Commission a registration statement for the registration, under
the Securities Act, of the shares of Common Stock issuable upon exercise of the Warrants. The Company shall use its commercially
reasonable efforts to cause the same to become effective within sixty (60) Business Days following the closing of its initial Business
Combination and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until
the expiration or redemption of the Warrants in accordance with the provisions of this Agreement. If any such registration statement
has not been declared effective by the sixtieth (60th) Business Day following the closing of the Business Combination, holders
of the Warrants shall have the right, during the period beginning on the sixty-first (61st) Business Day after the closing of the
Business Combination and ending upon such registration statement being declared effective by the Commission, and during any other
period when the Company shall fail to have maintained an effective registration statement covering the issuance of the shares of
Common Stock issuable upon exercise of the Warrants, to exercise such Warrants on a “cashless basis,” by exchanging
the Warrants (in accordance with Section 3(a)(9) of the Securities Act or another exemption) for that number of shares
of Common Stock equal to (A) the quotient obtained by dividing (x) the product of the number of shares of Common Stock
underlying the Warrants, multiplied by the excess of the “Fair Market Value” (as defined below) less the Warrant Price
by (y) the Fair Market Value and (B) 0.361. Solely for purposes of this subsection 7.4.1, “Fair Market
Value” shall mean the volume weighted average price of the Common Stock as reported during the ten (10) trading
day period ending on the trading day prior to the date that notice of exercise is received by the Warrant Agent from the holder
of such Warrants or its securities broker or intermediary. The date that notice of “cashless exercise” is received
by the Warrant Agent shall be conclusively determined by the Warrant Agent. In connection with the “cashless exercise”
of a Public Warrant, the Company shall, upon request, provide the Warrant Agent with an opinion of counsel for the Company (which
shall be an outside law firm with securities law experience) stating that (i) the exercise of the Warrants on a “cashless
basis” in accordance with this subsection 7.4.1 is not required to be registered under the Securities Act and (ii) the
shares of Common Stock issued upon such exercise shall be freely tradable under United States federal securities laws by anyone
who is not an affiliate (as such term is defined in Rule 144 under the Securities Act) of the Company and, accordingly, shall
not be required to bear a restrictive legend. Except as provided in subsection 7.4.2, for the avoidance of doubt, unless
and until all of the Warrants have been exercised or have expired, the Company shall continue to be obligated to comply with its
registration obligations under the first three sentences of this subsection 7.4.1.

 

    	 	 	 

     

    

 

7.4.2 Cashless Exercise at Company’s Option. If
the Common Stock is at the time of any exercise of a Public Warrant not listed on a national securities exchange such that they
satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company
may, at its option, (i) require holders of Public Warrants who exercise Public Warrants to exercise such Public Warrants on
a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act as described in subsection
7.4.1 and (ii) in the event the Company so elects, the Company shall (x) not be required to file or maintain in effect
a registration statement for the registration, under the Securities Act, of the Common Stock issuable upon exercise of the Warrants,
notwithstanding anything in this Agreement to the contrary, and (y) use its commercially reasonable efforts to register or
qualify for sale the Common Stock issuable upon exercise of the Public Warrant under applicable blue sky laws to the extent an
exemption is not available.

 

8. Concerning the Warrant Agent and Other Matters.

 

8.1 Payment of Taxes. The Company shall from time to
time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or
delivery of shares of Common Stock upon the exercise of the Warrants, but the Company shall not be obligated to pay any transfer
taxes in respect of the Warrants or such shares of Common Stock.

 

8.2 Resignation, Consolidation, or Merger of Warrant Agent.

 

8.2.1 Appointment of Successor Warrant Agent. The Warrant
Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities
hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Warrant Agent becomes vacant
by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the
Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after it has been notified
in writing of such resignation or incapacity by the Warrant Agent or by the holder of a Warrant (who shall, with such notice, submit
his, her or its Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme Court of the State
of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor
Warrant Agent, whether appointed by the Company or by such court, shall be a corporation or other entity organized and existing
under the laws of the State of New York, in good standing and having its principal office in the United States of America, and
authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority.
After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and
obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further
act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver,
at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights
of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge,
and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant
Agent all such authority, powers, rights, immunities, duties, and obligations.

 

8.2.2 Notice of Successor Warrant Agent. In the event
a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the Transfer
Agent for the Common Stock not later than the effective date of any such appointment.

 

8.2.3 Merger or Consolidation of Warrant Agent. Any entity
into which the Warrant Agent may be merged or with which it may be consolidated or any entity resulting from any merger or consolidation
to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Agreement without any further act.

 

8.3 Fees and Expenses of Warrant Agent.

 

8.3.1 Remuneration. The Company agrees to pay the Warrant
Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall, pursuant to its obligations under this
Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution
of its duties hereunder.

 

    	 	 	 

     

    

 

8.3.2 Further Assurances. The Company agrees to perform,
execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other acts,
instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions
of this Agreement.

 

8.4 Liability of Warrant Agent.

 

8.4.1 Reliance on Company Statement. Whenever in the
performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or desirable that any fact or matter
be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed
by the Chief Executive Officer, the President, the Chief Financial Officer, the Chief Operating Officer, the General Counsel, the
Secretary or the Chairman of the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such
statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.

 

8.4.2 Indemnity. The Warrant Agent shall be liable hereunder
only for its own gross negligence, willful misconduct, fraud or bad faith. The Company agrees to indemnify the Warrant Agent and
save it harmless against any and all liabilities, including judgments, out-of-pocket costs and reasonable outside counsel fees,
for anything done or omitted by the Warrant Agent in the execution of this Agreement, except as a result of the Warrant Agent’s
gross negligence, willful misconduct, fraud or bad faith.

 

8.4.3 Exclusions. The Warrant Agent shall have no responsibility
with respect to the validity of this Agreement or with respect to the validity or execution of any Warrant (except its countersignature
thereof). The Warrant Agent shall not be responsible for any breach by the Company of any covenant or condition contained in this
Agreement or in any Warrant. The Warrant Agent shall not be responsible to make any adjustments required under the provisions of
Section 4 hereof or responsible for the manner, method, or amount of any such adjustment or the ascertaining of the
existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make any representation
or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this Agreement or any
Warrant or as to whether any shares of Common Stock shall, when issued, be valid and fully paid and non-assessable.

 

8.5 Acceptance of Agency. The Warrant Agent hereby accepts
the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth and among
other things, shall account promptly to the Company with respect to Warrants exercised and concurrently account for, and pay to
the Company, all monies received by the Warrant Agent for the purchase of shares of Common Stock through the exercise of the Warrants.

 

8.6 Waiver. The Warrant Agent has no right of set-off
or any other right, title, interest or claim of any kind (“Claim”) in, or to any distribution of, the
Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the
Company and Continental Stock Transfer & Trust Company as trustee thereunder) and hereby agrees not to seek recourse,
reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. The Warrant Agent hereby
waives any and all Claims against the Trust Account and any and all rights to seek access to the Trust Account.

 

9. Miscellaneous Provisions.

 

9.1 Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors
and assigns.

 

    	 	 	 

     

    

 

9.2 Notices. Any notice, statement or demand authorized
by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be sufficiently
given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days
after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant
Agent), as follows:

 

Star Peak Energy Transition Corp.

1603 Orrington Avenue, 13th Floor

Evanston, Illinois 60201

Attention: Chief Executive Officer

 

with a copy to:

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Attention: Christian O. Nagler

Peter S. Seligson

 

Any notice, statement or demand authorized by this Agreement
to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when
so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days
after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the
Company), as follows:

 

Continental Stock Transfer & Trust Company

One State Street, 30th Floor

New York, New York 10004

Attention: Compliance Department

 

9.3 Applicable Law and Exclusive Forum. The validity,
interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the laws of the State
of New York. Subject to applicable law, the Company hereby agrees that any action, proceeding or claim against it arising out of
or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States
District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be
the exclusive forum for any such action proceeding or claim. The Company hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum.

 

Notwithstanding the foregoing, the provisions of this paragraph
will not apply to suits brought to enforce any liability or duty created by the Exchange Act or any other claim for which the federal
district courts of the United States of America are the sole and exclusive forum. Any person or entity purchasing or otherwise
acquiring any interest in the Warrants shall be deemed to have notice of and to have consented to the forum provisions in this
Section 9.3. If any action, the subject matter of which is within the scope the forum provisions above, is filed in
a court other than a court located within the State of New York or the United States District Court for the Southern District of
New York (a “foreign action”) in the name of any warrant holder, such warrant holder shall be deemed
to have consented to: (x) the personal jurisdiction of the state and federal courts located within the State of New York or
the United States District Court for the Southern District of New York in connection with any action brought in any such court
to enforce the forum provisions (an “enforcement action”), and (y) having service of process made
upon such warrant holder in any such enforcement action by service upon such warrant holder’s counsel in the foreign action
as agent for such warrant holder.

 

9.4 Persons Having Rights under this Agreement. Nothing
in this Agreement shall be construed to confer upon, or give to, any person, corporation or other entity other than the parties
hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Agreement or of any covenant,
condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained
in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the
Registered Holders of the Warrants.

 

9.5 Examination of the Warrant Agreement. A copy of this
Agreement shall be available at all reasonable times at the office of the Warrant Agent in the United States of America, for inspection
by the Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit such holder’s Warrant for
inspection by the Warrant Agent.

 

    	 	 	 

     

    

 

9.6 Counterparts. This Agreement may be executed in any
number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute but one and the same instrument.

 

9.7 Effect of Headings. The section headings herein are
for convenience only and are not part of this Agreement and shall not affect the interpretation thereof.

 

9.8 Amendments. This Agreement may be amended by the
parties hereto without the consent of any Registered Holder for the purpose of (i) curing any ambiguity or to correct any
mistake, including to conform the provisions hereof to the description of the terms of the Warrants and this Agreement set forth
in the Prospectus, or defective provision contained herein, (ii) amending the definition of “Ordinary Cash Dividend”
as contemplated by and in accordance with the second sentence of subsection 4.1.2 or (iii) adding or changing any provisions
with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties
deem shall not adversely affect the rights of the Registered Holders under this Agreement. All other modifications or amendments,
including any modification or amendment to increase the Warrant Price or shorten the Exercise Period and any amendment to the terms
of only the Private Placement Warrants, shall require the vote or written consent of the Registered Holders of 65% of the then-outstanding
Public Warrants and, solely with respect to any amendment to the terms of the Private Placement Warrants or any provision of this
Agreement with respect to the Private Placement Warrants, 65% of the then-outstanding Private Placement Warrants. Notwithstanding
the foregoing, the Company may lower the Warrant Price or extend the duration of the Exercise Period pursuant to Sections 3.1
and 3.2, respectively, without the consent of the Registered Holders.

 

9.9 Severability. This Agreement shall be deemed severable,
and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this
Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision,
the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid
or unenforceable provision as may be possible and be valid and enforceable.

 

Exhibit A Form of Warrant Certificate

Exhibit B Legend — Private Placement Warrants

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the date first above written.

	 	 	 	 
	 	STAR PEAK ENERGY TRANSITION CORP.

 

	 	By:	/s/ Michael D. Wilds
	 	Name:	Michael D. Wilds
	 	Title:	Chief Financial Officer and Chief Accounting Officer

 

	 	CONTINENTAL STOCK TRANSFER &
	 	TRUST COMPANY, as Warrant Agent
	 	 	 
	 	By:	/s/ Francis Wolf
	 	Name:	Francis Wolf
	 	Title:	Vice President

 

    	 	 	 

     

    

 

[Form of Warrant Certificate]

 

[Reverse]

 

The Warrants evidenced by this Warrant Certificate are part
of a duly authorized issue of Warrants entitling the holder on exercise to receive         shares of Common Stock and are issued or to
be issued pursuant to a Warrant Agreement dated as of August 20, 2020 (the “Warrant Agreement”),
duly executed and delivered by the Company to Continental Stock Transfer & Trust Company, a New York corporation, as warrant
agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made
a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties
and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or “holder”
meaning the Registered Holders or Registered Holder, respectively) of the Warrants. A copy of the Warrant Agreement may be obtained
by the holder hereof upon written request to the Company. Defined terms used in this Warrant Certificate but not defined herein
shall have the meanings given to them in the Warrant Agreement.

 

Warrants may be exercised at any time during the Exercise Period
set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them by surrendering
this Warrant Certificate, with the form of Election to Purchase set forth hereon properly completed and executed, together with
payment of the Exercise Price as specified in the Warrant Agreement (or through “cashless exercise” as provided for
in the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon any exercise of
Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there
shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not
exercised.

 

Notwithstanding anything else in this Warrant Certificate or
the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration statement covering the
issuance of shares of Common Stock to be issued upon exercise is effective under the Securities Act and (ii) a prospectus
thereunder relating to the shares of Common Stock is current, except through “cashless exercise” as provided for in
the Warrant Agreement.

 

The Warrant Agreement provides that upon the occurrence of certain
events the number of shares of Common Stock issuable upon exercise of the Warrants set forth on the face hereof may, subject to
certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest
in a share of Common Stock, the Company shall, upon exercise, round down to the nearest whole number of shares of Common Stock
to be issued to the holder of the Warrant.

 

Warrant Certificates, when surrendered at the principal corporate
trust office of the Warrant Agent by the Registered Holder thereof in person or by legal representative or attorney duly authorized
in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment
of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like
number of Warrants.

 

Upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in
the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject
to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in
connection therewith.

 

The Company and the Warrant Agent may deem and treat the Registered
Holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for
all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company.

 

    	 	 	 

     

    

 

Election to Purchase

(To Be Executed Upon Exercise of Warrant)

 

The undersigned hereby irrevocably elects to exercise the
right, represented by this Warrant Certificate, to receive     shares of Common Stock and
herewith tenders payment for such shares of Common Stock to the order of Star Peak Energy Transition Corp. (the “Company”)
in the amount of $          in accordance with the terms hereof. The undersigned
requests that a certificate for such shares of Common Stock be registered in the name of
         , whose address
         is and that such shares of Common Stock be delivered
to           whose address
is            . If said
           number of shares of Common Stock is less than all of the shares
of Common Stock purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining
balance of such shares of Common Stock be registered in the name of
             , whose address is
           and that such Warrant Certificate be delivered to          , whose
address is             .

 

In the event that the Warrant has been called for redemption
by the Company pursuant to Section 6.2 of the Warrant Agreement and a holder thereof elects to exercise its Warrant
pursuant to a Make-Whole Exercise, the number of shares of Common Stock that this Warrant is exercisable for shall be determined
in accordance with subsection 3.3.1(c) or Section 6.2 of the Warrant Agreement, as applicable.

 

In the event that the Warrant is a Private Placement Warrant
that is to be exercised on a “cashless” basis pursuant to subsection 3.3.1(c) of the Warrant Agreement,
the number of shares of Common Stock that this Warrant is exercisable for shall be determined in accordance with subsection
3.3.1(c) of the Warrant Agreement.

 

In the event that the Warrant is to be exercised on a “cashless”
basis pursuant to Section 7.4 of the Warrant Agreement, the number of shares of Common Stock that this Warrant is exercisable
for shall be determined in accordance with Section 7.4 of the Warrant Agreement.

 

In the event that the Warrant may be exercised, to the
extent allowed by the Warrant Agreement, through cashless exercise (i) the number of shares of Common Stock that this
Warrant is exercisable for would be determined in accordance with the relevant section of the Warrant Agreement which allows
for such cashless exercise and (ii) the holder hereof shall complete the following: The undersigned hereby irrevocably
elects to exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions of the
Warrant Agreement, to receive shares of Common Stock. If said number of shares is less than all of the shares of Common Stock
purchasable hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant Certificate
representing the remaining balance of such shares of Common Stock be registered in the name of
        , whose address           
is and that such Warrant Certificate be delivered to            , whose
address is            .

 

[Signature Page Follows]

 

    	 	 	 

     

    

 

Date:          ,
20

 

	 	 
	 	(Signature)
	 	 
	 	 
	 	(Address)
	 	 
	 	 
	 	(Tax Identification Number)

 

	Signature Guaranteed:	 

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED).

 

    	 	 	 

     

    

 

EXHIBIT B

LEGEND

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS
OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN THE
LETTER AGREEMENT BY AND AMONG STAR PEAK ENERGY TRANSITION CORP. (THE “COMPANY”), STAR PEAK SPONSOR LLC AND THE OTHER
PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE THAT IS THIRTY
(30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 3 OF THE
WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 2 OF THE WARRANT AGREEMENT)
WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.

 

SECURITIES EVIDENCED BY THIS CERTIFICATE AND SHARES OF CLASS A
COMMON STOCK OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION
AND STOCKHOLDER RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.

 

	No.	Warrants

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