Document:

EX-10.1

 Exhibit 10.1 

CONSULTING AGREEMENT 

CONSULTING AGREEMENT (this “Agreement”) dated as of December 31, 2019, and effective as of the
Effective Time, is entered into by and between OceanFirst Financial Corp., a Delaware corporation (the “Company”), OceanFirst Bank, National Association, a national banking association and a wholly owned subsidiary of the Company
(the “Company Bank”) and William D. Moss (“Mr. Moss” and together with the Company and the Company Bank, the “Parties”). 

WHEREAS, the Company has entered into that certain Agreement and Plan of Merger (the “Merger
Agreement”) dated as of August 9, 2019, by and among the Company, Hammerhead Merger Sub Corp., a New Jersey corporation and a wholly-owned subsidiary of the Company (“Merger Sub”) and Two River Bancorp, a New Jersey
corporation (“Two River”), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Two River, with Two River as the surviving corporation, and immediately
thereafter, Two River will merge with and into the Company, with the Company as the surviving corporation, to be followed by the merger of Two River Community Bank, a New Jersey chartered non-member bank and a wholly-owned Subsidiary of Two River
(“Two River Bank”), with and into Company Bank, with Company Bank as the surviving institution (together, the “Mergers”, and the date of the closing of such Mergers, the “Closing Date”); 

WHEREAS, Two River employed Mr. Moss as President and Chief Executive Officer of Two River until December 31,
2019 at which time Mr. Moss’s employment ceased in connection with the terms of the Restated Amendment to Employment Agreement, dated as of the date hereof, by and among Two River, Two River Bank, the Company and Mr. Moss (the
“Restated Amendment”); and 
 WHEREAS, in accordance with the terms and subject to the conditions
set forth in the Merger Agreement, the Company agreed to appoint a member of the Two River Board of Directors to the Board of Directors of the Company and the Board of Directors of Company Bank, in each case, effective as of the Effective Time;

 WHEREAS, based on the recommendation of the Leadership Committee of the Company, the Board of Directors of the
Company and the Board of Directors of Company Bank appointed Mr. Moss to the Board of Directors of both the Company and the Company Bank, in each case, effective as of the Effective Time; and 

WHEREAS, the Parties contemplate that Mr. Moss will serve in a consultant capacity to Company Bank for the
twenty-one (21) month period beginning on January 1, 2020. 
 NOW THEREFORE, in consideration of the
mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, the Parties hereto agree as follows: 

1.         Compensation for Board Service. During his tenure as a member
of the Board of Directors of the Company (the “Board”), Mr. Moss shall be eligible to receive compensation as a non-employee director of the Company and the Company Bank following his appointment to the

 
Board and the Board of Directors of Company Bank in accordance with the Company’s non-employee director compensation program as then in effect, pro-rated for any portion of the year for
which he does not serve as a non-employee director in the discretion of the Board. 
 2.
        Consulting Services. 
 (a) Services. For the period beginning
on January 1, 2020, which is the date of the Effective Time, and expiring on September 30, 2021 (the “Consulting Period”), Mr. Moss shall provide the following services to the Company and the Company Bank (the
“Services”): (1) assisting with the retention of customers and key employees; (2) becoming generally familiar with the Company Bank’s services and products and introducing prospective customers to appropriate Company
Bank employees; (3) otherwise initiating referrals for Company Bank business development officers and relationship managers; (4) assisting with customer relationship management; and (5) undertaking such other duties and
responsibilities as may be reasonably related to the foregoing. Notwithstanding the foregoing, Mr. Moss shall not be required to provide the Services for more than eight (8) hours per week during any part of the Consulting Period. It
is the intent of the Parties that the Services shall not exceed twenty percent (20%) of the average level of services that Mr. Moss performed during the three (3) year period prior to the Effective Time. 

(b) Consulting Fee. In exchange for the Services performed hereunder, the Company and Company Bank agree to pay
Mr. Moss $7,770 per month during the Consulting Period. The fee for the Services shall be paid within thirty (30) days following the last day of each calendar month during the Consulting Period, with the last payment due within thirty
(30) days following the termination or expiration of the Consulting Period. In the event that the Company terminates the Services prior to the end of the Consulting Period or in the event Mr. Moss dies before the end of the Consulting
Period, Mr. Moss, or his designated beneficiary in the event of death, shall continue to receive the monthly consulting fee for the remainder of the Consulting Period at the same time such payments would have been paid to Mr. Moss had
Mr. Moss continued to provide the Services during the entire Consulting Period. 
 (c) Expense
Reimbursement. After the Effective Time, the Company and Company Bank shall reimburse Mr. Moss for reasonable business expenses incurred during the course of performing the Services during the Consulting Period, in a manner consistent
with the applicable expense reimbursement policies of the Company and the Company Bank, upon presentation to the Company of an itemized account of such expenses in such form as the Company and Company Bank may reasonably require, provided that such
reimbursement shall be made as soon as practicable but in no event later than March 15 of the year following the year in which such right to such reimbursement occurred. 

(d) Administrative Matters. During the Consulting Period, subject to compliance with all applicable Company policies
and procedures, Mr. Moss shall be provided with his current office space at 766 Shrewsbury Avenue, Tinton Falls, NJ 07724, with reasonable existing secretarial support. 

(e) Status as Independent Contractor. In all matters relating to the Services, Mr. Moss shall be acting as an
independent contractor. Neither Mr. Moss, nor any affiliated employees or subcontractors, shall be the agent(s) or employee(s) of the Company or the Company Bank under 

  
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the meaning or application of any federal or state laws, including but not limited to unemployment insurance or worker’s compensation laws. Mr. Moss will be solely responsible for all
income, business or other taxes imposed on the recipient and payable as a result of the fees paid for the Services. Mr. Moss shall not sign any agreement or make any commitments on behalf of the Company or the Company Bank or bind the Company
or the Company Bank in any way, nor shall Mr. Moss make any public statements concerning the Services that purport to be on behalf of the Company or the Company Bank, in each case without prior express written consent from the Company or the
Company Bank. Except as otherwise may conflict with the other provisions of this Agreement, Mr. Moss shall perform the Services on a non-exclusive basis and shall be free to accept other engagements during the term of this Agreement. The
Parties hereby acknowledge and agree that neither the Company nor the Company Bank has the right to control the manner, means, or method by which Mr. Moss performs the Services. 

3.         Health Insurance Coverage. The Company Bank shall pay the monthly
premium cost of COBRA continuation coverage equal to $1,575 for Mr. Moss for the period beginning on the Closing Date and ending five (5) months thereafter. Mr. Moss shall be responsible for all applicable taxes incurred by him in
connection with such payments and the provision of such coverage provided hereunder shall be secondary to any coverage provided to Mr. Moss by an employer and to any Medicare coverage for which Mr. Moss becomes eligible. 

4.         Cooperation. During the Consulting Period, Mr. Moss agrees to
make himself reasonably available (after taking into account his reasonable personal and professional schedule) to cooperate with the Company in matters that concern: (i) requests for information about the Services Mr. Moss provided to the
Company, its affiliates and their predecessors, (ii) the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company, its affiliates and their predecessors which
relate to events or occurrences involving the Services or to matters involving Two River and Two River Bank, or (iii) any investigation or review by any federal, state or local regulatory, quasi-regulatory or self-governing authority as any
such investigation or review relates to events or occurrences that transpired while Mr. Moss was providing the Services to the Company, or to matters involving Two River and Two River Bank. Mr. Moss’s cooperation shall include, but is
not limited to: (A) making himself reasonably available to meet and speak with officers or employees of the Company, the Company’s counsel or any third-parties at the request of the Company at times and locations to be determined by the
Company reasonably and in good faith, and (B) giving accurate and truthful information at any interviews and accurate and truthful testimony in any legal proceedings or actions. Unless required by law or legal process, Mr. Moss will
not knowingly or intentionally furnish information to or cooperate with any non-governmental entity in connection with any potential or pending proceeding or legal action involving matters arising during Mr. Moss’s employment with the
Company, its affiliates and their predecessors. 
 5.         Section 409A; Other
Tax Matters. The Parties intend for the payments and benefits under this Agreement to be exempt from Section 409A or, if not so exempt, to be paid or provided in a manner which complies with the requirements of such section and intend
that this Agreement shall be construed and administered in accordance with such intention. Any payments that qualify for the “short-term deferral” exception or another exception under Section 409A shall be paid under the
applicable exception. For purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of compensation under this Agreement shall be 

  
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treated as a separate payment of compensation. To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would otherwise be payable
and benefits that would otherwise be provided pursuant to this Agreement during the six (6) month period immediately following Mr. Moss’s separation from service shall instead be paid on the first business day after the date that is
six (6) months following his termination of employment (or upon his death, if earlier). Additionally, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: the
expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; the reimbursement of eligible expenses or in-kind benefits shall be
made promptly, subject to the Company’s applicable policies, but in no event later than the end of the year after the year in which such expense was incurred; and the right to reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit. Notwithstanding any other provision of this Agreement, the Company or the Company Bank may withhold from amounts payable under this Agreement all amounts that are required or authorized to be
withheld, including, but not limited to, federal, state, local and foreign taxes required to be withheld by applicable laws or regulations. 

6.         Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New Jersey, without regard to the application of any choice-of-law rules that would result in the application of another state’s laws. 

7.         Entire Agreement. This Agreement sets forth the entire
agreement between the Parties concerning the subject matter of this Agreement and supersedes any other written or oral promises or proposals concerning the subject matter hereof. No waiver or amendment of this Agreement will be effective unless
it is in writing, refers to this Agreement, and is signed by the Parties. 
 8.
        Successors and Assigns. This Agreement is binding upon, and shall inure to the benefit of, the Parties and their respective successors and assigns. 

9.         Termination. If the Closing does not occur or the Merger Agreement
is terminated prior to the Closing Date, then this Agreement shall terminate ab initio and be of no further force or effect. 

10.         Arbitration. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration, conducted within 25 miles of OceanFirst Financial Corp., 110 West Front Street, Red Bank, New Jersey 07701, in accordance with the Employment Rules of the American
Arbitration Association then in effect and with the Company paying the costs of arbitration. 
 11.
        Defined Terms. Capitalized terms used but not defined in this Agreement shall have the meanings ascribed to them in the Merger Agreement. 

 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of
the date first set forth above. 
  

	
	OCEANFIRST FINANCIAL CORP.
	
	By: /s/ Christopher D. Maher                    
	
	Name: Christopher D. Maher                    
	
	OCEANFIRST BANK, NATIONAL ASSOCIATION
	
	By: /s/ Christopher D. Maher                    
	
	Name: Christopher D. Maher                    
	
	 /s/ WILLIAM D.
MOSS                            

	WILLIAM D. MOSS

 Signature Page to William D. Moss 

Consulting AgreementEXHIBIT 10.1

 

	
         

        duke energy carolinas,
        llc, AND DUKE ENERGY PROGRESS, LLC,

         

        Petitioners,

        v.       

         

        NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY,

         

        Respondent,

         

        APPALACHIAN VOICES, THE STOKES COUNTY BRANCH OF THE NAACP, MOUNTAINTRUE,
        THE CATAWBA RIVERKEEPER FOUNDATION, THE SIERRA CLUB, THE WATERKEEPER ALLIANCE, and THE ROANOKE RIVER BASIN ASSOCIATION,

         

        Respondent-Intervenors.

         
	
         

         

         

         

         

         

         

         

         

         

        SETTLEMENT AGREEMENT

 

THIS SETTLEMENT AGREEMENT
(the “Agreement”) is entered into on December 31st, 2019 (“Effective Date”) between the Parties, defined
as follows:

		·	“Duke Energy”:
Duke Energy Carolinas, LLC and Duke Energy Progress, LLC

 

		·	“DEQ”: The
North Carolina Department of Environmental Quality

 

		·	“Community Groups”:
Appalachian Voices, Stokes County Branch of the NAACP, MountainTrue, The Catawaba Riverkeeper Foundation, Waterkeeper Alliance,
Sierra Club, Roanoke River Basin Association, Cape Fear River Watch, Inc., Neuse River Foundation/Sound Rivers, Inc., and NC State
Conference of the NAACP.1

 

 

1 To the extent some of these
Community Groups are not party to this litigation but rather to prior litigation addressing other Duke Energy coal ash facilities,
they have been consulted by their counsel and agree to the terms and conditions herein only to the extent applied to the facility
or facilities about which they have previously been involved in litigation related to the disposition of coal ash or alleged violations
related to coal ash.

 

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The Parties enter into this Settlement
Agreement in order to resolve the matters referenced herein.

 

Background

 

		1.	On April 1, 2019, DEQ issued Coal Combustion Residuals Surface Impoundment
Closure Determinations (the “Closure Determinations”) pursuant to the Coal Ash Management Act (“CAMA”)
for Duke Energy’s Allen, Belews Creek, Cliffside, Marshall, Mayo, and Roxboro Steam Stations (singular, “Facility”;
collectively, the “Facilities”). These Closure Determinations ordered excavation of all coal combustion residuals (“CCR”)
impoundments at the Facilities.

		2.	On April 26, 2019, Duke Energy filed Petitions for Contested Case
Hearing in the North Carolina Office of Administrative Hearings (“OAH”) in 19 EHR 2398, 19 EHR 2399, 19 EHR 2401, 19
EHR 2403, 19 EHR 2404, and 19 EHR 2406 challenging DEQ’s Closure Determination for each of the Facilities (“OAH Proceedings”).

		3.	On May 9, 2019, DEQ issued a letter adjusting certain dates and making
certain clarifications related to the Closure Determinations.

		4.	On May 24, 2019, Duke Energy filed Amended Petitions for each Facility
in 19 EHR 2398, 19 EHR 2399, 19 EHR 2401, 19 EHR 2403, 19 EHR 2404, and 19 EHR 2406 challenging DEQ’s May 9, 2019 letter
in addition to DEQ’s April 1, 2019 Closure Determinations.

		5.	In
addition to the OAH Proceedings, the Parties are involved in the following litigation relating to the Facilities: the State Enforcement
Actions (“State of North Carolina ex rel. North Carolina Department of Environmental Quality and Roanoke River Basin
Association, Sierra Club, Waterkeeper Alliance, Cape Fear River Watch, Inc., Sound Rivers, Inc. and Winyah Rivers v. Duke Energy
Progress, LLC 13 CvS 11032 (Wake County)” and “State of North Carolina ex rel. North Carolina Department of
Environmental

 

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	 	 	 Quality and Catawba Riverkeeper Foundation, Inc., Waterkeeper
Alliance, MountainTrue, Appalachian Voices, Yadkin Riverkeeper, Inc., Dan River Basin Association, and Southern Alliance for Clean
Energy v. Duke Energy Carolinas, LLC” 13 CvS 14461 (Mecklenburg County); three federal Clean Water Act lawsuits (“Roanoke
River Basin Association v. Duke Energy Progress, LLC” No. 1:16-cv-607 (MDNC) (Mayo), “Roanoke River Basin Association
v. Duke Energy Progress, LLC” No. 1:17-cv-452 (MDNC) (Roxboro), and “Appalachian Voices et al v. Duke Energy Carolinas,
LLC” No. 1:17-cv-1097 (MDNC) (Belews Creek)); and twelve petitions for judicial review (“PJRs”) in North Carolina
Superior Court petitioning two Orders issued in the OAH Proceedings (Case Nos. 19 CvS 19908, 19 CvS 19909, 19 CvS 19910, 19 CvS
19911, 19 CvS 19912, 19 CvS 19913, 19 CvS 22714, 19 CvS 22715, 19 CvS 22716, 19 CvS 22717, 19 CvS 22718, and 19 CvS 22719).

		6.	The Parties desire to resolve and settle any disputes between them
in connection with the OAH proceedings, the State Enforcement Actions, the federal Clean Water Act lawsuits, and the PJRs in order
to ensure that the impoundments are excavated on an expedited basis and to remove the uncertainty associated with litigation. The
Community Groups and Duke Energy further agree that the actions to be taken by DEQ and Duke Energy under this Agreement and related
Consent Order will resolve the pending issues in the Clean Water Act lawsuits. 

The Facilities

 

		7.	This Agreement addresses the following impoundments at the Facilities
regulated under CAMA.

 

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		a.	At
the Allen Steam Station, there are two CCR impoundments, the Retired Ash Basin and the Active Ash Basin. The Retired Ash Basin
is approximately 123 acres and contains approximately 6,100,000 tons of coal ash and the Active Ash Basin is approximately 170
acres and contains approximately 10,480,000 tons of coal ash.2

		b.	At the Belews Creek Steam Station, there is one CCR impoundment,
the Ash Basin. The Ash Basin is approximately 270 acres and contains approximately 11,970,000 tons of coal ash.

		c.	At the Cliffside Steam Station/Rogers Energy Complex, there are two
CCR impoundments, the Units 1-5 Inactive Ash Basin and the Active Ash Basin. The Units 1-5 Inactive Ash Basin is approximately
46 acres and contains approximately 2,350,000 tons of coal ash and the Active Ash Basin is approximately 86 acres and contains
approximately 5,240,000 tons of coal ash.

		d.	At the Marshall Steam Station, there is one CCR impoundment, the
Ash Basin. The Ash Basin is approximately 360 acres and contains approximately 17,650,000 tons of coal ash.3

 

 

2 Note that the tonnage of coal ash includes only the coal ash contained
within the impoundments and not coal ash in landfills or structural fills. Duke Energy on the one hand, and DEQ and the Community
Groups on the other, have a dispute as to whether coal ash under a lawfully permitted landfill is regulated by CAMA. At Allen,
the Retired Ash Basin Landfill and subgrade is 25 acres and contains approximately 1,740,000 tons of coal ash. There is approximately
1,392,000 tons of coal ash beneath the Retired Ash Basin Landfill, and approximately 991,000 tons of coal ash in the area designated
as the “DORS” area.

 

3 Note that the tonnage of coal ash includes only the coal ash contained
within the impoundments and not coal ash in landfills or structural fills. Duke Energy on the one hand, and DEQ and the Community
Groups on the other, have a dispute as to whether coal ash under a lawfully permitted landfill is regulated by CAMA. At Marshall,
the Structural Fill beneath solar panels contains approximately 6,490,000 tons of coal ash. The subgrade fill beneath Industrial
Landfill (“ILF”) Cells 1 and 2 contains approximately 460,000 tons of coal ash. The subgrade fill beneath ILF Cells
3 and 4, contains approximately 409,000 tons of coals ash. The Old Ash Fill (1804 Phase I

 

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		e.	At the Mayo Steam Station, there is one CCR impoundment, the Ash
Basin. The Ash Basin is approximately 153 acres and contains approximately 6,630,000 tons of coal ash.

		f.	At the Roxboro Steam Station, there are two CCR impoundments, the
East Ash Basin and the West Ash Basin. The West Ash Basin is approximately 225 acres and contains approximately 12,970,000 tons
of coal ash and the East Ash Basin is approximately 71 acres and contains approximately 7,100,000 tons of coal ash.4

		8.	Each of these impoundments is a CCR impoundment as defined by CAMA,
N. C. Gen. Stat. § 130A-309.201(6), and the Federal CCR Rule 40 CFR Parts 257 and 261.

		9.	The total approximate amount of the coal ash set forth in paragraph
7 is estimated to be 80.5 million tons.

Facility-Specific Obligations of Duke
Energy. 

 

Allen

		10.	Closure
of Coal Ash Impoundments. At the Allen Steam Station, Duke Energy will excavate and remove all coal ash from the Retired Ash
Basin and Active Ash Basin, either (1) to lined onsite locations for disposal in a CCR landfill, industrial landfill, or municipal

 

 

Landfill) contains approximately 626,000
tons of coal ash. The Retired Landfill (1804 Phase II Landfill) contains approximately 4,870,000 tons of coal ash. The ILF (Permit
18-12) contains approximately 2,050,000 tons of coal ash. The Marshall ILF continues to receive production ash and these tonnages
represent the approximate tonnages as of the Effective Date.

 

4 Note that the tonnage of coal ash includes only the coal ash contained
within the impoundments and not coal ash in landfills or structural fills. Duke Energy on the one hand, and DEQ and the Community
Groups on the other, have a dispute as to whether coal ash under a lawfully permitted landfill is regulated by CAMA. For Roxboro,
the Roxboro Monofill contains approximately 6,818,000 tons of coal ash one portion of the landfill and an additional 7,635,000
tons of coal ash in a separate portion of that landfill. The Roxboro Monofill continues to receive production ash and these tonnages
represent the approximate tonnages as of the Effective Date.

 

    	 	5	 

     

    

 

	 	 	 solid waste landfill or (2) for beneficial use for cementitious
purposes or another industrial process at least as environmentally protective. If a process other than a cementitious process is
to be used, Duke Energy will provide reasonable notice to the Community Groups and DEQ. Duke Energy shall remove or permanently
close all pipes currently running through or beneath the Retired Ash Basin and Active Ash Basin. Duke Energy will thereafter stabilize
and close the area where the Retired Ash Basin and Active Ash Basin are located pursuant to applicable law. The total impoundment
ash that will be excavated is estimated to be approximately 16,632,000 tons of coal ash.

		11.	Disposition of Other Coal Ash. Additionally, Duke Energy will
excavate and remove coal ash from the Storage Areas, Structural Fills, and Landfill from the top of the Retired Ash Basin, either
(1) to lined onsite locations for disposal in a CCR landfill, industrial landfill, or municipal solid waste landfill or (2) for
beneficial use for cementitious purposes or another industrial process at least as environmentally protective. If a process other
than a cementitious process is to be used, Duke Energy will provide reasonable notice to the Community Groups and DEQ. The total
non-impoundment ash that will be excavated is estimated to be approximately 2,731,000 tons of coal ash. The closure plan will provide
that ash shall remain for structural stability around the footers for the transmission towers, and that all ash that remains will
be covered with a geomembrane layer. The amount of coal ash referred to in this paragraph that shall remain is estimated to be
between 30,000 and 50,000 tons and is unsaturated.

		12.	Deadline
for Closure. Duke Energy projects that it will require until December 31, 2037, to complete all excavation as required in
Paragraphs 10 and 11 and the Parties understand that Duke Energy will request variances to meet the deadline imposed by this Agreement.

 

    	 	6	 

     

    

 

	 	 	 Duke Energy shall complete all excavation required in Paragraphs
10 and 11 by the statutory deadline set forth in CAMA, as amended by House Bill 630, or as may further be amended from time to
time, and subject to any variances granted pursuant to N.C. Gen. Stat. § 130A-309.215, but in any event not later than December
31, 2037. For clarity, this paragraph does not constitute a variance of the CAMA deadline for completion of closure. DEQ will approve
or disapprove a request for variance at the appropriate time. The parties are aware that the Closure Plan submitted to DEQ for
Allen on December 31, 2019, will not contain complete information reflecting the details of this Agreement. Pursuant to its statutory
authority under N.C. Gen. Stat. § 130A-309.214(c), DEQ directs that such information shall be submitted no later than 30 days
after the Effective Date.

		13.	Groundwater Corrective Action Plan. No later than December 31, 2019, Duke Energy shall submit
a proposed Groundwater Corrective Action Plan to DEQ for its review and approval. The Corrective Action Plan will include active
remedial measures designed to address any groundwater contamination as required by N.C. Gen. Stat. § 130A-309.211, 15A NCAC
Subchapter 2L (the “2L groundwater rules”), and any other applicable laws, statutes, or regulations, subject to the
provisions of Paragraph 51 and provided that active remedial measures shall not be required to remediate areas within the geographic
limitation as specified in Paragraph 52.

 

Belews Creek

 

		14.	Closure
of Coal Ash Impoundments. At Belews Creek, Duke Energy will excavate and remove all coal ash from the Ash Basin except the
impoundment coal ash under or within the waste boundary of the Pine Hall Road Landfill either (1) to lined onsite locations for

 

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	 	 	disposal in a CCR landfill, industrial
                              landfill, or municipal solid waste landfill or (2) for beneficial use for cementitious purposes
                              or another industrial process at least as environmentally protective. If a process other than a
                              cementitious process is to be used, Duke Energy will provide reasonable notice to the Community
                              Groups and DEQ. Duke Energy shall remove or permanently close all pipes currently running through
                              or beneath the Ash Basin. Duke Energy will thereafter stabilize and close the area where the Ash
                              Basin is located pursuant to applicable law. The total impoundment ash that will be excavated is
                              estimated to be approximately 11,870,000 tons of coal ash. The closure plan will provide that ash
                              shall remain underneath the Pine Hall Road Landfill, which is capped with a geosynthetic cap and
                              has been closed pursuant to permit 8503-INDUS-1984 and stopped receiving coal ash in 2014. The amount
                              of coal ash underneath the Pine Hall Road Landfill is estimated to be no more than 100,000 tons.
                              Provided that, if Duke Energy is not able to demonstrate on or before February 1, 2020, that it
                              is able to meet the requirements of paragraph 17, Duke shall submit an addendum to the closure plan
                              on or before February 15, 2020, providing for the full excavation of this ash.

		15.	Deadline for Closure. Duke Energy projects that it will require
until December 31, 2031, to complete all excavation as required in Paragraph 14, and the Parties understand that Duke Energy will
request variances to meet the deadline imposed by this Agreement. Duke Energy shall complete all excavation required in Paragraph
14 by the statutory deadline set forth in CAMA, as amended by House Bill 630, or as may further be amended from time to time, and
subject to any variances granted pursuant to N.C. Gen. Stat. § 130A-309.215, but in any event not later than December 31,
2034. For clarity, this paragraph does not 

 

    8

     

    

 

			constitute a variance of
the CAMA deadline for completion of closure. DEQ will approve or disapprove a request for variance at the appropriate time.

		16.	Structural Stability, Monitoring, and Sampling. The coal ash
under and within the waste boundary of the Pine Hall Road Landfill and within the waste boundary of the Ash Basin shall be stabilized
with a permanent structure (“stability feature”) for purposes of preserving the structural stability through the use
of a wall unless a slope is shown to be as appropriate, so as to prevent lateral movement of the coal ash pursuant to a plan to
be submitted for DEQ approval no later than June 30, 2020. Within seven (7) days of completing the stability feature, Duke Energy
shall notify DEQ. Additionally, pursuant to a plan approved by DEQ, following excavation in the footprint of the former Ash Basin
and downgradient of the Pine Hall Road Landfill, Duke Energy shall conduct groundwater monitoring (including the installation of
new wells if reasonably necessary) and, upon re-formation of surface water features that demonstrate DEQ-confirmed intermittent
or perennial flows (not merely precipitation), surface water sampling. Consistent with the provisions of Paragraph 51, the plan
shall propose (1) additional groundwater remedial measures for any coal ash constituent if the data indicate an increasing trend
in groundwater concentrations in excess of the standards set forth in 15A NCAC 2L. 0202 (“2L groundwater standards”)
for four (4) consecutive semi-annual sampling events for that constituent, subject to the provisions of Paragraph 52, and (2) surface
water treatment if the data shows impact from coal ash constituents above the 2B standards to waters of the State notwithstanding
the provisions of Paragraph 52. This plan shall be submitted to DEQ no later than 120 days following completion of the stability
feature. If appropriate, the additional monitoring plan will be integrated into the existing site monitoring plan to avoid 

 

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			redundant or conflicting
monitoring programs. This paragraph shall not apply if the coal ash under and within the waste boundary of the Pine Hall Road
Landfill and within the waste boundary of the Ash Basin is excavated.

		17.	Groundwater Corrective Action Plan. No later than December
31, 2019, Duke Energy shall submit a proposed Groundwater Corrective Action Plan to DEQ for its review and approval. The Corrective
Action Plan will include active remedial measures designed to address any groundwater contamination as required by N.C. Gen. Stat.
§ 130A-309.211, the 2L groundwater rules, and any other applicable laws, statutes, or regulations, provided that active remedial
measures shall not be required to remediate areas within the geographic limitation as specified in Paragraph 52. If the coal ash
under and within the waste boundary of the Pine Hall Road Landfill and within the waste boundary of the Ash Basin is not excavated,
then at a minimum, Duke Energy shall remedy violations that DEQ determines are material violations of the 2L groundwater standards
attributable to the Ash Basin at or beyond the geographic limitation as described in Paragraph 52 by December 31, 2029, subject
to the provisions of Paragraph 51. 

 

Cliffside/Rogers

 

		18.	Closure
of Coal Ash Impoundments. At Cliffside Steam Station/Rogers Energy Complex, Duke Energy will excavate and remove all coal
ash from the Unit 5 Inactive Ash Basin and Active Ash Basin, either (1) to lined onsite locations for disposal in a CCR landfill,
industrial landfill, or municipal solid waste landfill or (2) for beneficial use for cementitious purposes or another industrial
process at least as environmentally protective. If a process other than a cementitious process is to be used, Duke Energy will
provide

 

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	 	 	reasonable notice to the Community Groups and DEQ. Duke Energy
shall remove or permanently close all pipes currently running through or beneath the Unit 5 Inactive Ash Basin and Active Ash Basin.
Duke Energy will thereafter stabilize and close the area where the Unit 5 Inactive Ash Basin and Active Ash Basin are located pursuant
to applicable law. The total impoundment ash that will be excavated is estimated to be approximately 7,590,000 tons of coal ash.

		19.	Deadline for Closure. Duke Energy projects that it will require
until December 31, 2028, to complete all excavation as required in Paragraph 18. Duke Energy shall complete all excavation required
in Paragraph 18 by the statutory deadline set forth in CAMA, as amended by House Bill 630, or as may further be amended from time
to time, and subject to any variances granted pursuant to N.C. Gen. Stat. § 130A-309.215, but in any event not later than
December 31, 2029.

		20.	Groundwater Corrective Action Plan. No later than December
31, 2019, Duke Energy shall submit a proposed Groundwater Corrective Action Plan to DEQ for its review and approval. The Corrective
Action Plan will include active remedial measures designed to address any groundwater contamination as required by N.C. Gen. Stat.
§ 130A-309.211, the 2L groundwater rules, and any other applicable laws, statutes, or regulations, subject to the provisions
of Paragraph 50 and provided that active remedial measures shall not be required to remediate areas within the geographic limitation
as specified in Paragraph 52. 

 

Marshall

 

		21.	Closure of Coal Ash Impoundments. At the Marshall Steam Station,
Duke Energy will excavate and remove all coal ash from the Ash Basin, except the coal ash under or within 

 

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			the
                                         waste boundaries of the PV Structural Fill and the 1804 Phase II Landfill, either (1)
                                         to lined onsite locations for disposal in a CCR landfill, industrial landfill, or municipal
                                         solid waste landfill or (2) for beneficial use for cementitious purposes or another industrial
                                         process at least as environmentally protective. If a process other than a cementitious
                                         process is to be used, Duke Energy will provide reasonable notice to the Community Groups
                                         and DEQ. Duke Energy shall remove or permanently close all pipes currently running through
                                         or beneath the Ash Basin. Duke Energy will thereafter stabilize and close the area where
                                         the Ash Basin is located pursuant to applicable law. The total ash that will be excavated
                                         is estimated to be approximately 16,800,000 tons of coal ash.

		22.	Disposition of Other Coal Ash. Additionally, as part of its
groundwater Corrective Action Plan for the Marshall site, Duke Energy will excavate and remove approximately 626,000 tons of coal
ash from the 1804 Phase I Landfill (sometimes referred to as the “old ash fill”) adjacent to the Ash Basin either (1)
to lined onsite locations for disposal in a CCR landfill, industrial landfill, or municipal solid waste landfill or (2) for beneficial
use for cementitious purposes or another industrial process at least as environmentally protective. If a process other than a cementitious
process is to be used, Duke Energy will provide reasonable notice to the Community Groups and DEQ. Such excavation shall be complete
no later than December 31, 2024. An approximate depiction of this excavation is attached as Exhibit A. The total ash that
will be excavated from the 1804 Phase I Landfill is approximately 626,000 tons of coal ash. 

		23.	Deadline for Closure. Duke Energy projects that it will require
until December 31, 2034, to complete all excavation as required in Paragraph 21, and the Parties understand that Duke Energy will
request variances to meet the deadline imposed by this Agreement. Duke

 

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			Energy shall complete all excavation required Paragraph
21 by the statutory deadline set forth in the CAMA, as amended by House Bill 630, or as may further be amended from time to time,
and subject to any variances granted pursuant to N.C. Gen. Stat. § 130A-309.215, but in any event not later than December
31, 2035. For clarity, this paragraph does not constitute a variance of the CAMA deadline for completion of closure. DEQ will
approve or disapprove a request for variance at the appropriate time.

		24.	Structural Stability, Monitoring, and Sampling. The coal ash
under and within the waste boundary of the PV Structural Fill and the 1804 Phase II Landfill and within the waste boundary of the
Ash Basin shall be stabilized with a permanent structure (“stability feature”) for purposes of preserving the structural
stability through the use of a wall unless a slope is shown to be as appropriate, so as to prevent lateral movement of the coal
ash pursuant to a plan to be submitted for DEQ approval no later than June 30, 2020. Within seven (7) days of completing the stability
feature, Duke Energy shall notify DEQ. Additionally, pursuant to a plan approved by DEQ, following excavation in the footprint
of the former Ash Basin and downgradient of the PV Structural Fill and the 1804 Phase II Landfill, Duke Energy shall conduct groundwater
monitoring (including the installation of new wells if reasonably necessary) and, upon re-formation of surface water features that
demonstrate DEQ-confirmed intermittent or perennial flows (not merely precipitation), surface water sampling. Consistent with the
provisions of Paragraph 51, the plan shall propose (1) additional groundwater remedial measures for any coal ash constituent if
the data indicate an increasing trend in groundwater concentrations in excess of the 2L groundwater standards for four (4) consecutive
semi-annual sampling events for that constituent, subject to the provisions of Paragraph 52, and (2) surface water treatment if 

 

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			the data shows impact from coal ash constituents above
the 2B standards to waters of the State notwithstanding the provisions of Paragraph 52. This plan shall be submitted to DEQ no
later than 120 days following completion of the stability feature. If appropriate, the additional monitoring plan will be integrated
into the existing site monitoring plan to avoid redundant or conflicting monitoring programs.

		25.	Groundwater Corrective Action Plan. No later than December 31, 2019, Duke Energy shall submit
a proposed Groundwater Corrective Action Plan to DEQ for its review and approval. As part of the Corrective Action Plan, Duke Energy
shall install a geosynthetic cap over the PV Structural Fill and 1804 Phase II Landfill by December 31, 2024. The Corrective Action
Plan will include active remedial measures designed to address any groundwater contamination as required by N.C. Gen. Stat. §
130A-309.211, the 2L groundwater rules, and any other applicable laws, statutes, or regulations, subject to the provisions of Paragraph
51 and provided that active remedial measures shall not be required to remediate areas within the geographic limitation as specified
in Paragraph 52. At a minimum, Duke Energy shall remedy any material violations of the 2L groundwater standards as determined by
DEQ that is attributable to the Ash Basin at or beyond the geographic limitation as described in Paragraph 52 by December 31, 2029,
subject to the provisions of Paragraph 50.

 

Mayo

 

		26.	Closure of Coal Ash Impoundments. At the Mayo Steam Station,
Duke Energy will excavate and remove all coal ash from the Ash Basin either (1) to lined onsite locations for disposal in a CCR
landfill, industrial landfill, or municipal solid waste landfill or (2) for 

 

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			beneficial use for cementitious purposes or another industrial
process at least as environmentally protective. If a process other than a cementitious process is to be used, Duke Energy will
provide reasonable notice to the Community Groups and DEQ. Duke Energy shall remove or permanently close all pipes currently running
through or beneath the Ash Basin. Duke Energy will stabilize and close the area where the Ash Basin is located pursuant to applicable
law. The total ash that will be excavated is estimated to be approximately 6,630,000 tons of coal ash.

		27.	Deadline for Closure. Duke Energy projects that it will require
until December 31, 2028, to complete all excavation as required in Paragraph 26. Duke Energy may request variances to meet the
deadline imposed by this Agreement. Duke Energy shall complete all excavation required in Paragraph 26 by the statutory deadline
set forth in CAMA, as amended by House Bill 630, or as may further be amended from time to time, and subject to any variances granted
pursuant to N.C. Gen. Stat. § 130A-309.215, but in any event not later than December 31, 2029.

		28.	Groundwater Corrective Action Plan. No later than December 31, 2019, Duke Energy shall submit
a proposed Groundwater Corrective Action Plan to DEQ for its review and approval. The Corrective Action Plan will include remedial
measures designed to address any groundwater contamination as required by N.C. Gen. Stat. § 130A-309.211, the 2L groundwater
rules, and any other applicable laws, statutes, or regulations, subject to the provisions of Paragraph 50 and provided that active
remedial measures shall not be required to remediate areas within the geographic limitation as specified in Paragraph 52.

 

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Roxboro

 

		29.	Closure of Coal Ash Impoundments. At the Roxboro Steam Station,
Duke Energy will excavate and remove all coal ash from the West Ash Basin (and its extension impoundment area, sometimes referred
to as the “Southern Extension Impoundment”) and all coal ash from the East Ash Basin (and its extension impoundment
area, sometimes referred to as the “Eastern Extension Impoundment”) except the coal ash under or within the waste boundary
of the Roxboro Monofill, Permit No. 7302-INDUS-1988. The excavated ash will be either (1) disposed of at lined onsite locations
for disposal in a CCR landfill, industrial landfill, or municipal solid waste landfill or (2) used for beneficial use for cementitious
purposes or another industrial process at least as environmentally protective. If a process other than a cementitious process is
to be used, Duke Energy will provide reasonable notice to the Community Groups and DEQ. The scope of excavation is approximately
depicted on Exhibit B to this agreement. Duke Energy shall remove or permanently close all pipes currently running through
or beneath the West Ash Basin and East Ash Basin except those associated with the Roxboro Monofill. Duke Energy will thereafter
stabilize and close the area where the West Ash Basin and East Ash Basins are located pursuant to applicable law. The total ash
that will be excavated is estimated to be approximately 16,860,000 tons of coal ash. Additionally, Duke Energy will remove all
coal ash fill from the Gypsum Pad area following retirement of the coal-fired generating units at Roxboro. 

 

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		30.	Disposition of Other Coal Ash. No later than 2 years and 6
months after the retirement of the coal-fired units at Roxboro, the remaining coal ash at the site will be closed and covered with
a cap system that meets the requirements of North Carolina and federal law. 

		31.	Deadline for Closure. Duke Energy projects that it will require
until December 31, 2035, to complete all excavation as required in Paragraph 29, and that the Parties understand that Duke Energy
will request variances to meet the deadline imposed by this Agreement. Duke Energy shall complete all excavation required in Paragraph
29 by the statutory deadline set forth in CAMA, as amended by House Bill 630, or as may further be amended from time to time, and
subject to any variances granted pursuant to N.C. Gen. Stat. § 130A-309.215, but in any event not later than December 31,
2036. For clarity, this paragraph does not constitute a variance of the CAMA deadline for completion of closure. DEQ will approve
or disapprove a request for variance at the appropriate time.

		32.	Structural Stability, Monitoring, and
                                                                                                      Sampling. The coal ash under and within the waste boundary of the Roxboro Monofill and within the waste boundary of the
                                                                                                      East Ash Basin shall be stabilized with a permanent structure (“stability feature”) for purposes of preserving
                                                                                                      the structural stability through the use of a wall unless a slope is shown to be as appropriate so as to prevent lateral
                                                                                                      movement of the coal ash pursuant to a plan to be submitted for DEQ approval no later than June 30, 2020. Within seven (7)
                                                                                                      days of completing the stability feature, Duke Energy shall notify DEQ. Additionally, pursuant to a plan approved by DEQ,
                                                                                                      following excavation in the footprint of the former East Ash Basin and downgradient of the Roxboro Monofill, Duke Energy
                                                                                                      shall conduct groundwater monitoring (including the installation of new wells if reasonably necessary) and, upon re-formation
                                                                                                      of surface water features that demonstrate DEQ-confirmed intermittent or

 

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			perennial flows (not merely precipitation), surface water
sampling. Consistent with the provisions of Paragraph 51, the plan shall propose (1) additional groundwater remedial measures
for any coal ash constituent if the data indicate an increasing trend in groundwater concentrations in excess of the 2L groundwater
standards for four (4) consecutive semi-annual sampling events for that constituent, subject to the provisions of Paragraph 52,
and (2) surface water treatment if the data shows impact from coal ash constituents above the 2B standards to waters of the State
notwithstanding the provisions of Paragraph 52. This plan shall be submitted to DEQ no later than 120 days following completion
of the stability feature. If appropriate, the additional monitoring plan will be integrated into the existing site monitoring
plan to avoid redundant or conflicting monitoring programs.

		33.	Groundwater Corrective Action Plan. No later than December 31, 2019, Duke Energy shall submit
a proposed Groundwater Corrective Action Plan to DEQ for its review and approval. The Corrective Action Plan will include active
remedial measures designed to address any groundwater contamination as required by N.C. Gen. Stat. § 130A-309.211, the 2L
groundwater rules, and any other applicable laws, statutes, or regulations, subject to the provisions of Paragraph 51 and provided
that active remedial measures shall not be required to remediate areas within the geographic limitation as specified in Paragraph
52. At a minimum, Duke Energy shall remedy any material violations of the 2L groundwater standards as determined by DEQ that is
attributable to the East Ash Basin at or beyond the geographical limitation described in Paragraph 52 by December 31, 2029, subject
to the provisions of Paragraph 51.

		34.	Progress Towards Groundwater Remediation. Subject to the provisions of this Agreement regarding
substantial compliance in Paragraph 51, no later than June 30, 2020, 

 

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	 	 	Duke Energy shall submit a report
                              for approval by DEQ analyzing the progress required by June 30, 2023 and by June 30, 2026 to achieve
                              such compliance with 2L groundwater standards by December 31, 2029. Subject to the provisions of
                              this Agreement regarding substantial compliance in Paragraph 50, no later than September 30, 2023
                              and September 30, 2026, Duke Energy shall submit reports demonstrating sufficient progress toward
                              the goal of achieving compliance with the 2L groundwater standards. If DEQ determines that sufficient
                              progress has not been made towards achieving this goal, Duke Energy shall implement additional remedial
                              measures as required by DEQ.

Additional
Obligations of Duke Energy 

 

		35.	Submission of Closure Plans. Duke Energy will submit to DEQ
one Closure Plan for each impoundment pursuant to N.C. Gen. Stat. § 130A-309.214(a) for each of the above-referenced Facilities
in accord with the provisions of this Agreement on or before December 31, 2019. Within 30 days thereafter, Duke Energy shall submit
the supplemental information requested by DEQ in Paragraph 12.

		36.	Notice to Community Groups. During the implementation of the
groundwater corrective action plans and any monitoring required by the terms of this Agreement, Duke Energy will provide concurrent
copies to the Community Groups of coal ash excavation reports and groundwater monitoring data (including spreadsheets) for the
Facilities as these are provided to DEQ. This may occur through U.S. Mail or electronic means to the person designated in Paragraph
67.

Obligations of DEQ

 

		37.	Review of Closure Plans. DEQ will review these proposed Closure
Plans and provide for public participation consistent with N.C. Gen. Stat. § 130A-309.214(b). The parties

 

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			recognize that DEQ may request the submittal of additional
information pursuant to N.C. Gen. Stat. § 130A-309.214(c). After receiving public comment, DEQ will approve or disapprove
the proposed closure plans pursuant to N.C. Gen. Stat. § 130A-309.214(c). DEQ will not disapprove a proposed closure plan
on the basis of the closure methodology employed, to the extent that such methodology is consistent with this Agreement.

		38.	Timely Review. In accordance with applicable law, DEQ agrees
to conduct an expeditious review and act expeditiously on all applications by Duke Energy for permits necessary for Duke Energy
to undertake the actions required under this Agreement as required by N.C. Gen. Stat. § 130A-309.203.

		39.	Review of Variance Requests. DEQ acknowledges that the deadline
for closure is a deadline for which the Secretary is authorized to grant a variance provided that the requirements of N.C. Gen.
Stat. § 130A-309.215 are satisfied. DEQ acknowledges that an extension of time required to complete excavation ordered by
DEQ and mandated by the terms of this Settlement Agreement may be a valid basis for seeking a variance from CAMA deadlines, including
requests for variance under Paragraph 45 below for purposes of beneficiation. DEQ will approve or disapprove a request for variance
at the appropriate time. 

		40.	CCR Rule Deadlines. DEQ agrees to cooperate with (including as appropriate to support) and
not oppose Duke Energy’s efforts to extend the deadlines imposed by the federal CCR rule in court or before an administrative
body to the extent that such an extension is necessary for Duke Energy to meet its obligations under this Agreement.

		41.	Further Excavation. For impoundments, structural fills, and landfills identified in this
Agreement, DEQ shall not require additional excavation for CCR-impacted groundwater

 

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			at Allen, Belews Creek, Cliffside, Marshall, Mayo,
and Roxboro unless DEQ determines (1) there are material violations of the 2L groundwater standards or this Agreement within the
meaning of Paragraph 51 and (2) these material violations cannot reasonably be remedied by active remediation.

Obligations of the Community
Groups

 

		42.	CAMA Variance Requests. The Community Groups will not oppose Duke Energy’s requests
for variances on the closure deadlines set forth in CAMA in court or before an administrative body, provided Duke Energy does not
request to extend such deadlines past December 31, 2034 for basins at Belews Creek, December 31, 2035 for basins at Marshall, December
31, 2036 for basins Roxboro, and December 31, 2037 for basins at Allen.

		43.	Closure Plans and CAPs. The Community Groups agree that they will not challenge in court
or before an administrative body DEQ’s approval of Duke Energy’s Closure Plans, CAPs (including application of a Restricted
Designation), CAP implementation, landfill construction or operation permits, components or terms of NPDES permits or modifications
to NPDES permits to the extent these components or terms are reasonably necessary for the obligations imposed by this Agreement
(including, for example, NPDES permits or modifications relating to decanting and dewatering), stormwater permits, dam removal
authorizations, or post-closure monitoring plans for Allen, Belews Creek, Cliffside, Marshall, Mayo, and Roxboro, or such other
permits as required by this Agreement, provided those Closure Plans and CAPs conform with the terms of this Agreement.

		44.	CCR Rule Deadlines. The Community Groups agree not to oppose Duke Energy’s efforts
in court or in an administrative proceeding to extend the deadlines imposed by the federal 

 

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	 	 	CCR rule to the extent that such an
extension is necessary for Duke Energy to meet its obligations under this Agreement. If appropriate, the Community Groups will
support such requests.

		45.	Deadlines for Coal Ash Recycling. The Community Groups agree not to oppose in court or before
an administrative body, extensions to the CAMA closure dates as requested by Duke Energy, for the purposes of completing and beneficiation
at Buck, Cape Fear, and HF Lee, through December 31, 2035.

Further Obligations

 

		46.	Superior Court Consent Order. The Parties will work together to submit a consent order for
injunctive relief incorporating the terms of this Agreement for filing in Wake County and Mecklenburg County Superior Court in
Case Nos. 13-CVS-11032 and 13-CVS-14461 (“Consent Order”) on or before January 31, 2020. In order to meet this deadline,
the Parties will cooperate in the formation of the Consent Order, including periods for Notices. In the event the Superior Court
refuses to enter the Consent Order, the parties agree that all parties shall retain the legal rights and positions that existed
as of December 30, 2019 (including as applicable court rulings that constitute the law of the case). This paragraph shall be interpreted
and enforced in order to fully effectuate the intent of the parties. To effectuate the intent of this paragraph, the Parties shall
not object to the timeliness of any closure plan filed under the provisions of this paragraph and DEQ shall not approve any closure
plan submitted under this Agreement prior to the entry of the Consent Order by the Superior Court, provided that DEQ may approve
any closure plan on the last day for such approval under CAMA regardless of whether the Consent Order has been entered. It is expressly
understood that in the event the Consent Order is not entered, and before the approval of 

 

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			any closure plan by DEQ, Duke Energy intends to file
alternative closure plans. It is further expressly understood that DEQ may not accept or approve these alternative closure plans.

		47.	Survival of Terms. The Parties intend and agree that the rights and obligations imposed
by this Agreement shall be fully incorporated into the Consent Order contemplated by this Settlement Agreement, except for the
obligations set forth in Paragraphs 48, 49 and 53. With the exception of the obligations set forth in Paragraph 48 (Dismissal of
Related Litigation), Paragraph 49 (Compliance with CAMA), Paragraph 50 (DEQ Only State Entity Bound by this Agreement and Consent
Order), and Paragraph 53 (Stipulations Between Only the Parties to this Agreement Regarding Rate Recovery Proceedings) this Settlement
Agreement shall expire 90 days after entry of the Consent Order.

		48.	Dismissal of Related Litigation. Upon entry of the Consent Order by the North Carolina Superior
Court and provided that there are no substantive modifications made by the Superior Court to the Consent Order, the Parties agree
that Case Nos. 13 CvS 11032 and 13 CvS 14461 would be resolved. Within 15 days of entry of the Consent Order, Duke Energy shall
dismiss with prejudice the following cases in the Office of Administrative Hearings: 19 EHR 2398, 19 EHR 2399, 19 EHR 2401, 19
EHR 2403, 19 EHR 2404, and 19 EHR 2406, and the following cases in North Carolina Superior Court: 19 CvS 19908, 19 CvS 19909, 19
CvS 19910, 19 CvS 19911, 19 CvS 19912, 19 CvS 19913, 19 CvS 22714, 19 CvS 22715, 19 CvS 22716, 19 CvS 22717, 19 CvS 22718, and
19 CvS 22719. Duke Energy and the Community Groups agree that the actions to be taken by Duke Energy and DEQ under this Agreement
resolve and render moot the issues raised in the Clean Water Act lawsuits and will work cooperatively to prepare a joint motion
dismissing those 

 

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			claims with prejudice to be filed within 30 days of
entry of the Consent Order in Superior Court. Each party shall bear its own costs and attorneys’ fees in all litigation.

		49.	Compliance with CAMA. DEQ finds that the provisions of this Agreement satisfy the closure
requirements of N.C. Gen. Stat. § 130A-309.214 for Duke Energy’s obligations to close the CCR impoundments at the Facilities.
In the event of inconsistency between this Agreement and DEQ’s April 1 Closure Determinations, the terms of this Agreement
shall control.

		50.	DEQ Only State Entity Bound by this Agreement and Consent Order. The Parties expressly acknowledge
and agree to each of the following:

		a.	The only State entity bound by this Agreement and any related Consent
Order is DEQ. 

		b.	Nothing in this Agreement or any related Consent Order shall limit
the arguments that may be made or conclusions that may be drawn by other State entities in any matter or proceeding concerning
recovery through rates of costs incurred by Duke Energy.

		c.	Neither resolution of cases or issues pursuant to this Agreement,
nor the related Consent Orders, shall have any preclusive or res judicata effect against other State entities.

The Parties shall work together to ensure
that the Consent Order effectuates the intent of this paragraph.

 

		51.	Substantial Compliance. For any term of this Agreement that requires compliance with the
2L groundwater standards, Duke Energy will not be deemed to be in violation of any such term and shall not be subject to civil
penalties or enforcement action by DEQ so long as Duke Energy has used best efforts (as described in Paragraph 55) to implement
the corrective action plan and post-closure monitoring and care plan unless DEQ determines

 

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			that there are multiple and material deviations from
such standards at or beyond the geographic limitation set forth in paragraph 52 .

 

		52.	Geographic Limitation. Active remediation will not be required in the area within 500 feet
of the waste boundary of each impoundments as shown on the most recent NPDES permit for each of the Facilities (except that if
a property boundary or body of water is located closer than 500 feet to the waste boundary, that property boundary or body of water
shall define the geographic limits for active remediation) (“geographic limitation”), provided that, subject to the
provisions of Paragraph 51, coal ash constituents outside the geographic limitation described in this paragraph do not increase
beyond the 2L groundwater standards post-closure. It is expressly understood and agreed that DEQ will not assess a civil penalty
or pursue an enforcement action for any exceedances of the 2L groundwater standards within the geographical limitation so long
as Duke Energy is making best efforts (as defined by paragraph 55) to implement the approved corrective action plan and closure
plan as determined by DEQ. The corrective action plans may be periodically updated as required by DEQ if the groundwater cleanup
fails to meet projected targets.

		53.	Stipulations Between Only the Parties to this Agreement Regarding
Rate Recovery Proceedings.

		a.	DEQ and the Community Groups agree that closing the CCR impoundments
at the Allen, Belews Creek, Cliffside, Marshall, Mayo, and Roxboro Steam Stations in accord with this Agreement (including the
obligations imposed by the Consent Order contemplated by this Agreement) is reasonable, prudent, in the public interest, and consistent
with law. This subparagraph applies only to the actions of

 

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			Duke Energy in entering into this Agreement and assuming
the obligations under this Agreement.  For example, and without limitation, the agreement in this subparagraph does not extend,
nor shall it be construed to apply, to the issues of (i) whether Duke Energy acted prudently and reasonably in the past, or (ii)
whether Duke Energy prudently and reasonably performs its obligations under this Agreement.  Nothing in this Agreement shall
be taken as an admission of any imprudent or unreasonable actions by Duke Energy.

		b.	Nothing in this Agreement, including but not limited to subparagraph
(a) above, shall be taken as an endorsement or opposition by DEQ or the Community Groups of recovery through rates of the costs
incurred by Duke Energy implementing the terms of this Agreement or related Consent Order.

		c.	DEQ and the Community Groups shall not challenge or otherwise object
in court or before an administrative body to the reasonableness, prudence, public interest, or legal requirement for Duke Energy
to comply with the obligations imposed by this Agreement, related Consent Order, or as to the Agreement itself.  

		d.	The Parties state and agree that the issue of recovery through rates
of the costs imposed by this Agreement and related Consent Order is to be determined by the North Carolina Utilities Commission
upon proper application and related legal proceedings.  DEQ has no role in making the determination of the issue of recovery
through rates of the costs imposed by this Agreement and related Consent Order.  DEQ neither endorses nor opposes such recovery.  

		e.	Nothing in this Agreement shall prevent DEQ from providing factual
non-confidential information relating to the matters covered in this Agreement,

 

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			provided that it is expressly understood that Duke
Energy does not waive any objection to the admissibility of this information based on evidentiary, administrative, statutory,
or equitable grounds before any court or administrative body.  If DEQ intends to file testimony or amicus briefs or provides
discovery concerning the matters that are the subject of this Agreement in connection with ongoing judicial or administrative
proceedings, it shall provide reasonable notice of the subject-matter of such testimony or brief or discovery before submitting
it to the administrative agency or court.

		f.	Nothing in this Agreement shall prevent the Community Groups from
participating as permitted by law or agency ruling in rate recovery proceedings or objecting to Duke Energy’s rate recovery
on grounds not inconsistent with the terms of this Agreement.  

		g.	The Parties understand and agree that this Agreement and related
Consent Order may be presented to the North Carolina Utilities Commission. 

		54.	No Admission. By entering into this Agreement, no Party to
this Agreement admits wrongdoing or liability related to matters covered in this Agreement.

		55.	Force Majeure. The Parties agree that it will not be a violation
of this Agreement if performance of any of the obligations set forth is delayed by an extraordinary event that is beyond the control
of Duke Energy, or any entity controlled by Duke Energy or its contractors, despite best efforts to fulfill the obligation. Such
causes are war, civil unrest, act of God, or act of a governmental or regulatory body delaying performance or making performance
impossible including any appeal or decision remanding, overturning, modifying or otherwise acting (or failing to act) on a permit
or similar permission or action

 

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			that prevents or delays an action needed for the performance
of any of the work contemplated under this Agreement such that it prevents or substantially interferes with Duke Energy’s
performance within the time frames specified herein. Duke Energy shall bear the burden of proving by a preponderance of the evidence
the existence of such circumstances. Such circumstances do not include the financial inability to complete the work, increased
cost of performance, or changes in business or economic circumstances.

		a.	To qualify as a force majeure under this Agreement, the failure of
a permitting authority to issue a necessary permit in a timely fashion which prevents Duke Energy from meeting the requirements
in this Agreement must be beyond the control of Duke Energy, and Duke Energy must have taken all steps available to it to obtain
the necessary permit, including but not limited to submitting a complete permit application, responding to requests for additional
information by the permitting authority in a timely fashion, and accepting lawful permit terms and conditions after expeditiously
exhausting any legal rights to appeal those terms and conditions imposed by the permitting authority.

		b.	The requirement that Duke Energy use “best efforts” in
this Agreement includes using commercially reasonable efforts to anticipate any event that delays its obligations and to address
the event in a commercially reasonable manner as it is occurring or following the event such that delay is minimized to the greatest
extent possible.

		56.	Stay of Pending Proceedings. Within 15 days of execution of this Agreement, the Parties
shall take all actions necessary to stay further proceedings before the Office of

 

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			Administrative Hearings in matters 19 EHR 02401 (regarding
Allen), 19 EHR 02398 (regarding Belews Creek), 19 EHR 02399 (regarding Rogers/Cliffside), 19 EHR 02403 (regarding Marshall), 19
EHR 02404 (regarding Mayo), and 19 EHR 02406 (regarding Roxboro), and all petitions for judicial review related thereto. All stays
shall remain in existence until an agreed-upon Consent Order are entered in Superior Court and no further discovery or other proceedings
shall occur.

		57.	Obligations of Duke Energy. Upon entry of the Consent Order, Duke Energy Progress, LLC and
Duke Energy Carolinas, LLC shall be responsible for carrying out the obligations of the Consent Order until relieved by the Court.

		58.	Limitation on Remedy. Notwithstanding the foregoing, the Parties’ sole and exclusive
remedy for breach of this Agreement shall be an action for specific performance or injunction. In no event shall any Party be entitled
to monetary damages for breach of this Agreement. In addition, no legal action for specific performance or injunction shall be
brought or maintained until: (a) the non-breaching Party provides written notice to the breaching Party which explains with particularity
the nature of the claimed breach, and (b) within thirty (30) days after receipt of said notice, the breaching Party fails to cure
the claimed breach or, in the case of a claimed breach which cannot be reasonably remedied within a thirty (30) day period, the
breaching Party fails to commence to cure the claimed breach within such thirty (30) day period, and thereafter diligently complete
the activities reasonably necessary to remedy the claimed breach.

		59.	Binding Agreement. This Agreement shall apply to, and be binding on, the Parties and their
respective agents, successors, and assigns.

 

    	 	 29	 

     

    

 

		60.	Modification of this Agreement. This Agreement may not be modified, altered or changed except
by written agreement of all Parties, specifically referring to this Agreement.

		61.	Counterpart Originals. This Agreement may be executed in two or more counterparts, each
of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

		62.	Authorization to Sign. The undersigned representatives of the Parties certify that they
are fully authorized by the respective Parties whom they represent to enter into the terms and conditions of this Agreement and
to legally bind such Parties to it.

		63.	No Limitation on Administrative Process and Judgment. The
Parties recognize that DEQ is a governmental agency with statutory rights or obligations, and must abide by all applicable procedural
and substantive laws and regulations in the exercise of such authority during the implementation of this Agreement. No provision
in this Agreement shall diminish, modify, or otherwise affect the statutory or regulatory authorities of DEQ. Nothing in this Agreement
shall limit the opportunity for the Community Groups to participate in any administrative process to the extent consistent with
their commitments in this Agreement.

		64.	No Limitation of Administrative and Contractual Rights. For
any provision in this Agreement where DEQ makes a determination on a matter, nothing in this Agreement waives any rights of a Party
under the North Carolina Administrative Procedure Act (including the right to appeal, if any), nor does a determination by DEQ
on a matter prohibit a challenge to that determination under the terms of this Agreement, where appropriate.

 

    	 	 30	 

     

    

 

		65.	Other Corrective Action. Nothing in this Agreement supersedes
or negates Duke Energy’s obligation to conduct groundwater assessment and, if needed, corrective action for sources of groundwater
contamination other than coal ash impoundments governed by this Agreement or CAMA at any of the Facilities.

		66.	Governing Law. The Parties agree that this Agreement shall
be governed under and controlled by the law of the State of North Carolina.

		67.	Notice. Whenever notice is required to be given or a document is required to be sent by
one Party to another under the terms of this Agreement, it shall be provided to all Parties, directed to the individuals at the
addresses specified below, unless those individuals or their successors give notice of a change to the other Parties in writing.
Notice or submission by electronic mail is acceptable.

 

		a.	As to DEQ:

	Sheila Holman
	Assistant Secretary for the Environment
	1601 Mail Service Center
	Raleigh, NC 27699-1601
	sheila.holman@ncdenr.gov
	 
	Cc: William F. Lane
	General Counsel
	1601 Mail Service Center
	Raleigh, NC 27699-1601
	Bill.Lane@ncdenr.gov

 

 

		b.	As to Duke Energy:

 

	Kodwo Ghartey-Tagoe
	Executive Vice-President and Chief Legal Officer
	Duke Energy Corp.
	Mail Code DEC48H
	550 South Tryon Street
	Charlotte, NC 28202

 

    	 	 31	 

     

    

 

	Kodwo.Ghartey-Tagoe@duke-energy.com

 

		c.	As to the Community Groups:

 

	Frank S. Holleman III
	Senior Attorney
	Southern Environmental Law Center
	Counsel for Community Groups
	601 West Rosemary Street, Suite 220
	Chapel Hill, NC 27516-2356
	fholleman@selcnc.org

 

[Signatures on
separate pages]

 

    	 	 32	 

     

    

 

SETTLEMENT AGREEMENT

 

	DUKE ENERGY CAROLINAS, LLC	 	 
	 	 	 
	By:	/s/ KODWO GHARTEY-TAGOE	 	Date:	December 31, 2019
	 	Kodwo Ghartey-Tagoe	 	 
	 	Executive Vice President and Chief Legal Officer	 	 

 

	DUKE ENERGY PROGRESS, LLC	 	 
	 	 	 
	By:	/s/ KODWO GHARTEY-TAGOE	 	Date:	December 31, 2019
	 	Kodwo Ghartey-Tagoe	 	 
	 	Executive Vice President and Chief Legal Officer	 	 

 

    

     

    

 

SETTLEMENT AGREEMENT

 

	THE NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
	 	 	 
	By:	/s/ MICHAEL REGAN	 	Date:	December 31, 2019
	 	Michael Regan	 	 
	 	Secretary	 	 
	 	North Carolina Department of Environmental Quality	 	 

 

    

     

    

 

SETTLEMENT AGREEMENT

 

THE COMMUNITY GROUPS:

 

	APPALACHIAN VOICES	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	THE STOKES COUNTY BRANCH OF THE NAACP	 	 
	 	 	 
	By:	 /s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	MOUNTAINTRUE	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	THE CATAWBA RIVERKEEPER FOUNDATION	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	THE SIERRA CLUB	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

    

    

    

 

SETTLEMENT AGREEMENT

 

THE COMMUNITY GROUPS:

 

	THE WATERKEEPER ALLIANCE

	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney

	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	THE ROANOKE RIVER BASIN ASSOCIATION

	 	 
	 	 	 
	By:	 /s/ FRANK S. HOLLEMAN III

	 	Date:	December 31, 2019
	 	Frank S. Holleman III

	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center

	 	 
	 	Counsel for the Community Groups

	 	 

 

	CAPE FEAR RIVER WATCH, INC.

	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	NEUSE RIVER FOUNDATION/SOUND RIVERS, INC.

	 	 
	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups	 	 

 

	NORTH CAROLINA STATE CONFERENCE OF THE NAACP

	 	 	 
	By:	/s/ FRANK S. HOLLEMAN III	 	Date:	December 31, 2019
	 	Frank S. Holleman III	 	 
	 	Senior Attorney	 	 
	 	Southern Environmental Law Center	 	 
	 	Counsel for the Community Groups

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