05-02C Town of Beaufort

N
���
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Director William G. Ross Jr., Secretary
July 19, 2005
Haywood Weeks
500 Front St
Beaufort, NC 28516
RE: Payment of Proposed Penalty for Violations of the Coastal Area Management Act,
Committed in Carteret County
CAMA Violation # 05-02C
Dear Mr. Haywood:
This letter will acknowledge receipt of your check #54244, in the amount of $500.00, and dated
July 15, 2005. Once the amount of the check is credited to the Department of Environment and
Natural Resources' account, this matter will be fully and completely closed.
If you have any further questions concerning this matter, please contact me at my Morehead City
office, [phone].
Sincerely,
Tere Barrett
District Manager
TB/isb
cc: Roy Brownlow, Compliance Coordinator
Ted Tyndall, Asst. Director
Henry Wicker, COE
400 Commerce Avenue, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastalmanagement.net
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North Carolina
Michael F. Easley, Governor
July 19, 2005
Haywood Weeks
500 Front St
Beaufort, NC 28516
A74A.
NCDENR
Department of Environment and Natural Resources
Division of Coastal Management
Charles S. Jones, Director William G. Ross Jr., secretary
RE: Payment of Proposed Penalty for Violations of the Coastal Area Management Act,
Committed in Carteret County
CAMA Violation # 05-02C
Dear Mr. Haywood:
This letter will acknowledge receipt of your check 454244, in the amount of $500.00, and dated
July 15, 2005. Once the amount of the check is credited to the Department of Environment and
Natural Resources' account, this matter will be fully and completely closed.
If you have any further questions concerning this matter, please contact me at my Morehead City
office, [phone].
Sincerely,
�- cJvv ljo
Tere Barrett
District Manager
TB/lsb
cc: Roy Brownlow, Compliance Coordinator
Ted Tyndall, Asst. Director
Henry Wicker, COE
400 Commerce Avenue, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastalmanagement.net
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Town of Beaufort, c/o Mr. Haywood Weeks
July 12, 2005
Page 3 of 3
CAMA VIOLATION #05.02C
AGREEMENT TO PAY PROPOSED CIVIL ASSE
I understand that the staff of the Department of Environment and Nati
assessment of a civil penalty in the amount of $500.00 against me ft
Management Act, NCGS 113A-100 et sec, committed on Town of Beaufi
A
Street, Beaufort, in Carteret County, North Carolina. In order to resolve this matter with no further action or
expense on my part, I accept responsibility for the violation as described in the Notice of Violation letter dated
1/21/05, and agree to pay the proposed civil assessment of $500.00,
DATE
SIGNATURE
s
ADDRESS
TELEPHONE NUMBER
400 Commerce Drive, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.necoastalmanagement.net
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NCDENK
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Director William G. Ross Jr., Secretary
July 12, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Town of Beaufort
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
RE: CAMA VIOLATION #05.02C
Dear Mr. Weeks:
This letter is in reference to the Notice of Violation dated 1/21/05 that I sent to you on behalf of the Division of
Coastal Management, for the expansion and relocation of the marina known as The Beaufort Docks, adjacent
to Taylor's Creek at 500 Front Street, Beaufort, Carteret County. The violation involved the Public Trust and
Estuarine Waters, which are Areas of Environmental Concern designated by the Coastal Resources
Commission. Based upon several site visits to define the normal high water contour, and a waiver of the
riparian corridor setback dated May 19, 2005, and submitted on May 25, 2005, by Ms. Terry Parker-Eakes,
Beaufort Town Manager, the restoration requested appears to be complete to the satisfaction of the Division of
Coastal Management.
The Coastal Area Management Act provides that a civil assessment of up to $2,500 may be assessed for any
violation. It is the policy of the Coastal Resources Commission to assess a civil penalty for all violations in
order to recover some of the costs of investigating violations and/or to compensate the public for any damage
to its natural resources.
Under the rules of the Coastal Resource Commission, a proposed civil penalty in the amount of $500.00 is
appropriate for this violation. You may expeditiously resolve this matter prior to the assessment of a formal civil
penalty by accepting responsibility for the violation and paying the amount proposed above. In orderto do this,
you must: (1) sign one of the attached copies of an "Agreement to Pay Civil Assessment;' (2) attach a check or
money order for $500.00 made payable to the North Carolina Department of Environment and Natural
Resources (NCDENR); and, (3) return the signed agreement and payment to this office in the enclosed, self-
addressed envelope within ten (10) days of your receipt of this letter. Upon deposit of your check in the
Department's account, you will receive a Notice of Compliance officially closing this enforcement action.
400 Commerce Drive, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastaimanagement.net
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Town of Beaufort, c/o Mr. Haywood Weeks
July 12, 2005
Page 2 of 3
If you do not send a signed agreement and payment to this office within ten (10) days, the Director of the
Division of Coastal Management will formally assess a civil penalty against you. You will then have the
opportunity to request a hearing on the penalty or request remission of the penalty.
Thank you for your time and cooperation in resolving this important matter. If you have any questions, please
do not hesitate to contact me at [phone].
Sincerely,
�,�9�
9'U/tit�
Tere Barrett, District Manager
Division of Coastal Management
Enclosures
cc: Ted Tyndall, Assistant Director, DCM
Roy Brownlow, Compliance Coordinator, DCM
Ryan Davenport, Coastal Management Representative, DCM
Henry Wicker, USACE
Larry Smith, LPO
Terry Parker-Eakes, Town Mgr.
400 Commerce Drive, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.ncooastalmanagement.net
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Town of Beaufort, c/o Mr. Haywood Weeks
July 12, 2005
" Page 3 of 3
CAMA VIOLATION #05.02C
AGREEMENT TO PAY PROPOSED CIVIL ASSESSMENT
I understand that the staff of the Department of Environment and Natural Resources will propose the
assessment of a civil penalty in the amount of $500.00 against me for violation of the Coastal Area
Management Act, NCGS 113A-100 et seg, committed on Town of Beaufort property located at 500 Front
Street, Beaufort, in Carteret County, North Carolina. In order to resolve this matter with no further action or
expense on my part, I accept responsibility for the violation as described in the Notice of Violation letter dated
1/21/05, and agree to pay the proposed civil assessment of $500.00.
DATE
SIGNATURE
ADDRESS
TELEPHONE NUMBER
400 Commerce Drive, Morehead City, Noah Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastaimanagement.net
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r
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Director William G. Ross Jr., Secretary
July 12, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Town of Beaufort
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
RE. CAMA VIOLATION #05-02C
Dear Mr. Weeks:
This letter is in reference to the Notice of Violation dated 1121105 that I sent to you on behalf of the Division of
Coastal Management, for the expansion and relocation of the marina known as The Beaufort Docks, adjacent
to Taylor's Creek at 500 Front Street, Beaufort, Carteret County. The violation involved the Public Trust and
Estuarine Waters, which are Areas of Environmental Concern designated by the Coastal Resources
Commission. Based upon several site visits to define the normal high water contour, and a waiver of the
riparian corridor setback dated May 19, 2005, and submitted on May 25, 2005, by Ms. Terry Parker-Eakes,
Beaufort Town Manager, the restoration requested appears to be complete to the satisfaction of the Division of
Coastal Management.
The Coastal Area Management Act provides that a civil assessment of up to $2,500 may be assessed for any
violation. It is the policy of the Coastal Resources Commission to assess a civil penalty for all violations in
order to recover some of the costs of investigating violations and/or to compensate the public for any damage
to its natural resources.
Under the rules of the Coastal Resource Commission, a proposed civil penalty in the amount of $500.00 is
appropriate for this violation. You may expeditiously resolve this matter prior to the assessment of a formal civil
penalty by accepting responsibility for the violation and paying the amount proposed above. In order to do this,
you must: (1) sign one of the attached copies of an "Agreement to Pay Civil Assessment;' (2) attach a check or
money order for $500.00 made payable to the North Carolina Department of Environment and Natural
Resources (NCDENR); and, (3) return the signed agreement and payment to this office in the enclosed, self-
addressed envelope within ten (10) days of your receipt of this letter. Upon deposit of your check in the
Department's account, you will receive a Notice of Compliance officially closing this enforcement action.
400 Commerce Drive, Morehead City, North Carolina 28557
Phone: [phone] \ FAX: [phone] \ Internet: www.nccoastalmanagement.net
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Town of Beaufort, c/o Mr. Haywood Weeks
July 12, 2005
Page 2 of 3
If you do not send a signed agreement and payment to this office within ten (10) days, the Director of the
Division of Coastal Management will formally assess a civil penalty against you. You will then have the
opportunity to request a hearing on the penalty or request remission of the penalty.
Thank you for your time and cooperation in resolving this important matter. If you have any questions, please
do not hesitate to contact me at [phone].
Sincerely,
9. p�
Tere Barrett, District Manager
Division of Coastal Management
Enclosures
cc: Ted Tyndall, Assistant Director, DCM
Roy Brownlow, Compliance Coordinator, DCM
Ryan Davenport, Coastal Management Representative, DCM
Henry Wicker, USACE
Larry Smith, LPO
Terry Parker-Eakes, Town Mgr.
400 Commerce Drive, Morehead City, North Carolina 28557
Phone: [phone]FAX: [phone]Internet: www.nccoastalmanagement.net
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Town of Beaufort, c/o Mr. Haywood Weeks
July 12, ,005
Page 3 of 3
CAMA VIOLATION #05.02C
AGREEMENT TO PAY PROPOSED CIVIL ASSESSMENT
I understand that the staff of the Department of Environment and Natural Resources will propose the
assessment of a civil penalty in the amount of $500.00 against me for violation of the Coastal Area
Management Act, NCGS 113A-100 et seg, committed on Town of Beaufort property located at 500 Front
Street, Beaufort, in Carteret County, North Carolina. In order to resolve this matter with no further action or
expense on my part, I accept responsibility for the violation as described in the Notice of Violation letter dated
1/21/05, and agree to pay the proposed civil assessment of $500.00.
DATE
SIGNATURE
ADDRESS
TELEPHONE NUMBER
400 Commerce Drive, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastalmanagement.net
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05/24/2005 11:49
2527283982
BEAML.-,
May 19, 2005
TOWN OF B)EAUFORT
215 Pollock Sheet, P.O. Box 390
Bcauforc, N.C. 28516
[phone], [phone] fax
vAm.heaufortne.org
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
400 Commerce Way
Morehead City, North Carolina 28557
RE: Beaufort Floating Docks
Dear Ms. Barrett:
2 PAGE 01
C()p V
This letter is in response to CAMA's request that the Town waive any riparian lights it
may have with respect to the new floating docks constructed along the Town's
waterfront by Beaufort Waterfront Enterprises. The Board of Commissioners considered
this request at its meeting on May 9, 2005.
To the extent CAMA considers the Town to be the adjoining property owner to tie new
docks; the Town waives any riparian rights it may have with respect to this project as
actually constructed.
Sincerely,
e illl %u� ►��
Terri Parker-Eakes
Town Manager
cc: Mr. Haywood Weeks, Beaufort Docks
Neil B. Whitford, Town Attorney
Mayor.AnnC mr
Commissioncrlulian Arrington Commis.vioncr Faye M, Nelson Conuninioncr Bill Hubbvd
Commissioner Mad, Chaplain Commissioner Charles McDonald
Town ManWrTcui Parkcr-Gkcs
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Front Street, Beaufort - looking west

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.A.LAW
6 2005
Morehead City DCM
January 25, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
151-B Hwy. 24 Hestron Plaza II
Morehead City, North Carolina 28557
RE: Response to Notice of Violation #05-02C
Issued to Town of Beaufort
c/o Mr. Haywood Weeks
re Beaufort Docks Project
Our File 900583-00005-001
Dear Ms. Barrett:
FRANK H. SHEFFIELD, JR.
[phone]
Fax [phone]
[e-mail]
COPY
This letter responds to the Notice of Violation ("NOV") dated January 21, 2005 issued to the
Town of Beaufort, c/o Mr. Haywood Weeks concerning construction of a set of floating docks
along Front Street in Beaufort ("the Beaufort Docks").
After discussing this matter with you and Mr. Mark Hardeman in your office on January 21,
2005, and further reviewing the facts surrounding this permit and dock construction project
details, we believe that the new floating decks as constructed could have been permitted and,
therefore, we ask that resolution of this matter be governed by 15A N.C. Admin. Code § 7J
.0409(f)(4) for the following reasons:
1. The applicant is the Town of Beaufort. The Beaufort Docks are part of the series
of docks that make up the Beaufort historic waterfront area. The Beaufort Docks
are owned by the Town and operated under lease by Mr. Weeks for use by the
general public. The availability of these docks will help support and promote
tourism in Beaufort and provide revenues for the Town. In short, the Beaufort
Docks provide substantial public benefits.
2. The docks are within the general footprint of the Beaufort waterfront docks area,
which extends from the west end of Beaufort ,down Front Street to the east -- Well
past this location. Boats of all varieties have been part of the visual landscape
a
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
GREENVILLE NEW BERN RALEIGH .. WILMINGTON
[phone] [phone] [phone] _ [phone]

WARD AND SMITH, P.A.
Ms. Tere Barrett
January 25, 2005
Page 2
DTR
JAN 2 6 2005
Morehead City DCM
all the properties along Front Street for many years. Indeed, the area of the docks
under discussion has been a boat basin for use by boaters visiting Beaufort for
over 20 years.
3. As discussed further below, we believe the docks are more than 15 feet from the
riparian area of any separate adjoining riparian property owner. Accordingly, no
waiver by any adjoining riparian property owner in that area appears to have been
necessary in order for the Beaufort Docks to be permitted for the additional % in
dock length.,( °)
4. In any case, in good faith our client provided notice to BB&T on the
understanding that they were the next adjoining property owner. As you will
recall, BB&T was noticed during the CAMA Major Development permitting
process for these docks in 2002 without objection from anyone. Our client
assumed that the same procedure used by the applicant and approved by your
office during the Major Development permit process should be used last year for
the General Permit, which involves replacing the same docks authorized by the
CAMA Major Development Permit.
As we discussed last Friday, in our view Mr. Robert Stephens does not appear to have any land
on the water side of Front Street and the Town bulkhead. At most, he may have only a very
small sliver of mudflat at the foot of the Town bulkhead. We do not believe he has any land at
r present above the mean high water line for several reasons. First, there are oysters growing on
the Town bulkhead in front of the Stephens property. Oysters do not grow above the mean high
J water line. Second, considerable marsh grass is present directly in front of the Town bulkhead.
To the extent any marsh grass is present in this general area with the characteristics of grasses
that can survive above the mean high water line, such grass is believed to be located on the
adjoining property to the east -- not in front of the Stephens property. The adjoining property,
which apparently is owned by the Town, begins several feet west of the Lookout
Express/Mystery pier. Thus, the small area of land where some grass is present in the comer
nearest the pier is believed to be on the Town's rather than Stephens' property.
In any case, the tiny sliver of mudflat in front of the Stephens property does not extend the full
width of his property. It appears to extend only about half the width of his lot. Accordingly, as
you indicated during our discussion, it would appear that the Town, as owner of Front Street,
would be the next adjoining riparian property owner to the east of the project area.
If that is correct, then Mr. Stephens' riparian corridor does not coincide with his western property
line, but extends from the channel to the point where this tiny sliver of purported high ground
begins to the east. My inspection of the site indicates that the point where this tiny sliver begins
is more than 15 feet east of the project area. Accordingly, it does not appear to us that our client
was or is required to obtain a setback waiver from Mr. Stephens in order to extend the length of

WARD AND SMITH, P.A.
Ms. Tere Barrett
January 25, 2005
Page 3
JAN 2 6 Z005
Morehead City DCM
the docks an additional 10 feet. The end of the docks is considerably more than 15 feet from
Mr. Stephens' purported riparian corridor.
We would also note that, to our knowledge, no one complained to the Division of Coastal
Management about the additional length during the construction of the docks. Since the docks
were completed, there has been nothing but praise from the general public about the new docks.
It is interesting that concern has arisen only now -- several months after completion of the
project.
In conclusion, both the Town and Mr. Weeks very much wish to resolve this matter in an
expeditious and cooperative manner. Accordingly, we ask that you consider the above
comments and advise us how this situation can be resolved. We look forward to speaking with
you about how we mutually can achieve that end.
Yours very truly,
Frank H. Sheffield, Jr.
FHS:toe
NBMain\618827\1
cc: Ar. Mark Hardeman
Ms. Terry Parker-Eakes
Mr. Haywood Weeks

r
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Acting Director William G. Ross Jr., Secretary
NOTICE OF VIOLATION
January 21, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Town of Beaufort
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
RE: NOTICE OF VIOLATION AND REQUEST TO . CEASE UNAUTHORIZED
DEVELOPMENT - CAMA VIOLATION #05-02C
Dear Mr. Weeks:
This letter confirms that on December 28, 2004, Mr. Mark Hardeman and Mr. Ryan Davenport,
Coastal Management Representatives for the Division of Coastal Management were onsite at your
property located at 500 Front Street, known as The Beaufort Docks, within the Town of Beaufort,
Carteret County, North Carolina. The purpose of the visit was to investigate unauthorized
development in the form of expansion of the existing marina within the Taylor's Creek. Again, on
December 30, 2004, Mr. Mark Hardeman and I visited the site to confirm the normal high water..
contour line, and to take measurements of the newly replaced dock.
Information gathered by me for the NC Division of Coastal Management shows that you have
violated the terms or conditions of State Permit No. 36765-C which was issued to the Town of
Beaufort, C/o Mr. Haywood Weeks, by the Coastal Resources Commission and the North Carolina
Department of Environment and Natural Resources. I hereby request that you immediately CEASE
AND DESIST such violations and comply with the terms and conditions of the above permit.
On 12/22/03, State Permit No. 36765-C was issued to the Town of Beaufort, C/o Mr. Haywood
Weeks for the replacement of the fixed docks with floating docks on the east end of the marina
within Taylor's Creek Public Trust Waters. This development was to take place on property located
in Carteret County, North Carolina, at 500 Front Street, Beaufort, NC. The permit was issued for a
CAMA Major Development in an Area of Environmental Concern, in accordance with North
Carolina General Statutes (N.C.G.S.) 113A-118. This permit included the following terms and
conditions:
1. The marina was to be replaced within the existing marina footprint, except that it could be
moved 10' waterward to align with the other marina docks.
151-B Hwy. 24, Hestron Plaza II, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastalmanagement.net
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Town of Beaufort
Page 02
January 21, 2005
2. The permit prohibited the creation of new slips or the enlarging of existing slips.
3. The development as proposed was for a 232' x 8' main dock. These dimensions are
reflected on the submitted plat stamped received on December 19, 2003, and are as
authorized in the permit.
4. The permit is attached to conditions T15A NCAC 07H .2000, which states that all
development activity must be setback 15' from adjacent riparian corridor lines unless such
is waived by the adjacent riparian property owner.
5. The General Permit is issued contingent upon the accuracy of all information submitted by
the applicant.
For the following reasons, you are in violation of the above terms and conditions of your permit:
1. The docks as constructed exceed the pre-existing marina footprint to the east by 10'.
2. The main dock as constructed is 242' in length.
3. The additional 10' in length has either enlarged slips or created a new slip.
4. The additional 10' appears to be, and has been reported to be, within the 15' required
setback from the adjacent riparian corridor, and no waiver has been submitted.
5. One of the two signatures/notifications of the adjacent riparian property owners that are
required for the issuance of a General Permit was not that of the adjacent riparian property
owner, making State Permit 36765-C void from the date of issuance.
6. A mooring piling has been installed at some point in time to the east of the marina footprint
and within the 15' required riparian corridor setback on the mainland side of the marina
with no evidence of authorization.
If the terms and conditions of a permit are not complied with, the permit is null and void from the
date of its issuance. In order to determine if the aforementioned development activity may have
been permitted via the CAMA Permit process and to determine if the activity is consistent with the
North Carolina Administrative Code, Title 15A, 07H State Guidelines for Areas of Environmental
Concern, I am requesting that Mr. Haywood Weeks, as the responsible party, provide the Division
with the following:
1. Provide written signatures of no objection or Certified Mail Return Receipts of notification
from the adjacent riparian neighbor to the east.
2. Provide a waiver of the required 15' riparian corridor setback for the current development
from the adjacent riparian property owner to the east.
Please note that if the above -referenced information is not submitted within a reasonable
timeframe, the development will be deemed inconsistent with state guidelines, and will have to be
restored to the previously authorized dimensions and configuration.
A civil penalty of up to Twenty -Five Hundred Dollars ($2500) may be assessed, or an injunction or
criminal penalty may be sought against any person who violates a CAMA Major Development
permit. It is the policy of the Coastal Resources Commission to assess a minimum civil penalty of
$500.00 against all violations of this type. This is done to recoup some of the costs of investigating

Town of Beaufort
Page 03
January21, 2005
violations and/or to compensate the public for any damage to its natural resources. Whether a
higher amount will be assessed will depend on several factors, including the nature and area of the
resources that were affected and the extent of the damage to them. If restoration of the affected
resources is requested but is not undertaken or completed satisfactorily, a substantially higher civil
penalty will be assessed and a court injunction will be sought ordering restoration (N.C.G.S. 113A-
126).
The relevant statutes and regulations are available from this office, and I am willing to assist you in
complying with the requirements of these laws. A site inspection will be made in the near future to
determine whether this REQUEST TO CEASE AND DESIST has been complied with. I request
that you contact me immediately.
Thank you for your time and cooperation in resolving this important matter. If you have any
questions about this or related matters, please call me at 252 808-2808. Upon submittal of all
required information showing that your development is consistent with T15A NCAC 07H, or
completion of restoration to the satisfaction of the Division of Coastal Management, you will be
notified as to the amount of the civil assessment for failure to act in accordance with the terms,
conditions, or requirements of your permit.
Sincerely,
Tere Barrett
District Manager, MHC DCM
Cc: Ted Tyndall, Assistant Director, DCM
Roy Brownlow, Compliance Coordinator, DCM
Terry Parker-Eakes, Manager, Town of Beaufort
Henry Wicker, USACE

FOR CAMA APPLICATION ONLY
Beaufort Docks

I al e"la/
SCENT(

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DCM ENFORCEMENT TRACKING REPORT
�� ssuer
Field Rep. DBT�— Violation Base No.
LPO 4 A B il4C D
LPJ��/^s x :m Nh�l `�� Violated Permit No. —
(if applicable)
Violation Description Was activity permittable? Yes / No
Initial Discovery Date ) I /� [� Discovery Method
Violation Description` /{ d�✓hcPu�c°YLS / �fptFCcY ��lG��u/�
Respondent Information Prior Violations in same AEC: Yes / o Case Number 05-0 Z C�
Respondent Name(s)"(rgu,7y 0-
7l i o�tQQ1�te "4 I e/pAAZ� C�(aw r�Contractor)
Cit(
Address
Stated Zip
Phone # Fax #
Email
Violation Type: Project Type: Authorizations Required: Site V' its Respondent Site Visits Respondent
Present Present
Permlt Private/Community o ajor f �gg
ermit C I to ovt7Public Minor D&F
Expired Permit Comm General .r�
Inconsistent w/ Rules 9 00 71'f07-6
Violation Location and Site Description
/j���,, I�,,, Rover File
Project Location: County 0,VN1 L+e1ZE j
Shoreline Length
Street Address/ State Road/ Lot #(s) SAV: Not SureJYe
Sandbags: Not SureSubdivision PNA: Adjacent
City�I5,� ORW: Adjacent
¢qY ZIP a Crit. Hab.
Phone # ( ) River Basin Photos Waiver Re uired
Adj. Wtr. Body 'i �GJ C�� na /ma /unkn) 4
m.
Closest Maj. Wtr. Body ue
In DWQ Buffer Area Yes No
Restoration
Extension Granted
Yes No
NOV Date
Initial Req. Comp. Date
Restoration Letter
CNOV Date
Date Comp. Observed
Acceptance Date
Penalty Assessment
71.0409 Ref.
Recomm. Assess.
DCM Assess.
Sent to Respondent Date
App./Permit Fee & I
$ 500,,=,
$
Rcvd. by Dist. Mgr. Date
Penalty
$
$
Assessment Extended Yes
No Willful/Intent.
$
$
Continuing
$
$
Other
$
$
Total

Formal Assessments, Appeals and Reductions
Date Long Form Submitted
Date Formal CPA Submitted
Final Assessment $ Date
Attorney General's Office for Injunction or Formal Collection
Assessment Appealed Yes No
Penalty modified
Date sent to AG Respondent not responsive to penalty/NOV Injunction to complete restoration
Date Collection Let. Sent Date Demand Let. Sent
Violation Activities and Impacts
AECs Affected: Wetlands Impacted? Yes / No If yes, which types:
CW (//��%� PT ES PTS
OEA 'NFiF SA IDS CJ SY JR LS TY
PWS: FC: SS SC SP 404
Other:
Restoratiop Required by the Respondent Yes / No
Dimensions in excess Final dimensions
Dimensions to restore Actually restored
of permit/ unauthorized activities allowed
Development Activities
Habitat Description
Closing
Payment Received $ Date Date Case Closed

©��
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Director William G. Ross Jr., Secretary
Town of Beaufort June 25, 2005
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
RE:RESTORATION ACCEPTANCE - CAMA VIOLATION #05.02C
Dear Mr. Weeks:
This letter is in reference to the Notice of violation # 05-02C sent to you dated January 21, 2005 for the unauthorized expansion
of the marina known as The Beaufort Docks. This development is located at 500 Front Street, Beaufort, Carteret County, NC,
adjacent to Taylor's Creek. This unauthorized activity constituted development and you were requested to restore to an
acceptable and statutorily consistent condition. In accordance with the North Carolina Administrative Code, Title 15A,
Subchapter 7J.0410, any violation involving development which is inconsistent with guidelines for development within Areas of
Environmental Concern (AEC) must be corrected. This restoration is necessary to bring the project into compliance with
Subchapter 7H Guidelines governing coastal development.
I have visited the site on several occasions of normal high tides, and have determined that the property shown on the city tax
records as being owned by Mr. Robert Stephens, located on the south side of Front Street and to the east side of The Beaufort
Docks, is flooded during normal high fides. Mr. Stephens is therefore no longer entifled to the riparian rights afforded a property
owner with high ground abutting the normal high water contour. Accordingly, the property owner that currently has high ground
abutting the normal high water line of Taylor's Creek is afforded the riparian rights. Based on city tax records, the property that is
now affected during phases of normal high tides is the Front Street R.O.W, owned by the Town of Beaufort. Consequently, the
waiver of the required 15' riparian corridor setback is required from the Town. Permission to allow the docks to remain as
constructed was received from Ms. Teri Parker-Eakes, Town Manager, on May 25, 2005. With this information in hand, I now
consider the restoration to be completed to the satisfaction of the Division. Soon to follow this correspondence, you will be
notified as to the amount of the civil penalty for undertaking this unauthorized activity within an Area of Environmental concern.
Thank you for your attention and cooperation in this matter. If you have any questions pertaining to this matter, please feel free to
call me at 808-2808.
Sincerely,
T. Barrett
District Manager, MHC
Cc: T,pd Tyndall, DCM
Soy Brownlow, DCM
Henry Wicker, COE
Terri Parker-Eakes, Beaufort Town Manager
Neal B. Whitford, Town Attorney
Robert Stephens, 1-16 IrentR
400 Commerce Avenue, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastaimanagement.net
An Equal Opportunity 1 Affirmative Action Employer - 50% Recycled 110% Post Consumer Paper

TOWN OF BEAUFORT
215 Pollock Street, P.O. Box 390
Beaufort, N.C. 28516
[phone], [phone] fax
www.beaufortnc.org
May 19, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
400 Commerce Way
Morehead City, North Carolina 28557
RE: Beaufort Floating Docks
Dear Ms. Barrett:
M
Morehead City pCM
This letter is in response to CAMA's request that the Town waive any riparian rights it
may have with respect to the new floating docks constructed along the Town's
waterfront by Beaufort Waterfront Enterprises. The Board of Commissioners considered
this request at its meeting on May 9, 2005.
To the extent CAMA considers the Town to be the adjoining property owner to the new
docks; the Town waives any riparian rights it may have with respect to this project as
actually constructed.
Sincerely,
&,i. Piro
Terri Parker-Eakes
Town Manager
cc: Mr. Haywood Weeks, Beaufort Docks
Neil B. Whitford, Town Attorney
Mayor Ann Carter
Commissioner Julian Arington Commissioner Faye M. Nelson Commissioner Bill Hubbard
Commissioner Math Chaplain Commissioner Charles McDonald
Town Manager Terri Parker-Eakes

04-21-2005 07:46 From -WARD & SMITH -NEW BERN
2526725477 T-779 P.001/001 F-143
TO: Ms. Tere Barren
WARD AND SMITH, P. A.
ATTORNEYS AT LAW
1001 COLLEGE COURT
PO BOX 867
NEW BERN, Nc 28563-0867
(252) 672-540017ELEPUONF.
[phone] PACS1M11.E
Date: April 21, 2005
COMPANY: NC Department of Environment & Natural Resources Division of Coastal Manuitgroent
VOICE NUMBER: 252-808-2808
FAX NUMBER: 252-247-333(1
FROM: Mr. Frank H. ShefPeld, Ir.
Client File Number: 900583-00005-001
Pages including cover sheet: (
Time and Date transmitted: 'B y 5 a M., April 20. 2005
Operator: `IMF/
COMMENTS:
Tere, with reference to our conversation yesterday, please note that according to the 1979 lease (Document #1 in
our submittal) that is the foundation for all of the subsequent transactions leading up to the current lease between
BWE and the Town , The leased premises includes the bulkhead (see explicit reference to "bulkhead" in the property
description on the fast page). Even in the later leases and deeds, reference is made to "...all land on the southside of
Front Street ..." in the various property descriptions. All land on the southside of Front Street would include
everything south of The road right-of-way line, which would include the bulkhead and possibly even the sidewalk.
Based on this analysis, BWE is the long-term lessee of the adjoining riparian property (the bulkhead) and, therefore.
would appear to be the proper parry To wive its setback. Just a Thought for you to consider!
However, if you feel assured That Town approval will be forthcoming at the May 9th Board meeting, we will leave
it To your judgmaent as to whether use of the above analysis or Taking This To the Town Board is the better course of
action. Hearing nothing further from you, we will assume that you feel comfortable going the Town Board route
and that you have coordinated This matter with Terri Parker-Eakes-
Thanks for your paTience in getting This matter resolved.
Frank
NBMAK629865\1
WARD AND SMITH, P.A. OFFICES:
GREENU LE NtiW BEAN RALMGH O HAMGTON
Telephone:[phone] [phone] [phone] [phone]
Facsimde:[phone] [phone] [phone] [phone]

04-21-2005 11:23 From -WARD & SMITH -NEW BERN
2526725477 T-803 P.001/001 F-IST
WARD AND SMITH, P A.
Ar IUttNGYS Al LAW
1001 COLLEGE COURT
PO BOX 867
NEW BERN, NO 28563-0867
t 252) 672-5400 TELEPHONE
[phone] FACSIMILE
Date: April 21, 2005
TO: Nis. Tere Barrett
COMPANY: NC Department of Environment 8t Natural Resource,. Division of Coastal Management
VOICE NUMBER: 252-808-2808
FAX NUMBER: 252-247-3330
FROM: Mr. Frank H. Sheffield, .1r,
Client File Number: 900593-00005-001
Pages including cover sheet: L
Time and Date transmitted: +c7 9. M., April 21, 2005
Operator.• ltil(-1�
COMMENTS:
Tere, with reference to my fax message earlier today, a correction is needed. Upon further review, the property
description in the 1978 lease does NOT appear to include the bulkhead after all. However, the property
descriptions in each of the later documents, including dte current lease between BWE and the Town, does
include all the area on the southside of Front Street. As stated in my earliec fax, that area would appear to
include the bulkhead, since the road right-of-way is not believed to extend to the water. So, we still believe that
BWE's current lease encompasses the bulkhead in front of the Stephens property across Front Street and that
J3WE is in £act the proper party to waive its setback.
l just wanted to convey this correction re the 1978 lease.
Thanks again!
Frank
NBMA4N1629902V
WARD AND SMITH, P.A. OFFI0E5:
GRERNVMU NEW KERN RALEIG1i W1UK[KGTON
Telephone:[phone]M [phone] (919) 836-i e6o (910) 799A800
Facsimile:[phone] [phone] [phone] (910) 75+4877

04-20-05 08:47 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P,001 F-334
WARD .AND SmiTH, P. A.
ATToRNM, AT LAW
10rr1 COLLEGE COURT
PO BOX 867
NEW BERN, NC 28563-0867
[phone] TELEPHONE
[phone] FACSIMILE
Date: April 20, 2005
TO: ere tt
COMPANY: NC De artment of Enviroliment & Natural Resox1rces. Div ion oastal Management
VOICE NUMBER- 252-808-2 28
FAX NUMBER: 252-247-3330
FROM: Mr. Frank H. Sheffield, Jr -
Client File Number: 900583-00005-001
Pages including cover sheet: a
Time and Date transmitted: M., Apri120.2005
Operator:MAI�_
COMMENTS: Tere, Beaufort Waterfront Enterprises ("BW E") is the correct adjoining riparian property owner to the
docks project. Please reference documents 4, 9, 10, and 12 of our April 1, 2005 submittal.
Doc. 4. Sublease from Inlet Inn Associates to BWE. Exhibit A of Doc. 4 shows the area covered by the lease to include the
entire area in front of Robert Stephens house (see dotted line). This is the "adjoining property" to the docks projecL
Doc. 9. Quitclaim Deed and Bill of Sale from Inlet Inn Associates ("IIA") to BWE. This confirms that BWE acquired all of
the IIA's interest in this area.
Doc. 10. Deed and Bill of Sale from BWE to Town of Beaufort. This shows that the property was sold by BWE to the Town.
Doc. 12. Lease Mod and Extension between the Town and BWE. This shows that BWE has a long-term lease with the Town
which currently runs to 2013.
Hence, by virtue to being a long-term lease holder for the area Immediately adjoining the project area, BWE is the proper party to
waive Its setback.
As evidenced by the waiver form signed by Haywood Weeks dated March 31, 2005, which appears as the final document in our
submittal, BWE has in fact waived it setback rights to the Town's docks as built.
I will call you shortly to follow up on this fax and will be more than happy to meet with you today at your office as necessary.
Regards.
Frank
cc: Haywood Weeks
• J:1 1
WARD AND SMITH, PA OFFICES:
RALEIGH
Telephone:[phone] [phone] [phone]
FacsinWe:[phone] [phone] [phone]
„p uDOI• I
[phone]
(910) 7944877

04-20705 08:47 From -WARD AND SMITH, PA-3000, NB 252 872 5477 T-551 P.002/019 F-334
NORTH CAROLINA )
SUBLEA
SE
' CARTERET COUNTY
.,e r - c.
THIS CONTRACT OF SUBLEASE, made and entered into this'
of April, im , by and between INLET INN ASSOCIATES-, a Nq farO� g;Sya
Limited Partnership, party of•the first part, hereinafter qa
"Owner," and BEAUFORT WATERFRONT ENTERPRIZES, INC. party'.:�i1e:,:t.{1` •;'
: second part, hereinafter called "•Lessee"s ', ' ^ * :'?;�;•
c
W i T N E S S E T H ,,'Y, ''1 ,� • 'f ct•.
3T THAT subject to the terms and conditions
tep set°s' C e r
the Owner does hereby sublet, aAcl sublgase unto •the partj►:':a£'`�e;.s�gCSi,>�,i
part and the party of the second part does',heteby accept.;as rLesseet
those certain improvements to'be constructed upon real property':,....: „ z
located in the Town of Heaufoft, Carteret County, North'Carcliaa�.;aq¢,t
more particularly described in "Exhibit AN attached hereto and:made
part hereof, said property being a portion of the lands leased
Owner by the Town of Beaufort, hereinafter referred to as "Town,":aid:',:
evidenced b that ceAain Lease dated January 91 ''1984
Y Y r ,,i2kerein4£ter,
referred to as "Underlying Lease."
�
fy. d;•,`
TO HAVE AND TO HOLD said lands and premises, together''„hTatti
privileges and appurtenances thereunto belonging to'..the;,said sxt bfa,-
P
the second part and their heats, successors in interest
for the term and uppn the conditions hereinafte; set. -go'
I. This Sublease.shall;begln a6 of the 1st day;Of,Mey;�a�Qbw4�<".�:i
'. at such time.that the docks to be constructed by:'.Ownertar,'ek:b' �e e ++
..
• :,; t whichever occurs soccer, and unless sooner •terminated;t+e"hi�;e��:���P.'*::;<.�;;f
videdf however,• said docks will be completed on or befor.� •,2lyn; �;"y4;j,�$;,y..
and iri the event said docks are not completed within:ihey'�
this `Sublease shall be adjusted by 'mutual consent of ;bearties:;.i".`•..;;;;.;
This Sublease shall exist and continue until the 31st day of August .;irz;,.
1998: The t£oregoing,notwithstanding,. this Sublease will termirigt'e ;;.+,
upon the terroinaticn 'of :that cgertain Lease .�etwee-,g sss
dated Aug at
197.8. - r ust,.29f "�� ... fs:.:�y'. ''x;j::J•y�r.'e r�•t'.11�61;�;,�,+%?��t.,,;.,r;•�.
.I ! e ,. '.. ':r 1. ,:•
+. 2. Lessee shall not do or permit to be done any.sgt; condition t':'.
or thing which would or might constitute a default under the',.Under
lying Lease.
• :A
3. The initial rental for said premises the party`of the eeacnd,}_�:
part shall pay to Owner by mail or at the place of business 'of -t11e:..•'<'�b,'
owner, and without notice or demand therefor, the sum
month, payable on or before the first day of eacti'calendar`)Month
the then current month.. The monthly rental shall be paifi i;n gdvanee' i _•.

04-20705 08:47 From -WARD AND SMITH, PA-3000, NB 252 072 5477 T-551 P.003/019 F-334
This initial rent shall be increased to the extent that the actual
cost of installation of the water and electrical lines to the
improvements exceeds the estimate of W. H. Weaver Construction Com-
pany. The monthly rental shall be increased as follows: excess
actual cost; equals the additional monthly .
rent. The Owner shall notify Lessee of the increased COS �_an_ d_the
increased rent due monthly. • plus 13% interest divided by 172. i\F'll'•Y/
4. It is hereby agreed that the amount of rental as set fort
above shall be adjusted annually, based upon the actual cost of
funds paid by Owner for the construction of the improvements. The
initial rent has been calculated based upon an interest factor Of'
thirteen percent (13%). To the extent that the actual interest paid•
by the Owner exceeds that rate, the rent due from the Lessee shall
increase by the actual interest rate applied to the costa of the
improvements which the parties agree as $125,000.00. The additional•.,;_.4'
rental shall be paid annually by Lessee upon written request from
Owner certifying the actual interest rate paid for the preceding
year.
5. it is expressly agreed that the demised premises shall,
during the term of this sublease, be used exclusively for the rental
of boat slips and dock areas and related marine activities. The
Lessee shall not allow shrimp boats, menhaden boats, work boats,
barges, tugs and other commercial fishing boats and vessels of a
commercial nature to dock at, tie up to, or use the dock areas.
Sports fishing boats, charter boats, sail boats, pleasure boats and
vessels of this general nature shall be allowed at said dock.
6. Lessee shall be for and shall res onsible
p pay for all•of:.;• ...;•�:•
the regular maintenance of said docks including repairs, replacement';%'-
of piers, pilings and supports, and other structural parts of the,• ':•.7
dock as may be required by the owner during the term of this Subs
lease. The Lessee shall insure that the docks constitute no safety
hazard to members of the public and persons using said docks, and
that the same are kept and maintained in a good state of repair. '•
All maintenance and repairs shall be at the expense of Lessee and "
the Owner shall have the right to periodically inspect said docks in
order to insure that the docks are being maintained and repaired in '•'._.;.
a manner satisfactory to the Owner. 1ZT,.
7. It is further agreed and understood that if said docks are
substantially damaged by fire, flood, hurricane or other act or
natural catastrophe, then this sublease shall be terminated at the
option of Lessee. However, Lessee shall insure said premises for
their full replacement value: Subject to the rights of the Town,
the Lessee shall have the option in the event of destruction of said
docks to use said insurance proceeds to repair or replace said dock
or piers and upon the completion thereof maintain said Sublease .
until the expiration of same. In the event Lessee fails to maintain
or repair the docks in a manner satisfactory to the Owner and the .
subject to the availability of such inscrance at rates comparable to present rates
adjusted for normal inflation,

04-20-05 08:48 From -WARD AND SMITH, PA-3000, N9 252 872 5477 T-551 P.004/019 F-334
Town, then the owner shall have the right to terminate this Sub-
lease; however, the Owner shall use good faith and make only those
demands which are reasonable and shall notify, Lessee of what acts
Owner contends Lessee should make to said pier and Lessee shall have.
ten (10) days from said notification to begin to effect such repaiYs,
8. Lessee shall be responsible for keeping the dock areas
clean, attractive and safe with regard to use of the docks by custo-
mers and tenants. The Lessee shall establish rules for use of the
docks and piers to insure the safety of 'the patrons and users of the
docks] the owner reserves the right to approve or disapprove these
rules before they are placed into effect.
9. Lessee shall maintain at all times a policy of comprehensive`;,,
liability insurance which shall cover any and all claims of injury.r:w,vo°.;
death or damage to property which may be made against owner or
Town resulting from the Lessee's sublease of the docks and the'use:.of,
the docks and piers by the Lessee and its tenants, customers and the
public in general. The comprehensive liability insurance shall begin-
the following minimum amounts:
$ 30o,000.go - each claimant;
$1,000,000.00 - each occurrence; and
, • y
$ 300,000.00 - property damage.
10. Lessee shall hold the Owner harmless from any and all claim8''L.
which may be made against the Owner arising from Lessee's sublease'_of•.i::
the docks and piers and any and all claims for death, personal injary':::'
and damage to property while Lessee is in possession of the docks•..:.•
under the terms of this Sublease, including payment of a reasonable :•;,
attorney's fee in the event a claim is made against the Owner result-
ing from Lessee's sublease and possession of the dock areas.
li. Lessee shall use its best efforts to enforce and maintain
rules that prohibit the discharge of sewage and other trash into
Taylor's Creek or at any point of Taylor's Creek that would abut dock6:'
subject to this Sublease except those areas specifically designat@d.,:.."'.:c!
for the discharge sewage or other trash. Lessee shall use its beet:.
efforts to police the dock areas and the boardwalk to insure that'
sewage and other trash is not being discharged in any area along the
waterfront in and around the docks. In the event it finds that some
individuals are, in fact, discharging sewage and/or other trash then
Lessee shall notify the proper authorities of said violation. In the
event Owner contends that there are certain boats discharging sewage
and/or other trash, then it shall report same immediately -to Tenant
who will, in turn, report same to the appropriate governmental auth-
ority.
12. Lessee shall. be responsible for the payment of all electri-..;, `•.
city, water and other utilities' used in the dock area. all utilities :?2.
will be listed in the name of the Lessee and it shall be hip responsi+ s'
biiity to pay for all utility charges.
t'

04-20-05 08:48 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.005/019 F-334
13. Ali signs, advertisements and notices proposed by Lessee for,.
the dock areas shall be approved by the owner before Lessee can install.
same, which approval will not be unreasonably withheld. ;k;
14. Lessee shall, without any previous demand therefor, ,t..
s Pay •the r',•:
rent called for herein at all times and in the manner provided for,
in the event of the failure on the part of the Lessee to pay said rent,.`•-`:
in accordance with the terms of this sublease, Owner may forthwith take,::
possession Of the dock areas after given ten (10) days' notice that:paj.a;
rent is due and has not been paidi if said payment is not made within •%?'.:.
said ten (10)-day period, the Owner may forthwith take possession of the'•
dock areas without jeopardizing any of the rights and remedies that the ,
Owner may have as a result df the default by Lessee of the terms and ' "
conditions of this Sublease. In the event Lessee should default on the
stipulations, terms, agreemdnts and covenants contained in this Sublease',
and the Lessee should fail to correct the same within ten (10) days •:
after notice has been given by the Owner to Lessee, then 'the owner shall
have the right to re-enter the premises and to repossess and take possps-
sion of the dock areas. The owner shall hereafter have such other':,''I'
rights and remedies as against Lessee as provided by law. In the'ev@nte.
Lessee should be adjudged bankrupt or insolvent by any federal'or.statit..:;
court of competent jurisdiction during the term of this'Sublsase,•'�the':.
Owner may at its option declare this Sublease terminated and cancelled•.':
and the Owner may takj possession of said premises. Further, should the
Lessee allow the dock areas to become vacant during the term of this
Sublease at any time when the rent. shall be or become due and unpaid
hereunder, the Owner may re-enter the premises either by force or other
wise without being liable for prosecution therefor and the owner may
terminate this Sublease,
15. Lessee shall take good Bare of the leased premises and at the;
end or other expiration of the term of this sublease shall deliver paid_
premises in good order and condition, reasonable wear and tear'exgeg(ed.'.'.
Lessee may make alterations, additions or improvements in the dock are4,'.
provided Lessee shall first obtain from the owner and the Town its W'it ,
ten consent as to the planned alterations, additions or improvements,,7V
which Consent will not be unreasonably withheld. All alterations;.eddi+.
tions or improvements made by the Lessee during the course of its.00cu-..;
pancy or the term of this Sublease shall inure to the benefit of and be,•,
the property of the owner upon the termination of the Sublease, and suc#-,,
alterations, additions and improvements will be surrendered with.tpe.''
premises when the same are surrendered by the Lessee to the Owners' =."j
16. Lessee at its own cost and expense shall comply with all rules
and regulations and requirements of the Owner, the Town, the State. of
North Carolina, and the United States, which are applicable to the dock.
areas for the prevention or abatement of nuisances or other grievances
arising out of the manner of the occupancy of the dock arcs during this
sublease by Lessee. The owner shall have the right to enter upon the
dock areas during the term of this sublease at all reasonable hours for
the purpose of examining and inspecting the same.
1 4 -

04=20-05
08:40 From -WARD AND SMITH, PA-3000, ND 252 672 5477 T-551 P.006/019 F-334
17. The Lessee shall have no authority to assign this Sublease.,— -
without first obtaining the written consent of .the Owner, Which
consent shall not be unreasonably withheld. Lessee shall not occupy
or use or permit or suffer to be occupied or used the dock areas for
any business or .purpose which would violate zoning laws of the Town,•°';!%;,t_,•
or which may constitute a hazard on account of fire or other danger
to the owner and Town or its citizens.
18. Lessee acknowledges the responsibility of the Town and ..:
Owner to provide to Branch Banking and Trust Company and Fairleigh S,
Dickinson two (2) mooring spaces for vessels not exceeding forty-five'=•,.
(45) feet in length. The Lessee will post such signs and establish
such rules and regulations so as to insure that such spaces are
continuously available to such parties.
19. The Lessee agrees to provide priority status to the guests
of Owner's Inn for use of the property that is the subject of this
Sublease. The Lessee shall use its best efforts, to provide continuous,`•,:.,.
access to the dock area to the Owner's guests.
IN TESTIMONY WHEREOF, the owner has caused this Sublease to be`'exer "
cuted by its General Partner, and Lessee has caused its seal to be affixed
hereon on the date hereinabove written.
AT -EST = \
Secretary
INLET INN AJISOCIATES, a North Carolina
Lim ite Qrtne s
By=
Gene al Pairner ; •- ,'..
?
BEAUFORT WATERFRONT ENTERPRI2ESr IBC.
By: �Pres a Y,.- •"
r,
0. The foregoing notwithstanding, the Owner
(AFFIX C09PORATE SEAL) reserves the right to modify the terms of this,
Sublease in accordance with the requests of its
mortgagee(s). If Lessee does not accept such
modifications, this Sublease shall terminate.
- 5 -

04-20-05 08:40 From -WARD AND SMITH, PA-3000, NB 252 072 5477 T-551 P.007/013 F-334
STATE or NoiTH CAROLINA - County of 4—r-ei ,
1, a Notary Public for th above County and State, do hereby certify
that HAYWOOD WEEKS, OR., personally appeared before me this day and acknowledged
the execution of the foregoing instrument.
WITNESS'ny hand and official stamp or seal, this day of/� 3.989.
Notary Public
Ny eommisssion expires:
nr �„ „��„mnun eaygea ycmoer 16, 1988 .- ;
W)TAILTAL STAMP/SEALs
STATE OF NORTH CAROLINA - County of
I, a Notary Public for the above County and State, do hereby certify .
that personally appeared.before me this day and
acknowledged the execution of the £ozegping instrument.
WITNESS my hand and official stamp or seal, this day of
. 1984.
Notary Pu1,110 f}''
My commission expires:
NOTARIAL STAMP/SEAL
N

E4'
tl�
-- -0
am
aF.
I
EXHIBIT A
Docks to he leased to
Beaufort Waterfront Ent
■! 1 1 I 1 1 1 '1
VEE-d 810/800'd 199-1 lips UO d5i 8N 'COOS-Vd 'HIIHS ONV 08VM-WGJd WOO 50-0210

04-20-05 08:50 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.009/019 F-334
rj3dsss� cj/7Db*
73o�p9� f�c�3
Tax Parcel Number: �•
Prepared by: Richard % I Ley, P. O. Box 250, Beaufort, NC 28516
Mailed After Recording to: Beaufort Waterfront Enterprises, Inc.,
Brief description for Index: Beaufort Township
NORTH CAROLINA QUITCLAIM DEED AND BILL OF SALE
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
This Deed and Bill of Sale ma this let day of June, 1999, by and
between Inlet inn' Associates, North Carolina Limited Partnership,
Grantor(s), and Beaufort Waterfront Ente ises, Inc., a North Carolina
Corporation, Grantee(S) of,;
WITNESSETH:
That said Grantor(s), for and in consideration of the sum of Ten
and 11/3.00 ($10.00) Dollars(s) to their in hand paid, the receipt of
which is hereby acknowledged, have remised and by these presents do
remise, release, and forever quitclaim unto the Grantee(s) and their
heirs and assigns all right, title, claim and interest of the said
Grantor(s) in and to a certain tract of parcel of land lying and being
in the County of Carteret, and State of North Carolina, in Beaufort
Township, and more particularly described as follows together with all
improvements and fixtures thereon.
See Exhibit A attached hereto and incorporated herein by reference.
TO HAVE AND TO HOLD the aforesaid tract or parcel of land and all
rJ privileges thereunto belonging to the Grantee(s) and their heirs and
assigns, free and discharged of all right, title claim, or interest of
the Grantor(s) of anyone claiming by, through, or under them.
IN TESTIMONY WHEREOF, said Grantor(s) have hereunto set their hands--
and seals the day and year first above written.
INLET INN CIATES,
A NORTH LI LIMITE)d PARTNERSHIP
oe/a�/zs .Y�V1
r $220.00 By. (SEAL)
gon David Weil, General Partner
ttpS'UNA 4 Real Estate
�p 1 Exclse Tax
STATE OF NORTH CAROLINA COUNTY OF CARTERET
I, a Notary Public of the County and State aforesaid, certify that
David Weil, General Partner of Inlet Inn Associates, a North Carolina
Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness my hand and official �seal this
l�the
/lot
/day of June, 1999.
,.:•:.,..'y�..r:.-+.4t�.r� JLw71�i1� (SEAL)
My Co misio}S,;Eiires:
:`,:., . • . ,c`.r'��/6 •��d �. NOTARY PUBLIC
.'tiw•^.••; uunrwr••, r •' ijyj�' ' L<('1
e-11
Y r•
%QTA Q�
............. .:
i

04-20-05 08:50
From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.010/019 F-334
(SEAL)
artner
STATE OF NORTH CAROLINA COUNTY OF - �y
I, a Notary Public of the County and State aforesaid, certify that
DeWayne H. Anderson, General Partner of Inlet Inn Associates, a North
Carolina Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness my hand and official seal this the Ad -day of June, 1999.
My Commission Expires: (.20(
STATE OF NORTH CAROLINA COUNTY OF ^'TO
I, a Notary Public of the County and State aforesaid, certify that
William G. Benton, General Partner Of Inlet Inn Associates, a North
Carolina Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foXegoing instrument_
Witness my hand and official seal �Kis the >.�Nday of June, 1999.
My Commission Expires: �a-l�`
NOFRFI CAFIOLIN/� CAFTTHFlET COUtPTY
NO for CAR UNA.oaarate(e) of Notary PribHc(e) te�t6
cerftd to be honWL tnb htstnrtnetd and Ud� etatHF
rate ere duty reglsterad at the date and tirm am In
the gook and Page shown an the first page
eniWdhF'ZW"''
eedagY-„
OFFICIAL SEAL
• Notarryy Pubks, North Cam0110
�-� C JOANNE tGAN s
Melanie Arthur 33P
Carteret Count Register of Deeds
CS Date 06/07/1�99 Time 15:45:00
OR 0000858408 Page i of 3

04-ZB-06
08:51 From -WARD AND SMITH, PA-3000, NB
252 672 5477
T-551 P.011/019
F-334
ExHIBIT A
All Of Grantor's leasehold interest in Tract 2
that Lease Agreement dated January 31, 1984, as
described as follows:
as described in
amended,
On the southside of Front Street and being all of water
Lots 258, 259, the west one-half of 260, the east one-half
of 261, and all of Lots 262 and 263, Old Town, Beaufort,
North Carolina, to include all riparian and littoral rights
incident thereto, and to consist of the land and riparian
and littoral rights incident thereto on the south side of
the Front Street right of way, and lying between the east
line of Queen Street and the west line of Pollock Street,
except for the 66 foot tract of land on the south side of
Front Street owned by Robert H. stevens, which consists of
'the west one-half of Lot 260, and the east one-half of Lot
261, Old Town. Tract 2 is the same real property conveyed
to the Town of Beaufort by deeds from John and Jean
Campabosso recorded in Book 483, Page 361, £rom Carteret
Services, Inc., to the Town of Beaufort recorded in Book
395, Page 320, deed from F. S. Dickinson, Jr., to the Town
of Beaufort in Book 393, Page 294, Carteret County Registry,
and Deed of Easement from Branch Banking and Trust Company
to the Town of Beaufort, with regard to water Lots 263, 262
and the eastern one-half Lot 261, Old Town, Beaufort, North
Carolina.

04-20-05 08:51 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.012/019 F-334
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
DEED AND BILL OF SALE
This Deed and Bill of Sale, made as of the day of
June, 1999, by and between Beaufort Waterfront Enterprises, Inc.,
a North Carolina corporation ("Grantor"), and the Town of Beaufort,
a North Carolina municipal corporation ("Grantee"):
W I T N E S S E T H:
That the Grantor, for and in consideration of the sum of
Ten Dollars ($10.00) and other good and valuable consideration to
it paid, the receipt of which hereby is acknowledged, has remised
and by these presents does remise, release and forever quitclaim
unto the Grantee, its successors and assigns, all right, title,
claim and interest of said Grantor in and to a certain tract of
land lying and being in Beaufort Township, Carteret County,
North Carolina, together with all improvements and fixtures
thereon, said parcel to be more particularly described as set forth
on Exhibit A attached hereto and incorporated herein by reference.
To have and to hold the aforesaid parcel of land and all
privileges thereunto belonging to the Grantee and its successors
and assigns, free and discharged of all right, title, claim, or
interest of Grantor therein.
IN TESTIMONY WHEREOF, Grantor has caused this instrument
to be properly executed as of the day and year first above written.
ATTEST:
Secretary
Beaufort Waterfront Enterprises, Inc.
By:
President
EXECUTED COPIES OF
THIS DOCUMENT ARE
MATTERS OF RECORD

04-20-05 08:51 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.013/019 F-334
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I , a Notary
Public in and for said County and State, do hereby certify that
personally appeared before me this
day and acknowledged that he is Secretary of BEAUFORT WATERFRONT
ENTERPRISES, INC., a corporation, and that by authority duly given
and as the act of the corporation, the foregoing instrument was
signed in its name by its President, sealed with its corporate
seal, and attested by himself as its Secretary.
WITNESS my hand and notarial seal, this the day of
, 99.
Notary Public
My Commission Expires:
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
The foregoing certificate of
, a Notary Public of said County and
State, is certified to be correct. This instrument was presented
for registration this day and hour and duly recorded in the office
of the Register of Deeds of Carteret County, North Carolina, in
Hook , Page
This day of
o'clock .M.
Register of Deeds
NBMAiN\3GS917.1
1999, at

04-20-05 03:51 From -WARD AND SMITH, PA-3000, NB 252 872 5477 T-551 P.014/010 F-234
a
Lying and being in the Town of Beaufort, Carteret County, North
Carolina and being more particularly described as follows:
Lying and being on the south side of Front Street and being all of
Water Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to consist of the land and riparian and littoral
rights incident thereto on the south side of the Front Street right
of way and lying between the east line of Queen Street and the west
line of Pollock Street except for the 66 foot tract of land on the
south side of Front Street owned by Robert H. Stephens which
consists of the west one-half of Lot 260 and the east one-half of
Lot 261, Old Town.
Exhibit A
90-0064(A)
NBN',ASN\369193.1

04-20-05 09;52 From -WARD AND SMITH, PA-3000, NB 252 572 5477 T-551 P.015/019 F-334
LEASE MODIFICATION AND EXTENSION AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
THIS LEASE MODIFICATION AND EXTENSION AGREEMENT
("Agreement"), is entered into this the 8th day of September, 2003, by and between
BEAUFORT WATERFRONT ENTERPRISES, INC. ("Lessee"), and the TOWN OF
BEAUFORT, a North Carolina municipal corporation ("Owner").
WITNESSETH:
WHEREAS, Owner and Haywood Weeks, Jr. executed a Lease dated
August 28, 1978 and recorded in Book 416, Page 308 in the of fre of the Register of
Deeds of Carteret County ("Original Lease"), wherein Owner leased to Haywood Weeks,
7r. certain docks as described in the Original Lease; and,
WHEREAS, by Assignment dated November 21. 1979, recorded in
Book 433, Page 470 in the office of the Register of Deeds of Carteret County. Haywood
Weeks, Jr. assigned his interest as Lessee under the Original Lease to Lessee; and,
WHEREAS, the Original Lease has been amended and extended by:
(1) an Amendment to Lease dated August 27, 1987, recorded in Book 571, Page 424 in
the office of the Register of Deeds of Carteret County; (2) an Extension of Lease dated
September 1, 1993; (3) an Agreement, Modification and Extension of Lease dated
May 26, 1999; and a Lease Modification and Extension Agreement dated February 12,
2003 (the Original Lease and all previous amendments, modifications and extensions
thereof are referred to hereinafter as the "Lease"); and,
WHEREAS, said Lease includes the remaining fixed dock located m front
of the building known as the "Beaufort House" and also located at the eastern end of the
Tomes southernmost bulkhead on Taylor Creek and all other docks described in the
Lease (all premises subject to the Lease collectively are referred to hereinafter as the
"Premises"); and,
"

Od-20-05 06:52 From —WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.015/019 F-334
WHEREAS, Lessee has agreed to expend a minimum of Fifty Thousand
and Noll00 Dollars ($50,000.00) for the construction of improvements to the aforesaid
remaining fixed dock in consideration of the Owner's agreement to modify and extend the
Lease and Owner has agreed to do so.
NOW, TMREFORE, for and in consideration of the premises, for and in
consideration of the mutual promises and agreements set forth herein, and for and in
consideration of other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Owner and Lessee hereby agree as inllows:
1. Lessee shall expend a minimum of Fifty Thousand and N0/100
Dollars ($50,000.00) 10 construct and install a floating dock to replace the remaining
fixed dock located in front of the building known as the "Bcaufort House" and also
located at the eastern end of the Town's southernmost bulkhead on Taylor Creek. Lessee
shall commence construction of the floating dock within a reasonable time after the
demolition of the dock to be replaced and thereafter diligently shall pursue such
construction to completion, The floating dock shall be constructed to the same standards
and quality as the floating docks constructed by Lessee in the Spring of 2003 and located
just to the west of said dock. The floating dock shall be deemed a part of the Premises
and shall be included in the team "docks" as used in the Lease. At the termination of the
Lease, Owner shall be deemed the owner of the floating dock.
2. Upon (a) approval of the aforesaid construction by the Town 0f
Beaufort Historic preservation Commission; (b) the awarding of a grant for fiords to pay
a portion of the cost of the removal of the fixed dock and its replacement with a floating
dock as set forth herein (said grant funds together with the finds to be paid by Lessee as
set forth herein shall total S minimum of Ninety -Five Thousand and No/1o0 dollars
($95,000)); and (3) the issuance of a CAMA Permit frrr the construction set £girth herein,
Lessee shall deposit a minimum of Fifty Thousand and No/100 Dollars ($50,000.00) in
good funds together wn any grant funds which are made immediately available to
Lessee, but excluding grant funds made available to lessee only on an incremental basis
during construction of the foregoing dock, into an escrow account to be held by Ward and
smith, P.A. as Escrow Agent pursuant to an Escrow Agreement providing for
disbursement of said ftmds during construction of the foregoing dock based upon

04-20-05 08:52 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.1117/019 F-334
3
invoices from Lessee's contractors) andlor enpplier(s) submitted by Lessee to 'Ward and
South, P.A. Copics of all such invoices and payment disbursement records will be timely
provided to Owner by Ward and Smith, P.A. and such invoices and payment
disbursement records will be available to Owner at any tune upon the written request of
Owner In the event Lessee shall default on its obligation to build the floating dock as
provided herein, other than for reasons beyond the control of Lessee, the Owner may
complete the project. according to the Plans and the LAMA Permit and Ward and Smith,
PA , as escrow agent is specifically authorized by Lessee to pay the Owner for
completion of the project from the escrow account In the event Owner completes the
project using the finds of Lessee as provided in the preceding sentence, this Agreement
shall remain in full force and effect as though Lessee completed construction of the
project.
3_ The term of the Lease hereby is extended from the current
expiration date of May 31, 2012 to and including June 30, 2013.
4_ Except as herein provided, each and every provision of the Lease,
including provisions for rent escalation, shall remain in full force and effect until the
expiration of the term of the Lease as extended hereby or until amended by a written
document executed by Owner and Lessee. Without limiting the generality of this section,
and by way of illustration, the annual rent for the term extended by this modification and
extension agreement will include the $36,000.00 (pro -rated for June 2013) increase
provided in the February 12, 2003 lease modification and extension agreement between
the parCes.
5. This lease modification and extension agreement is conditioned on
the Owner receiving a cash grant for dock replacement in the amount of approximately
$31,000.00 by September 1, 2004.

13EAUFORT' WATERFRONT ENTERPRISES. INC.
04-20-05 08:52 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.018/019 F-334
4
IN WITNESS WHEREOF, Lessee has executed this iustr meat in due and
lawful meaner the day and year first above written aad Owner has caused this inslr nt
to be executed by its Mayor and attested by its Town Clerk and its seal to be affixed all
by order of its Board of Commissioners properly given as of the day and year first above
written.
0
ATTEST:

04-20-05 08:53 From -WARD AND SMITH, PA-3000, NB 252 872 5477 T-551 P.019/019 F-334
ADJACPNT 11113ARIAN PROPEIYTY OWNER MTE'NWXf
(FOR A PIL•'RAVOORING PII.INGS/BOATLUP111BOATHOUSE)
I hereby certiry that I own property adjacent to Town of Beaufort _,______'S
(i~iaune of Property Owner)
property locaictl at
of Beaufort House on Front Street
(I.nt, Mock, Road, etc.)
on Taylors Creek in Beaufort _ _ N.C.
(Wnterlmly) (Town and/or County)
Ne, has described to nte, as shown below, the davalopment he is proposing at that location,
and, I have no objections to his proposal. I understand that a pier/moodng
pilinl;vbonuif(/boathouse must be set back a minimum distance or $fteen feet (15') from my area
of ilpsarian access unless waived by me.
T da-not wish to waive the setback requirement.
)( I S)12 wish to waive that setback requirement.
DESCRIPTION AND/OR DRAWING 0I+ PROPOSED DEVELOPMENT:
K (fn be fi((erl in by indiP(dual yroppiitde�l�r re itF�'DOCy
°D rogbDOCK b
go"
,Weeks. Beaufort Waterfront
Print or Type Name Enterprises
Telephone Numbor
Date;

WARD AND SMITH, P.A.
ATTORNEYS AT LAW
FRANK H. SHEFFIELD, JR.
[phone]
Fax [phone]
fhs®wardandsmith.com
April 1, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
400 Commerce Way
Morehead City, North Carolina 28557
RE: Beaufort Floating Docks
Our File 900583-0005
Dear Tere:
In response to our discussions concerning resolution of the Notice of Violation issued for the
new Town docks along the Beaufort waterfront, we undertook to: (1) obtain a letter from the
Town confirming that Front Street in the subject area is a town road; and (2) obtain a waiver of
any riparian setback rights the Town may have as an adjacent riparian owner (based on the high
tide line being at the Town bulkhead in the area immediately east of the project site). We
accomplished the first, and the resulting letter from Mr. John Young, Public Works Director for
the Town of Beaufort, is enclosed for your information. However, the Beaufort Board of
Commissioners was not able to add our request to the agenda for its meeting of March 21, 2005,
due to the last minute nature of our request, and we will not be able to schedule an appearance
until mid -May or even later, due to people's schedules.
In the meantime, I consulted with one of our real estate specialists who pointed out that the title
history of the Town's properties along the Beaufort waterfront reveals that Beaufort Waterfront
Enterprises, Inc. holds leases dating back to 1978 from the Town of Beaufort with respect to the
Inlet Inn docks property (see enclosed). The current lease runs through 2013. As you will note,
the property description in the lease includes the area in front of Mr. Robert Stephens' house
"except for the 66-foot tract on the south side of Front Street owned by Mr. Stephens which
consists of the west one-half of Lot 260 and the east one-half of Lot 261, Old Town."
(emphasis added) Since Mr. Stephens' property no longer includes any upland property on the
south side of Front Street due to the long-term effects of erosion, the Town of Beaufort owns the
uninterrupted stretch of property along the entire waterfront as far east as the Eury property
(including the area in front of Mr. Stephens' house), which in turn has been leased to Beaufort
Waterfront Enterprises, Inc. on a long-term basis.
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
GREENVILLE NEW BERN RALEIGH WILMINGTON
[phone] [phone] [phone] [phone]

WARD AND SMITH, P.A.
Ms. Tere Barrett
April 1, 2005
Page 3
Accordingly, based on long-established CAMA policies, Beaufort Waterfront Enterprises, Inc.,
as the holder of a long-term lease for the area immediately adjacent to the project site, is the
appropriate entity to waive its 15-foot setback rights with respect to the new docks owned by the
Town of Beaufort.
As indicated by the enclosed waiver form signed by Mr. Haywood Weeks, Beaufort Waterfront
Enterprises, Inc. hereby waives its riparian setback rights with respect to the Town docks.
In conclusion, we respectfully request that this matter be closed without further action by the
Town or the Department, because the docks as constructed could have been approved originally
under CAMA rules as a result of a setback waiver by the adjacent riparian owner.
Sincerely,
Frank H. Sheffield, Jr.
NBMAM626793
Enclosures
cc: Ms. Tern Parker-Eakes (w/encs.)
Mr. Haywood Weeks (w/encs.)

uty' � A1j1j
WARDAND SMITH, P.A. Fig 1 o 2005
ATTORNEYS AT LAW
Morehead City DCM
FRANK H. SHEFFIELD, JR.
[phone]
Fax (252) -5477
(hs@war{dandsmr .com
February 9, 2005 ` 1
Mr. David S. Henderson
Henderson, Baxter, Taylor & Gatchel, P.A.
PO Drawer U
New Bern, NC 28563 COPY
RE: Beaufort Docks Project
Our File 900583-00005-001
Dear Mr. Henderson:
This letter will confirm the request made during my meetings on February 7, 2005 with Mr.
Robert Stephens and his son, Paul, and subsequently with you. Our client's request is that
Mr. Stephens indicate that he has no objection to the floating docks constructed along Front
Street in Beaufort remaining as built. We are making this request as a courtesy at the suggestion
of Division of Coastal Management staff. In our view, waiver of Mr. Stephens' riparian rights, if
any, is not required in this situation.
This whole situation appears to result from a misunderstanding about who is the adjoining
property owner based on information from an old tax map. The tax map shows a small sliver of
Mr. Stephens' property on the water side of the Town bulkhead above the mean high water line,
which investigation reveals no longer exists. Accordingly, our client provided notice to BB&T
as the adjoining property owner rather than Mr. Stephens.
We would very much appreciate Mr. Stephens' cooperation in this matter. We look forward to
receiving a reply from you in the near future.
Yours very truly,
Frank H. Sheffield, Jr.
FHS:rlc
NBMAIN\621096\1 /
cc: Ms. Tere Barrett)
Mr. Haywood Weeks
Mr. J. Troy Smith, Jr.
Mr. David L. Ward, Jr.
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
GREENVILLE NEW BERN RALEIGH
[phone] [phone] [phone]
WILNUNGTON
[phone]

OVIV 7
dap �j 1�0
I

WARD AND SMITH, P.A.
ATTORNEYS AT LAW
January 25, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
151-B Hwy. 24 Hestron Plaza lI
Morehead City, North Carolina 28557
RE: Response to Notice of Violation #05-02C
Issued to Town of Beaufort
c/o Mr. Haywood Weeks
re Beaufort Docks Project
Our File 900583-00005-001
Dear Ms. Barrett:
FRANK H. SHEFFIELD, JR.
[phone]
Fax [phone]
[e-mail]
RICE
JAN 2 6 2005
Morehead City I)C44
This letter responds to the Notice of Violation ("NOV") dated January 21, 2005 issued to the
Town of Beaufort, c/o Mr. Haywood Weeks concerning construction of a set of floating docks
along Front Street in Beaufort ("the Beaufort Docks").
After discussing this matter with you and Mr. Mark Hardeman in your office on January 21,
2005, and further reviewing the facts surrounding this permit and dock construction project
details, we believe that the new floating docks as constructed could have been permitted and,
therefore, we ask that resolution of this matter be governed by 15A N.C. Admin. Code § 7J
.0409(f)(4) for the following reasons:
1. The applicant is the Town of Beaufort. The Beaufort Docks are part of the series
of docks that make up the Beaufort historic waterfront area. The Beaufort Docks
are owned by the Town and operated under lease by Mr. Weeks for use by the
general public. The availability of these docks will help support and promote
tourism in Beaufort and provide revenues for the Town. In short, the Beaufort
Docks provide substantial public benefits.
2. The docks are within the general footprint of the Beaufort waterfront docks area,
which extends from the west end of Beaufort down Front Street to the east -- well
past this location. Boats of all varieties have been part of the visual landscape of
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
GREENVII t F NEW BERN RALEIGH
(252) 2154000 [phone] (919) 8364260
WIIMINGTON
(910) 7944800

WARD AND SMITH, P.A.
Ms. Tere Barrett
January 25, 2005
Page 2
EVED
JAN 2 6 2005
Morehead City DCM
all the properties along Front Street for many years. Indeed, the area of the docks
under discussion has been a boat basin for use by boaters visiting Beaufort for
over 20 years.
3. As discussed further below, we believe the docks are more than 15 feet from the
riparian area of any separate adjoining riparian property owner. Accordingly, no
waiver by any adjoining riparian property owner in that area appears to have been
necessary in order for the Beaufort Docks to be permitted for the additional 5% in
dock length.
4. In any case, in good faith our client provided notice to BB&T on the
understanding that they were the next adjoining property owner. As you will
recall, BB&T was noticed during the CAMA Major Development permitting
process for these docks in 2002 without objection from anyone. Our client
assumed that the same procedure used by the applicant and approved by your
office during the Major Development permit process should be used last year for
the General Permit, which involves replacing the same docks authorized by the
CAMA Major Development Permit.
As we discussed last Friday, in our view Mr. Robert Stephens does not appear to have any land
on the water side of Front Street and the Town bulkhead. At most, he may have only a very
small sliver of mudflat at the foot of the Town bulkhead. We do not believe he has any land at
present above the mean high water line for several reasons. First, there are oysters growing on
the Town bulkhead in front of the Stephens property. Oysters do not grow above the mean high
water line. Second, considerable marsh grass is present directly in front of the Town bulkhead.
To the extent any marsh grass is present in this general area with the characteristics of grasses
that can survive above the mean high water line, such grass is believed to be located on the
adjoining property to the east -- not in front of the Stephens property. The adjoining property,
which apparently is owned by the Town, begins several feet west of the Lookout
Express/Mystery pier. Thus, the small area of land where some grass is present in the comer
nearest the pier is believed to be on the Town's rather than Stephens' property.
In any case, the tiny sliver of mudflat in front of the Stephens property does not extend the full
width of his property. It appears to extend only about half the width of his lot. Accordingly, as
you indicated during our discussion, it would appear that the Town, as owner of Front Street,
would be the next adjoining riparian property owner to the east of the project area.
If that is correct, then Mr. Stephens' riparian corridor does not coincide with his western property
line, but extends from the channel to the point where this tiny sliver of purported high ground
begins to the east. My inspection of the site indicates that the point where this tiny sliver begins
is more than 15 feet east of the project area. Accordingly, it does not appear to us that our client
was or is required to obtain a setback waiver from Mr. Stephens in order to extend the length of

WARD AND SMITH, P.A. RIF
1��IIVI1'
j�
Ms. Tere Barrett JAN 2 6 2005
January 25, 2005
Page 3
Morehead City DCM
the docks an additional 10 feet. The end of the docks is considerably more than 15 feet from
Mr. Stephens' purported riparian corridor.
We would also note that, to our knowledge, no one complained to the Division of Coastal
Management about the additional length during the construction of the docks. Since the docks
were completed, there has been nothing but praise from the general public about the new docks.
It is interesting that concern has arisen only now -- several months after completion of the
project.
In conclusion, both the Town and Mr. Weeks very much wish to resolve this matter in an
expeditious and cooperative manner. Accordingly, we ask that you consider the above
comments and advise us how this situation can be resolved. We look forward to speaking with
you about how we mutually can achieve that end.
Yours very truly,
Frank H. Sheffield, Jr.
FHS:toe
NBMain\618827\1
cc: Mr. Mark Hardeman
Ms. Terry Parker-Eakes
Mr. Haywood Weeks

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Page 1 d 1
Detailed view for record 1 (Print)
FieldI
Value
Field
Value
AREA
6635.97918
DIRECTION
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334.70562
ST_NAME
FRONT
PARCEL83_
31912
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31979
CITY
BEAUFORT
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0
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28516
PIN
73050512
MAIL_HOUSE
4702
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7305
MAIL_DIR
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29
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489
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730505
MAIL_STATE
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PIN15
OWNER
730505292723000
STEPHENS,ROBERT
H
MAIL_POBOX
BEAUFORT
TOWNSHIP
CITY_LIMIT
BEAUFORT
DBOOK
0794
NBHD
590005
DPAGE
00033
FIRE_DIST
DDATE
0
RESCUE_DST
LEGAL_DSC
BEAUFORT
RESCUE
PART 3 TOWN
BEAUFORT
FRONT
STREET
SALE_PRICE
0
TAX_VALUE
573267
LAND_VALUE
446524
STRUC_VAL
126743
OTHER_VAL
0
TOTAL_ACR
0.615
BLT_CONDO
0
Y_BLT_HOUS
1917
HOUSE_NUM
0000611
TOT_SQ_FT
1584
BATHROOMS
1
BEDROOMS
0
31911
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Page 1 of 1
Detailed view for record 1 (Print)
Field
Value
AREA
43766.27221
PERIMETER
863.19812
PARCEL83_
31700
PARCEL83_I
31767
WHAT
1
PIN
73050513
MAPNUM
7305
BLOCK
29
PDOT
3603
CONDO_
MOTHER
0�
MAPNAM
730505
PRID
11007H0211
PIN15
730505293603000
OWNER
BB&T
DBOOK
0287
DPAGE
00045
DDATE
0
SALE_PRICE
0
TAX_VALUE
LAND_VALUE
965350
462594
STRUC_VAL
502756
OTHER_VAL
0
BLT_CONDO
0
HOUSE_NUM
0000617
Field Value
DIRECTION
ST_NAME FRONT
ST_TYPE ST
CITY BEAUFORT
ZIP 28516
MAIL_HOUSE
MAI L_D I R
MAIL_ST
MAI L_STTYP
MAIL_CITY WINSTON
SALEM
MAIL_STATEINC
MAIL_ZIP 27102
MAIL_POBOX PO BOX 1290
TOWNSHIP BEAUFORT
CITY_LIMIT BEAUFORT
NBHD 590005
FIRE_DIST
RESCUE_DST BEAUFORT
RESCUE
L1 2 PART L3
LEGAL_DSC TOWN OF
BEAUFORT
TOTAL_ACR 1.01
Y_BLT_HOUS 1968
TOT_SQ_FT 4432
BATHROOMS 0
BEDROOMS 0
31699
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Field
Value
AREA
43766.27221
PERIMETER
863.19812
PARCEL83_
31700
PARCEL83_I
31767
WHAT
0
PIN
73050513
MAPNUM
7305
FLOUR-729
PDOT
3603
CONDO_
MOTHER
0
MAPNAM
730505
FWD--
11007H0211
PIN15
730505293603000
OWNER
BB&T
DBOOK
0287
DPAGE
00045
DDATE
0
SALE_PRICE
0
TAX_VALUE
LAND_VALUE
965350
462594
STRUC_VAL
502756
OTHER_VAL
0
MAIL_CITY
MAIL_STATE
MAIL_ZIP
MAIL_POBOX
TOWNSHIP
CITY_LIMIT
NBHD
IN17 ulb I
SALEM
LEGAL_DSC JITOWN OF
tatus:
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Rfax-IP • Pg 2/2
Mar 21 05 01:26p Public Works 252-728-7931
p.2
TOWN OF BEAUFORT
412 1 ledrick Strecl, 11.0. Box :3W
lkat&M N.C. 2&516
[phone], (152) 72Fr76131 fax
w .hemiforalc.wx
To Whom 1t May Concern:
FROM: Public Works Director, John Young
DATE: March 21, 2005
RF: Front Street Ownership
Front Street in Beaufort, N. C. from the west right-of-way of Live Oak Street and
heading westward belongs to the Town of Beaufort as referenced on the Town's
Powell Bill Map.
Jolul Yowµi, lilr cwz of Public wrniu
j&mny O'ShWI, l4,hlir Wm+A Supurvie r Doug Mmi old, Water System Su{,ervisw
Fllx�rtG<rkrtr,CkwWUr,irnFcMainlraum<xSupervivur Mikr.Rnbinstm,ww1T/()RC;
Sallie I Am. Administrzi6w.. Sup1mrl SIM'dalim

Title History Documents - Beaufort Waterfront Property
1. Lease between the Town of Beaufort and Haywood Weeks, Jr., dated August 29, 1978;
2. Assignment of Lease from Haywood Weeks, Jr., to Beaufort Waterfront Enterprises, Inc.,
dated November 21, 1979;
3. Lease between the Town of Beaufort and Inlet Inn Associates dated January 31, 1984;
4. Sublease between Inlet Inn Associates and Beaufort Waterfront Enterprises, Inc., dated
April 1984;
5. Agreement and Amendment to Lease between the Town of Beaufort and Beaufort
Waterfront Enterprises, Inc., dated August 27, 1987;
6. Extension of Lease between Beaufort Waterfront Enterprises, Inc., and the Town of
Beaufort dated September 1, 1993;
7. Bill of Sale and Assignment from Inlet Inn Associates to Beaufort Waterfront
Enterprises, Inc., dated May 1999;
8. Agreement, Modification and Extension of Lease between the Town of Beaufort and
Beaufort Waterfront Enterprises, Inc., dated May 26, 1999;
9. North Carolina Quitclaim Deed and Bill of Sale between Inlet Inn Associates and
Beaufort Waterfront Enterprises, Inc., dated June 1, 1999;
10. Deed and Bill of Sale between Beaufort Waterfront Enterprises, Inc., and the Town of
Beaufort dated June 1999.
11. Lease Modification and Extension Agreement between Beaufort Waterfront Enterprises,
Inc., and the Town of Beaufort dated February 12, 2003;
12. Lease Modification and Extension Agreement between Beaufort Waterfront Enterprises,
Inc., and the Town of Beaufort dated September 8, 2003;
900583-00005-001
NBMAIN\627416\1

L
•l `' I l • , r :!' JCS Y U/' ',. I1`1 a
f
NORM CAROLINA ` I'
CARTE?cET COUNTY - '...' - L E A' S E ..,
,This contract of leaae made and entered into this oZ�%3 day of -
1`of August, 1978, by and between the Town of Beaufort, a municipal corporation,
I �
Iparty of the first part hereinafter called "Ovaer"; and Haywood Weeks, Jr.,
fIarty of the second part hereinafter called "Lessee",
WITNPSSETH: ^•...
jj That subject to the terms and conditions hereinafter set forth, -,
;;the Town of Beaufort does hereby let and lease unto the parties of the second'
part and the parties of the second part do hereby accept as lessee those certain
II.improvements to real property located in the Town of Beaufort, Carteret County,
-North Carolina, and more particularly described as follows: �
Being all of that area south of the'bulkhead which
has been newly constructed in the Urban Redevelopment
Area in the Town of Beaufort together with the five
(5) docks being located between Turner and Queen Street
in the Town of Beaufort; said bulkhead and the five
(5) docks being shown on a survey prepared by James
L. Powell, Registered Surveyor, dated January 31;
1978 and entitled "Disposable Tracts for the Town ,.
I! of Beaufort. Copy of said map is attached hereto .,
as Exhibit A and incorporated herein by''reference-
TO RAVE AND TO ROW said lands and premises, together with all
,,privileges and appurtenances [hereunto belonging to the said parties of the second
1tpart aid their heirs, succeosors in interest and assigns for the term and upon
the conditions hereinafter set forth:
�j 1. This lease shall begin as of the firs day oeptember, ,
1 r-df S197.8I .
and unless sooner terainated as herein provided, shall exist .and continue until) .
s A,rsr yI.the 3lst day. °f. Lurust.; 1988.,
' 2. The Town of Beaufort shall make a good faith effort to
t.:
i
:;:�:•;._:..i.::�::' .,.. petition the North Carolina General Assembly for legislation enabling the Town .
(� of Beaufort to lease the above dock areas for a period of time in excess of ten,
jl years. at the present time the North Carolina General Statute pertaining to
municipal corporations does not allow the Town of Beaufort to lease the above
described dock areas for any team in excess of ten years. In the event the i
North Carolina General Assembly should pass legislation granting to the Town
of Beaufort authority to lease the above described dock .:yeas for a period of i
time in excess of ten years, then this lease to the parties of the second part �
,s�y,•^;o shall be automatically extended for another ten years upon the same terms and
conditions with the,renewal period to expire on August 31, 1998.
P. 3. As rental'for said premises the parties of the second part
1 x

r ryshall pay to owner by mail or at the place of 'business of the To wa of Beaufort on
.;Pollack Street, Beaufort, North Carolina, and without notice or demand theref-ar
the sum of $810.00 per month, payable on or before the first day of each
calendar month for then current month. The monthly rental shall be paid in
advance and lessees shall tender to the Town of Beaufort their first rent for I
I
lithe month of September; 1978, upon their execution of this lease.
4. It is expressly agreed that the demised premises shall during
Ilthe term of this lease be useJ exclusively for the rental of boat slips and -
{docks areas and related marina activities. The lessee shall net allow shrimp
I!boats, menhaden boats, work boats, barges, tugs and other commercial fishing
'f boats and vessels of a commercial nature to dock at, tie up to, or +ise the dock
J,!areas. Sports fishing boats, charter boats, sail boats, pleasure boats and
•I vessels of this general nature shall be allowed at said dock. The dock located
!at the south end of the intersection of Front and Turner Streets as shown on
the -zap attached hereto as Exhibit A shall remain available for use by the
general public subject to the rules and regulations established, maintained, and
:.enforced by lessee. The lessee shall allow the general public to tie up to and
use this dock for a period of time not exceeding two hours in each twenty four
;Four period. On and after each two hour period within each twenty four hour
iperiod, lessee shall have the right to charge the member of the public so using
said dock an hourly rate of $10.00 per hour for each hour or part thereof in
'excess of the allowed two hour period. The Town of Beaufort reserves the right'
to re••iew and approve all rules and regulations established, maintained, and
:enforced by lessee with regard to the length of time the public may tie up to
I
and use the dock area at the south end of the intersection of Front and Turner
Streets
5. Lessee shall b- responsible for and shall pay for all
maintenance of the docks including repairs and replacement of piers, pilings,
support, and other structural parts of the dock areas as may be required by
the Town of Beaufort during the term of this lease and any renewal -period which.
may be allowed hereafter. The lessee shall insure that the docks constitute no.
safety hazard to members of the public and persons using said docks and that
the same are kept and maintained in a good state of repair. All maintenance
'! and repairs shall be at the expense of lessee and the Town of Beaufort shall
have the right to periodically inspect said docks in order to insure that the
docks are being maintained and repaired in a manner satisfactory to the Town.

A I t.. '4`fN) C. ♦ r.fi .y � �.1..+'�l�fiAs r�' �•��lji � �� ;'
;� .tX •^N . I er .,p . d y r . ,. cw M "S„ �, a<� pry Ml
.iJt `?.uyT fC• i�
. d4,
of
In the event lessee fails to maintain and repair the docks is a manner '�`;'z
satisfactory to the Town, then the Town. of Beaufort shall have therjght to�"
Il terminate this lease however, said Tom shall use x ,'� 'mike
. , Bood faith and makes only
those demands which are reasonable
6. Lessee shall be responsible for keeping the dock areas cleau;:
l d safe with regard. to use of the docks by
attractive to the public,
customers;
tenants, and the general public. The lessee shall establish ruled'for use of
,the docks and piers to insure the safety of the public and patrons and users of,
the docks; the Town of Beaufort reserves the right to approve or disapprove thes
rules before they are placed into effect. :
I�
7. Lessee shall maintain at all times a policy of'cemprehensive�
I�liability insurance which shall cover any and all claims for injury, death or
i
I�damage to property which may be made against the Town of Beaufort resulting from)
!the lessee's lease of the docks and the use of the docks .and piers by .tire leased
and his tenants, customers and the public in general. The comprehensive
liability insurance shall be in the foliowing minimum amounts:- - f
..� .. ...,-- i
$300,000.00 Each claimant; $506,000.00 - Each occurance;
i
..!+ $300,000.00 - Property damage. I
8. Lessee shall hold the Town of Beaufort harmless from any and
'41 all claims which may be made:against the Town. arising. om lessee's lease of
h the docks and piers and any and all claims for death, personal injury and damage
property while lessee is in possession of the docks under the terms of this
:Illease, including payment of a reasonable attorney's Pee in events claim is�
c a 11 ;
I� made, against the Town of Beaufort resulting from lessee's lease and possession i
the dock areas. .
9Leasee shall enforce and maintain rules that prohibit the If
j�dischargenseverage and otfiei trash into Taylor'e'Creek or at any point on
I>"- Front Street excep` for the area specifically designated for the discharge of
:iewerigeiand other trash -he Town of Beaufort hereby designates the south
Mn � en&df Turner Street, for the discharge of sewerage in the ptink to be
'sum.... _.
the placement of trash in
Turner Street. Lessee shall
atzaewerage and other trash
all .take place

T Y4♦ •p. i �! N R AY lei l \ Z
C�."tom � M { r• 1 � 'T 1- -
t
Itfihm the Public parking lot loaded between Craven and Queen Streets on the
I+I�south side of Front Street in the Town of Beaufort. Lessee shall insure that
ll adequate safety precautions and rules are established for all fueling operations!
by ,cus tomers and patrons of the docks in the permitted fueling area. The building
aspector for the Town of Beaufort will periodically inspect the fueling sita '
to insura that lessee. is complying with all State and local regulations with '
-' :::.IItegard to the handling of fuel and that the fueling' operations do not constitute
a hazard to the public. In the event the building inspector for the Town of I
Beaufort is of the opinion that the fueling operations do constitute a hazard I
.•Ito the public and other vessels and customers in and around the docks and in the;
Y 1
downtown area of Beaufort the Tmaa of Beaufort
.i sh
all : 1 have
.,. ve the au .. I� authority to ;
order the lessee to cease all further fueling operations within the pock areas. !
i; �
11. Lessee shall be required to post a performance bond in the
,jamount of $10,000.00 payable to the Town of Beaufort simultaneously with the
"+execution of this lease by lessee. The condition of the performance bond shall I
be that lessee shall carry out all the terms aad'*conditions of this lease. In
;I the even[ lessee should default in any of the ,terms and conditions of this lease,,
s4ld performance bond shall be forfeited to the Town of Beaufort. In lieu of
:i
!:a performance bond, lessee may post a cash bond in the sum of $10, 000.00 which
I
.. it shall be retained by the Town of Beaufort to insure lessee's performance of the
I�obligaticia impoet•d by this lease. In the event lessee should default accordinti
�I. to the terms and conditions of this lease, then the Town of Beaufort shall
have the right to retain the cash bond. -
�!
12. Lessee shall be responsible for the payment for all
I.electricity, water, and other utilities used in the dock area. All utilit'
will be listed in the name of the lessee and it shall be his responsibility to
pay £or all utility charges. j
I
13. Lessee is hereby given an easement over the public parking
I
lot areas located on the south side of Front Street and on the boardwalk so
that lessee will have access for the purposes of ingress, regress and egress
I
from Front Street to the dock areas. Basement given herein is a non-exclusive
easement and citizens of the Town of Beaufort and the public in general shall
also have the right to use said parking' lot and boardwalk. The public parking
immediately north of the dock areas shall not be obstructed by the lessee -nor-
any of his customers or patrons, nor used by lessee or his customers and

.. '
i
WIN
I
eece:itfor the purpose of ingress, regress and egress to and from Front Street
to the dock areas.
_ 14. All Signs, advertisements and notices proposed by lessee
far
(1the deck area shall be approved by the architectural board of review for the
'.Town of Beaufort before. lessee can install same.
15. Lessee shall, without any previous demand therefor, pay the
ji rent called, for herein at all times and in the manner provided for, and in the
_fievent of the failure on the part of the lessee to pay said rent in accordance
:i
L with the terms of this lease, the Town of Beaufort may forthwith take passessicn�
- of the dock areas after giving ten (10) days notice that said rent is due and
III
has not been paid; if said payment is not made within said ten (10) day period
Lf ii the Town of Beaufort may forthwith take possession of the dock areas without
yjeopardizing any of the rights and remedies that the Tour of Beaufort may have
f. ii
"as a result of the default by lessee of the terms and conditions of this lease. m
In the event'lessee, should default on the stipulations, terms, agreements and `
F' IrI.'' ..
N`covenants`�coetaix:ed3nthis lease, and the lessee should fail to correct the save;
I!within ten days after notice has been given by the Town of Beaufort to lessee,
A
. p[hen the Town of Besofort shall have the right to re-enter She premises and to r
• repossess and take possession of the dock areas. The Town of Beaufort shall
rights and remedies as against lessee as provided by
�.hereafter have such other
's {p law, In the event lessee should be ajudgcd bankrupt or insolvent by any Federal C
` {or state court of competent jurisdiction during the term of this lease, thef.
- ��Tow of Beaufort may at its option declare this lease terminated and cancelled ' 8
and the Town of Beaufort may take possession of said premises. Further, should
3 K
�-' lthe lessee allow the dock areas to become vacant during the term of this lease.
< ''�_� h 'V'�.aY any tine when the rent shall be or become due and unpaid hereunder, the Town
Of Beaufort may re-enter Cne premises either by force or otherwise without
r -being liable for prosectuion therefor and the Town of Beaufort may terminate this
: ,lease.
.16. Lessee shall take good care of the leased premises and at
'�r" the end or" other, expiration of the term of this Lease shall deliver said
� j"r i in good order an
t"r'•�°v' as
zemis>.d condition. Lessee may make alterations, additions
emeats in -the dock area provided lessee shall first obtain from the
Beati`ott its written consent as to the planned alterations, additions "� `
or improvements. All alterations, additions or improvements made by the lessee
shall inure to
i
'-,+` i.
�- durthis ing the course of his occupancy or the term of lease '

the benefit of•ane be the property of the Town of Beaufort upon the terminations
of this lease, and such alterations, additions and improvements will be surrendered
I
with the premises when the same are surrendered by the lessee to the Town of I
Beaufort.
Lessee at his mti cost and expense shall comply with all
i
rules, regulations and requirements of the Town of Beaufort, the State of North
Carolina, and the United states which are applicable to the dock areas for the
prevention or abatement of nuisances or other grievances arising out of the
i
i
manner of the occupancy of the dock areas during this lease by lessee. The
Town of Beaufort shall have the right to enter upon the dock ar as during the
term of this lease at all reasonable hours for the purpose of examining and i
ii inspecting the same,
18. The lessee shall have no authority to assign this lease
without first obtaining the written consent of the Town of Beaufort. The Town
:I of Beaufort shall not withold written consent of an assignment or the sub -
I!
f Letting of the premises c_ the dock areas provided the financial ability or
status of the proposed assignee is equal to or exceeds that of the lessee.
'Lessee shall not occupy or use or permit or suffer to he occupied or used the
.dock areas for any business or purpose which would violate zoning laws of the
!i Town of Beaufort, or which may uonstitu,e a hazard or. acrnunt of fire or
ii other danger to the Town of Beaufort or its citizens.
19. Lessee shall repair as soon as possible any and all damage
icaused to the dock areas by fire, accident, or ether casualty during the term
" of this lease. Lessee may at his own option and expense cause the dock areas
�I to be insured and in case of damage or destruction lessee may use all sums
collected from insurance in repairing or replacing said docks.
IN TESTIMONY WHEREOF, the Town of Beaufort has caused this lease
a
to be executed by its Mayor, attested by the Torn Clerk, and seal-d with seal
of the Town of Beaufort, all by authority given by the Board of Commissioners
for the Town of Beaufort, and Lessen has caused their hands and seals to be
placed hereon on the date above written.
TOWN Of BEAUFORT
."i�„"� c,���"`.-e"�``�a,�7.'�"�'"'.I•'Q'�i'�'ir ;wr �.e�Ma9or _
F
A. C. BLANREN$RIp'SOVN,_CL

(SEAL)
;r
r NORTH CAROLINA
CARTERET COUNTY
This the29th day of August, 1978, personally came before me,
Lois M. Deese _ ;rotary Public of said county and state,
A. C. Blankenship, who being by me duly sworn, says that he knows the co.^_ton
seal of said Iown of Beaufort, and is acquainted u!.th Richard Babcock, Sr.,
Mayor of the Town of Beaufort; and that he, the said A. C. Blankenship is the
clerk to the Board of Commissioners of said Tour, and saw the said Mayor sign
the foregoing instrument, and that he the said clerk signed his name in
attestation of the execution of said instrument in the presence of said May:.
of the Town of Beaufort.
Witness my hand and seal.
My, Commission Expires: 1/24/83
.-1/214/83
.,NORTH CAROLINA
CARTERET COUNTY
I Lois M. Deese
i
No-liry Public
a Notary Public in and for
the State ai:i Joi .ty aforesaid, do hereby certify that Haywood Weeks, Jr. .
XXX77{7C.XXX%XXXX7IX}OSXaCXX�S.YXIOCXXX7C7QOpL personally appeared before me this
date, and acknowledged the due execution of the foregoing instrument. j
Witness my hand and notarial seal, this the 29th day of August
1918.
Notary Public
! '^
NORTH CAROM A, CARTERET COUNTY
f
j 1% icy. ,Commission Expires:
The.`z;a2eicg ta;:i'aate(s) otrfS.C?....- ....... (are)
7
1/24/83
r;, -isinst,urriant ivas presented f
I ''
^a r „ in t5rs, office inB ok
_..' >. -'a7 cf:.. i.....,......., 19J�t... at..
� tl.c't�- [ui• r7w-20a::I%E W75e CEEP,
Register of Deeds
-

v
for the
docks s'Jtwensdevel=nt P.ofcd;
m ��
said
=NIthe&arbina2s,leyop=atedbY referenoe and ml,=
ter' apart of mnis agreffient� �-j*.�-, -f-
AM
Pax the 7bm of Bmufort* tle ,.n
Per month _4'.r
Provlw certain
ln.siaidA
Qdch adAtidth re2i7+,
mainterance, insurame
Y. .. 4eTn t first
N
mout
wri
'
t Saidwithhold
N s6M
t
seccm Fxty
WoIN
I I-tr
t
EE x
MMUCZar?AI 4 _ rian of the -9m of Ten ($,10. 00)
bd by sword party to first
...........

H. Ci4:OLl1\,a
THIS LEASE AGREEMENT entered into this 31,j;f—day of January,
1984, by and between the Town of Beaufort, a municipal
'corporation under the laws of the State of North Carolina,
Pollock Street, P.O. Box 390, Beaufort, North Carolina 27516,
hereinafter called "LESSOR"; and Inlet Inn Associates, a North
Carolina limited partnership with DeWayne'H. Anderson, William G.
Benton, David A. Holmes, and David Weil as general partners
therein, P.O. Box 21, Winston Salem, North Carolina 27102,
hereinafter called "LESSEE";
W I T N E S S E T H:
,WHEREAS, the Town of Beaufort is the owner of the real
property hereinafter described and solicited and accepted
proposals from firms desiring to construct a motel/inn on the
Town's property in accordance with the specifications and
documents in the month of January, 1983; and
WHEREAS, LESSEE submitted a proposal to construct on the
Town's real property a two story thirty-four room, 29,000 square
foot inn and the construction of piers and other improvements on
the south side of Front Street, Beaufort, North Carolina, which
proposals were accepted by the LESSOR herein; .
WHEREAS; the Town .of Beaufort applied for and was granted an
Urban Development Action Grant No. B-82-AB-37-0085 by the United
States Department of Housing and Urban Development on October 20,
1983, the grant agreement and the terms and conditions of said
grant agreementbeing incorporated herein by reference, which
grant agreement provided for LESSOR to lease to LESSEE said real
property for construction of said inn at the minimum rental and
according to the terms and conditions of said.grant agreement;
and
WHEREAS, LESSOR and LESSEE now desire to enter into this
lease so that said LESSEE may go into possession of said real
property in accordance with the terms and conditions 'set forth
herein for the construction and location of the inn building,
docks, piers and other improvements as shown on the plans and
specifications of LESSEE, and so that LESSEE may own, manage and
operate said inn and improvements in accordance with the terms
and conditions set forth herein;
NOW, THEREFORE, subject to the terms and conditions
hereinafter set forth, LESSOR does"kiezeby let and lease unto the
LESSEE and its successors and assigns, and the LESSEE does hereby
accept from LESSOR .the following real property lying and being
in the Town of Beaufort, Carteret County, North Carolina, and
being more particularly described as follows:
TRACT ONE:
BEGINNING at the northeast intersection of Queen and
Front Streets in the Town of Beaufort and. running thence•S
56719-'E along the north line of Front Street 167 feet to an
iron stake at the southwest corner of Robert H. Stephens;
thence N 33-41 E and along the west line of Robert H.
Stephens 326.55 feet; thence N 55-55 W 79.0 feet to .a point;
thence S 33-41-W 99.4 feet to a point; thence N 57-39 W
88.01 feet .to an existing iron pipe on the east line of
Queen Street; thence with the east line of Queen Street S

............
33-41 W 226'feet to the POINT OF BEGINNING; and being part
of Lot 4 and all of Lots 5 and 6,.Old Town, Beaufort, North
Carolina.
TRACT TWO.:
Lying and being on the south side of Front Street and:
being all of Water Lots 258; 259, the west one-half of
the east one-half of 261, and all of Lots 262 and 263', :Old :,
Town, Beaufort, North Carolina, to include all riparian..aud:'.';'
littoral rights incident thereto, -and to'consist of the land''
and riparian and littoral rights incident thereto on the
south side of the Front Stret right of way and.lying between
the east line of Queen Street and .the west line of Pollock
Street except for the 66 foot tract of land on the south
side of Front Street owned by Robert H. Stephens which
consists of the west one-half of 'Lot 260 and the east
one-half of Lot 261, Old town.
The above described real property was conveyed to the
Town of Beaufort by.,deed from John and Jean Capabosso
recorded in Book 483 , page 361 , deed from Carteret
Services, Inc., to the Town of Beaufort duly recorded in
Book 395, page 320, Carteret County Registry, deed to the
Town of Beaufort from F. S. Dickinson, Jr. and wife as
recorded in Book 393, page 294, Carteret County registry,
and deed of easement from Branch.Banking and Trust Company
with regard to Water Lots.263, 262 and the estern one-half .
of Lot 261, Old Town, Beaufort, North.Carolina.,
TO HAVE AND TO HOLD said lands and premises togetber with
all privileges and appurtenances thereto belonging to the LESSEE
and its successors and assigns upon the following conditions:
1. TERM.
The initial term of this lease shall be for twentv-five
years commencing on the first day of February, 1984, and ending
on January 31, 2009. Unless the context would otherwise require,
the expression "term" hereof refers to such initial term and to
any renewal terms thereof as hereinafter provided.
2. RENT.
Subject to adjustment as provided below, the monthly rental
for the first five years of the initial five year term shall be
Twenty-four hundred dollars ($2400) monthly which LESSEE shall .
pay to LESSOR, without deduction or offset, at such place or
places as LESSOR may designate from time to time, in monthly
installments beginning on the first of the month following
completion of the improvements on Tract One of the real property
which is the subject of this lease, said completion being
evidenced by a certificate of occupancy and/or completion issued
by the Building Inspector for the Town of Beaufort. Provided,
that said monthly rental installments shall begin no later than
June 1, 1985, even though the improvements on Tract One have not
been completed as of that da.te.
Said monthly rent of $2400 shall be deemed to constitute the
minimum monthly rental, and the minimum monthly rental shall be
due and payable to the,Town of Beaufort on the first of each
month through and including the rent for the last month of this
lease including any renewal terms thereof. Said minimum monthly'
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_....... ..........._ .__....._-..._...._.._........
.
rental to be paid by LESSEE hereunder shall be subject to
adjustment as follows:
( a ) In addition to the minimum monthly rentals
hereinabove agreed to be paid by LESSEE, LESSEE shall .pay to
LESSOR at the times and in a manner bereinafter specified,
an additional rental in such amo.unts_ equal to the
percentages hereinafter stated of the amount of LESSEE'S'
gross sales (as gross sales. are hereinafter defined) made
during each month of each subsequent five-year term.:of..thi's`;:•
lease beginning with the month of February,:1989, including:+'
any renewal terms of this lease, on or from the devised
premises, said percentages and five year terms being:as
follows:
1. February 1, 1989-January 31, 1994-2%;
2. February 1, 1994-January 31, 1999-3%
3. February 1, 1999-January 31, 2004-4%;
4. February 1,.2004-January 31, 2009-5%;
5. February 1, 2009-January 31, 201.4-5.5%;
6. February 1, 2014-January 31, 201.9-6%;
7. February 1, 2019-January 31,,. 2024-6.5%;
8. February 1, 2024-January .31,,2029-7%..
(b) The term gros's sales as used herein, shall`
(subject to the exceptions and authorized deductions as
hereinafter set forth) mean the gross receipts received by
LESSEE from all sales and income, both for cash and on
credit, and generally all receipts and income from any
businesses conducted in or on the leased pemises.
(c) ' There shall be excepted from LESSEE'S gross '.
sales(as such term is used herein) the amount of all .sales
tax receipts which has to be accounted, for by LESSEE to any
government or governmental agency. Further, there sba'll be
deducted from LESSEE'S gross sales and receipts (.for purpose"
of accounting to LESSOR) the amount of any actual refunds or
credits made by LESSEE, the amount of which has theretofore
been included by LESSEE in LESSEE'S gross sales and income.
(d) LESSEE shall keep complete and proper books,
records and accounts of the gross sales and income both for
cash and on credit on each separate department or ,business
conducted on the leased premises, and said books, records
and accounts, including any sales tax reports that LESSEE
may be. required to furnish to any government or governmental
agency, shall at all reasonable times be open to the
inspection of LESSOR, LESSOR'S auditors or other authorized
representative or agent. Provided, that such information
shall be confidential and shall not be disclosed by LESSOR
unless required by law or necessitated by .litigation between
LESSOR and LESSEE.
(e) Within ten (10) days after the end of each
calendar month commencing with the month of February, 1989,
and ending with the tenth day of the month next succeeding .
the last month of the initial lease term 'Or the last month
of the second renewal term if said lease is so renewed,
LESSEE shall furnish LESSOR with a statement to be certified
as correct by LESSEE or the employee of LESSEE authorized to
-3-

• , so certify' which sh'alI set forib-Abe,grosssale =`snd
of all business of 1,F.SSEE conducted on the leased "premises
for the month just concluded, and the authorized deductions,
` if any, therefrom, and with each statement LESSEE shall pay
to LESSOR the amount of a.ddit.ional monthly rental as payable,
to LESSOR as shown thereby. If..LESSEE shall at any time
cause an audit of LESSEE'S business to be made by a
certified public accountant, LES.SEE shall funisb LESSOR with
a copy of such' audit without.any cost to LESSOR. LESSOR
may, once in any calendar year.,, 'cause an audit to be made by
a certified public accountant ofLESSOR'S own selection and
if the statements of gross sales and income previously made`
by LESSEE to LESSOR shall be found to be less than the
amount of LESSEE'S gross sales and income shown by.such .
audit, LESSEE shall 'immediately pay the cost of'such audit ..
as well as the additional rental therein shown to be payable
by LESSEE to LESSOR; otherwise, the cost of such audit shall
be paid by LESSOR.
(f) The acceptance by LESSOR of any money paid to
LESSOR by LESSEE as additional rental for the .leas'ed
premises as shown by any statement furnished by LESSEE shall
not be an admission of the accuracy of'such statement, or of
the sufficiency of the amount of -such additional rental
payment, but LESSOR shall be entitled at any time within
three years after the receipt of any such additional rental
payment to question the sufficiency of the amount thereof or
the accuracy of the statement or statements, and the
sufficiency of any additional rental payments made in
accordance therewith. LESSEE shall for a period of three
years after submission to LESSOR of any such statement keep
safe and intact all of LESSEE'S records,. books, accounts and
other data which in any way bear one or.'are"required to
establish in detail LESSEE'S gross sales and income and any
authorized deductions therefrom as shown by any such
statement,'and shall on request make the same available to
LESSOR, LESSOR'S auditor, representative or agent for
examination at any time during such three year period.
3. WARRANTIES OF TITLE AND QUIET POSSESSION.
.LESSOR covenants that LESSOR is .seized of the leased
premises in fee simple except as set forth herein, and that
LESSOR has full right to make this lease and that LESSEE. shall
have quiet and fee simple possession of the leased premises
during the term hereof. Provided, LESSOR is not the owner of the
eastern one-half of Lot 261 and all of Lots 262 and 263, Old
Town, Beaufort, North Carolina, but said lots are the subject of
an easement between LESSOR and Branch Banking and Trust Company,
and the Town does covenant that it has obtained and recorded from
Branch Banking and Trust Company an easement as to said area, a
copy of the same being attached as Exhibit A and incorporated
herein by reference.
In the event any claims are made against said real property
or the rights of LESSOR or LESSEE therein, then LESSOR shall be
entitled to defend any such civil actions and,take such other
actions and proceedings as LESSOR deems in its best interest to
-4-

r r
J protect the interests o''f LESSOR herein. 'LESSOR shall not be'in
default regarding its warranties of title and quiet a.n6 peaceable
posses'si.on of the leased premises until such time as a court of
competent jurisdiction has rendered a final decision ousting
LESSEE herein or which a final court decision has th.e effect'of.
defeating the LESSEE'S rights herein as to the use and enjoyment
of said real property. Pending -such final decision, LESSOR may
take such actions as it'd'eems necessary or advisable in order to
p.rotect the interests of LESSOR and LESSEE herein.
4. DELIVERY OF POSSESSION.
If LESSOR, for any.reason.whatsoever, cannot deliver
possession of the leased premises to LESSEE at the commencement,
of the lease term, as hereinbe'fore specified, this le.ase shall
not be void or voidable,, nor shall LESSOR be liable to LESSEE
for any loss ,or damages resulting tberefrom;. but in ,that event
there shall be a proportionate reduction of rent covering the
period between the commencement of the lease term and the time
when LESSOR can deliver possession.
5. USES PERMITTED.ON TRACT ONE..
LESSEE shall not use, or permit Tract One of the demised
premises to be used for.any other purpose or purposes other than
a hotel/inn complex, restaurant, convention or meeting'
facilities, and such other uses that :are incidental uses to the
operation of a hotel/inn, without the express written permission
of the LESSOR. No use shall be made or permitted to be made of
Tract One of the leased premises or acts done, which will'cause
the cancellation of any insurance policy covering the buildings+
located on Tract One, or any part thereof, nor shall LESSEE sell,
or permit to be kept, used, or sold, in or about Tract One of the
leased premises, any article which may be prohibited by .the
standard form of fire insurance policies: "LESSEE shall, at its
sole cost comply with all requirements pertaining to Tract One of.
the leased premises, of any insurance organization or company,
necessary for the maintenance of insurance, as herein provided.;
covering any buildings and appurtenances at any time located on
Tract One..
6. PERMITTED USES ON TRACT TWO.
LESSEE shall not use, nor permit Tract Two of the demised
premises, or any part thereof, to be used for any purpose or
purposes other than dredge and fill operations in connection with
the construction of docks and piers, construction of bulkheading,
seawalls, boardwalks, the placement and construction of docks and
piers, the construction and placement of water, telephone and
sewer and electrical facilities to serve the docks and piers,
construction of sidewalks, landscaping, and the rental of boat
slips and dock areas and r.elated marina activities. Provided,
that the LESSEE shall not allow shrimp boats, menhaden boats,
work boats, barges, tugs and other commercial fishing boats and
vessels of a commercial nature to dock at, tie up to', or use the
dock areas. Sports fishing boats, charter boats, sailboats, and
pleasure boats of thisgen'eral nature. shall be allowed at said
docks.
LESSOR reserves the right to construct, maintain and manage
—5—

on. behalf of the general public. a dock with a minimumof four
mooring spaces at the easternmost end -of Tract Two as required by
the terms and conditions of the easement.between LESSOR and
Branch Banking and Trust Company referred to hereafter.
Likewise, the Town of Beaufort reserves the right to install,_
maintain and operat•e'a dinghy dock and other floating dock
facilities within Tract Two for the use.and benefit of the
general public subject to such rules and regulations as may be,
adopted from time to time by the Town of Beaufort. Said dinghy
docks,' floating docks, and piers designed for public use by the
Town of Beaufort are all designated on the site plan and
specifications of LESSEE prepared by John,-R. Andrews,, C.E., mor.e
particularly described hereafter.-
7. WASTE AND NUISANCE PROHIBITED.
During the.term of this lease, LESSEE shall comply eith all
applicable laws affecting the demised premises', the breach of
which might result in a penalty on LESSOR or
LESSOR'S title to'the demised premises. LESSEE shall not commit
or suffer to be commit.ted,.any waste on.the demised premises,.or
any nuisance., - -
8. ABANDONMENT OF PREMISES.
LESSEE shall.not vacate or abandon the premises at'any time
during the term hereof; if LESSEE shall abandon vacate or
surrender the 'demised premises, or be dispossessed by process'of
law, or otherwise, any personal property.belonging to LESSEE.and
left on the premises shall be deemed to be abandoned,at the
option of the LESSOR, except such property as may be encumbered
to LESSOR.
9., LESSOR'S RIGHT OF ENTRY.
LESSEE shall permit LESSOR and its agents and employees to
enter into and upon the demised premises^a;G:.all-treasonable times
for the purposes of inspecting the same.
10. MAINTENANCE OF PIERS, PILINGS, AND DOCK AREAS.
LESSEE shall be responsible for and shall.pay for all
maintenance of the docks to be located on Tract Two of the leased
premises including but not limited to repairs and replacement of
piers, pilings, supports, and other structural parts of the dock
areas as may be required by LESSOR during the term of this lease
and any renewal period which may be allowed hereafter. LESSEE -
shall insure that the docks constitute no safety hazards to.
members of .the public or persons using said docks and that the
same are kept and maintained in a good state of repair. All
maintenance and repairs shall be at the expense of LESSEE, and
the LESSOR shall have the right to periodically inspect said
docks in order .to insure that the docks are being maintained and
r,epai.red in a manner satisfactory to the Town. -Provided,.. LESSEE
shall have no maintenance responsibilities as to the ­LESSOR'S
public.docks to be located within Tract Two.
11. ENCUMBRANCE OF LESSEE'S LEASEHOLD INTEREST.
LESSEE may encumber by mortgage, deed of trust, assignment
of lease, or other proper instrument, its leasehold interest and
estate*in the demised premises, together with all. buildings and
improvements placed by LESSEE thereon, as security for any
indebtedness of LESSEE with the written approval of LESSOR which
approval shall not be, unreasonably withheld.. The execution of
any such mortgage, deed of trust, assignment of lease, or other
—6—

instrument, or*the foreclosure thereof, or any sale thereunder,
either.by judicial proceedings or by virtue of any power
reserved in such mortgage or deed of trust, or assignment or
conveyance by LESSEE to the holder of such indebtedness, or the
exercise of any right, power, or privilege reserved in any
mortgage, deed of trust, or assignment, shall not be held as.a
violation of any of the .terms or conditions hereof, or as an
assumption of the holder.of such indebtedness personally of the
obligations hereof. .Likewise, no such encumbrance,'fore.closure,
conveyance, assignment or exercise of rights thereunder shall
relieve LESSOR from its liability hereunder.
If.LESSEE shall encumber its leasebold interest and estate
in the demised premises and.if.LESSEE or the holder of the
indebtedness secured by such encumbrance shall give notice to
LESSOR of the existence thereof and the address of such holder,
then LESSOR will mail or deliver to such holder, at such address,.
a duplicate copy of all notices in writing which LESSOR may,
from time to time, give to or serve on LESSEE under and pursuant
to the terms and provisions hereof;. such copy shall be. mailed or
delivered to such holder, at or as near -as possible to.,' -'the same
time such notices are given to or served on LESSEE. Such holder
may, at its option, at any.time before the rights of LESSEE shall
be terminated as provided here, in, pay any of the rents due
hereunder, or pay any taxes or assessments, or do any other act
or thing required of LESSEE by the terms hereof, or do any act
or thing that may be necessary and proper to be done to prevent
the termination hereof; all payments so mad.e, and all things so
done and performed by such holder shall be�*as'effective to
prevent a foreclosure of the rights of LESSEE hereunder as the
same would have been if done and performed by LESSEE.
Before LESSOR shall be entitled to terminate LESSEE'S rights
hereunder or the rights of any successor in interest or assignee
of the LESSEE herein as a result of the failure of the LESSEE or
its successors in interest or assigns to do or perform any
covenant or thing required by the terms o.f this lease, then
LESSOR shall have first given written notice to any bank, lending
institution, or other person, firm or corporation which has given
LESSOR notice of its encumbrance of the LESSEE'S leasehold
interest specifying LESSEE'S default and giving the holder of
said encumbrance of LESSEE'S leasehold interest thirty days to
remedy said default.
12. SUBLETTING AND ASSIGNMENT.
LESSEE may sublet the premises in whole or in part only with
the written consent of LESSOR which consent shall not be
unreasonably withheld. The making of any such sublease shall not
release LESSEE from, or otherwise affect in any manner, any of
LESSEE'S obligations hereunder.
LESSEE shall not assign or transfer this lease, or any
interest herein, without the prior written consent o.f LESSOR, and
a consent to an assignment shall not be deemed to be a consent to
any subsequent assignment. Any such assignment without the
consent shall be void, and shall, at the option of LESSOR,
terminate this lease. Neither this lease nor the leasehold
estate of LESSEE nor any interest of LESSEE hereunder in the
—7—

------------
demised premises or any buildings or improvements. theieon shall
be subject to involuntary assignment, transfer or sal.:', or to
assignment, transfer, or sale by operation of law in any manner'
whatsoever unless LESSOR, shall have consented in writing to the
assignment resulting in the foreclosure, transfer or sale, and
any such attempted involuntary assignment, transfer, or sale
shall be void and of no affect and shall at the option of LESSOR•
terminate this lease.
13. NOTICES. '
All notices, demands, or other writings in this
lease provided to be given or made or sent, or which may be given
.or made or sent, by either party hereto to'tbe other, shall be
deemed to have been fully given or made or sent when made in
writing and deposited in the United States mail,' registered and
postage prepaid, and addressed a's follows:
TO -LESSOR: Town of Beaufort
Pollock Street
P.O. Box 390
Beaufort, North Carolina 29516
TO LESSEE: Inlet Inn Associates.
P.O. Box 21
Winston Salem, North Carolina 27102
The above address may be changed by written notice given by
such party to the other as above provided.
14. TAXES AND ASSESSMENTS.
(a) TAXES AS ADDITIONAL RENTAL. As additional
'rental hereunder, LESSEE. shall pay and discharge as they become
due, promptly and before delinquency, all taxes, assessments,
rates, charges and levies of every nature and kind whatsoever,
which may be levied, assessed, charged„ vr'•-imposed, or which may
become a lien or charge on or against the. land hereby demised, or
any part thereof, the leasehold interest of LESSEE herein,, the
premises described herein, any building or buildings, or any
other improvements now or hereafter thereon, or on or against
LESSEE'S estate created which may be a subject of taxation,
during the entire term hereof. Excepting only those taxes
hereinafter specifically excepted.
(b) CITY AND*COUNTY TAXES ON LAND, IMPROVEMENTS
AND PERSONAL PROPERTY. Specifically and without any way limiting
the generality of the foregoing, LESSEE shall pay all taxes',
levies or charges made by the Town of Beaufort and Carteret
County on the land, buildings and imrovements placed on the
demised premises, as well as all taxes assessed by the Town and
County on 'personal property located thereon as the samemay
be.come due. As the land and improvements to be constructed
thereon are owned by the Town of Beaufort, a political
subdivision under the laws of the State of North Carolina exempt
from Ad Valorem taxation, then LESSEE on or before the end of
each calendar year of said lease shall cause to be paid to the
Town of Beaufort and Carteret County on the land., buildings and
improvements.located on the demised premises, a payment in lieu
of Ad Valorem taxes in the same amount of taxes, 'levies and
charges which would be due each calendar year to the County and
Town of Beaufort if said real property were owned by a non—exempt
M-M

.property owner. Additionally, LESSEE shall promptly list and pay
all taxes which may be levied and assessed against personal
property located on the leased premises to the Town of Beaufort
and Carteret County,
(c) CONTESTING TAXES. If LESSEE shall in good
faith desire to contest the validity or amount of any tax,
assessment, or other governmental charge herein agreed fo be
paid by LESSEE, LESSEE shall be permitted to do so, and to defer
payment of such tax or charge, the validity or amount of which
LESSEE is so contesting, until final determination of the
contest, on giving to LESSOR written notice thereof. prior to the
commencement of any such contest, which shall be at least ninety
days prior to delinquency., and on protecting LESSOR on demand by
a good and sufficient surety bond against any such tax,levy,
assessment, rate, or governmental charge, and from any cost,
liability, or damages. arising out of such contest.
15. CONSTRUCTION OF INN AND IMPROVEMENTS ON TRACT ONE
(a) PLANS AND SPECIFICATIONS. LESSEE has
heretofore prepared .and forwarded to LESSOR plans and
specifications for the engineering, construction and completion
of a two story, thirty-four room inn on Tract One of'.the leased
premises. A copy of saidplans and specifications are on file
with LESSOk entitled "Site Plan Of Inlet Inn Associates", prepared
by John S. MacRae, 111, architect, MacRae and Bell Associates,
Greensboro, North Carolina, dated January 23, 1984, and
consisting of sheets 'A-1 through E-6 , Said site plan and
accompanying sheets and drawings referred to herein are
incorporated herein by reference as if fully set out.
Additionally, LESSOR and LESSEE each have the current
specifications of LESSEE with regard to.:c,ons#ruction of said
thirty-four room inn which are entitled "Specifications For Inlet
Inn, Beaufort, North.Carolina", dated January 23, 1984, and were
prepared by MacRae and Bell Associates, Greensboro, North
Carolina.
All construction drawings and specifications and the
buildings. and structures located thereon are -required to meet all
of the laws and conditions of the Town of Beaufort, the County of
Carteret, and the State of North Carolina, and the drawings and
specifications are. required to be approved by the North Carolina
Department of Insurance and other .local, state and federal
agencies having jurisdiction over the same, prior to the start of
construction.
.,
Following approval of said plans and specifications, j.
and no later than forty-five days from the date of execution of
this lease, LESSEE shall at its sole expense commence and
thereafter diligently prosecute to completion the construction of
the inn complex on Tract One in accordance with the cou-
struction plans and specifications refered to herein. Prior
to the commencement of any such. work LESSEE shall furnish LESSOR
with a good and sufficient surety bond guaranteeing the faithful A
performance of the construction of 'such buildings and improvements.:
and the payment of all bills therefor in the amount of the total
sums of the construction contracts' for construction and completion
of the buildings and improvements.

z
(bl ALTERATIONS, IMPROVEMENTS, AND CHANGES
PERMITTED. LESSEE shall have the right to make such alterations,
improvements, and changes to the 'buildings and improvements. which.
may from time to time be on the premises as LESSEE may deem
-
necessary, or to replace any su.ch building with a new one of at
least equal value, provided that prior to making any structural
additions, improvements, or changes, or to replacing any such
building, LESSEE shall obtain LESSOR'S written approval of, plans
and specifications therefor, which approval LESSOR shall not
unreasonably withhold, provided that the value of the building
shall not be diminished and the structural integrity of the
buildings shal•1 not* be adversely affected by any such
alterations, improvements, -or changes, or that any proposed new .
building is at least equal in value to the one it is to replace, .
as the'case may be. In the event -of disapproval by LESSOR,
LESSOR shall give to LESSEE an itemized statement of reasons
therefor. LESSEE will in no.event make any alterations, .
improvements, or other changes of any kind to the buildings or
premises that will decrease the value of such 'buildings or
premises, or which wi.11 adversely affect the stuctural integrety
of the buildings and premises. Prior to commencing any work .that
will cost in excess of .Five thousand dollars ($5000),•LESSEE
shall furnish, on demand, with a good and sufficient surety bond:
insuring the completion of, such work and payment of all bills
therefor.
(c) Any new buildings and. improvements constructed
by t'he LESSEE on the premises on and after February,1, 1984, and
all alterations, improvements, changes, or additions made in or
to the premises shall be the property of LESSOR, and LESSEE shall
have only a leasehold interest therein, subject to the terms
lereof.
16.. CONSTRUCTION OF DOCKS AND OTHER IMPROVEMENTS ON TRACT
TWO.
(a) . PLANS AND SPECIFICATIONS. LESSEE has
previously prepared and forwarded to LESSOR a site plan -and,
specifications for the docks, piers and other improvements to be
constructed on Tract Two of the leased premises which plans and
'specifications are in the possession of LESSOR. Said
specifications are entitled "Dred.ging and Pier Construction Inlet
Inn, Beaufort, North Carolina", dated October, 1983, and prepared
by John R. Andrews and Associates, Q.E., together with the
drawings of John R. Andrews and Associates dated September 9,
1983, and as revised on October 4, 1983. The site plan, drawings
and specifications of John R. Andrews and Assocites referred to
herein are incorporated herein by reference as if fully set out.
All dredging, construction and other work
contemplated and carried out with regard to construction of
the improvements on Tract Two as shown on the plans, drawings and
specifications of John R. Andrews and Associates shall meet all
of the requirements, laws and conditions of United..Sta.tesCorps
.Corps of Engineers, the Office of Coastal Area 11anagement of the
North Carolina Department of Natural Resources and Community
Development, the Town of Beaufort, and the County of Carteret,
and any other local, state and federal agencies having
-10-

jurisdiction over the same.
Not later than forty-five days later than. the date of,`
execution of this lease, LESSEE shall at its expense commence and
shall thereafter diligently prosecute to completion the
construction of the docks, piers, pilings, dredging, boardwalks,_
and other structure's and improvements on Tract Two of the leased
premises in accordance with the construction plans and
specifications referred to herein. Provided, LESSEE shall no,t be,"
required to construct and complete the dinghy dock along.the.:a:'.:`"''
-western boundary of Tract One Ok the easternmost dock reserved by;;r;''
LESSOR for use by the public along the easternmost boundary-:,ofr':;.';%;i'
Tract Two unless such construction and arrangements fo�r:payroent "l
for installation and completion of the dinghy dock and the :public.;..-;..,
'dock are arrived at between LESSOR and LESSEE.*
Prior to the commencement of the construction and
improvements contemplated herein, LESSEE shall furnish LESSOR
with a good and sufficient sur.ety.bond gauranteeing the'faithful
Performance of construction Of such buildings and improvements
and the payment of all bills therefor.
(b) ALT$RATIONS, IMPROVEMENTS AND CHANGES
PERMITTED. LESSEE shall have.the right to make such al-terations',
.improvements and changes to the piers, pilings and docks areas
which exist from time to time on Tract,Two of the leased premises
as LESSEE may deem necessary, or to replace any such piers,
pilings or docks with a new -one of at least equal value,
provided, that prior to making any substantial improvements or
changes to the design or layout of the dock areas, LESSEE shall
obtain LESSOR'S written approval of suchplans and
specifications therefor. LESSOR. shall not unreasonably withhold
its approval with regard to -changes in.the.l.ayout, design or type
Of construction and installation of the piers, pilings and dock
areas provided the changes and completed improvements will be at -
least equal in value to the ones they replace, utility and
efficiency of the proposed changes are at least equal to the
system for which the proposed changes are to replace, and the
proposed changes are in compliance with all applicable codes and
regulations. LESSEE will in no event make any alterations,
improvements, or other changes of any kind that will decrease the
value of such piers, pilings or dock area. Prior to commencing
any,work that will cost in excess o-f $5000, LESSEE shall furnish
LESSOR, on demand, with a good and sufficient surety bond
insuring the completion of such work and payment of all bills
therefor.
(c) DISPOSITION OF NEW IMPROVEMENTS. All pilings,
piers, docks and other structures and improvements installed or
constructed by the LESSEE on Tract Two of the leased premises on
and after February 1, 1984, and all alterations, improvements,
changes, or additions made in or to Tract Two shall be the
property of LESSOR, and LESSEE shall have only a leasehold
interest therein, subject to the terms hereof.
17. REPAIRS AND DESTRUCTION OF IMPROVEMENTS.
(a) MAINTENANCE OF IMPROVEMENTS. LESSEE shall,
throughout the term of this lease, at.its own expense and its own
costs, without any expense to LESSOR keep and maintain the
premises, including all buildings and improvements of every kind
which may be a part thereof, and all appurtenances thereto,
including piers, docks, pilings, sidewalks, parking lots and
-1]-

c: n v•. a n z c e r t L' n e' i e< o, �, a'c' -•; s a$ ` Y�,�,y?,"iEi d h; at:r. o r
condition anc-`r'epair,,•''ano ext2ep a:5'sne�•,.fh�r'1"+1r3'sprov'':aed ha`•:`eir,":
restore and rehibilitate apy •.r•.pr5:,.ementc, of an'y :kin&,,uhich.mBy ,
be destroved or damaged by fire, storm;f7ood, wind, casualty,
collision, or any other cause whatsoever. except -for damage: or
destruction caused LESSEE'S buildings or improvements and
premises by the Town of Beaufort and i:ts employees and agents.'
LESSOR shall not be obligated to make any repairs, replacements,
of renewals of any kind, nature or 'description, whatsoever�to-the
demised premises or any buildings or improvements thereon except.
for damages or destruction caused by LESSOR and its agents and
employees. LESSEE shall comply with and: abide with all federal,;:y<-::,;.
state, county and municipal statutes and ordinances, laws and --•.
regulations affecting the demised premises, the imnrov.ements
thereon, or in any activity on or in such. premises.
(b)..DAMAGE TO AND DESTRUCTION: OF IMPROVEMENTS. ..The .
damage, destruction or partial destruction of any buil ding or
other improvements which is a part of the premises shall not
release LESSEE from any obligation hereunder,,except as "
hereinafter expressly provided, and in case of damage to or
destruction of any such building or improvement,. LESSEE shall at -
its own expense promptly repair and restore the same to a
condition as good or better than that which existed prior to such
damage or destruction. .Without limiting such obligations of
LESSEE, it is agreed that the proceeds of any insurance covering
such damage or destruction shall be made available to LESSEE and
LESSOR jointly for LESSEE'S use in carrying out such repairs or
replacement.
(c) DAMAGE OR DESTRUCTION OCCURING TOWARDS END OF
TERM. Anything to the contrary in the immediately preceding
paragraphs of this section notwithstanding, in case of
destruction of the building on the premises: -or damage thereto
from any cause so as to make -it untenantable occuring during the
last ten years of the lease hereof, LESSEE, if not then in
default hereunder,may elect -to terminate -this lease by -written
notice served on LESSOR within thirty days after the occurence of
such damage or destruction. In the event of such termination,'
there shall be no obligations on the part of LESSEE to repair or
restore the building or improvements *nor shall the LESSEE
b-ave any light to receive any proceeds collected under
any insurance policies covering such buildings or any part
thereof. In the event. of such damage or destruction, LESSEE
hereby assigns any right to receive any such insurance proceeds
to LESSOR. Upon such termination, all rent, taxes, assessments
or other sums payable by LESSEE to LESSOR hereunder shall be
prorated as of the termination date, and in the event any rent,
taxes, or assessments shall have been'paid in advance; LESSOR
shall rebate the same for the unexpired period for which payment
.shall have been made. Provided, LESSEE shall not have the -right to
terminate said lease in the event the damage or destruction was
caused by the willful acts or omissions of LESSEE or its agents
or employees, or in the event said damage or destruction is not '
covered by insurance proceeds.to_the extent of at least85; of
the full replacement value of the buildings or improvements so
damaged or destroyed.
(d) ELECTION NOT TO TERMINATE. If, in the event
of such destruction or damage during the last ten years of the
term hereof, LESSEE does not elect to terminate this lease, the
proceeds of all insurance covering such damage .or destruction
shall be made available to LESSEE and LESSOR for LESSEE'S use in
carrying out such repairs or replacements, and LESSEE shall,be
obligated to repair or rebuild the building as above provided.

•T 1 L i I Ir'g5 nei,4,�,
LESSEE shall fnllc end.p:rSor;tFy°, pay'f:or it"fiwa[zr.' gas,';
Iight, power, tel,ephone;`serv:i:ce,'and.'pther.lruGl.i.c':uti'lities,' '
o: every kind furnished to the premises throughout. the tern
• hereof, and all other costs and expenses of every kind whatsoever .
of or in connection with the use, operation, and maintenance of
the premises and all activities conducted thereon, and LESSOR
shall have no responsibility with regard thereto.
. 1�. LIENS.
(a) LESSEE'S DUTY TO KEEP PREMISES FREE OF LIENS.
LESSEE shall keep all of the premises and 'every part therof and
all buildings and other improvements at any time located thereon
free and clear of any and all mechanic's, materialmenks.,'and
other liens for or arising out of or in connection with work or
labor done, services .performed, or materials or appliances used
or furnished for or in connection withtheoperations of LESSEE,.
.any alteration, improvement, or repairs or additions which'LESSEE
may make or permit or cause to be made, or any work or ,
construction, by, for or permitted by LESSEE on or about the
premise, or any obligations of any kind incurred by LESSEE, and
at all times promptly and fully to pay and discharge any and all'
such claims on which any such lien may or could be based, and to
indemnify LESSOR and all the premises and buildings and
improvements thereon against all such liens and claims of liens
and suits or other proceedings pertaining theretoc LESSEE shall.
give LESSOR written notice no less than fifteen days in advance
of the commencement of any constuctions, alterations, additions,
improvements, or repairs estimated to cost in excess of,$1000.
(b) CONTESTING LIENS. If LESSEE desires to contest
any such lien, it shall notify LESSOR of its intention to do so
within ten days after the filing of such lien, In such case, and
provided that LESSEE shall on demand protect LESSOR by a good and
sufficient surety bond against any such lien as to any
cost,liability, or damage arising outof such contest; LESSEE
shall not be in default hereunder until thirty days after the
final determination of the validity thereof, within which time
LESSEE shall satisfy and discharge such lien to the extent held
valid; but the satisfaction and discharge of any such lien shall
not, in any case, be delayed until execution is had on any
judgment rendered thereon and such delay shall be a default of
LESSEE hereunder, In the event of such contest, LESSEE shall
protect and indemnify LESSOR against all loss, expense, and
damage resulting therefrom.
20. INDEMNIFICATION OF LESSOR.
LESSOR shall not be liable for any loss, injury, death or
damage to persons or property which at any time may be suffered
or sustained by LESSEE or by any person whomsoever may at any
time be using or occupying or visiting the demised premises or be
in, on or obout the same, whether such loss, injury, death, or
damage shall be caused by or in any way result from or arise out
of any act, omission, or negligence of LESSEE or of any occupant,
subtenant, visitor, or user of any portion of the premises, or
shall result from or be caused by any manner or.thing whether of
the same kind as or of a different kind than the matters or
things set forth above, and LESSEE shall indemnify'LESSOR
against all claims, liabilities, loss, or damage whatsoever on
account of any such loss, injury, death, or damage. LESSEE
hereby waives all claims against LESSOR for damages to the
buildings and improvements that are hereafter placed or built on
the premises and to the property of LESSEE, in, on, or about the
premises, and for injuries to persons or property in or about the
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,44
premises, from any cause at'1sIn -at rime. -The fore'g0ing':
sentences shall 'not, ripply->f:o=aossy' .injuy, death, or rtamage'
arising by reason of the, negligence or misconduct Of LESSOR, its
agents or employees. Prov.ided, that .the foregoing sentences sliall
no be co,nstrued, as a waiver of any governmental immunity LESSOR
may
21. ATTORNEY'S FEES.
If any action at law or in equity shall be brought to
recover any rent under this lease, or for or on account of any
tireacfi of, br to enforce or interpret any of the covenants,.
terms, or conditions.of this lease, or for the recovery of or
possession of the demised premises, LESSOR shall be .entitled to
recover'from the LESSEE as part of: the LESSOR'S cost.s a
reasonable attorneys fee .the amount of which shall be fixed by
the court and shall' -be made a part of any judgment or decree.
22• RULES AND REGULATIONS CONCERNING DOCK AREAS.
During the term of this lease and any renewals hereof,
LESSEE shall:
(a) Be responsible for keeping the dock areas..
clean, attractive to the public, and safe with regard to the use,
of the docks by customers,.tenants, and the gen.eral:public.
(b) Establish rules for use of the docks and piers
to insure the safety of the. public and patrons and users of the
docks.
(c) Enforce and maintain rules that prohibit the
discharge of sewerage and other trash into Taylor's Creek or at
any point within the leased premises except for the areas
specifically designated for the discharge of sewerage and other
trash by LESSOR.
(d.) Police the dock areas and the boardwalk to•
insure that sewerage and other trash has not .been dischaged in
the water or in any areas .along the waterfront in and *around the
docks except for the location so specified by LESSOR.
(e) Insure that fueling of boats shall. take place
in fueling areas which are 'safe and that'adequate safety
precautions and rules are established for all 'fueling operations
by customers and patrons of the docks.
(f) . Be responsible for the payment of all
electrical, water, and other utilities used 'within the dock areas.
All such utilities shall be listed in the name of LESSEE and it
shall be its responsibility to pay for all utility charges and to
prorate and collect the same from the tenants and users of its
docking facilities. .
23. OPTION TO RENEW.
LESSOR grants to LESSEE, subject to the conditions set forth
below, the right and option to renew this lease for two
additional periods of ten years each, with the first.renewal term
beginning February 1, 2009, and being for a period of ten years,
and the second renewal term beginning on February 1, 2019, and
terminating on January .•31, 2029. Provided', that the ren.tal for
the renewal terms shelf be as set ,forth in paragraph 2 above,
and all remaining terms and'conditions.of this lease shall remain
in full force and effect. The option to renew must be exercised
by the giving of written notice to LESSOR a minimum of ninety
—14—

days prior to the expiration" date of the initial twenty=five year
term and the expiration date of the first renewal term of ter,
years respectively. LESSEE shall in no event -be entitled to
renewal term hereof even though such notice be timely given 'unless
LESSEE .shall have. timely performed all its obligations hereunder
and LESSEE shall' not be in default in the performance of any
terms hereunder on the date of the expiration of the renewal term
hereof.
24• REDELIVERY OF PREMISES.
LESSEE shall pay the rent and all other.'sums required:to'be. .
paid by LESSEE hereunder in the amounts, at the times, and in.tbe_
manner herein provided, and shall keep and perform all the terms
and conditions hereof on its part to be kept and performed, and,
at the expiration or sooner termination of this lease, peaceably
and quietly quit and surrender to LESSOR the premises in good,
order and condition subject to the other provisions of this lease.
In the event of .the non-performance by LESSEE of any of the,
covenants of LESSEE undertaken herein, this lease may be
terminated as'herein provided.
25. REMEDIES CUMULATIVE.
All remedies hereinbefore and hereafter conferred on LESSOR
shall be deemed cumulatibe and no one exclusive of the'other,..or
of any other remedy conferred by law.
26, INSURANCE.
(a) INSURANCE COVERAGE ON PREMISES. LESSEE shall
at all times during the term of this lease and at LESSEE'S sole
expense, keep'all improvements which are now or hereafter a part
of the pemises insured against loss o damage by'fire, flood and.
extended coverage hazards for 85% of the full replacement.valne
of such improvements, with loss payable to'LESSOR and LESSEE as
their interest may appear. Any loss adjustment shall require the
written consent of both LESSOR and LESSEE.
(b) PERSONAL INJURY LIABILITY. LESSEE shall
maintain in effect throughout the .term of this lease personal
injury liability insurance covering the premises and its
appurtenances and sidewalks running thereon in the minimum amount
of Five hundred thousand dollars ($500,000) for injury to or
death of any one person, and Two million dollars ($2,000,000)
for injury to or death of any number of persons in one occurence
and property damage liability insur.ance in the amount of Five
hundred thousand dollars ($500,000)'. Such insurance shall
specifically insure LESSEE against all liability assumed by it
hereunder, as well as liability imposed by law, and shall insure
both LESSOR and LESSEE but shall be so endorsed as to create the
same liability on the part of the insurer as though separate
policies had been written for LESSOR and LESSEE.
(c) LESSOR'S RIGHT TO PAY PREMIUM ON BEHALF, OF
LESSEE. All the policies ofinsurance referred to in this section
shall be written in form satisfactory to LESSOR and by an
insurance company satisfactory to LESSOR. LESSEE shall pay all
of .the premiums therefore and deliver such policies, or
-15-

certificates thereof, to LESSOR, and in the event of the iuYe
of the LESSEE, eitherto effect. such insurance in thenames
hereincalled for or to pay.tbe'premiums therefor or to deliver
such policies, or certificates thereof, to LESSOR, LESSOR shall
be entitled, but shall have no obligation, to effect such
insurance and,pay the premiums therefor, which premiums shall be
repayable to LESSOR with the next .installment of rental, and
failure to repay the same shall carry with it the.same
consequences as failure to pay any installment of rental'. Each
insurer mentioned in this, section shall agree, by endorsement on
the policy or policies issuedby it, or by independent instrument
furnished to LESSOR, that it will give to LESSOR thirty* days
written notice before th.e policy or policies in question shall be_'.
altered or cancelled LESSOR agrees that it will not
unreasonably.withhold its approval as to the form or the
insurance company selected by _LESSEE.
.(d-) DEFINITIONOFFULL REPLACEMENT VALUE.The
term "full replacement value" of improvements as used herein,
shall mean he actual replacement cost thereof from.time'to time
less exclusions provided on the' normal fire and flood insurance
policies. In the event either party believes that the replacement
value has increased or.decreased, it shall have the right, but ,as
excepted below, only at intervals of not less than fi.ve years, to
have such full replacement value redetermined by the fire
insurance company which is carrying the largest amount of fire
insurance carried on the demised premises (hereinafter referred
to as "impartial appraiser"). The party desiring to have the
full replacement value so determined by.such' impartial appraiser
shall forthwith on submission of such determination of such
impartial appraiser -give written notice to the other pary hereto.
The determination of such impartial app=rai.ser shall be final and
binding on the parties hereto, and LESSEE shall forthwith
increase (or may decrease) the amount of insurance carried
pursuant to this section as the case may be to the amount so
determined by the impartial appraiser. Such determination shall
be binding for a period of five years, and until superseded by
agreement by the parties hereto or by a subsequent
redetermination by an impartial appraiser. If during any such
five year period LESSEE shall have made improvements to the
premises, lessor may have: -.after such full replacement value
redetermined at any time after such improvements are made,
regardless of when the full replacement value was last
determined.
(a) ADJUSTMENT OF COVERAGE. In the event that
either party shall at any time deem the limits of the personal
injury or the property damage public liability insurance then
carried to be insufficient, the parties shall endeavor to agree
on the proper and reasonable limits for such insurance then to be
carried and such insurance shall thereafter be carried with the
limits thus agreed on until further change pursuant to provisions
of this section.
(f) BLANKET INSURANCE POLICIES. Notwithstanding
anything to the contrary contained in this section, LESSEE'S
obligations to carry the insurance provided for herein may be
brought wihtin the coverage of a so-called blanket policy or
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- r '
r.:_li;ias of insurance carried and maintained by LESSEE;
provided, that ehe'coverage afforded LESSOR wi11 not *be reduces'
or diminished or otherwise be different from that which would
exist under a separate policy meeting all other requirements.in
this lease by reason of'tbe. use of such blanket policy of
insurance, and provided further that the requirements of the
foregoing paragraph (e) of this section are otherwise satisfied.
27. PROHIBITION OF INVOLUNTARY ASSIGNMENT; EFFECT OF
BANKRUPTCY OR INSOLVENCY,
(a) PROHIBITION OF INVOLUNTARY ASSIGNMENT.
Neither this lease nor the leasehold estate of LESSEE nor any..
interest of LESSEE hereunder in the de.mised premises or in the
buildings or improvements thereon.shall be subject to involuntary.-
. assignment, transfer or sale, or to assignment, transfer or sale
by operation of law in any manner whatsoever (except through
statutory merger or consolidation,'or devise, or_intestate
succession) and any such attempt at involuntary assignment,
transfer or sale shall be void and of no effect.'
(b) EFFECT OF BANKRUPTCY. Without limiting the
generality of'the provisions of the preceding paragraph (a) -of
this section, LESSEE agrees that in the event any proceeding
under the Bankruptcy Act or any amendment thereto be commenced by
or against LESSEE, and, if against LESSEE, such proceedings shall
not be dismissed before either an adjudication in bankruptcy
orthe confirmation of a composition, arrangement, or plan or
reorganization, or in the event LESSEE is adjudged insolvent or
makes an assignment for benefit of creditors, or if a receiver is
appointed in any proceeding or action to which LESSEE is a party,
with authority to take possession or control of the demised
premises or the business conducted thereon by LESSEE, and such
receiver is not discharged within thirty day's'after his' .
appointment, any such event or any involuntary assignment
prohibited by the provisions of the preceding paragraph (a) of
this section shall be deemed to constitute a breacb of this lease
by LESSEE and shall, at the election of LESSOR, but not
otherwise, without notice or entry or other action'of LESSOR
terminate this lease and also all rights of LESSEE under
this lease and in and to the demised premises and all rights of
any and all persons claiming under the lease.
28. NOTICE OF DEFAULT.
Except as to the provisions of sections 12 and 28 hereof,
LESSEE shall not be deemed to be in default hereunder in the
payment of rent or the payment of any monies as herein required
or in the furnishing of any bond or insurance policy when
required hereunder unless LESSOR. shall first give to LESSEE
thirty days written notice of such default and LESSEE fails to
cure such default within such thirty days. Provided, that is said
default is o'f such nature that it cannot be cured within thirty
days, and LESSEE thereafter proceeds to the curing of such
default with all possible diligence, then LESSEE shall not be
deemed in default except rs to the provisions of sections 12 and
28 hereof.
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29.DEFAULT
In the evert of. any breach of this lease by LESSEE, LESSOR
in addition to the other rights or.remedies it may have, shall
have the immediate right of .reentry and may ,remove all persons and
property from the premises; such property may be removed and
stored in a public warehouse or elsewhere at the cost of, and for
the account.of LESSEE. Should LESSOR elect to reenter, as herein
provided, or.sh.ould it take possession pursuant to legal .
proceedings or pursuant to any notice provided for by law, LESSOR
may terminate this lease or it may from time to time without
terminating this lease, re -let the demised premises or any part,.'
thereof for such term or terms and at such rental or rentals and
on such other terms and conditions as LESSOR in its sole
discretion may deem adv.isable.wi.th the right to make alterations
and repair's to the demised premises. On each such re -letting _
LESSEE shall be immediately liable to pay to LESSOR, in'addition-
to any indebtedness .other than rent due hereunder, the expenses
of such re -letting and of such alterations and repairs, incurred'
by LESSOR, and the amount, if ,any, by which the rent reserved in
this lease for the period of -such re -letting exceeds the amount.
agreed to be paid as rent for -the -demised premises for such
period on such re -letting. All rents received by..LESSOR from .
such re -letting shall be applied first to the payment of any
indebtedness, other than rent due hereunder from LESSEE to
LESSOR, secondly to the payment of any expenses of such
re -letting and of such alterations and repairs, and thirdly
towards the payment of rent due and unpaid hereunder,'and any
residue; if any, shall be held by LESSOR and applied in payment
of futur.e rentaas the same may become due and payable hereunder.
If LESSEE has been credited with any rent to be received by any .
such re -letting hereunder and.. such rent `sfia'll not be _promptly
paid to LESSOR by the new tenant, or. if such rentals received .
from such.re-letting'hereof during any month is less than that to
be paid during that month by LESSEE hereunder,: LESSEE shall pay
any such' deficiency to LESSOR. .Such deficiency shall be
z-alculated and paid monthly.
No such reentry or taking possession of the demised premises
by LESSOR shall be construed as an election on the part of the
LESSOR to terminate this lease unless a written notice of such
intention is given to LESSEE or unless the termination thereof is
decreed by a court of competent jurisdiction.' Notwithstanding
any such re -letting without termination, LESSOR may at any time
thereafter elect to terminate this lease for such previous breach.
Should LESSOR at any time terminate this lease for any breach, in
.addition to any other remedy it may have, LESSOR may recover from
LESSEE all damages incurred by reason of such breach, including
the cost of recovering the premises, and including the worth at
the time of such termination of:°the excess, if any, of the amount
of -rent and charges equivalent to rent reserved in this lease for
the.remainder of,the stated term over the then reasonable rental
value .of the premises for the remainder of the stated term, all
of which shall be immediately due and payable.fiom LESSEE to
LESSOR.
-1&-

...............t C Y s +
r�
3C1. LESSOR'S RIGHT TO. PER -WORM.
in the event.that.LESSEE by failing or neglecting, to do o
-
perform any act or thing herein provided by it to.be done, or .'
performed, shall be in default hereunder and such failure shall
continue for a period of thirty days after written notice from
LESSOR specifying the nature of the act or thing to be 'done or
performed, then LESSOR may, but shall not be required to, do or
perform or cause to be�.done or performed such act or thing, and
-
LESSOR shall not be held liable or in'any way responsible for,any.
loss, inconvenience, annoyance, or damage resulting to LESSEE. on
account thereof, and LESSEE shall pay to LESSOR on demand the
"
entire expenses thereof, including compensation to the'agent,s-'and
employees of LESSOR. Any act or thing done by LESSOR pursuant to
the provisions of-:tbis section shall not be'construed'as a waiver
of any such default by.LESSEE; or as a waiver of any covenant,
term, or condition herein contained, or any other-right.:or-remedy
of LESSOR, hereunder..or,otherwise. All amounts payable by LESSEE
to LESSOR under.any of..ihe provisions of this lease, if not paid
when the same becomes due as in this lease provided, shall bear
interest,tbereafter at+the legal rate of interest.
31. DISPOSITION OF IMPROVEMENTS ON TERMINATION'OF LEASE.
On termination of this lease for any cause, LESSOR shall become
the owner of any buildings or improvement's cru the demised
premises. Upon termination of this lease the buildings.and their
components and systems and the docks, pilings, piers and other
improvements shall be in'working order and in a good state of
repair. All costs incurred by the LESSOR in restoring the
premises to a good state of repair and carrying out maintenance.
and repairs so that the buildings and their systems are
operational and in good working order shall be those of the
LESSEE.
32. EASEMENTS AND OTHER LIENS, ENCUMBRANCES AND
RESTRICTIONS AFFECTING USE OF THE PREMISES.
The lease of the premises described herein by LESSOR to
LESSEE is expressly made subject to the following encumbrances,
liens, covenants, easements and conditions:
A. Easement and right of w.ay for Front Street and the
use and maintenance of the sidewalks, bul,khead and public
facilities located therein. LESSEE -and its customers or patrons
shall not obstruct LESSOR and the general public's use of the
Front Street right of way, sidewalks, bulkhead, and other public
improvements within the right of way of Front Street.
B. All existing easements and rights of ways for the
installation, placement, repair and maintenance of water,
sewerage, storm drains, electrical and utility pipes, poles,
equipment and other fixtures within the leased premises both to
the Town of Beaufort and to other public utilities within the
Town of Beaufort.

s�� y, i \�1N•'•'
C: Ihe.rights o" iie- ken ra puLl'.ic wat'n yT ai tps,ta
use and enjaymerit of the waters of Tav or's Creek Pruw �eda,f:.'-r"y�•�i'"''r„'.
that except for the dinghy dock, easternmostdock reserved o} the
Town o.f .Beaufort for public" use, and Poch other docks and;:c
facilities to be located.within Tract Two of the leased ,p'r'emises
by the town of Beaufort for the general use of the public.;`. the .
LESSEE 'shall have the ri.gh.t to regulate the use of its docks and
facilities constructed within the leased premises by.LESSZt.: ..
D. Tract Two is expressly made subject to rights
reserved by the Town of Beaufort to construct; maintain :a,nd.,
operate a dinghy dock and floating docks for use by the general
boating public along the westernmost boundary -line ofr:Trac't, Two=;''s'z 4:'{4
together with the construction, operation and "management of
public dock and four mooring spaces adjacent therer.to algng,r;the;:,;..':.:r
easternmost boundary of Tract Two of the leased premise
E. The rights .of, use and enjoyment by the generate ,
boating public of that portion of the foreshore, bulkhead:;
sidewalks, channel and waters of Talyor's Creek. not .Occxpi d by, _
LESSEE'S docks, pilings or piers or not in such close *pro z.imity ,
to such docks, pilings or piers so as to interfere 'with the .vse
of said docks, pilings and piers by LESSEE. or its. successor-s".or. .
assigns.
F. The terms,and,provis,ions of ,the easement.•betw.een the
Town of Beaufort and Branch'Banking and Trust Company•.'wiEk.;;`.
regard to the use of the eastern one-half of Lot 261, and Lots'
262 and 263, Old Town, Beaufort, North Carolina, a copy of said
easement being attachedhereto as Exhibit A and incorporated
herein by reference. This. lease is expressly made subject to the
terms of said easement attached as Exhibit A.
G. That certain promissory note' and deed of trust given
.by the Town of Beaufort to Richard F. Gordon; trustee for John
and Jean Campabasso in'the original sum of -:Thirty thousand
dollars ($30,000) as recorded on July 15, 1983, in Book 483'
page 362. Said deed of trust constitutes a lien on the tract
of land having a frontage of. 33 feet and a depth. of 211 feet at..
the northeast intersection of Queen and Front Streets. Provided,
that the Town of Beaufort agrees to promptly pay when due any and
all installments of principal and interest as called for in, said
note and agrees to the LESSEE harmless from any and all
damages, claims or liabilities which may arise 'as a result of the
failure of the town of Beaufort to promptly pay when due any•and
all principal and interest payments pursuant to the -terms of said
note. LESSOR further agrees' to promptly pay off and discharge
said indebtedness as quickly as economically feasible.
H. The littoral and riparial rights of Robert H.
Stephens with regard to the eastern one-half of Lot 260 and the
western one-half of Lot 261, Old Town, Beaufort, North Carolina.
33. PREVENTION OR ABATEMENT OF NUISANCES.
LESSEE at its own expense shall comply with all rules;
regulations and requirements of the Town of Beaufort, the State
of North Carolina, and the United States which are applicable to
the dock areas fo,r the prevention or abatement of nuisances or
other grievances arising out of the manner of the occupany of the
dock areas during this term by LESSEE. LESSOR shall have .the
right to enter upon the dock areas during the term of this. 'tease
At all reasonable hours for the purpose of examining and
inspecting the same.
-20-

34. ASSIGNMENT OR.SUBLE.TTIN:G OF TRACT TWO, DOCK AREAS:.OR.
OTHER PARTS THEREOF.
LESSEE shall have no authority to assign this lease or to
sublet the dock areas or any part or all of Tract Two of the:: a:
leased premises except for individual dock spaces on al.'dai1:""a
monthlyrental basis ;without first. obtaipng'the written cpns'ent
of LESSOR. .Any assignment or subiet.ting' of Tract.Two:'or the.{�otk...
area or parts therein shall not extend for anyperiod..beyond'-
August 31, 1988, so that the .assignment' or, subletting-
areas and other portions of.Tract Two of the leased premises .
shall run- concurrent. with the current lease. between LESSOR` and::
Beaufort Waterfront Enterprises, which currently is the LESSEE.".
Of the Town of Beaufort with regard to the docks within the".Urban'
Renewal Area between Queen and Turner Streets in the Town..,of
Beaufort. Any subsequent assignment or subletting of, the dock
areas or other portions of Tract Two for a term after August-31:,'
1988, shall expire on August 31,' 1998.
35. WAIVER.
Waiver by LESSOR of, or the failure of LESSOR to take
action with respect to any breach of anyterms covenant or
condition herein contained shall not be deemed to be a. waiver of
such term, covenant, or condition, or subsequent breach of'the
same,, or any other term, covenant, covenant, or condition therein
contained. The subsequent acceptance of rent hereunder .by LESSOR
shall not be deemed to be a waiver of any.:,preceding breach.:by.the.
LESSEE of any term, covenantor condition of this lease, other
than the failure of LESSEE to pay the particular rental so'
excepted, regardless of LESSOR S knowledge of such prec.eding
breach at the time of acceptance of such rent.
36. HOLDING OVER.
Any holding A ­over after the expiration of the term'of this _
lease, with consent of LESSOR, shall be construed to be a tenancy
from month to month, at the same monthly rental as required to be
paid by LESSEE for a period immediately prior to th. expiration
of the term hereof, and shall otherwise be on the terms and
conditions herein specified, so far as applicable.
37. PARTIES BOUND.
The terms and conditions herein contained shall be binding
on the part.ies hereto and their heirs, successors, executors, and
administrators, and assigns. Time is of the essence of this
lease, and of each and every covenant, term, condition and
provision.
-21-

n
,r 1diys�eA
:cc
38. UDAG GRANT AGREEMENT AND CONDITIONS THE.REIN.
The terms and conditions of the Urban Development Action '
Grant No. B-82-AB-3.7-0085 received by LESSOR'from the United.
States Department of Housing and Urban.Development with regard to
the construction and financing of the 'inn proposed by LESSEE and'
construction financingcompletion of and com lp public and private
improvements as described by said UDAG Grant, is incorporatd
herein by reference as if full set out.. LESSOR and LESSEE agree
to fully comply with all of the'terms`.and conditions set.forth'
therein and to take such actions and.to.prepare and execute all
drawings and other documents as may be required in order to fully
comply with the terms 'and conditions:thereof:
With regard to the UDAG Grant of Two hundred Sixty-two
thousand dollars ($262,000) to be received by the Town of
Beaufort from the United States Department of Housing and Urban
Development, the Town of Beaufort pursuant,to the -terms of said
UDAG Grant agrees to loan to the LESSEE the sum of $262,000
according to the terms and at the interest.rate as set forth in
Exhibit E to said Grant Agreement, said Exhibit E being
incorporated herein by reference. LESSEE shall execute and
deliver to LESSOR a deed of trust or other security interest in
the leasehold estate of LESSEE in the leased premises and all
fixtures, .equipment and personal property of the LESSEE. LESSOR
may also.require that LESSEE assign its leasehold rights as
additional security with regard to repayment of the indebtedness
of $262,000. Any encumbrance or granting of'*a security interest
in the leasehold estate of LESSEE may'be.subordinate.to a first
deed of trust, assignment -or other encumbrance of LESSEE'S
leasehold interest in the premises with regard to the
construction and/or permanent loan contemplated in the amount of
Seven hundred Eighty-six thousand dollars ($786,000).
LESSEE further covenants' LESSOR that it has received firm
comittments from lending institutions and other private and/or
governmental agencies or institutions which assure the LESSEE of
funding and the financial capabilities of carrying out,
completing and operating the inn and improvements required by the
terms of this lease. The failure or inability of LESSEE to
complete the buildings and improvements in accordance with the
plans and specifications set forth herein with due diligence and
within eighteen months from the date hereof except for acts of
God or similar catastrophes justifying LESSEE'S failure or
inability to complete the same, shall constitute default.
39. MISCELLANEOUS PROVISIONS.
LESSOR and LESSEE further agree:
-22-

ia) t,ho''.waive.r of a breach of any'q:f .the covenants
of this lease contained shall' be construed. 'to`;be�a waiver of any
• succeeding breach.
(b) Time 'is of the essence in .every particular,
and particularly .where the obligation to pay money is'involved.
(c) All arrearages in the payment of rent if more
than thirty days. delinquent on and after its due date -shall bear
interest from thedue date until paid a't. the'legal rate of
interest.
(a). No modifications, releases, discharges or
waivers of any. provisions hereof, shall be of any force, value or
effect unless in writing, and signed by the parties hereto.
(e) . This .agreement shall be binding on the parties
hereto and their heirs, executors, administrators, successors,
legal representatives, and assigns.
(f) This instrument contains the whole agreement.
between the parties and there are no collateral agreements,
stipulations', promises, inducements or undertakings whatsoever
which are not expressly contained in this instrument.
(g) As used herein the singular shall include the
plural and the feminine, masculine and neuter genders are
interchangable unless otherwise noted. Unless -the context
otherwise requires, "premises" refers to both tracts of land and
all buildings and improvements thereon.
IN WITNESS WHEREOF LESSOR AND LESSEE have executed this
lease on the date above written.
IN. WITNESS WHEREOF, the Town of Beaufort has caused this
lease to be executed by its Mayor and Clerk to the Board of
Commissi.oners for the Town of Beaufort,'and has caused the
seal of the Town of Beaufort to be placed thereon., and the
LESSEE'S by and through their general partners have executed
this lease on the date above written.
TOWN BEAUFORT
(SEAL)
B Y •'
yce Fulford, 11 y
ATTEST:
A. C. Blankenship, To, Clerk
IN ET INN ASSO A ES
-d
BY:
EGA%/A%
,General Partner
,GeneLral Partner
Holmes,_General Partner
BY: a-IWt r" V\! /►•
id Weil, General Partner
-23-

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
On this theO?W" AZ day of January, 1984, personally appeared
before me, the undersigned Notary Public of the County. and State
aforesaid, A. C. Blankenship; being by me'duly sworn,says that he
knows the common seal of the Town of Beaufort, and in acquainted
with Joyce Fulford, Mayor of the Town of Beaufort, and that he is.
the Town .Clerk for the Town of Beaufort, :and that he saw .the said
Mayor sign the foregoing instrument, and that he, the said Clerk,
signed his name in attestation of the execution of said instrument
in the presence.of said Mayor of the Town of Beaufort..
Witness my hand and seal, this
My commission expiresG/�Ylj
STATE OF NORTH CAROLINA
theo7401% day*of JJanuar.y;�1J84.
•Li/ii �fi �C � '/ �,
QfLQi� S
NotEfry Public
•f
1
COUNTY OF,4ww�
I; a Notary Public of.tbe State and'County aforesaid, hereby
certify that DeWayne H. Anderson, William G. Benton, David A. Holmes,
and David Weil, general partners in Inlet Inn Associates, a North
Carolina Limited Partnership, personally appeared before me this day
and acknowledged the due execution of .the foregoing inst.fument.
Wi hand and seal, this the3/af- day of January, 1984.
QJBIC.oRp/
My BQin3. exlq e s :
Notary Public
CD cS TEDDER
My mini;sfon expires
O-!oher 18, 1986
11.0 County of Forsyth'
��TH r•c a o.LtNP .
24—

j A
j' NORTH CAROLINA
'.'CARTERET COUNTY. ) .
SUBLEASE
THIS-CONTRACT OF SUBLEASE, made and entered into this';''"`
of April, 19a4,.by and between INLET INN ASSOCIATES-F a Nq;tom
Limited partnership, party of -the first part, hereinafter 4a]I
"Owner," and BEAUFORT WATERFRONT ENTERPRIZES, INC., pa�rty'`,q':,
second part, hereinafter called ".Lessee";
W Y T N E S SET H
.• }.: THAT subject to the terms and conditions hereinafe;.'
'the Owner does hereby sublet. and sublease unto.•the''pert
Part and the party of the second..part­does .hereby accept-:aa'3;e
those certain. improvements to"'be constructed upon,real properi
located in the Town of.BeaufoTt, Carteret County, North.':'Carol:i
more particularly described in "Exhibit A" attached hereto and
part hereof, said property being a portion of the lands:.tleaged
Owner by the Town of Beaufort, hereinafter referred to'$s'"Tow,
evidenced by that'.cexTtain Lease dated January 31,•`1984,4'herein,
referred to as'"Underlying Lease.
TO HAVE AND TO 'HOLD said -lands and premises, togetheX'tv#*1
privileges and appurtenances thereunto belonging to':the;aad;{
e second part and their heirs,. successors. in interest'"$n�i.�
,: ( for the term .and uppn the conditions 'hereinafter set:os'b�l:. ;k x
;:: • p' ;: i This .Sublease shall'.-' a'S of the. lst.,4la f,
Y o
''.. .f; such time. -that .the..dbaks to be constructed.b
whichever ocur yy mrs%` '• as sooner, and unless sooner::termihat®d;ae;#ie
r.,. vided;' however, said docks •will'.:be completed on. or befaun'�?
and'th-the event said docks: are not completed Withir�:bhat,';det.,'
this 'Sublease shall be adjusted by.Mutual consent 'of botri''parti
-This Sublease.'shall exist and- continue until the 31st day of AL'
.1998:-' The *foregoing notwithstanding,. this Sublease will.xerm�iri
r datedupon tAu August
of..,.thatrhertainLease J. twee s gss E
4 t �,?9 1979..y
2. Lessee shall not do or permit to be done an
Y . G
or thing which would or might constitute a default undei`: ttie.':.'IJn
lying Lease
3. The' initial rental for said premises the.party'cf the'seaQrii�
part shall pay to Owner by mail or at the place of business'.o£: th6:'•a,s,
Owner, and without notice or demand therefor, the sum:pQ
month, payable on or. before the first day of each calendar ynontiti for;
the then current month.. The monthly rental shall be Paid .i;ng.kdvenRi;

This initial rent shall be increased to the extent that the actual
cost of installation of the water and electrical lines to the 4
improvements exceeds the estimate of W. H. Weaver Construction.Com-' '
pany. The monthly rental shall be increased as follows: excess
actual cost; xk3aoasixY�Bycxa3i iodefEnhlgtXUk equals the additional monthly
rent. The Owner shall notify Lessee of the increased costs and the.
increased rent 'due monthly.* by 172
plus 13• interest divided 1�-.bra
4. It is hereby agreed that the amount of rental as set fort
above shall be adjusted annually, based upon the actual cost of
funds paid by Owner for the construction of the improvements. The
initial rent has been calculated based upon an interest factor of
thirteen percent (13%). To the extent that the actual interest paid;:.,'::.:
by the Owner exceeds that -rate, the rent due from the Lessee shall,.
increase 'by the actual interest rate applied to the costs of the
improvements which the parties agree as $125,000.00. The additional.,';``:;`;;
rental shall be paid annually by Lessee upon written request from.'.
Owner certifying the actual interest rate
year.
1' g paid for the preceding
5. It is expressly agreed that the demised premises shall,
during the term of this Sublease, be used exclusively for the rental'
of boat slips and doc4 areas and related marine activities. The
Lessee shall not allow shrimp boats, menhaden boats, work boats,
barges, tugs and other.commercial fishing boats and vessels of a'
commercial nature to dock at, tie up to, or use the dock areas.. ;>
Sports fishing boats, charter boats, sail boats, pleasure boats and
vessels of this general nature shall be allowed at said dock.
6. Lessee shall be responsible for and shall a at.
P Yall-: of,.'; '.-'x `
the regular maintenance of said docks including repairs, replaeementtfr%
of piers, pilings and supports, and other structural parts of
dock as may be, required by the Owner during the term of this Su
lease. .The Lessee shall insure that the docks constitute no safety"
hazard to members of the public and persons using said docks, and
that the same are kept and maintained in a good state of repair.
All maintenance and repairs shall be at the expense of Lessee and.'' `
the Owner shall have the right to periodically inspect said docks i.a,,=;:.;'•5:
order to insure that the docks are being maintained and repaired.in.
a manner satisfactory to the Owner.
7. It is further agreed and understood that if said docks ''`
substantially damaged by fire, flood, hurricane or other act or
natural catastrophe, then this Sublease shall be terminated at the,
option of Lessee. However, Lessee shall insure said premises .for
their full replacement values Subject to the rights of the Town,
the Lessee shall have the option in the event of destruction of said
docks to use said insurance proceeds to repair or replace said dock '
or piers and upon the completion thereof maintain said Sublease _
until the expiration of same. In the event Lessee fails to maintain
or repair the docks in a manner satisfactory to the Owner and the
• subject to the availability of such ins6rance at rates comparable to present rates
adjusted for normal inflation,
�� 2 '

Town, then the owner shall have the right to terminate this Sub- ;'.
lease; however, the Owner shall, use good faith and make only those..
demands which are reasonable and shall notify. Lessee of what acts
Owner contends Lessee should make to said pier and Lessee shall'ilave
ten (10) days from said notification to begin to effect such. repairs;:
8. Lessee shall be responsible for keeping the dock areas
clean, attractive and safe with regard to use of the docks by custo-�;£:?
mers and tenants. .The Lessee shall establish rules* for use of the
docks and piers to insure the safety of'the patrons and users of
docks; the .Owner reserves the right to approve or disapprove these
rules before they are placed into effect.
9. Lessee shall maintain at all tunes a policy of comprehensipe
liability insurance which shall cover any and all claims of
death or damage to property which may be made against Owner or -the.:­:`"T_:,,..
Town resulting from the Lessee's sublease of the docks and the'
pse:of:;.`
the docks and piers by the Lessee and its tenants, customers and the "it:;.
public in general. The comprehensive liability 'insurance shall begin'`'".-,'
the following minimum amounts.:
$ 300,000.QO -each claimant;
$1,000,000.00 - each occurrence; and
$ 300,000.00 - property damage. c4:
10. Lessee shall hold the Owner harmless from any and ail claim$`::
which may be,made against the Owner arising from Lessee's sublease -.of;;,.:`':
the docks .and piers* and any. and all claims for death, personal
and damage to property while Lessee is in possession of the docks
under the terms of this Sublease, including payment of a reasonable
attorneys fee in the event a claim is made against the Owner result-
ing from Lessee's sublease and possession of the dock areas.
li. Lessee shall use its best efforts to enforce and maintain
rules that prohibit the discharge of sewage and other trash into:=::
Taylor's Creek or at any point of Taylor's Creek that would abut "docjcs,A�--:
subject to this Sublease except those areas specifically
for the discharge sewage or other trash. Lessee shall use its beit
efforts to police the dock areas and the boardwalk to insure that'.<
sewage and other trash is not being discharged in any area along the
waterfront in and around the docks. In the event it finds that.some
individuals are, in fact, discharging sewage and/or other trash then*
Lessee shall notify the proper authorities of said violation. In the
event Owner contends that there are certain boats discharging sewage ,..:F` '
and/or other trash, then it shall report same immediately.to Tenant..::_t;;.
who will, in turn, report same to the appropriate governmental'au
ority.'-
12. Lessee shall be responsible for the ,
P payment of all electii-..;�:.
city, water and other utilities used in the dock area. All utilities �
will be listed. in the name of the Lessee and it shall be his responsi-,"-
bility to pay for all utility charges. ;.
3 -

13. Ali signs, advertisements and notices proposed by Lessee for..
the dock areas shall be approved by the Owner before Lessee can install,:
same, which approval will not be unreasonably withheld.
14. Lessee shall, without any previous.demand therefor, payy`th.6
rent called -for herein at all times and in the manner provided for, 'and}
in the event of the failure -on the part of the Lessee to pay said rerit:`;e;.
in accordance with the terms of this Sublease,' Owner may forthwith take;'.
possession of the dock areas after given. ten (10) days' notice that..�$l
rent is due .and !has not been paid;* if said 'payment is not made
said ten (10)-day period, the Owner may forthwith take possession o£.•the':
dock areas without jeopardizing any of the rights and remedies that the-.
Owner may have as a result of the default by Lessee of the terms and
conditions of this Sublease. In the event Lessee should default on the
stipulations, terms, agreements and covenants contained in this'Sublease;
and the Lessee should fail to correct the same within ten (10) days;:
after notice has' been given by the Owner to Lessee, then the Owner ehali
have the right to re-enter the premises and to repossess and take•posspsr
sion of the dock areas. The Owner shall .he;eafter have such other`:.,
rights and remedies as against Lessee as provided by law. In the pv}na.:
Lessee should be adjudged bankrupt or insolvent by any federal" *or.stattI
court of competent jurisdiction during the term of this'Sublease,.=the.'::':,'.;:
Owner may at its option declare this Sublease terminated and cancelled".'-,'
and the Owner may takg possession of said premises. Further, should the;:
Lessee allow the dock areas to become vacant during the term of this
Sublease at any time when the rent shall be or become due and unpaid "x,.+:
hereunder, the Owner may re-enter the premises either by force or other,
wise without being liable for prosecution therefor and the Owner may
terminate this Sublease.
15. Lessee shall take good care of the leased premises and aIt'.tho-:
end or other expiration of the term of this Sublease shall deliver..aoid;,�,!
premises in good order and condition, reasonable wear and tear'.? a ted�z.
Lessee may make alterations, additions or im rovements in the doc P k _ &req;
provided Lessee shall first obtain from the Owner and the Town its j9At"
ten consent as to the planned alterations; additions or improvements., :':.
which consent will not be unreasonably withheld. All alterations ddi
tions or improvements made by the Lessee during the course of its.oecu�,
pancy or the term of this Sublease shall* inure to the benefit of and* be
the property of the Owner upon the termination of the Sublease, and s$Ch'.
alterations,' additions and improvements will be surrendered. with..t te';'.•.:;Y,;;
premises when the same are surrendered by the Lessee to the .Owner{
16. Lessee at its own cost and expense shall comply with All.rule's
and regulations and requirements of the Owner, the Town, the State:of,
North Carolina, and the United States, which are applicable to the dock-.
areas for the prevention or abatement of nuisances or other grievances
arising out of the manner of the occupancy of the dock aras during this
sublease by Lessee. The Owner shall have the right to enter upon the
dock areas during the term of this sublease at all reasonable hours for'
.
the purpose of examining and inspecting the same.
4 - .

I
17. The Lessee shall have no authority to assign this Sublease
without first obtaining the written consent of.the owner, which
consent shall. not be unreasonably * withheld..' Lessee shall not occupk.----".,.,
or use or permit or suffer to be occupied or used the dock areas for.
any business or .purpose which would violate zoning laws �ry,
of the Townvr" C.
or which may constitute a hazard on account of fire or other -danger.
to the Owner and Town or its citizens.
18. Lessee acknowledges the responsibility of the Town and
Owner to provide to Branch Banking and Trust Company and Fairleigh $
Dickinson two (2) mooring spaces for vessels not exceeding forty-five' '% *'-..'."-.,
(45) feet in length. The Lessee will post such signs and establish
such rules and regulations so as to insure that such spaces are
continuously available.to such parties..
19. The Lessee agrees to provide priority status to the -guests..:,.:
of Owner's Inn for use of the property that is the subject of' this
Sublease. The Lessee shall use its best efforts. to provide continuou.s.'V.1.
access to the dock area to the owner's guests.
IN TESTIMONY WHEREOF, the Owner has caused this Sublease .to be 'e
outed by its General Palctner, and Lessee has caused its seal to be alf ijuid
hereon on the date hereinabove written.
INLET INN AYSOCIATES, a North Carolina.
I;imite9.JPrtneyshJ*
By.
BEA
B
.'ATITES,T
V0 The foregoing notwithstanding, the Owner
(AFFIX CORPORATE SEAL) reserves the right to modify the terms of this
Sublease in accordance with the requests of it . s
mortgagee(s). If Lessee does not accept such
modifications, this Sublease shall terminate..
INITI
'LNI Owner
Lessee 5

STATE OF NORTH CAROLINA - County of rQ,r-g—rC� - "'`;"%;:r•
I, a Notary Public for th above County and State, do hereby certify
that HAYWOOD WEEKS, JR., personally appeared before me this day and acknowledged,';' ram"
the execution of the foregoing instrument. er•'
WITNESS' hand and officials or seal this my tamp , 9 day of j ��Q 1884.,
Notary Public
My commisssion expires:
uq ovuup:avun Lq),IrYS wooer 16, • , '
NOTAUAL STAMP/SEAL: ' 31
STATE OF NORTH CAROLINA - County of
I, a Notary Public for the above County and State, do hereby certify y` '
that personally.'appeared.before me this day and ,..'
acknowledged the execution of the foregoing instrument.
WITNESS my hand and official stamp or seal, this dap of
1984.. t•T:
Notary Public.'
My commission expires:'.'
NOTARIAL STAMP/SEAL

■
■I
P
EXHIBIT A
Docks to be leased to
Beaufort Waterfront Enter
1■I1♦1 1 1 1 .1 1W1

,
.o t
NORTH CAROLINA
CARTERET COUNTY.. AGREEMENT
THIS AGREEMENT AND AMENDMENT TO LEASE, made and entered
into this � 7 4A day of 4aBtis-t- , 1987, by and between the
Town of Beaufort, a Municipal Corporation, hereinafter called
"Owner" and Beaufort Waterfront Enterprizes, Inc:, a North
Carolina Corporation with its principal office or place of busi-
ness in Beaufort, North Carolina, hereinafter referred to as
"Lessee";
W I T N E S S E T.H:
THAT WHEREAS, on or about August 29, 1978, Owner entered
into a Lease with Haywood Weeks, Jr., which Lease is recorded in
Book 416, Page 308, Carteret County Registry, which Lease by
reference, is incorporated herein; and
THAT WHEREAS, said Lease was assigned on or. about
November, 1979 by Assignment recorded in Book 433, Page 470,
Carteret County Register of Deeds, wherein said Lease was assigned
to Beaufort Waterfront Enterprizes, Inc., the above named Lessee;
and
THAT WHEREAS, the Town of Beaufort leased certain dock
space to Inlet Inn Associates, a North Carolina Limited
Partnership, on or about March 19; 1984, and a Memorandum of said
Lease was recorded in Book 495, Page 253, Carteret County .
Registry, which Memorandum of Lease is incorporated herein by
reference. That there were two subsequent Subleases, wherein the
property or dock area, as described in the Memorandum of Lease in
Book 495, 253, Carteret County Registry, was sublet to
.Page
Beaufort Waterfront Enterprizes, Inc., and later. by Amendment of
Sublease dated August 5, 1985, the parties heretofore amended said
Lease, all documents are incorporated herein by reference; and
THAT WHEREAS, the initial terms of said Lease had a pri-
mary term which was to expire on August 31, 1.988. That there were
renewable 'optionscontained in said Lease and subsequent
Amendments so that said Lease could be extended for an additional
ten year period, through and including August 31, 1998, if the
Town received the authority to do so by act of the North Carolina
Legislature; and
THAT WHEREAS, the North Carolina Legislature adopted
legislation which allowed the Town to lease the dock area as
described in the above referenced Lease through and including
August 31, 1998. That the Town of Beaufort has heretofore met and
agreed to extend the Lease as hereinabove described through August
31, 1998, subject to the, same terms and conditions as contained in
those documents, as hereinabove set forth; and
THAT WHEREAS, Lessee and Owner desire to have constructed
on property which is not embraced in said Lease a bath house for
men and women, for the boaters who use those facilities as
described in said Lease. At the present time, Lessee is using
certain facilities he had constructed in what was known as the old
Beaufort Police. Station on Front Street, and as soon as the
showers are complete that he'is constructing on the property as
hereinafter described, then Lessee shall turn said police station
property, together with the facilities therein, over to Owner; and
THAT WHEREAS, the area that will now be incorporated in
the Lease as hereinabove set forth is that tract of land being
more particularly described as follows:
BEGINNING at a point in an agreed line between
the Town of Beaufort and Sonny Geer, said
n
point being located S 33-37 W, 73.95 feet from
5 `
/
the southern right-of-way line of Front Street;
thence from said point of beginning, S 56-23 W,
22•29 feet to a concrete seawall; thence with
�,(,��
said seawall, S 33-37 W, 33.15 feet to a point
i
at the corner of said seawall; thence N 56-23 W,
-. i
22.29 feet to a point; thence N 33-37 E, 33.15

,r
-2-
feet to -the POINT OF BEGINNING, containing
738.91 sg. ft. all bearings true meridian.
It is further agreed and understood that the above
described area shall be incorporated into the property of the
Lease as hereinabove set forth, and that each and every Lease
shall expire on August 31, 1998.
THEREFORE, inconsideration of Lessee bulkheading,
filling and constructing the bathhouse as hereinabove set forth
and other valuable considerations, and the premises hereinabove
set forth, the above described property is herein incorporated
into the Lease as hereinabove set forth subject to the terms and
conditions as contained therein, and that same, all of said Leases
shall expire on August 31, 1998, unless said.agreements are
hereinafter extended.. It is further agreed and understood that
Lessee's requirement to maintain insurance as set forth in the
original Lease between Lessee and Owner, shall apply to this pro-
perty subject to this Lease, and shall remain in full force and
effect. That further; the above described property and the
building to be constructed by Lessee will be subject to the main-
tenance requirements of the original Lease as contained in
Paragraph 5, and all terms and conditions as contained in
paragraph 5 shall apply to Lessee as if hereinafter fully set
forth. All other terms and conditions as contained in said Lease
shall remain in full force and effect.
IN WITNESS WHEREOF, the Town of Beaufort had caused this
Amendment of Lease to be executed by its Mayor and attested by its
Town Clerk, sealed with the seal of the Town of. Beaufort, all by
the authority given by the Board of Commissioners for the Town and
Lessee has caused its hand and seal to be'placed thereon on the
date above written.
ATTEST: SEAL
A. C. Blankenship,
Town Clerk
ATTEST: . SE
re
TO OF BEAUF RT
BY-
- yc P. Fulfbrd, /
ayor
BEAUFORT WATERFRONT
EN E PRIZES, IN i
BY: ( (/V
Haywood Weeks, Jr.,
President

=a
NORTH CAROLINA
CARTERET�COUNTY
I �i.%.c� "� a NotaryPublic of the
County and aforesaideertify that A. C. Blankenship per-
son lly came before me this day and acknowledged that he is Town
Cle k of the Town of Beaufort, a Municipal Corporation, and that
by uthority duly given and as the act of the Town, the foregoing
instrument was signed in its name by its Mayor, sealed with its
Tow Seal and attested by him as Town Clerk.
Witness my hand and notarial seal, this day of
,nf 1987.
0otary Public-7J
My Pommission Expires:
NORTH CAROLINA
CAR ERET COUNTY
I, _ AI%46V C_ 13ouglye ,' a Notary Public of the
County and State aforesaid, certify that DgsrrFJ E, deffAREY
personally came.before me this day and acknowledged that he
is Secretary of Beaufort Waterfront Enterprizes,
Inc., a North Carolina Corporation, and that by authority duly
given -and as the act of the corporation, the foregoing instrument
was signed in its name by its_ President, sealed with
its corporate seal and attested by -AZ- as its
Sec etary.
My
Wit ess m hand and notarial seal, this day of
1987.
14
i TkOTgR� :.Oy Public
Ems: p 3
ssi0a--axQiao
mm
,. _

STATE'OF NORTH CAROLINA
COUNTY OF CARTERET
EXTENSION OF LEASE
THIS AGREEMENT, made and entered into as of this 1st day of
September, 1993, by and between BEAUFORT WATERFRONT ENTERPRISES,
INC., herein called TENANT, and the TOWN OF BEAUFORT, a municipal
corporation, herein called LANDLORD;
WITNESSETH THAT:
On August 29, 1978, LANDLORD leased to Haywood Weeks, Jr., the
docks in the Urban Redevelopment Plan of the Town of Beaufort, and
on November 21, 1979, this Lease was assigned by Haywood Weeks,
Jr., to TENANT, and the obligations of the,TENANT under the Lease
were guaranteed by Haywood Weeks, Jr.
TENANT has requested LANDLORD to extend the Lease for an
additional five (5) years to expire on August 31, 2003 and to
adjust the rent for the remaining term of the Lease and the
extended term of the Lease to provide for an. annual rental of
TWENTY-NINE THOUSAND FOUR HUNDRED FORTY AND 00/100 ($29,440.00)
DOLLARS, with an annual adjustment based on the Consumer Price
Index, and LANDLORD has agreed to do so upon condition that TENANT
abide by all other terms and conditions of the Lease, pay the rent
timely when due, improve the docks in the demised area by a sum of
not less than SIXTY THOUSAND AND 00/100 ($60,000.00) DOLLARS and
submit evidence to LANDLORD of such improvements and the costs
thereof, and open TENANTIS books to examination by agents or
representatives of the LANDLORD beginning in 1998 at the beginning
of that Lease year.
LANDLORD through its Board of Commissioners duly expressed its
intent to extend the Lease and modify it in accordance with the

2
preceding paragraph, caused a publication of notice of such intent.
to be made, held a public hearing on the question, and following
Aw the public hearing approved the extension of the Lease with the
further qualification that during each year of the Lease, including
its extended term, the rent will be adjusted upward in accordance
with the Consumer Price Index published by the United States
Department of Labor, but not providing for an adjustment downward
in the event of a decrease in the consumer Price Index.
NOW, THEREFORE, in consideration of the premises and the sum
of TEN ($10.00) DOLLARS by TENANT to•LANDLORD paid, the receipt of
which is hereby acknowledged, LANDLORD and TENANT do agree as
follows:
1. The Lease between LANDLORD and TENANT referred to above
is hereby amended to provide that it shall be extended through and
including August 31, 2003.
2. The rental to be paid by TENANT to LANDLORD beginning with
the Lease year from September 1, 1993 to August 31, 1994, shall be
TWENTY-NINE THOUSAND FOUR HUNDRED FORTY AND 00/100 ($29,440.00)
DOLLARS, which rental shall be paid in monthly installments in
advance of TWO THOUSAND FOUR HUNDRED FIFTY-THREE AND 34/100
($2,453.34) DOLLARS beginning on or before September 1, 1993 and
continuing on or before the first day of each and every calendar
month thereafter during the Lease term and any authorized extension
thereof.
3. TENANT shall make improvements to the docks and piers in
the demised area to change one (1) or more of these docks and piers

0
3
to floating docks at a cost of not less than SIXTY THOUSAND AND
00/100 ($60,000.00) DOLLARS.
Before embarking upon
improvementssuch
, TENANT shall submit to LANDLORD plans and
specifications for such improvements and obtain LANDLORDIS approval
thereof, which approval shall not unreasonably be withheld. TENANT
shall submit to LANDLORD evidence satisfactory to LANDLORD that the
cost of such improvements have at least equaled SIXTY THOUSAND AND
00/100 ($60,000.00) DOLLARS. These improvements shall be completed
on or before the 31st day of August, 1998, upon failure of which
this Extension of Lease shall be null and void without further
action by LANDLORD.
4. During each year of the Lease term and any authorized
extension thereof beginning with the Lease year starting on
September 1, 1994, the rental to be paid by TENANT to LANDLORD
shall be adjusted upwardly in accordance with the increase with the
COnsumer,Prlce index for All Items for All Urban Consumers (1982_
84=100) published by the Bureau of Labor Statistics of the United
States Department of Labor (hereinafter called the "Index") .
Rental for each Lease year shall be determined as follows:
A. (1) As promptly as practicable after the end of each
lease year of this Lease (hereinafter sometimes called the "Lease
Year", the Lease Year ending August 31, 1994 being called the "Base
Year"), LANDLORD shall compute the increase, if any, in the cost of
living based upon the Index.
(2) The Index number for September, 1993, the first
month of the Base Year, shall be the "Base Index Number" and the

u
4
corresponding Index
number for the first month of
the Lease
Year
for which rent is
being determined shall be the
"Current
Index
Number."
(3) The Current Index Number shall be divided by the
Base Index Number. From the quotient thereof, there shall be
subtracted the integer 1, and any resulting positive number shall
be deemed to be the percentage of increase in the cost of living.
(4) The percentage of increase multiplied by TWENTY-
NINE THOUSAND FOUR HUNDRED FORTY AND 00/100 ($29,440.00) DOLLARS,
the annual rent specified for the Base Year, shall be the increase
determined by the requirements of this provision regarding rental
for the Lease year for which rent is being determined.
(5) LANDLORD shall, within a reasonable time after
obtaining the appropriate data necessary for computing such
increase, give the TENANT notice of any increase so determined, and
the LANDLORDIS computation thereof shall be conclusive and binding,
(but shall not preclude any adjustment which may be required in the
event of a published amendment of the Index figures upon which the
computation was based),. unless the TENANT shall, within sixty (60)
days after the giving of such notice, notify LANDLORD in writing of
any claimed error therein. Any dispute between the parties as to
any such computation shall be determined by arbitration, with
LANDLORD selecting one (1) arbiter, TENANTselecting one (1)
arbiter, and these two (2) arbiters selecting a third arbiter, and
the decision of any two (2) or more arbiters shall be final and
binding upon the partihs, and LANDLORD and TENANT shall pay equally

5
any costs involved in such arbitration.
B. The rent, as so determined (i.e., the annual rent
specified for the Base Year and the "increase" calculated in
accordance with the provision for calculating rent for all Lease
Years except the Base Year) shall be the rental to be paid during
the Lease Year for which rent is then being calculated. Any rent
due for any period which elapses before the LANDLORD has provided
TENANT with the new rent figure will be due and payable within
thirty (30) days after TENANT has notice of the new rental figure.
In the interim, TENANT will continue to pay the monthly rental
which has been paid up until that time. If it is later determined
that the rental as calculated by LANDLORD is erroneous, the party
found to owe the other any sum as additional rent or as a refund
for rent overpaid shall make payment of such sum within thirty (30)
days of notice of such sum being due.
C. If publication of the Index shall be discontinued, the
parties hereto shall thereafter accept comparable statistics on the
cost of living as they shall be computed and published by an agency
of the United States of America or by a responsible financial
i
periodical of recognized authority then to be selected by the
parties hereto, or, if the parties cannot agree upon a selection,
by arbitration as provided above. In the event of (1) •use of
comparable statistics in place of the Index as above mentioned, or
(2) publication of the Index figure at other than monthly
intervals, there shall be made in the method of computation herein
'•� provided for such revision as the circumstances may require to

E
carry out the intent of this provision regarding rental adjustment,
and any dispute between the parties as to the making of such
adjustment shall be determined by arbitration as above provided.
5. Beginning with September 1, 1998, TENANT shall make
available to LANDLORD all of TENANT'S books and records regarding
its income and expenses and all other business records of its
operations at and from the leased premises. LANDLORD may inspect
or audit all such records at all reasonable times during regular
working hours.
6. Except as herein specifically or by necessary implication
modified, the aforesaid Lease dated August 29, 1978, as amended by
the Assignment dated November 21, 1979, and the Agreement and
Amendment of Lease dated August 27, 1987, shall remain in full
force and effect.
7. The guarantee of Haywood Weeks, Jr., dated November 21,
1979 shall remain in full force and effect, and Haywood Weeks, Jr.,
executes this Agreement for the purpose of assenting thereto and
for the purpose of guarantying the TENANT'S performance under the
Lease and all modifications thereof, including this Agreement.
IN WITNESS WHEREOF, TENANT has executed this instrument in due
and lawful manner the day and year first above written, LANDLORD
has caused this instrument to be executed by ,its Mayor and attested
by its Town Administrator and its seal to be hereto affixed all by
order of its Board of Commissioners duly given in meeting duly
assembled on September 13, 1993, and Haywood Weeks, Jr., has
executed this Agreement as Guarantor the day and year first above

mom
d,
q I
written, all in triplicate originals, one of which is retained by
each of the parties.
ATTEST:
Town,Adminis rat£ or
BEAUFORT WATERFRONT ENTERPRISES, INC.
By: 16. ,,,,
President
TOWN OF BEAUFORT
By: ND AA ,•w. D Cjm„
Mayor I
1 S )
Haywood Weeks, Jr.

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, y m
a otaryy Public of said County and State do hereby certify
that s-- h F personally appeared before me
this date and acknowledged that he is Secretary of Beaufort
Waterfront Enterprises, Inc., a corporation, the foregoing
instrument was signed in its name by its President, sealed
with its corporate seal, and attested by herself/himself as its
Secretary.
WITNESS my hand and Notarial Seal this ,S'iiyhl (,7�''•, y of
19 9 3 . �.�� ) ........ '
p� 6�N � ; ate: �o �;•,
L� y �:
My commis ion expires: :0.:
5L No ry Public L in
STATE OF NORTH CAROLINA •'� �O
COUNTY OF CARTERET '•y (/N umN-01
O��if�el-�rd�
This 4� day of %eV%QVJ9�9r, 1993, personally came before me,
a Notary Public of said County and State, Gordon M. Davis, who
being by me duly sworn, says that he knows the common seal of said
Town of Beaufort, and is acquainted with Kathryn Cloud, who is the
Mayor of said Town; that he the said Gordon M. Davis, is the duly
appointed and designated Town Administrator of said Town, and saw
the said Mayor signed the foregoing instrument, that he the said
Administrator signed his name in attestation of the execution of
said instrument in the presence of said Mayor of said Town.
WITNESS my hand and Notarial Seal this the lklt day of
1993.
%
My c mnis ion expires:
tary Pub is 10,
T
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, a Notary Public of said County and State do hereby certify
that Haywood Weeks, Jr., personally appeared before me this date
and acknowledged due execution of the foregoing instrument.
WITNESS my hand and Notarial Seal t1140al otuig"q. qay of
.sembe 1993. �.•���ON....., q�•i-
4� �,.
My commis ion expires: r _ '1 P
�\ 7 u F4 Nofz ry ub . r� . Q
'•.,� nU .....• �, 10
'o__UN 1. _.•,

STATE OF NORTH CAROLINA
BILL OF SALE AND ASSIGNMENT
COUNTY OF CARTERET
This Bill of Sale and Assignment executed this day of
May, 1999, by Inlet Inn Associates, a North Carolina Limited
Partnership, P. 0. Box 21, Winston-Salem, North Carolina, herein
"Seller"; and Beaufort Waterfront Enterprises, Inc., a North
Carolina Corporation, 500 Front Street, Beaufort, North Carolina
28516, herein "Buyer";
W I T N E S S E T H:
WHEREAS, Seller is currently the Tenant and Lessee of a tract
of. land on Taylor's Creek, Beaufort, North Carolina, on which
Tenant has constructed bulkheading, docks and other improvements,
which tract of land is leased from the Town of Beaufort to Seller
herein under a lease dated January 31, 1984, and said tract of land
is described as Tract 2 therein;
WHEREAS, said Lease Agreement originally provides for a lease
term of twenty-five (25) years beginning February 1, 1984, and
extending through January 31, 2009, with an Amendment to the Lease
Agreement, dated November 13, 1984, granting to Lessee Inlet Inn
Associates the right to renew the lease for two (2) additional
terms of ten (10) years each, and one final term of seven (7)
years, so that in the event the options to renew were exercised,
the lease on Tract 2 would extend through January 31, 2036, in
accordance with the original Lease Agreement, as amended;
WHEREAS, Sellers desire to assign and transfer Seller's
leasehold interest in Tract 2 of said Lease Agreement, as well as
convey and transfer all docking facilities and improvements

thereon, to Buyer herein, based upon payment by Buyer to Seller of
a purchase price of $110,000.00, and Buyer thereafter proposes to
contract with and lease from the Town of Beaufort Tract 2 on a long
term basis, conditioned upon Seller and the Town of Beaufort
entering into an Amendment to said Lease Agreement which deletes
Tract 2 from Seller's lease with the Town of Beaufort, and
terminates Seller's rights and interests in Tract 2;
NOW, THEREFORE, in consideration of the sum of $110,000.00 and
other valuable considerations paid by Buyer to Seller, the receipt
and sufficiency of which are hereby acknowledged, Seller and Buyer
have agreed as follows:
1. AssicTnment of Leasehold Interest. Subject to the Town of
Beaufort's consent to this assignment and the Town entering into a
separate long term lease hereafter with Buyer for the waterfront
tract described herein, Seller does hereby assign and convey to
Buyer all of Seller's leasehold interest in Tract 2 as described in.
that Lease Agreement dated January 31, 1984, as amended, described
as follows:
On the southside of Front Street and being all of water
Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to consist of the land and riparian and littoral
rights incident thereto on the south side of the Front Street
right of way, and lying between the east line of Queen Street
and the west line of Pollock Street, except for the 66 foot
tract of land on the south side of Front Street owned by
Robert H. Stevens, which consists of the west one-half of Lot
260, and the east one-half of Lot 261, Old Town. Tract 2 is
the same real property conveyed to the Town of Beaufort by
deeds from John and Jean Campabosso recorded in Book 483, Page
361, from Carteret Services, Inc., to the Town of Beaufort
recorded in Book 395, Page 320, deed from F. S. Dickinson,
E

Jr., to the Town of Beaufort in Book 393, Page 294, Carteret
County Registry, and Deed of Easement from Branch Banking and
Trust Company to the Town of Beaufort, with regard to water
Lots 263, 262 and the eastern one-half Lot 261, Old Town,
Beaufort, North Carolina.
2. Transfer of Equipment, Improvements, Permits and Related
Assets. In connection with the assignment of the leasehold
interest for the real property described in Paragraph 1, Seller
does hereby grant, convey, transfer and sell to Buyer and its
successors in interest and assigns, all of the following fixtures,
equipment, permits, and other tangible and intangible personal
property as follows:
a. All bulkheading, pilings, docks, and floating apparati
owned by Seller and located within the boundaries of said real
property as described in Paragraph 1 above;
b. All electrical and water lines, connections and equipment
to the extent that Seller owns or has an interest in the same;
C. All State and Federal dredging, construction and
maintenance permits for the docks, entrance ways, channel into the
dock areas to the extent that Seller is authorized to transfer and
assign such rights under said permits;
d. All subleases and boat slip rentals for any of the docks
or slips within said dock areas as described in Paragraph 1 above,
with revenues from the slips being effective only as to rentals and
revenues to be paid on and after the effective date of this
assignment and with Seller reserving any rents which are due Seller
for Seller's ownership and occupancy of the dock improvements prior
to the effective date of this assignment.
3

3. Amendment to Existing Town Lease. Seller agrees to enter
into an amendment with the Town of Beaufort deleting the real
property described in Paragraph 1 above from Seller's lease with
the Town of Beaufort, and to execute such documents as may be
deemed necessary in order for the Town to enter into a direct lease
for the dock, improvements, and real property described in
Paragraph 1, to Buyer herein.
4. Condition of Improvements. As Buyer has been subleasing
the tract of land described in Paragraph 1 together with the docks
and improvements thereon, from Seller since January, 1984, and
Buyer has infinite knowledge as to the shape and condition of said
real property, docks and improvements, then Seller is transferring
and conveying said docks and improvements "as is", and Buyer hereby
accepts said docks, improvements, equipment "as is".
TO HAVE AND TO HOLD said leasehold interest and personal
properties described herein unto the Buyer and its successors and
assigns in as full a manner as Seller is authorized and empowered
to convey the same. Said assignment of Seller's leasehold interest
will be subject to the remaining terms and conditions of the Lease
Agreement between the Town of Beaufort and Seller dated January 31,
1984 as amended, until Seller's leasehold interest in said tract on
the Beaufort waterfront is terminated, and said tract is then
leased on a long term basis to Buyer.
Seller covenants with Buyer that Seller owns and possesses
said leasehold interest, improvements, permits and other assets
being transferred or assigned herein, that Seller has the right to
4

convey or assign the same, that the same are free and clear of all
liens and encumbrances, except as set forth herein, and that Seller
will warrant and defend the title thereto against the lawful claims
of all persons whomsoever.
Said leasehold interest and improvements are presently
assigned and mortgaged to Banc One, successor to First American
Savings Bank, first lienholder, a second lien mortgage of Seller's
leasehold interest on the waterfront tract to the Neuse River
Development Authority, Inc., and a third lien mortgage of Seller's
leasehold interest to the Town of Beaufort in connection with a
UDAG loan. Seller further warrants and represents to Buyer that it
will have paid off and satisfied all three mortgages prior to or
concurrent with the execution and delivery of this Bill of Sale so
that upon the effective date and delivery of this Bill of Sale,
Seller's leasehold interest and the assets being conveyed herein,
shall be free and clear of all liens and encumbrances.
IN WITNESS WHEREOF, Inlet Inn Associates, a North Carolina
Limited Partnership, has caused this Bill of Sale to be executed by
its general partners on the day and year first above written.
5

INLET INN ASSOCIATES, a North
Carolina Limited Partnership
M
David Weil
General Partner
(SEAL)
By: (SEAL)
DeWayne H. Anderson
General Partner
By: (SEAL)
William G. Benton
General Partner
STATE OF NORTH CAROLINA
COUNTY OF
I, a Notary Public for the County and State aforesaid, certify
that David Weil, DeWayne H. Anderson, and William G. Benton,
General Partners of Inlet Inn Associates, a North Carolina Limited
Partnership, personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness my hand and official stamp or seal, this the
day of May, 1999.
My Commission expires:
c:\docs\resident.sal\inletlnn.bill
21
Notary Public
EXECUTED COPIES OF
THIS DOCUMENT ARE
MATTERS OF RECORD

G
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
AGREEMENT, MODIFICATION
AND EXTENSION OF LEASE
THIS AGREEMENT, MODIFICATION AND EXTENSION OF LEASE, made
and entered into as of the �416,day of May, 1999, by and between
the TOWN OF BEAUFORT, a municipal corporation (hereinafter referred
to as "Landlord"); and BEAUFORT WATERFRONT ENTERPRISES, INC.
k r
(hereinafter: referred to: as u Tenant . i44r7k 1r'�ep;fi
W I T N E S S- E T``H
WHEREAS, Landlord entered into a Lease with Haywood
Weeks, Jr. dated August 29, 1978, which Lease was assigned by
instrument dated November 21, 1979 to Tenant (the "Lease"); and,
WHEREAS, Landlord and Tenant entered into a Lease
Agreement dated August 27, 1987 (the "Bathhouse Lease"); and,
WHEREAS, Landlord and Tenant entered into an Extension of
Lease dated September 1, 1993 (the "Lease Extension"); and,
WHEREAS, the property covered by the Lease, the.Bathhouse
Lease and the Lease Extension is generally known as the original
Beaufort Docks; and,
d certain property lying to the
WHEREAS, Landlord lease
east of the original Beaufort Docks to Inlet Inn Associates by
documents+'dated 'January 31:; �1984,y%,whichi props �ty.was ub sed4by
Inlet Inn Associates to Tenant by document dated April' _i'1989,
the property covered by such lease and sublease being generally
known as the Inlet Inn�Docks; and,
WHEREAS, Tenant has agreed to purchase from Inlet Inn
Associates all of its interest in the Inlet Inn Docks and to convey
same to Landlord; and, .
WHEREAS, in consideration of the foregoing conveyance of
the Inlet Inn Docks by Tenant to Landlord, Landlord has agreed to
modify and extend the Lease, Bathhouse Lease and Lease Extension
(the "Docks Lease") as is hereinafter more particularly set forth.

NOW, THEREFORE, in consideration of the premises and the
sum of $10.00 by Tenant to Landlord paid, the receipt of which
hereby is acknowledged, Landlord and Tenant do agree as follows;
1. The Docks Lease hereby is amended to provide that it
shall be extended through and including August 31, 2008.'
2. The Inlet Inn Docks, as more particularly described
on Exhibit "A" attached hereto and incorporated herein by
reference, are specifically included within the description of the
property leased.hereby,..to thegnd that theQDocks.,.,�jLease,,.hall'cover:.
the original Beaufort Docks, ihcluding the"'B o e a ,"" e'
Inlet Inn Docks.
3. Annual rent payable by Tenant to,Landlord pursuant
hereto is $59,520.00; said sum to be payable in monthly
installments of $4,960.00 per month commencing with,June 1, 1999.
Effective with the lease year commencing September 1, 1999, the
rental to be paid by Tenant to Landlord shall be adjusted in
accordance with Paragraph 4 of the Lease Extension. (September 1,
1993.)
4. As additional rent Tenant shall pay to Landlord a
monthly sum equal to one -twelfth (1/12) of the annual amount of
ad valorem taxes that Landlord otherwise would have collected had
the Inlet Inn Docks property not been conveyed to Landlord, i.e.,
the current ad valorem tax .valuation is $,124,35Q.00 for a current
annual tax amount of $429.01 or a monthly sum of $35 75a Pameiit°
of this monthly additional rent amount shall commence with the
first calendar month after the date hereof for which Landlord shall
not be entitled to receive ad valorem tax payments and such sum
shall be subject to increase or decrease as of the first day of
each calendar year proportionate to any increases or decreases in
ad valorem tax valuation and the tax rate of Landlord.
5. Except as is herein otherwise provided, the terms of
the Lease, Bathhbuse Lease and Lease Extension, which are
E
i

incorporated herein by reference, hereby are ratified and shall
control the terms and conditions for the remaining term.
IN WITNESS WHEREOF, Tenant has executed this instrument
in due and lawful manner the day and year first above written,
Landlord has caused this instrument to be executed by its Mayor and
attested by its Town and its seal to be hereto affixed
all by order of its Board of Commissioners properly given, in
duplicate originals, as of the day and year first above written.
By:
President
Attest:
Se tary
TOWN OF BEAUFORT
O
By:
Mayor
Attest:
90-0054(A)
NBMAIN\364183.1
J
9

rK
NORTH CAROLINA
CARTERET COUNTY
I, p(Z gQy G- MC--Lo- Notary Public
the county and Stat Aforesaid, cer 'fy that
.i,.rrcn Cnr1W�c- �tr, personally came before me This
day and acknowledged that (s) he is the-.[y\CKjnje
i of the
TOWN OF BEAUFORT and that by authority duly g ven, and as
the act of t wn,regoing instrument was signed in
its name by R.V as the 00n46V!7
of the TOWN OF BEAUFORT sealed with its official .se l and
attested by him as the Mn..w ✓ of the TOWN OF BEAUFORT.
Witness my hand and notarial seal, this the
day of 1999.
WNW
(^��e ,^'U.� -�-� N y Public
My Commission Expires: Kph a00�
NORTH CAROLINA
CARTERET COUNTY
I, a Notary Public of the County and State .
aforesaid, certify that,, r wPersonally came before
me this day and acknowledged that _ he is Secretary of
BEAUFORT WATERFRONT ENTERPRISES, INC., a North Carolina
corporation, and that by authority duly given and as the
act of the corporation, the foregoing instrument was signed
in its name by its President, sealed with its
corporate seal and attested by him/her as its
Secretary:
M Witness my hand and official stamp or seal,
this I day of Nat+, 1999. _ 1
My Commission Expire�`a
4

Lying and being in the Town of Beaufort, Carteret County, North
Carolina and being more particularly described as follows:
Lying and being on the south side of Front.Street and being all of
Water Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to 'consist of the land and riparian and littoral
rights incident thereto on the south side of the Front Street right
of way and lying between the east line of Queen Street and the west
line of Pollock Street except for the 66 foot tract of land on the
south side of Front Street owned by Robert H. Stephens which
consists of the west one-half of Lot 260 and the east one-half of
Lot 261, Old Town.
Exhibit A
90-0064 (A)
NBMAIN\364193.1

Tax Parcel Number: �.
73o�i9l �3
Prepared by: Richard 1. tanley, P. O. Box 150, Beaufort, NC 28516
Mailed After Recording to: Beaufort Waterfront Enterprises, Inc.,
Brief description for Index: Beaufort Township
NORTH CAROLINA QUITCLAIM DEED AND BILL OF SALE
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
This Deed and Bill of Sale ma this 1st day of June, 1999, by and
between Inlet Inn Associates, North Carolina Limited Partnership,
Grantor(s), and Beaufort Waterfront Ente ises, Inc., a North Carolina
Corporation, Grantee(s) of,; ✓4yt2q
WITNESSETH:::
That said Grantor(s), for and in consideration of the sum of Ten
and 11/100 ($10.00) Dollars(s) to their in hand paid, the receipt of
which is hereby acknowledged, have remised and by these presents do
remise, release, and forever quitclaim unto the Grantee(s) and their
heirs and assigns all right, title, claim and interest of the said
Grantor(s) in and to a certain tract of parcel of land lying and being
in the County of Carteret, and State of North Carolina, in Beaufort
Township, and more particularly described as follows together with all
improvements and fixtures thereon..
See Exhibit A attached hereto and incorporated herein by reference.
TO HAVE AND TO HOLD the aforesaid tract or parcel of land and all
Q privileges thereunto belonging to the Grantee(s) and their heirs and
assigns, free and discharged of all right, title claim, or interest of
the Grantor(s) of anyone claiming by, through, or under them.
IN TESTIMONY WHEREOF, said Grantor(s) have hereunto set their hand's.'
and seals the day and year first above written.
INLET INN CIATES,
A NORTH LIN LIMITEB PARTNERSHIP
06/07/99 _ k 1
$220.00 By: Vy (SEAT,)
srahoH David Weil, General Partner
xKUNA `4w Real Estate
Excise Tax
STATE OF NORTH CAROLINA COUNTY OF CARTERET
I, a Notary Public of the County and State aforesaid, certify that
David Weil, General Partner of Inlet Inn Associates, a North Carolina
Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness, my hand and official seal this the 1st day of June, 1999.
Qr.T° MY �o�l�s�1 k� zres: _ �� (SEAL)
zs i ' �.+. 3 ` . i`•�` �6 .Tj(fri �• NOTARY PUBLIC
UJ �IN�Nu�Nryl 'G i tis kj,;� '
PAGELi
t. 6

By:
(SEAL)
. Anderson,
/ n (SEAL)
William G. Benton, General Partner
STATE OF NORTH CAROLINA COUNTY OF
I, a Notary Public of the County and State aforesaid, certify that
DeWayne H. Anderson, General Partner of Inlet Inn Associates, a North
Carolina Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness my hand and official seal this the A ! day of June, 1999.
OFFICIAL SEAL
My Commission Expires: t4-tg"d4M u4NcN----SYrogng
IW�f" •eF FORSYIH
NOTARY UBLIC ._,! JOANNERAGAN
STATE OF NORTH CAROLINA COUNTY OFp2R1f'(
I, a Notary Public of the County and State aforesaid, certify that
William G. Benton, General Partner of Inlet Inn Associates, a North
Carolina Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness my hand andofficial seal tOis the day of June, 1999.
My Commission Expires: po2-
NORTH CAROLINA. CARTERET COUNTY
The foregoing osrtilkate(s) of Notsly Pt bWs) Nato
cenlfiod to be corrwL This Instrument and No t:ertlb
sate are duly registered at the data and Nme and In
the Book and Page shown on the first page hOmd-
Is Ahur. Re ter
BYro,o ,n rwwa
OFFICIAL SEAL
Notary Public, North CaM td
COUNTY OF FORSYrM
—� JOANNE RAGAN
geltnie Arthur
ar eret County Register of Deed3
s
CS Date 06/07/1999 Time 15:45:00
OR 0000858408 Page 1 of 3

EXHIBIT A
All of Grantor's leasehold interest in Tract 2 as described in
that Lease Agreement dated January 31, 1984, as amended,
described as follows:
On the southside of Front Street and being all of water
Lots 258, 259, the west one-half of 260, the east one-half
of 261, and all of Lots 262 and 263, Old Town, Beaufort,
North Carolina, to include all riparian and littoral rights
incident thereto, and to consist of the land and riparian
and littoral rights incident thereto on the south side of
the Front Street right of way, and lying'between the east
line of Queen Street and the west line of Pollock Street,
except for the 66 foot tract of land on the south side of
Front Street owned by Robert H. Stevens, which consists of
'the west one-half of Lot 260, and the east one-half of Lot
261, Old Town. Tract 2 is the same real property conveyed
to the Town of Beaufort by deeds from John and Jean
Campabosso recorded in Book 483, Page 361, from Carteret
Services, Inc., to the Town of Beaufort recorded in Book
395, Page 320, deed from F. S. Dickinson, Jr., to the Town
of Beaufort in Book 393, Page 294, Carteret County Registry,
and Deed of Easement from Branch Banking and Trust Company
to the Town of Beaufort, with regard to water Lots 263, 262
and the eastern one-half Lot 261, Old Town, Beaufort, North
Carolina.
I
:11 i •�
_. �.. _.._.._. .__ .. .- .._ 111 .r.. ... .� ._ _
... u.. , ..> .�..,-.. .. ..

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
DEED AND BILL OF SALE
This Deed and Bill of Sale, made as of the day of
June, 1999, by and.between Beaufort Waterfront Enterprises, Inc.,
a North Carolina corporation ("Grantor"), and the Town of Beaufort,
a North Carolina municipal corporation ("Grantee");
W I T N E S S E T H:
That the Grantor, for and in consideration of the sum of
Ten Dollars ($10.00) and other good and valuable consideration to
it paid, the receipt of which hereby is acknowledged, has remised
and by these presents does remise, release and forever quitclaim
unto the Grantee, its successors and assigns, all right, title,
claim and interest of said Grantor in and to a certain tract of
land lying and being in Beaufort Township, Carteret County,
North Carolina, together with all improvements and fixtures
thereon, said parcel to be more particularly described as set forth
on Exhibit A attached hereto and incorporated herein by reference.
To have and to hold the aforesaid parcel of land and all
privileges thereunto belonging to the Grantee and its successors
and assigns, free and discharged of all right, title, claim, or
interest of Grantor therein.
IN TESTIMONY WHEREOF, Grantor has caused this instrument
to be properly executed as of the day and year first above written.
ATTEST:
Secretary
Beaufort Waterfront Enterprises, Inc.
By:
President
EXECUTED COPIES OF
THIS DOCUMENT ARE
MATTERS OF RECORD

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, , a Notary
Public in and for said County and State, do hereby certify that
personally appeared before me this
day and acknowledged that he is Secretary of BEAUFORT WATERFRONT
ENTERPRISES, INC., a corporation, and that by authority duly given
and as the act of the corporation, the foregoing instrument was
signed in its name by its President, sealed with its corporate
seal, and attested by himself as its Secretary.
WITNESS my hand and notarial seal, this the day of
, 99.
Notary Public
My Commission Expires:
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
The foregoing certificate of
, a Notary Public of said County and
State, is certified to be correct. This instrument was presented
for registration this day and hour and duly recorded in the office
of the Register of Deeds of Carteret County, North Carolina, in
Book Page
This day of 1999, at
o'clock .M.
Register of Deeds
NBMAIN\365977.1

Lying and being in the Town of Beaufort, Carteret County, North
Carolina and being more particularly described as follows:
Lying and being on the south side of Front Street and being all of
Water Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to consist of the land and riparian and littoral
rights incident thereto on the south side of the Front Street right
of way and lying between the east line of Queen Street and the west
line of Pollock Street except for the 66 foot tract of land on the
south side of Front Street owned by Robert H. Stephens which
consists of the west one-half of Lot 260 and the east one-half of
Lot 261, Old Town.
Exhibit A
90-0064(A)
NBMAIN\369193.1

Rfax-IP * Pa 2/4
05/21/2003 16:16 2527266974 KIRKMAN
05/21/2003 16:40 2527283982 EEWrCRT
1 OVVN OF B EAUFORT
215 Pollock SbieeL P.O. BOX 390
Boar&4 N C, 2W16
(252) 72113-2141, [phone] fax
www.beaeartne-on
STATE OF NORTH CAROLINA
COUNTY OP CARTEF-13T
LEASE MODUICATION AND F-XMN5ION AOsRY"IENT
PAGE 02/04
PAGE 02
IFBS LEASE MODIFICATION AND P.iCMslON AGREE1vMNT (" toem�a t"), is
entered into tbis the 12th day of Febraary, WA by and between'BEAUFORT WATM RON"
ENTERPRISES, INC. ff essee"), and the TOWN OF BEAUFORT. allorth Carolina mtulioipal
Corporation ("Ownet')
WITNESSETH:
*1_MREA8, Owner and Haywood Wee)s, Jr. executed a Lease dated August 211,197 3
and recorded in Book 416, Page 308 in the office of the Register of Deeds of Carteret ^ou A?
("Original Lmse'l wherein Owner leased to Idaywood Weeks, yr. certain docks as deser ibed 12
the Lease; and,
WHEREAS, by Assignment dated November 21,1979, recorded in Book 433, Pe go 473
it% the office of the Register of Deeds of Carteret County, Haywood Weeks, Jr. assigned his
interest as Lessee under the Original feria to Lessee; and,
WHEREAS, the Original Lease has been appended and extended by: (1) an Auaerdnmt
to Lease dated August 27,1987, recorded In Book 571, rage 424 in the office of the Reg{ ster of
Deeds of Carteret County; (2) an Extension of Lease dated September 1, 1993; and, (3) a1
Agreement, Modification and Extension of Lease dated May, 26, 1999 (the OxWual Lea se 001
all previous amendments, modifications and extensions thereof are reL--red to hereinafter as tb 9
M, wse') ; and,
WHEREAS, said Lease imlades the cumsnt docks shown on the attachenm to ( AM k
Permit No.1-03 dated January 13, 2003 and issued to the Town of Beaufort and all other doel: s
described in the Lease (ali premises subject to the Tease collectively referred to hereinafter as th e
"Preruisos"); and,
Mayan Thanes L SWw
CommlsslowwJuHBn ARingtm, Commissioner Faye M. Nelson C=rnisaioner Nancy Russel
Commissioner Math Chaplain Commis Wte Charles McDonald
Town ManagerTerri Pater-124 m

Rfax-IP • Pg 3/4
05/21/2003 16:16 2527266974 KIRKMAN PAGE 03/04
— — — 13DLVDPT . PACE 09
05/21/2003 16:40 2S27283992
WRMAS,Lesseohas agreedtoexpeniTwoHundred pifty 1housandandNo/101117o11arn
($250,000.00) for the construction of the project approved by said Permit in eoosiderahroa ofthe
Owner's agreement to mod* and extend the Lease mad Owner has agreed to do so.
NOW fi • for and in consideration of the premises, for and in consideratiInofth11
mutual proQses and agreements sat forth henaio, end for and is consideration of otd, OM a an:1
valuable consideration, the receipt and =TLciency ofwbich we hereby acknowledged,
Lessee hereby agave as follows:
1. Lessee shall expend Two Hundred,FW Thousand and Na/100 DoUat;
($250,000.00)toconstruct andinstup
all1loatiOgdocksonthaPartionofth �
shown and depicted onCAMAPwd�tNo. 1-03 (the "CA.MAPe'1101 lAssm
commence construction of the floatiGg doob within a reasonable time after the
dettrolition of the docks to be replaced and thereafter Shall dillgettly pursue snob
coustructionto completion. The goaring docks sbaU be constructed according to the
plans titled "SoundMarive ploati ng Dock System,• (the "Plans' provided byLessee
to Owner on February 11, 2003. 1%c floating docks shall be deemed a part of the
Premises and shall be itich*A in the term "docks" as used in the Lease. At the
termination of the Lease, Owner sbaa be deemed the owner of the floating docks.
2. Lessee shall deposit Two Hundred Fifty Thousand and No/100 Dollars
(S250,000.00) in good funds into as escrow account to be held by Ward and $rruttll,
P.A. as Escrow Agent pm=u3tto an Escrow Agreement providing for disbursement
of said funds durI n$ construction of the foregoing docks based upon invoices front
Lessee's eoutractox(s) and/or supplier(s) submitted by Lessee to Wand and Smntb,
P.A. Copies of all such invoices and paymant disbumernt records will be timely
provided to Owner by Ward and Smith, P.A. and such On invoices and payment
disbursement records will be available to Owner at MV tkwup nten TW
of Owner. In the event Lessee sball de%ult on its obligation to btfild the floating
docks as provided herein, ocher the» for reasens beyond the conk l of Lessee, the
Owner may con4gew the project nocording to the Plans and the LAMA Perrait and
Ward and Smith, P.A., as escrow agent is specifically authorized by Lessee to paytbe
Owner for completion efthe project $om the escrow account 17Q the aveat Owae'
comp)etesthe projectusiogthe fiords ofLessee as provided intbepreceding sente use,
tbis Agreement shah remain in full forte and eMat as though Lessee completed
constmctiorr of the project.
3. The term of the Lease hereby is extended from the curreol expiration date of
August 31, 2008 to and including May 3I, 2012.
4. Theannual wit forthe Prem3seswill increase imam amount ofFourViousapd
and No/100 Dollars ($4,000.00) per year (payable in the smouid of T1ace Hundred
Thirty TI>ree and 33/100 Dollars per montb) commencing upon the date of the
completion of the project eutborized by LAMA Permit No. 1-03 nod extending
(tough and including August 310 2008.

Rf9X-IP " Pg 4%4
05/21/2083 16:16 25272GG974 KIRKMAN PAGE 04/04
.Er"GAT PAGE 04
����1/2803 ib:aa 25272133992
os1 root for the Premises � io�se by the amount Of Thirty^SU:
5' Theann OUm �36000.00)per yeaoayableintbaamouatafThm
ThowmdandNo/100DOUMPexmouth)eomm 16%upon�tember1,2008arttl
�usand andlso/100 Doliazs p
eontiaulag tbrougb and inalnd ,; My 31, 2012.
6. The addrtioaal pnymeOts of..,W rent to be made by Lessee hereuuder 6-4
be in lieu o£any aad all advolor=tLM i�o� ollft Premises or oth&WL due tc
Owns from Lessee pursaaOt to the Lease.
7. g...pt as berein. provided, each and every Provision of the Lease. s" dk 8
provisions for rent *r,
esoala, shall rm*W in fa force aid affect nnffitbc eyc kD6on
ofthe ternso£the
LeaseasOXWN dhelctyor,3 1wmdedbyawrittWldocument
ewaouted by Owner and Lessee.
��'I'bTE55 W1Tr.A�O�°>���e=0��y�mduaandlawfatlmamerdLe
has caused ties ivsumaw t to be ex=mW by its MW W
clay and Year B* above wtnten and Owner d sll order of its Board ofComm" sioncrs
and, attested by its Town Clerk and its seal to be efface by
properly gWeo as Ofthe day and Year *d above written.
BEAUFORTWATEitP1tONTMiTER WRI,W+C.
Br
Haywood Weeks, 7r., Prescdent
T(
Bl
ATTEST:

LEASE MODIFICATION AND EXTENSION AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
THIS LEASE MODIFICATION AND EXTENSION AGREEMENT
("Agreement"), is entered into this the 8th day of September, 2003, by and between
BEAUFORT WATERFRONT ENTERPRISES, INC. ("Lessee"), and the TOWN OF
BEAUFORT, a North Carolina municipal corporation ("Owner").
WITNESSETH:
WHEREAS, Owner and Haywood Weeks, Jr. executed a Lease dated
August 28, 1978 and recorded in Book 416, Page 308 in the office of the Register of
Deeds of Carteret County ("Original Lease"), wherein Owner leased to Haywood Weeks,
Jr. certain docks as described in the Original Lease; and,
WHEREAS, by Assignment dated November 21, 1979, recorded in
Book 433, Page 470 in the office of the Register of Deeds of Carteret Cot mty, Haywood
Weeks, Jr. assigned his interest as Lessee under the Original Lease to Lessee; and,
WHEREAS, the Original Lease has been amended and extended by:
(1) an Amendment to Lease dated August 27, 1987, recorded in Book 571, Page 424 in
the office of the Register of Deeds of Carteret County; (2) an Extension of Lease dated
September 1, 1993; (3) an Agreement, Modification and Extension of Lease dated
May 26, 1999; and a Lease Modification and Extension Agreement dated February 12,
2003 (the Original Lease and all previous amendments, modifications and extensions
thereof are referred to hereinafter as the "Lease"); and,
WHEREAS, said Lease includes the remaining fixed dock located in front
of the building known as the 'Beaufort House" and also located at the eastern end of the
Town's southernmost bulkhead on Taylor Creek and all other docks described in the
Lease (all premises subject to the Lease collectively are referred to hereinafter as the
"Premises"); and,

2
WHEREAS, Lessee has agreed to expend a minimum of Fifty Thousand
and No/100 Dollars ($50,000.00) for the construction of improvements to the aforesaid
remaining fixed dock in consideration of the Owner's agreement to modify and extend the
Lease and Owner has agreed to do so.
NOW, THEREFORE, for and in consideration of the premises, for and in
consideration of the mutual promises and agreements set forth herein, and for, and in
consideration of other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Owner and Lessee hereby agree as follows:
1. Lessee shall expend a minimum of Fifty Thousand and No/100
Dollars ($50,000.00) to construct and install a floating dock to replace the remaining
fixed dock located in front of the building known as the "Beaufort House" and also
located at the eastern end of the Town's southernmost bulkhead on Taylor Creek. Lessee
shall commence construction of the floating dock within a reasonable time after the
demolition of the dock to be replaced and thereafter diligently shall pursue such
construction to completion. The floating dock shall be constructed to the same standards
and quality as the floating docks constructed by lessee in the Spring of 2003 and located
just to the west of said dock. The floating dock shall be deemed a part of the Premises
and shall be included in the term "docks" as used in the Lease. At the termination of the
Lease, Owner shall be deemed the owner of the floating dock.
2. Upon (a) approval of the aforesaid construction by the Town of
Beaufort Historic Preservation Commission; (b) the awarding of a grant for funds to pay
a portion of the cost of the removal of the fixed dock and its replacement with a floating
dock as set forth herein (said grant funds together with the funds to be paid by Lessee as
set forth herein shall total a minimum of Ninety -Five Thousand and Nol100 dollars
($95,000)); and (3) the issuance of a CAMA Permit for the construction set forth herein,
Lessee shall deposit a minimum of Fifty Thousand and No/100 Dollars ($50,000.00) in
good funds together with any grant funds which are made immediately available to
Lessee, but excluding grant funds made available to Lessee only on an incremental basis
during construction of the foregoing dock, into an escrow account to be held by Ward and
Smith, P.A. as Escrow Agent pursuant to an Escrow Agreement providing for
disbursement of said funds during construction of the foregoing dock based upon

3
invoices from Lessee's contractor(s) and/or supplier(s) submitted by Lessee to Ward and
Smith, P.A. Copies of all such invoices and payment disbursement records will be timely
provided to Owner by Ward and Smith, P.A. and such invoices and payment
disbursement records will be available to Owner at any time upon the written request of
Owner. In the event Lessee shall default on its obligation to build the floating dock as
provided herein, other than for reasons beyond the control of Lessee, the Owner may
complete the project. according to the Plans and the CAMA Permit and Ward and Smith,
P.A., as escrow agent is specifically authorized by Lessee to pay the Owner for
completion of the project from the escrow account. In the event Owner completes the
project using the funds of Lessee as provided in the preceding sentence, this Agreement
shall remain in full force and effect as though Lessee completed construction of the
project.
3. The term of the Lease hereby is extended from the current
expiration date of May 31, 2012 to and including June 30, 2013.
4. Except as herein provided, each and every provision of the Lease,
including provisions for rent escalation, shall remain in full force and effect until the
expiration of the term of the Lease as extended hereby or until amended by a written
document executed by Owner and Lessee. Without limiting the generality of this section,
and by way of illustration, the annual rent for the term extended by this modification and
extension agreement will include the $36,000.00 (pro -rated for June 2013) increase
provided in the February 12, 2003 lease modification and extension agreement between
the parties.
5. This lease modification and extension agreement is conditioned on
the Owner receiving a cast; grant for dock replacement in the amount of approximately
$31,000.00 by September 1, 2004.

a
4
IN WITNESS WHEREOF, Lessee has executed this instrument in due and
lawful manner the day and year first above written and Owner has caused this instrument
to be executed by its Mayor and attested by its Town Clerk and its seal to be affixed all
by order of its Board of Commissioners properly given as of the day and year first above
written.
M
0
By-
BEAUFORT WATERFRONT ENTERPRISES, INC.

AD,TACI,,Nr III PARIAN PROPE41M O'vVNA;R STXr1;.,NIENT
(FOR A MER111100RING PILINGSIBOATLJJr lyBOATXIOUSE)
I hereby certify that I owit property adjacent to _Town of Beaufort _ 8
(Nance of Property Owner)
property located at Dock in Front of Beaufort House on Front Street
(I.nl, Jilocic, Road, etc.)
on . -V
Ta lors Creek Beaufort —nleritTl -. , in
(tiotly) ('I'oWtt andJor County) N.G.
I.1e has described to me, as shown below, the development he is proposing• at that location,
and, i havC no objections to his proposal. I understand that a piWmooring
pilings/bonllifMoamousc must be set back a minimum distance of fifteen feet (15) from my area
of riparian access unless waived by me.
I do -not wish to waive the setback requirement.
_. I dP wish to waive that setback requirement.
------------------------------------- --------------------------------------------
1) MCRIMON AND/OR DRAWING OIL PROPOSED DEVELOPMENT:
INVIA0New µ MiAMAlINcr � X6b�K(Tn he fiJ/er7 ire by irtrlivtdrral prop �r d �lohyme t1W I)a`K,S
di
•, tf�—,C � V
MOKCA
------------------- ---------------
Sire
Haywood,.Weeks, Beaufort Waterfront
Print or Type Name Enterprises
Telephone Number
Datc:

UNITED STATES POSTAL SERVICE
First -Class Mail
Postage & Fees Paid
USPS
Pemit No. G-10
• Sender: Please print your name, address, and ZIP+4 in this box
N.C. Division of Coastal Management
400 Commerce Avenue
Morehead City, N.C. 28557
808-2808
o-r I�IItIIIIIIIIIItIItItIItII�tllt�ll lI l,I �II111 tIII Ill l

.)
■ Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse
so that we can return the card to you.
■ Attach this card to the back of the mailpiece,
or on the front 0 space permits.
1. Article Addressed to:
Town of Beaufort/05-02C
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
❑ Agent
❑ Addressee
D. Isddvery addressdill item 17 f IL7 y@e
If YES, enter delivery address below: ❑ No
3. Service Type
❑ Certified Mall ❑ Expess Mal
❑ Registered ❑ Return Receipt for Merchandise
❑ Insured Mail ❑ C.O.D.
4. Restricted Delivery? (Extra Fee) ❑ Yes
2. Article Number 70�4 289� 0003 8�41 9861
(rmnsfer from wrvka label)
LPs Form 3811, February 2004 Domestic Return Receipt 102seso2-M-I W

(evereH1 ZwZ eanf'OOaC uuoj Sd
Certified Mail. Provides:
■ A marling recall"¢r for your mailPlece tot two years
a A unique idenNi t Y kept by the Postal Service Mall®or Prioriry.Mail�
• A record of delivery
Important Reminde ; be wmbined with hinter ati
Mail m.Y class of international mail. Mail. For
■ Certdied PROVIDED with Oerlilied
■ Certified Mad is not available for aGE ny it
r6of of
waaid, insured ed or Re9ialared to provide p
■ NO INSURANCE CO. Receipt may be requested an( awRa� the
valuables. Please a Return service Please id Opplicable postage lee waiver for
■ For an additiona� iletum Beto I arcle and au��,. To receive mail
Rleceip To a PS °��Piece.t RewuSPSorPo' m on Yaur Certdied Mad receipt for
lee. E, le Tatum race P • to the addressee the
a duplicate delivery maY be testdded the madPieca
required. ,se the clerk or mark
arti-
■ For w ad di deholrizedarClivery' reseAtend Mail
_:.en olease,P
Postage I s
Gene, Fee L �V
Retum Receipt
Fee
(Entlo Blum Required)
Restricted Dellwy Fee
(Encorsement Required) _
Total Postage & Fees I $
r
m Inquiry.
mall

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Postage
Centrist! Fee
ReWm Recbpt Fee
(Endorsement Reputed)
Restricted Delivery Fee
(ErMorsement Required)
Toted Postage a Fees
• 0
Postmark
Here
_
7S
$ -1/ 10J
.p088wn sd
,r Priority Mailer
ae—, t4G 22S/fd
a.
n - - i Mail. For
■ Candied for any ° PROVIDED ""It
Gertitied
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■ NO INSURANCE GOVERA or Reg nested to owdea ReWm
valuables• PIs consder Insured yy be req late antl attach
Recrevdrp� please a melee postage to Cover the
■ For an additional tee, a Return ed �a and add aPP� rve a fee wan'er f°I
Tc obtain Retum Rice p o o receive Mail receipt
delivery 3a11) ,.lot Requested .
ReceiPt (PS Fon I , ^petum stmarK on Y
fee. Endorse m i n race. t o USPS® P°
a duplicate return recerP be restricted to the addressee or
required. with the
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ji �iseythe clerk or mark the maiiPie°°
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e s es t 'Restricted erijited Mail rer It s dealt please P Ce
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■ If a postmarkStnoff lot
f Wh adrlat�9 abed with posrtKage and mad.
cle at me W maki o9 ma 1 uIry
receipt is not needed, present it when
IMPORTANT' save this feceintormation is not available
Internet acieo ;as to
and delivery Os.
addressed

■ Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery Is desired.
Is Print your name and address on the reverse
so that we can return the card to you.
■ Attach this card to the back of the mailpieca,
or on the front if space permits.
1. Article Addressed to:
ToAI#j OF BF*4FM -
CA MY. 1JAy uoeL W1W
S�-CO F*du S-riz-zT
$EAyFO.cT Nc. ZiS/b
Xnl "
❑ Agent
❑ Addre:
e. iMAeMKf&dfitedbYnQ/ I c. Date of Den
10
JAN 2 4 2005
3. Service Type - . , WILY L/ V M
P$ Certified Mail ❑ Express Mail
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PS Form 3811, February 2004 Domestic Return Receipt 1025954)2-101-1540-

UNITED STATES POSTAL SERVICE First -Class Mail
Post &Fees Paid
Permit No. GOO
• Sender: Please print your name, address, and ZIP+4 in this box
NC DIVISION! OF COASTAL MANAGEMENT
HESTRON PLAZA II, 151-8 HWY. 24
MOREHEAD CITY, NC 28557
(919) 8081808
n-r I.hIIId.hI.d.w..I11I,I1I1I1111IIi1,I1111I,"111111III

I -
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor
Town of Beaufort
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
Charles S. Jones, Director William G. Ross Jr., Secretary
CERTIFIED MAIL `lWq -, nC- G00.3- 9641 -q8%(0
RETURN RECEIPT REQUESTED
RE:RESTORATION ACCEPTANCE - CAMA VIOLATION #05.02C
Dear Mr. Weeks:
June 25, 2005
This letter is in reference to the Notice of Violation # 05-02C sent to you dated January 21, 2005 for the unauthorized expansion
of the marina known as The Beaufort Docks. This development is located at 500 Front Street, Beaufort, Carteret County, NC,
adjacent to Taylor's Creek. This unauthorized activity constituted development and you were requested to restore to an
acceptable and statutorily consistent condition. In accordance with the North Carolina Administrative Code; Title 15A,
Subchapter 7J.0410, any violation involving development which is inconsistent with guidelines for development within Areas of
Environmental Concern (AEC) must be corrected. This restoration is necessary to bring the project into compliance with
Subchapter 7H Guidelines governing coastal development.
I have visited the site on several occasions of normal high tides, and have determined that the property shown on the city tax
records as being owned by Mr. Robert Stephens, located on the south side of Front Street and to the east side of The Beaufort
Docks, is flooded during normal high tides. Mr. Stephens is therefore no longer entitled to the riparian rights afforded a property
owner with high ground abutting the normal high water contour. Accordingly, the property owner that currently has high ground
abutting the normal high water line of Taylor's Creek is afforded the riparian rights. Based on city tax records, the property that is
now affected during phases of normal high tides is the Front Street R.O.W, owned by the Town of Beaufort. Consequently, the
waiver of the required 15' riparian corridor setback is required from the Town. Permission to allow the docks to remain as
constructed was received from Ms. Terri Parker-Eakes, Town Manager, on May 25, 2005. With this information in hand, I now
consider the restoration to be completed to the satisfaction of the Division. Soon to follow this correspondence, you will be
notified as to the amount of the civil penalty for undertaking this unauthorized activity within an Area of Environmental concern.
Thank you for your attention and cooperation in this matter. If you have any questions pertaining to this matter, please feel free to
call me at 808-2808.
Sincerely,
9 k�-� .
T. Barrett
District Manager, MHC
Cc: Ted Tyndall, DCM
Roy Brownlow, DCM
Henry Wicker, COE
Terri Parker-Eakes, Beaufort Town Manager
Neal B. Whitford, Town Attorney
Trent -River -Drive; -New -Bern, 28 62
400 Commerce Avenue, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastalmanagement.net
An Equal Opportunity 1 Affirmative Action Employer- 50% Recycled 110% Post Consumer Paper

TOWN OF BEAUFORT
215 Pollock Street, P.O. Box 390
Beaufort, N.C. 28516
[phone], [phone] fax
www.beaufortnc.org
May 19, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
400 Commerce Way
Morehead City, North Carolina 28557
RE: Beaufort Floating Docks
Dear Ms. Barrett:
pE
i
s 2005
More, .�.
it
This letter is in response to CAMA's request that the Town waive any riparian rights it
may have with respect to the new floating docks constructed along the Town's
waterfront by Beaufort Waterfront Enterprises. The Board of Commissioners considered
this request at its meeting on May 9, 2005.
To the extent CAMA considers the Town to be the adjoining property owner to the new
docks; the Town waives any riparian rights it may have with respect to this project as
actually constructed.
Sincerely,
&A,,L Q AlJUk qAkLA
Terri Parker-Eakes
Town Manager
cc: Mr. Haywood Weeks, Beaufort Docks
Neil B. Whitford, Town Attorney
Mayor Ann Carter
Commissioner Julian Arrington Commissioner Faye M. Nelson Commissioner Bill Hubbard
Commissioner Math Chaplain Commissioner Charles McDonald
Town Manager FerriParker-Eakes

04-21-2005 07:48 From -WARD 8 SMITH -NEW BERN
2528725477 T-779 P.001/001 F-143
WARD AND SMITH, P. A.
ATTOaNBYSATLAW
1001 COLLEGE COURT
PO BOX 867
NEW BERN, NC 28563-0867
[phone] TELEP1iONE
[phone] FACSIMILE
Date: April 21, 2005
TO: Ms. Tere Barrett
COMPANY: NC Department of Environment & Natural Resources Division of Caastal Management
VOICE NUMBER: 252-808-2808.
FAX NUMBER: 252-247-3330
FROM: Mr. Frank H. Shemeld..lr,
Client File Number: 900583-NNS.001
Pages including cover sheet:
Time and Date transutitted: tii!y 5 a M., April 20, MQJ
Operator: `)mil
COMMENTS:
Tere, with reference to our conversation yesterday, please note that according to the 1978 lease (Document #1 in
our submittal) that is the foundation for all of the subsequent transactions leading up to the current lease between
BWE and the Town, The leased premises includes the bulkhead (see explicit reference to "bulkhead" in The property
description on the first page). Even in the later )eases and deeds, reference is made to "...all land on The southside of
Front Suter ..." in the various property descriptions. All land on the southside of Front Street would include
everything south of the road right-of-way line, which would include The bulkhead and possibly even the sidewalk.
Based on This analysis, BWE is the long-term lessee of the adjoining riparian property (the bulkhead) and, therefore,
would appear to be the proper parry To wive its setback. Just a Thought for you to consider!
However, if you feel assured that Town approval will be forthcoming at the May 9rh Board meeting, we will leave
it to your judgment as to whether use of the above analysis or raking this to the Town Board is the bener course of
action. Hearing nothing further from you, we will assume that you feel comfortable going the Town Board route
and that you have coordinated This matter with Terri Parker-Eakes-
Thank, for your patience in gelling This [patter resolved.
Frank
NBMAIM629865\1
WARD AND SMITH, P.A. OFFICES:
NEWBUN lI"GH WU.WNGTON
Telephone:[phone] [phone] [phone] [phone]
Facsimile:(252) 215,4077 [phone] [phone] [phone]

04-21-2005 11:23 Fror-WARD & SMITH -NEW BERM
2528725477 T-803 P.001/001 F-187
TO: Ms. Tere Barren
WARD AND SMITH, P A.
AI 10KNLY6 At LAV%
1001 COLLEGE COURT
YO BOX 867
NEW BERN, NC 28563.0867
[phone] TELEPHONE
[phone] FACSTMILE
Date: April 21, 2005
COMPANY: NC Department of Environment dt Natural Resources. Division of Coastal Management
VOICE NUMBER: 252-909-2908
FAX NUMBER: 252-247-3330
FROM: Air. IFFAUB U. Shdoeld.
Client File Number: 900583.00005-001
Pages including cover sheet: L
Time and Date transmitted: !c9 :a o M., Aftril 21, 2005
Operator: LJUf
COMMENTS:
Tere, with reference to my fax message earlier today, a correction is needed. Upon further review, the property
description in the 1978 lease does NOT appear to include the bulkhead after all. However, the property
descriptions in each of the later documents, including the current lease between 13WE and the Town, does
include all the area on the southside of Front Street. As stated in my earlier fax; that area would appear to
include the bulkhead, since the road righr-of-way is not believed to extend to the water. So, we still believe That
AWE's current lease encompasses the bulkhead in front of the Stephens property across Front Street and that
BWE is in fact the proper parry to waive its setback.
1 just wanted to convoy this correction re the 19781easc.
Thanks again!
Frank
N$&WN\629902U
WARD AND SM=, P.A. Ol'FlM:
NEW BERM
RALE1G11
Telephone:(25'2) 215-4000 C251) 672-5400 (919) 836.41260
Facsimile:[phone] [phone] (919) 836-q277
vuldwGTON
[phone]
[phone]

%at4: 5 08:47 From -WARD AND SMITH, PA-3000, NS 252 672 5477 T-551 P.001 F-324
WARD AND SMITH, P. A.
ATr0DV S AT LAW
1001 COLLEGE COURT
PO BOX 867
NEW BERN, NC 28563-0s67
[phone] TELEPHONE
[phone] FACSIMILE
Date: April 20, 2005
TOmMa %ere -MI ettM
COMPANY: NC Department of Environnent & Natural Resources Div' ' n of gqastal Manaa ent
VOICE NUMBER: 252-808-2828
FAX NUMBER: 252-247-3330
FROM: Mr. Frank H. ShetReld, jr.
Client File Number: 900583-0000570H
Pages including cover sheet:
Time and Date transmitted: •. An ' 2n� 0 2005
Operator:M� _
COMMENTS: Tere, Beaufort Waterfront Enterprises ("BWE') is the correct adjoining riparian property owner to the
docks project. Please reference documents 4, 9, 10, and 12 of our April 1, 2005 submittal.
Doc. 4. Sublease from Inlet Inn Associates to BWE. Exhibit A of_Doc. 4 shows the area covered by the tease to include the
entire area in front of Robert Stephens house (see dotted line). This is the 'adjoining property' to the docks project
Doc. 9. Quitclaim Deed and Bill of Sale from Inlet Inn Associates ("IIA") to OWE. This confirms that BWE acquired all of
the IIA's interest In this area
Doc. 10. Deed and Bill of Sale from BWE to Town of Beaufort. This shows that the property was sold by BWE to the Town.
Doo.12. Lease Mod and Extension between the Town and BWE. This shows that BWE has a long-term lease with the Town
which currently runs to 2013.
Hence, by virtue fo being a long-term lease holder for the area immediately adjoining the project area, BWE is the proper parry to
waive its setback.
As evidenced by the waiver form signed by Haywood Weeks dated March 31, 2005, which appears as the final document In our
submittal, BWE has in fact waived it setback rights to the Town's docks as built.
I will call you shortly to follow up on this fax and will be more than happy to meet with you today at your office as necessary.
Regards,
Frank
cc: Haywood Weeks FECESs
:-JAUr
NEW BERN
RAI GH
Telephone:[phone] [phone] [phone]
Facsimile:[phone] [phone] (919) 8% 4277
7,- Vn\ -
[phone]
(9io)794-4877

04-20-05
08:47 From -WARD AND SMITH, PA-3000, N8 252 672 5477
T-551 P.002/019 F-334
.A
NORTH CAROLINA
°'":'
SUBLEASE •.,-:. i.
•
'•?
• CARTERET COUNTY )
', ';$i`€': <.,r� 4•,
`,;,
THIS CONTRACT OF SUBLEASE, made and entered
into this'a;,'_u•
"
of April, 19&4, by and between INLET INN ASSOCIATES*, a Ngs�to�syiP:
Limited Partnership,.party of the first part,
hereinafter•gajledr•:;t; ^
"Owner, " and BEAUFORT WATERFRONT ENTERPRIZES I'
INC-,, paF;tX:;p€
„
second part, hereinafter called '!Lessee"
:;:• .; " ',r'.:ti ;
j•'
W T N E S S'E T H?
r' A7
THAT Subject to the terms and conditions hereinaftep ebilorth� ° �y
"t' the Owner does hereby sublet add sublease unto *h& rty ,af r 10,.6 90+
part and the party of the '•second parE' does'pereby accept''as' Lasses �+.-•
those certain improvements to'be constructed upon real property
located in the Town of Beau£oft, Carteret County, North'Cazoliaa>:;Aud.a`
more particularly described in "Exhibit A" attached hereto and :ma6a,a;;.
part hereof, said property being a portion of the lands lgased'to•'....,
Owner by the Town of Beaufort, hereinafter referred to as "Town,":'as.'-
evidenced by that certain Lease dated January 31,''1984,.4keretnefter.
referred to as "Underlying Lease." ;'i
TO HAVE AND TO HOLD said -lands and premises, togetheY;,fioltki
privileges and appurtenances thereunto belonging to'..the;said �axt'.bi
1L1i
1•. the second part and their heirs, successors in interest•'�anll,:Atgeign¢'2%.;`••�,
for the term and upon the conditions hereinaftef set, -for, -
` -I. Thie Sublease.shal1 begin as of the 1st �day;:of,'?Sey.r
a•, w
at such time. that the docks to be construoted by:�Dwner.:ar,'e�;bb�dp�e
whichever ocours sooner, and unless sooner •.term ated :as.'- Oro j;
.P:", _ videdf however, --said docks will be completed on or befor.�;x7}�n',p; ;�$#,�$[,,.
and iki the event said docks are not completed within: �hes dagsy�;rZ.•
this `Sublease shall be adjusted by 'mutual consent of :boCjr'partiiea«.�'•;,:;�;
This Sublease shall exist and continue until the 31st day of August, j%,-
1998:' The tforegoing ,notwithstanding,. this Sublease will tq=m notp -• ;oL.,
upon the termination of :that reGrtain ;Leas..e petwee� yeas ty�►{fl
dated Au us 29 197.8. 'P.,+r1'' " *•
• +; • ,; � 2. Lessee shall not do or permit to be done any ,i}gt; 'aoriditipn
or thing which would or might constitute a default under the:.Under
lying Lease.
3. The initial rental for said premises the party"of the 8e00rid,;fy'
part shall pay to Owner by mail or at the place of business "of- the'
owner, and without notice or demand therefor, the aum of'.M-60542:pe .,
month, payable on or before the first day of each calendar:hwnth for:;e•
the then current month.. The monthly rental shall be bai# in gdvancq.,;;_;

04-20=05 08:47 From -WARD AND SMITH, PA-3000, NS 252 672 5477 T-331 P.003/019 F-334
This initial rent shall be increased to the extent that the actual
cost of installation of the water and electrical lines to the "-
improvements exceeds the estimate of W. H. Weaver Construction Com-
pany. The monthly rental shall be increased as follows. excess
actual cost; equals the additional monthly .
rent. The Owner shall notify Lessee of the increased costa and the
increased rent'due monthly. • plus 13% interest divided by 172. 1�.W
4. It is hereby agreed that the amount of rental as set fort
above shall be adjusted annually, based upon the actual, cost of
funds paid by Owner for the construction of the improvements. The
initial rent has been calculated based upon an interest factor of
thirteen percent (131). To the extent that the actual interest paid'
by the Owner exceeds that rate, the rent due from the Lessee shall
increase by the actual interest rate applied to the costs of the
improvements which the parties agree as $125,000.00. The additional•..K;_..
rental shall be paid annually by Lessee upon written request from
'
Owner certifying the actual interest rate paid for the preceding
year.
5. It is expressly agreed that the demised premises shall,
during the term of this sublease, be used exclusively for the rental
of boat slips and dock areas and related marine activities. The
Lessee shall not allow shrimp boats, menhaden boats, work boats,
barges, tugs and other commercial fishing boats and vessels of a
;
commercial nature to dock at, tie up to, or use the dock areas.
Sports fishing boats, charter boats, sail boats, pleasure boats and
vessels of this general nature shall be -allowed at said dock.
6. Lessee shall be responsible for and shall pay for all.of -
4
the regular maintenance of said docks including repairs, replacemegt=':'.'�y
of piers, pilings and supports, and other structural parts of the:•
dock as may be required by the Owner during the term of this Sub-'.;
lease. ,The Lessee shall insure that the docks constitute no safety
hazard to members of the public and persons using said docks, and
that the same are kept and maintained in a good state of repair.
All maintenance and repairs shall be at the expense of Lessee and '
the owner shall have the right to periodically inspect said docks in
order to insure that the docks are being maintained and repaired in.;i..
a manner satisfactory to the owner.
7. It is further agreed and understood that if said docks are
'i:
substantially damaged by fire, flood, hurricane or other act or
natural catastrophe, then this Sublease shall be terminated at the
option of Lessee. However, Lessee shall insure said premises for
their full replacement Value. Subject to the rights of the Town,
the Lessee shall have the option in the event of destruction of said
docks to use said insurance proceeds to repair or replace said dock
or piers and upon the completion thereof maintain said Sublease .
until the expiration of same. In the event Lessee fails to maintain
or repair the docks in a manner satisfactory to the Owner and the .
subject to the availability of such insurance at rates comparable to present rates
adjusted for normal inflation,

Od-20-05 08:48 From -WARD AND SMITH, PA-3000, NB 252 872 5477 T-551 P.004/019 F-334
Town, then the owner shall have the right to terminate this Sub-
lease; however, the owner shall use good faith and make only those
demands which are reasonable and shall notify, Lessee of what acts s:
Owner contends Lessee should make to said pier and Lessee shall have. '
ten (10) days from said notification to begin to effect such repairs,
8. Lessee shall be responsible for keeping the dock areas
clean, attractive and safe with regard to use of the docks by custo-
mers and tenants. The Lessee shall establish rules for use of the
docks and piers to insure the safety of'the patrons and users of the;:;;' '
docks= the owner reserves the right to approve or'disapprove these
rules before they are placed into effect.
9. Lessee shall maintain at all times a policy of comprehensive'
liability insurance which shall cover any and all claims of injury,:
death or damage to property which may be made against Owner or they:`;N:,r
Town resulting from the Lessee's sublease of the docks and, the' use:•of•';•
the docks and piers by the Lessee and its tenants, customers and the
public in general. The comprehensive liability insurance shall be'in' `.
the following minimum amounts.
$ 300,000.QO - each claimant;
$1,000,000.00 - each occurrence; and
$ 300,000.00 - property damage.
10. Lessee shall hold the Owner harmless from any and all claim$'•:.
Which may be made against the owner arising from Lessee's subieass'_of,.;:;
the docks and piers and any and all claims for death, personal injury':'.;:'
and damage to property while Lessee is in possession of the docks`..:
under the terms of this sublease, including payment of a reasonable
attorney's fee in the event a claim is made* against the owner result
ing from Lessee's sublease and possession of the dock areas.
li. Lessee shall use its best efforts to enforce and maintain
rules that prohibit the discharge of sewage and other trash into.
Taylor's Creek or at any point of Taylor's Creek that would abut dock6:t;'
subject to this Sublease except those areas specifically designated..•:!"1.!j.
for the discharge sewage or other trash. Lessee shall use its be$t:.�J'';;•
efforts to police the dock areas and the boardwalk to insure that'
sewage and other trash is not being discharged in any area along the
waterfront in and around the docks. in the event it finds that some
individuals are, in fact, discharging sewage and/or other trash then
Lessee shall notify the proper authorities of said violation. In the
event Owner contends that there are certain boats discharging sewage . q;
and/or other trash, then it shall report same immediately -to Tenant
who will, in turn, report same to the appropriate governmentpl auth-';;.:.:.
ority.
12. Lessee shall -be responsible for the payment of all electri-
city, water and other utilitiesi used in the dock area. All utilities ?.
will be listed in the name of the Lessee and it shall be his respotlai-
B111ty to pay :2 r-all Utility -charges.
3 -

04-20=05 09:48 From -WARD AND SMITH. PA-3000, NB 252 072 5477 T-551 P.005/019 F-334
13. All signs, advertisements and notices proposed by Lessee for
the dock areas shall be approved by the owner before Lessee can install..
same, which approval will not be unreasonably withheld.
14. Lessee shall, without any previous demand therefor, pay the
rent called for herein at all times and in the manner provided lor.
in the event of the failure on the part of the Lessee to pay said rent.`=`:
in accordance with the terms of this Sublease, Owner may forthwith iake.'
possession of the dock areas after given ten (10) days' notice that
rent is due and has not been paidr if said payment is not made within
said ten (10)-day period, the Owner may forthwith take possession of the`•
dock areas without jeopardizing any of the rights and remedies that the..
Owner may have as a result df the default by Lessee of the terms and' "
conditions of this Sublease. In the event Lessee should default On the
stipulations, terms,agreements and covenants contained in this Sublease'#
and the Lessee should fail to correct the same within ten (10) days•:
after notice has been given by the Owner to Lessee, then •the owner shall
have the right to re-enter the premises and to repossess and take •posa)ss-
sion of the dock areas. The Owner shall hereafter have such other':, ':
rights and remedies as against Lessee as provided by law. In the' pvente.;:;
Lessee should be adjudged bankrupt or insolvent by any federal'or.stat.'
court of competent jurisdiction during the term of this'Sublease,',the':.'
Owner may .at its option declare this Sublease terminated and cancelled•.':
and the Owner may takT possession of said premises. Further, should the.,.
Lessee allow the dock areas to become vacant during the term of this
Sublease at any time when the rent shall be or become due and unpaid
hereunder, the owner may re-enter the premises either by force or other -..-
wise without being liable for prosecution therefor and the owner may
terminate this Sublease.
15. Lessee shall take good qare of the leased premises and at the;•
end or other expiration of the term of this sublease shall deliver paid;.
premises in good order and condition, reasonable wear and tear'excQpteds...
Lessee may make alterations, additions or improvements in the dock are? '!
provided Lessee shall first obtain from the Owner and the Town its wi.itjtp
ten consent as to the planned alterations, additions or improvements, ¢;..:
which consent will not be unreasonably withheld. All alterations#j1ddi+.'
tiona or improvements made by the Lessee during the course of its .occu-..;
pancy or the term of this sublease shall. inure to the benefit of and be,•.
the property of the Owner upon the termination of the Sublease, and sUi#k
alterations, additions and improvements will be surrendered with.tho.:'
premises when the same are surrendered by the Lessee to the Owner:.-
16. Lessee at its own cost and expense shall comply with all'. rules
and regulations and requirements of the owner, the Town, the State -of
North Carolina, and the United States, which are applicable to the dock.
areas for the prevention or abatement of nuisances or other grievances
arising out of the manner of the occupancy of the dock aras during this
sublease by Lessee. The owner shall have the right to enter upon the
dock areas during the term of this sublease at all reasonable hours for
the purpose of examining and inspecting the same.
1 4 -

04-20-05
08:49 From -WARD AND SMITH, PA-3000, NB 252 ST2 5477 T-551 P.008/019 F-334
17. The Lessee shall have no authority
without first obtaining the written consent
consent shall not be unreasonably•withheld.
or use or permit or suffer to be occupied or
any business or.purpose which would violate
or which may constitute a hazard on account
to the owner and Town or its citizens.
to assign this Sublease.
of.the Owner, which
Lessee shall not
used the dock areas for
zoning laws of the Town,
of fire or other danger
18. Lessee acknowledges the responsibility of the Town and
Owner to provide to Branch Ranking and Trust Company and Fairleigh S.
Dickinson two (2) mooring spaces for vessels not exceeding forty-five'=•
(45) feet in length. The Lessee will post such signs and establish
such rules and regulations so as to insure that such spaces are
continuously available to such parties.
19, The Lessee agrees to provide priority status to the guests
of owner's Inn for use of the property that is the subject of thin
Sublease. The Lessee shall use its best efforts. to provide continuously,._;•
access to the dock area to the Owner's guests.
IN TESTIMONY WHEREOF, the owner has caused this sublease to be'exe- `
cuted by its General Partner, and Lessee has caused its seal to be affixed
hereon on the Hate hereinabove written.
AT:^.EoT=
Secretary
INLET INN
ite
, a North Carolina
Lim
By: (SFw
Gene al Par er ;T,•.::.' ``
s• , "VOW
BEAUFORT WATERFRONT ENTERPRIZESf,.I#C..,:
By:
a��Pres e�fi .,
0. The foregoing notwithstanding, the owner
(AFFIX CORPORATE SEAL) reserves the right to modify the terms of this.
Sublease in accordance with the requests of its
mortgagee(s). If Lessee does not accept such
modifications, this Sublease shall terminate.
INITIAL$:

04-20=05 08:49 From -WARD AND SMITH, PA-3000, NS
252 672 5477 T-551 P.007/019 F-334
STATE OF WORTH CAROLINA - County of (16.A . -c '
1, a Votary Public for th above County and State, do hereby certify .+
that HAYWOOD WEEKS, JR., personally appeared before me this day and acknowledged
the execution of the foregoing instrmaent- •Y14
WITNESS'my hand and official stamp or zeal, this day of 1984:
• . Il oa L �,jtra c.� '
Notary Public
My commisssion expires:
m} r.w,u„wm0. W�.uCS YSmoer 16,19�8
"riTAjtIAL STAMP/MEAL,
STATE OF NORTH CAROLINA - County of
I, a Notary Public for the above County and State, do hereby certify
that Personally appeared. before me this day and
acknowledged the execution of the foregoing instnmient.
WITNESS my hand and official SUMP or zeal, this day of
1984.
Notary Public }
My commission expires:
NOTARIAL STAMP/SEAL
J
t

EMIBIT A
Docks to be leased to
Beaufort Waterfront Enterprizes, Inc.
■1` iJ� !_�li lilt U-1— l+i'1_ I 1■
YEE-d 810/800'd M-1 LLVS US UZ
L
)fIHV�•:'a
aMi4 RLr''�:.
9N 'OOOE-Yd 'HIMS ONY affl-Woad WOW SO-OZ-90

04-20-08 08:s0 FrovWARD AND SMITH, PA-3000, NO
rf3asas�i/�/a6
7345-45�9l f 93
Tax Parcel Number: Ltz
PORicharBox 150, Beaufort, NC 26516
ey Waterfront
Mailed After Recording to: Enterprises, InC•,
prepared by: d'L•
Beaufort
aufort Township
Brief description for Index: Be
NORTH CAROLINA 4D'TCLAIM DEED AM SILL OF SALE
STATE OF NORTH CA70LINA
C..=y OF CRTM7X of June, 1999, by and
This Deed and Hill of Sale ma this 1st day
�m/a this
Carolina Limitae No rtnershiPt
Carolina
between Inlet
Inn Associates, lees, InC.,
Grantor (s) , and EeaupOrt O terfYont e . ��l �G� 65i6
Corporation, Grantees) I1Q- o�
pnT235SSSTH:
the sum opl Ten
and in consideratio$iaf the receipt of
That said Grantor(s). for to their in hand P these presents do
Dollar s(s) have remised and by and their
and 11/100 ($10.0acknowledged, quitclaim unto the Grantee(s)
which is hereby claim and interest ring
the said
release, and forever gtitle of land lying and being
remise, all right, arcel in Beaufort
heirs and assigns a certain tract of P Carolina,
Grantor s) in and c and State o£ Northllows together with all
in the County of Carteret, described as
Township, and more Particularly
improvements and fixtures thereon d incorporated herein by reference.
See Exhibit A attached her �' parcel of land and all
VE AND TO HOLD the aforesaid tract e(or P and their heirs and
TO IM to the Grantee (s)
title claim, or interest Of
privileges thereunto belanging under them.
assigns, free and discharged °f all , through, or
the Grantors) of anyone claiming by,
(s) have hereunto set their hands -
IN TESTIMONY WHEREOF,
and seals the day and year
INIET INN CIATE9,UTn
LIMITPARTNER.
LIi E;�
BY: General Partner
David Wail,
OE/07/99
$220.00
won
0010NA fI� Estate
eSTex
said Grantor
first above written -

04-20-05 09:51 From -WARD AND SMITH, PA-3000, NS 252 072 5477
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
T-551 P.012/019 F-334
DEED AND BILL OF SALE
This Deed and Bill of Sale, made as of the day of
June, 1999, by and between Beaufort Waterfront Enterprises, Inc.,
a North Carolina corporation ("Grantor"), and the Town of Beaufort,
a North Carolina municipal corporation ("Grantee");
W I T N E S S E T H:
That the Grantor, for and in consideration of the sum of
Ten Dollars (S10.00) and other good and valuable consideration to
it• paid, the receipt of which hereby is acknowledged, has remised
and by these presents does remise, release and forever quitclaim
unto the Grantee, its successors and assigns, all right, title,
claim and interest of said Grantor in and to a certain tract of
land lying and being in Beaufort Township, Carteret County,
North Carolina, together with all improvements and fixtures
thereon, said parcel to be more particularly described as set forth
on Exhibit A attached hereto and incorporated herein by reference.
To have and to hold the aforesaid parcel of land and all
privileges thereunto belonging to the Grantee and its successors
and assigns, free and discharged of all right, title, claim, or
interest of Grantor therein.
IN TESTIMONY WHEREOF, Grantor has caused this instrument
to be properly executed as of the day and year first above written.
ATTEST:
Secretary
Beaufort waterfront Enterprises, Inc.
By:
President
EXECUTED COPIES OF
THIS DOCUMENT ARE
MATTERS OF CORD

04-20-05 06:51 From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.013/019 F-334
STATE 0£ NORTH CAROLINA
COUNTY OF CARTERET
I , a Notary
Public in and for said County and State, do hereby certify that
personally appeared before me this
day and acknowledged that he is Secretary of BEAUFORT WATERFRONT
ENTERPRISES, INC., a corporation, and that by authority duly given
and as the act of the corporation, the foregoing instrument was
signed in its name by its President, sealed with its corporate
seal, and attested by himself as its Secretary.
WITNESS my hand and notarial seal, this the day of
99.
Notary Public
My Commission Expires:
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
The foregoing certificate of
a Notary Public of said County and
State, is certified to be correct. This instrument was presented
for registration this day and hour and duly recorded in the office
of the Register of Deeds of Carteret County, North Carolina, in
Book , Page
This day of , 1999, at
o'clock M.
Register of Deeds
NDMAi14\30977.1

04-20-05 08:51 From -WARD AND VITH, PA-3000, NB 252 672 5477 T-551 P.014/019 F-334
Lying and being in the Town of Beaufort, Carteret County, North
Carolina and being more particularly described as follows:
Lying and being on the south side of Front Street and being all of
Water Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to consist of the land and riparian and littoral
rights incident thereto on the -south side of the Front Street right
of way and lying between the east line of Queen Street and the west
line of Pollock Street except for the 66 foot tract of land on the
south side of Front Street 'owned by Robert H. Stephens which
consists of the west one-half of Lot 260 and the east one-half of
Lot 261, Old Town.
Exhibit A
90-0064(N)
NsmuN\3 64193. 1

04-26-05 08:52 From -WARD AND SMITH, PA-3000, NS 252 672 5477 T-551 P.015/019 F-334
LEASE MODIFICATION AND EXTENSION AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
THIS LEASE MODIFICATION AND EXTENSION AGREEMENT
("Agreement"), is entered into this the 8th day of September, 2003, by and between
BEAUFORT WATERFRONT ENTERPRISES, INC. ("Lessee"), and the TOWN OF
BEAUFORT, a North Carolina municipal corporation ("Owner")
WITNESSETH:
WHERT ,' S, Owner and Haywood Weeks, Jr. executed a Lease dated
August 28, 1978 and recorded in Book 416, Page 308 in the office of the Register of
Deeds of Carteret County ("Original Lease'), wherein Owner leased to Haywood Weeks,
Jr. certain docks as described in the Original Lease, and,
WHEREAS, by Assignment dated November 21, 1979, recorded in
Book 433, Page .470 in the office of the Register of Deeds of Carteret County, Haywood
Weeks, Jr. assigned his interest as Lessee under the Original Lease to Lessee; and,
WHEREAS, the Original Lease has been amended and extended by:
(1) an Amendment to Lease dated August 27, 1987, recorded,ia Book 571, Page 424 in
the office of the Register of Deeds of Carteret County; (2) an Extension of Lease dated
September 1, 1993; (3) an Agreement, Modification and Extension of Lease dated
May 26, 1999; and a Lease Modification and Extension Agreement dated February 12,
2003 (the Original Lease and all previous amendments, modifications and extensions
thereof are referred to hereinafter as the "Lease"); and,
WHEREAS, said Lease includes the remaining fixed dock located in front
of the building known as the "Beanfort House" and also located at the eastern end of the
Town's southernmost bulkhead on Taylor Creek and all other docks described in the
Lease (all premises Subject to the Lease collectively are referred to hereinafter as the
"Premises"); and,

OQ-20-05 08:52 From -WARD AND SMITH, PA-3000, NS 252 872 5477
T-551 P.016/018 F-334
2
WHEREAS, Lessee has agreed to expend a minimum of Fifty Thousand
and No/100 Dollars ($50,000,00) for the construction of improvements to the aforesaid
remaining fixed dock in consideration of the Owner's agreement to modify and extend the
Lease and Owner has agreed to do so.
NOW, TMREFORE, for and in consideration of the premises, for and in
consideration of the mutual promises and agreements set forth herein, and for and in
consideration of other goad and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Owner and Lessee hereby agree as follows:
1. Lessee shall expend a minimum of Fifty Thousand and No/100
Dollars ($50,000.Do) to construct and install a floating dock to replaee the reuwini ig
fixed dock located in front of the budding known as the "Beaufort House" and also
located at the eastern end of the Towds southernmost bulkhead on Taylor Greek. Lessee
shall commence construction of the floating dock within a reasonable time after the
demolition of the dock to be replaced and thereafter diligently shall pursue such
construction to completion. The floating dock shall be constructed to the same standards
and quality as the floating docks constructed by Lessee in the Spring of 2003 and located
just to the west of said dock. The floating dock shall be deemed a part of the Premises
and shall be included in the term "docks" as used in the Lease. At the termination of the
Lease, Owner shall be deemed the owner of the floating dock.
2. Upon (a) approval of the aforesaid oonsttaction by the Town of
Beaufort ITistoric Preservation Commission; (b) the awarding of a grant fir finds to pay
a portion of the cost of the removal of the fixed dock and its replacement with a floating
dock as set forth herein (said grant funds together with the finds to be paid by Lessee as
set forth herein shall total a minimum of Ninety -Five Thousand and N0/100 dollars
($95,000)); and (3) the issuance of a CAMA permit for the construction set forth herein,
Lessee shall deposit a minimum of Fifty Thousand and N0/100 Dollars ($50,000.00) in
good funds together with any gram funds which are made immediately available to
Lessee, but excluding grant funds made available to Lessee only on an incremental basis
during construction of the foregoing dock, into an escrow account To be held by Ward and
Smith, PAL as Escrow Agent pursuant to an Escrow Agreement providing for
disbursement of said funds during construction of the foregoing dock based upon

04-20-05 08:52
From -WARD AND SMITH, PA-3000, NB 252 672 5477 T-551 P.017/019 F-334
3
invoices from Lessee's c031tra0tot(s) and/or supplier(s) submitted by Lessee to 'Ward and
Smith, P.A. topics of all such invoices and payment disbursement records will be tamely
provided to Owner by Ward and Smith, P.A, and such invoices and payment
disbursement records will be available to Owner at any time upon the written request of
Owner. In the event Lessee shall dcisult on its obligation to build the floatiag dock as
provided herein, other than for reasons beyond the control of Lessee, the Owner may
Plans and the CAMA Permit and Ward and Smith,
complete the project. according to the
PA, as escrow agent is specifically authnrL°d by Lessee to pay the Owner for
completion of the project from the escrow account. In the event Owner completes the
project using the funds of Lessee as provided in the preceding sentence, this AgreemcAt
shall remain in full force and effect as though Lessee completed construction of the
project.
3:. The term of the lease hereby is extended from the current
expiration date of May 31, 2012 to and including Jrme 30, 2013.
4_hxcept as herein provided, each and every provision of the Lease,
including provisions for rent escalation, shall remain in full force and effect until the
expiration of the term of the Lease as extended hereby or until amended by a written
document executed by owner and Lessee. Without limiting the generality of this section,
and byway of illustration, the annual rent for the term extended by this modification and
extension agreement will include the $36,000.00 (pro -rated for June 2013) increase
provided in the February 12, 2003 lease modification and extension agreement between
the parties.
5. This lease modification and extension agreement is conditioned on
the Owner receiving a cash Brant for dock replacement in the amount of approximately
$31,000.00 by September 1, 2004.

04-20-05 08:52 From -WARD AND SMITH, PA-3000, NS 252 072 5477 T-551 P.018/019 F-334,
4
IN WITNESS WHEREOF, Lessee has executed this instrument in due and
lawful manner the day and year first above written and Owner has caused this instrument
to be executed by its Mayor and attested by its Town Clerk and its seal to be affixed all
by order of its Board of Commissioners properly given as of the day and year first above
written.
BEAUFORT WATERFRONT ENTERPRISES, INC.
M
M

04-20-05 08:53 From -WARD AND SMITH, PA-3000, NS 252 672 5477 T-551 P.019/019 F-334
1ReDjACFNT Xt[I'ARIAN pRopmm OWNER STA'1'F.NENr
(FOR A PIL•WATOORIXG PYINGSIBOATLIFfIBOAT"OUSE)
I hereby certify that I own property adjacent to Town of Beaufort 'S
(iiai= or Property Owaer)
property iocatul at Dock in Pzont of Beaufort House on Front Street
(TA, Block, Road, etc.)
oa Taylors Creek - _ in Beaufort N.C.
(Wnlerbody) (Town and/or County)
Tile has do-wribcd to ilia, as shown below, the dovclopment he is proposing at that location,
,Intl, i have no objections to his proposal. 1 understand that a pier/mooring
p1linp,.Uboatliti/boathouse must be set back a mini+num distance of Fifteen feet (15) from my area.
of illArian access ualoss waived by ate.
_ l tia.aot wish to waive the setback requirement.
- I do wish to waive that setback requirement.
INVU.flamrtnN AND/OR DRAWNG OIL PROPOSED nywELOPMENT:
HaywogWee s Beaufort Waterfront
Print or Type. N11MO Enterprises
a" �7
Telophone Number 0
Date:

1,
r
WARD AND SMITH, P.A.
ATTORNEYS AT LAW
April 1, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
400 Commerce Way
Morehead City, North Carolina 28557
RE: Beaufort Floating Docks
Our File 900583-0005
Dear Tere:
FRANK H. SHEFFIELD, JR.
[phone]
Fax [phone]
fhs@wa rda ndsmith. coin
i
n. J
��Il1�-.9i:f d �• .
In response to our discussions concerning resolution of the Notice of Violation issued for the
new Town docks along the Beaufort waterfront, we undertook to: (1) obtain a letter from the
Town confirming that Front Street in the subject area is a town road; and (2) obtain a waiver of
any riparian setback rights the Town may have as an adjacent riparian owner (based on the high
tide line being at the Town bulkhead in the area immediately east of the project site). We
accomplished the first, and the resulting letter from Mr. John Young, Public Works Director for
the Town of Beaufort, is enclosed for your information. However, the Beaufort Board of
Commissioners was not able to add our request to the agenda for its meeting of March 21, 2005,
due to the last minute nature of our request, and we will not be able to schedule an appearance
until mid -May or even later, due to people's schedules.
In the meantime, I consulted with one of our real estate specialists who pointed out that the title
history of the Town's properties along the Beaufort waterfront reveals that Beaufort Waterfront
Enterprises, Inc. holds leases dating back to 1978 from the Town of Beaufort with respect to the
Inlet Inn docks property (see enclosed). The current lease runs through 2013. As you will note,
the property description in the lease includes the area in front of Mr. Robert Stephens' house
"except for the 66-foot tract on the south side of Front Street owned by Mr. Stephens which
consists of the west one-half of Lot 260 and the east one-half of Lot 261, Old Town."
(emphasis added) Since Mr. Stephens' property no longer includes any upland property on the
south side of Front Street due to the long-term effects of erosion, the Town of Beaufort owns the
uninterrupted stretch of property along the entire waterfront as far east as the Eury property
(including the area in front of Mr. Stephens' house), which in turn has been leased to Beaufort
Waterfront Enterprises, Inc. on a long-term basis.
GREENVILLE
(252) 2154000
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
NEW BERN
[phone]
RALEIGH
[phone]
WILMINGTON
[phone]

WARD AND SMITH, P.A.
Ms. Tere Barrett
April 1, 2005
Page 3
Accordingly, based on long-established CAMA policies, Beaufort Waterfront Enterprises, Inc.,
as the holder of a long-term lease for the area immediately adjacent to the project site, is the
appropriate entity to waive its 15-foot setback rights with respect to the new docks owned by the
Town of Beaufort.
As indicated by the enclosed waiver form signed by Mr. Haywood Weeks, Beaufort Waterfront
Enterprises, Inc. hereby waives its riparian setback rights with respect to the Town docks.
In conclusion, we respectfully request that this matter be closed without further action by the
Town or the Department, because the docks as constructed could have been approved originally
under CAMA rules as a result of a setback waiver by the adjacent riparian owner. .
Sincerely,
3
Frank H. Sheffield, Jr.
NBMAIN\626793
Enclosures
cc: Ms. Terri Parker-Eakes (w/encs.)
Mr. Haywood Weeks (w/encs.)

WARD AND SMITH, P.A.
ATTORNEYS AT LAW
February 9, 2005
Mr. David S. Henderson
Henderson, Baxter, Taylor & Gatchel, P.A..
PO Drawer U
New Bern, NC 28563
RE: Beaufort Docks Project
Our File 900583-00005-001
Dear Mr. Henderson:
cEll
FEB 1 0 2005
[Viorehead City DCM
FRANK H. SHEFFIELD, JR.
(252) 67 2-5 507
Fax (252),67.2-1477
fhs@wardandsm't .com
COPY
This letter will confirm the request made during my meetings on February 7, 2005 with Mr.
Robert Stephens and his son, Paul, and subsequently with you. Our client's request is that
Mr. Stephens indicate that he has no objection to the floating docks constructed along Front
Street in Beaufort remaining as built. We are making this request as a courtesy at the suggestion
of Division of Coastal Management staff. In our view, waiver of Mr. Stephens' riparian rights, if
any, is not required in this situation.
This whole situation appears to result from a misunderstanding about who is the adjoining
property owner based on information from an old tax map. The tax map shows a small sliver of
Mr. Stephens' property on the water side of the Town bulkhead above the mean high water line,
which investigation reveals no longer exists. Accordingly, our client provided notice to BB&T
as the adjoining property owner rather than Mr. Stephens.
We would very much appreciate Mr. Stephens' cooperation in this matter. We look forward to
receiving a reply from you in the near future.
Yours very truly,
Frank H. Sheffield, Jr.
FHS:rlc
NBMAIN\621096\1 /
cc: Ms. Tere Barrett/
Mr. Haywood Weeks
Mr. J. Troy Smith, Jr.
Mr. David L. Ward, Jr.
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
GREENVILLE NEW BERN RALEIGH
[phone] [phone] (919)836-426o
WILMINGTON
[phone]

G -'IA.,4P
E C'
1

Y
WARD AND SMITH, P.A.
ATTORNEYS AT LAW
January 25, 2005
Ms. Tere Barrett
NC Department of Environment & Natural Resources
Division of Coastal Management
151-13 Hwy. 24 Hestron Plaza lI
Morehead City, North Carolina 28557
RE: Response to Notice of Violation #05-02C
Issued to Town of Beaufort
c/o Mr. Haywood Weeks
re Beaufort Docks Project
Our File 900583-00005-001
Dear Ms. Barrett:
FRANK H. SHEFFIELD, JR.
[phone]
Fax [phone]
[e-mail]
`i
JAN 2 6 2005
Morehead City 0Mt
This letter responds to the Notice of Violation ("NOV") dated January 21, 2005 issued to the
Town of Beaufort, c/o Mr. Haywood Weeks concerning construction of a set of floating docks
along Front Street in Beaufort ("the Beaufort Docks").
After discussing this matter with you and Mr. Mark Hardeman in your office on January 21,
2005, and further reviewing the facts surrounding this permit and dock construction project
details, -we believe that the new floating docks as constructed could have been permitted and,
therefore, we ask that resolution of this matter be governed by 15A N.C. Admin. Code § 7J
.0409(f)(4) for the following reasons:
The applicant is the Town of Beaufort. The Beaufort Docks are part of the series
of docks that make up the Beaufort historic waterfront area. The Beaufort Docks
are owned by the Town and operated under lease by Mr. Weeks for use by the
general public. The availability of these docks will help support and promote
tourism in Beaufort and provide revenues for the Town. In short, the Beaufort
Docks provide substantial public benefits.
he doc are wl in the genera oo plfini ofMe- eaut3—fort wad rort rit doc s area,
which extends from the west end of Beaufort down Front Street to the east -- well
past this location. Boats of all varieties have been part of the visual landscape of
1001 COLLEGE COURT PO BOX 867 NEW BERN, NC 28563-0867
GREENVILLE NEW BERN RALEIGH
[phone] [phone] [phone]
WILMINGTON
(910) 7944800

WARD AND SMITH, P.A.
Ms. Tere Barrett
January 25, 2005
Page 2
� 11
Morehead City DCM
all the properties along Front Street for many years. Indeed, the area of the docks
under discussion has been a boat basin for use by boaters visiting Beaufort for
over 20 years.
3. As discussed further below, we believe the docks are more than 15 feet from the
riparian area of any separate adjoining riparian property owner. Accordingly, no
waiver by any adjoining riparian property owner in that area appears to have been
necessary in order for the Beaufort Docks to be permitted for the additional 5% in
dock length. -
4. In any case, in good faith our client provided notice to BB&T on the
understanding that they were the next adjoining property owner. As you will
recall, BB&T was noticed during the CAMA Major Development permitting
process for these docks in 2002 without objection from anyone. Our client
assumed that the same procedure used by the applicant and approved by your
office during the Major Development permit process should be used last year for
the General Permit, which involves replacing the same docks authorized by the
CAMA Major Development Permit.
As we discussed last Friday, in our view Mr. Robert Stephens does not appear to have any land
on the water side of Front Street and the Town bulkhead. At most, he may have only a very
small sliver of mudflat at the foot of the Town bulkhead. We do not believe he has any land at
present above the mean high water line for several reasons. First, there are oysters growing on
the Town bulkhead in front of the Stephens property. Oysters do not grow above the mean high
water line. Second, considerable marsh grass is present directly in front of the Town bulkhead.
To the extent any marsh grass is present in this general area with the characteristics of grasses
that can survive above the mean high water line, such grass is believed to be located on the
adjoining property to the east -- not in front of the Stephens property. The adjoining property,
which apparently is owned by the Town, begins several feet west of the Lookout
Express/Mystery pier. Thus, the small area of land where some grass is present in the corner
nearest the pier is believed to be on the Town's rather than Stephens' property.
In any case, the tiny sliver of mudflat in front of the Stephens property does not extend the full
width of his property. It appears to extend only about half the width of his lot. Accordingly, as
you indicated during our discussion, it would appear that the Town, as owner of Front Street,
would be the next adjoining riparian property owner to the east of the project area.
If that is correct, then Mr. Stephens' riparian corridor does not coincide with his western property
line, but extends from the channel to the point where this tiny sliver of purported high ground
begins to the east. My inspection of the site indicates that the point where this tiny sliver begins
is more than 15 feet east of the project area. Accordingly, it does not appear to us that our client
was or is required to obtain a setback waiver from Mr. Stephens in order to extend the length of

WARD AND SMITH, P.A. �[
i r, �(
Ms. Tere Barrett
January 25, 2005 JAN 2 6 2005
Page 3 Morehead City ®CM
the docks an additional 10 feet. The end of the docks is considerably more than 15 feet from
Mr. Stephens' purported riparian corridor.
We would also note that, to our knowledge, no one complained to the Division of Coastal
Management about the additional length during the construction of the docks. Since the docks
were completed, there has been nothing but praise from the general public about the new docks.
It is interesting that concern has arisen only now -- several months after completion of the
project.
In conclusion, both the Town and Mr. Weeks very much wish to resolve this matter in an
expeditious and cooperative manner. Accordingly, we ask that you consider the above
comments and advise us how this situation can be resolved. We look forward to speaking with
you about how we mutually can achieve that end.
Yours very truly,
Frank H. Sheffield, Jr.
FHS:toe
NBMain\618827\1
cc: Mr. Mark Hardeman
Ms. Terry Parker-Eakes
Mr. Haywood Weeks

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Zone
REC AREA PERIMETER PARCEL83_ PARCEL83_I WHAT
PIN MAPNUM BLOCK
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Parce -
1 16794576.53974 527738.45462 4200 4211 0
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2 48524.00004 2092.8292 31560 31626 0
7305052 0 0
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ReJi•esh Map
http://maps.co.carteret.nc.us/
1/21/0

e
rage i or 1
Detailed view for record 1 (Print)
Field
Value
Field
Value
AREA
6635.97918
DIRECTION
PERIMETER
334.70562
ST_NAME
FRONT
PARCEL83_
31912
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31979
CITY
BEAUFORT
WHAT
0
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28516
PIN
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4702
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BLOCK
29
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489
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STEPH NS,ROBERT
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Y_BLT_HOUS
1917
1917
HOUSE_NUM
0000611
TOT_SQ_FT
1584
BAT ROOMS
0
BEDROOMS
0
31911
http://maps.co.carteret.ne.us/ibs/details_popup.htm 1/3/05

Yage 1 of 1
Detailed view for record 1 (Print)
Field
Value
AREA
43766.27221
PERIMETER
863.19812
PARCEL83_
31700
PARCEL83_I
31767
WHAT
0
PIN
73050513.
MAPNUM
7305
BLOCK
29
PDOT
3603
CONDO_
MOTHER
0
MAPNAM
730505
PRID
11007H0211
PIN15
730505293603000
OWNER
BB&T
DBOOK
0287
DPAGE
00045
DDATE
0
SALE_PRICE
0
TAX_VALUE
965350
LAND_VALUE
462594
STRUC_VAL
502756
OTHER_VAL
0
BLT_CO DO
0
HOUSE_NUM
0000617
Field Value
DIRECTION
ST_NAME FRONT
ST_TYPE ST
CITY BEAUFOR
ZIP 28516
MAIL_HOUSE
MAI L_D I R
MAIL_ST
MAI _STTYP
MAIL. CITY WINSTON
SALEM
MAIL_STATE NC
MAIL_ZIP 27102
MAIL_POBOX PO BOX 1290
TOWNSHIP BEAUFORT
NBHDLIMIT 59 0050RT
FI RE_DI ST
RESCUE_D8T BEAUFORT
RESCUE
L1 2 PART L3
LEGAL_DSC TOWN OF
BEAUFORT
TOTAL ACR 1.01
Y_BLT_HO S 1968
TOT_SQ_FT 4432
BATHROOMS 0
BEDRO MS 0
31699
http://maps.co.carteret.nc.us/ibs/details_popup.htm . 1/3/05

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❑ PIN Searciz e�, Luad r?t 3eaK Status: Read
❑ . Parce�
Dime Detailed view for record 1
❑ p Acrea
p p Road View in new window Print
p p L Noise x
Accide Field DValue O
❑ p Poten
Zone AREA 43766.27221
O O " Parce
PERIMETER 863.19812
Ei
d PARCEL83_ 31700 rt
p ; Waterl:r PARCEL83 I 31767 '
❑ O Grid^ .
WHA�O �
❑ O } p�ecig€ PIN 73050513
❑ p + Fire p0, MAPNUM 7305 '
BLOCK 29
❑ p I Floods
3603 �� J
S PDOT
❑ p D Core B CONDO_
❑
WINSTON
http://maps.co.carteret.nc.us/ 1/3/O5

Rfax-IP * Pq 2/2
Mar 21 05 01i26p 'Public Works 252-726-7831 P.2
TOWN OF BEAUFORT
412 Hedrick Street. 11.0. [lox M) [I,,
Beaufort, N.C. 28,516
(2.52) 729-7166, [phone] fi
WWWAlcmil'brulcom IX
To Whom It May Concern:
FROM: Public Works Director, John Young
DATE: March 21,2005
RE: Front Street Ownership
Front Street in Beaufort, N. C. from the west right-of-way of Live Oak Street and
heading westward belongs to the Town of Beaufort as referenced on the Town's
Powell Bill Map.
'ZoOvs
1�
JQIHI uwy, "as LwrII 'Ate Wow
JolamyO'ShaU,Iluhlirwc)rks.qupcn�6or Doug Matw1d, WatcrSyfitcmquverv6or
Mike Rohimxnn,WW111/011C
&-d3r. J'Am, Adminisim6w.8tylxxi Slwdik-A

Title History Documents - Beaufort Waterfront Property
1. Lease between the Town of Beaufort and Haywood Weeks, Jr., dated August 29, 1978;
2. Assignment of Lease from Haywood Weeks, Jr., to Beaufort Waterfront Enterprises, Inc.,
dated November 21, 1979;
3. Lease between the Town of Beaufort and Inlet Inn Associates dated January 31, 1984;
4. Sublease between Inlet Inn Associates and Beaufort Waterfront Enterprises, Inc., dated
April1984;
5. Agreement and Amendment to Lease between the Town of Beaufort and Beaufort
Waterfront Enterprises, Inc., dated August 27, 1987;
6. Extension of Lease between Beaufort Waterfront Enterprises, Inc., and the Town of
Beaufort dated September 1, 1993;
7. Bill of Sale and Assignment from Inlet Inn Associates to Beaufort Waterfront
Enterprises, Inc., dated May 1999;
8. Agreement, Modification and Extension of Lease between the Town of Beaufort and
Beaufort Waterfront Enterprises, Inc., dated May 26, 1999;
9. North Carolina Quitclaim Deed and Bill of Sale between Inlet Inn Associates and
Beaufort Waterfront Enterprises, Inc., dated June 1, 1999;
10. Deed and Bill of Sale between Beaufort Waterfront Enterprises, Inc., and the Town of
Beaufort dated June 1999.
11. Lease Modification and Extension Agreement between Beaufort Waterfront Enterprises,
Inc., and the Town of Beaufort dated February 12, 2003;
12. Lease Modification and Extension Agreement between Beaufort Waterfront Enterprises,
Inc., and the Town of Beaufort dated September 8, 2003;
900583-00005-001
NBMAIN\627416\1

i
CARTERET COUNTY
.This contract of lease made and entered into this o193 day of
of August, 1978, by and between the Town of Beaufort, a municipal corporation,
party of the first part hereinafter called "Owner"; and Haywood'Aeeks, Jr.,
of the second part hereinafter called "Lessee",
W"ITNESSETH:
II ...
!j That subject to the terms and conditions hereinafter set forth, - -,
;Ithe Town of Beaufort does hareby let and lease unto the parties of the second .
.1part and the parties of the second part do hereby accept as Lessee those certain
1
improvements to real property located in the Town of Beaufort, Carteret County,
North Carolina, and more particularly`described as,followae .
.,..
Being all of that area south of the.'bulkhead which .
ii has been newly constructed in the Urban Redevelopment
Area in the Town of- Beaufort together with the five
II. (5) docks being located between Turner and Queen Street
in the Town of Beaufort; said bulkhead and the five
(5) docks being shown on a survey prepared by James
L. Powell, Registered .Surveyor, dated January 31; -
1978 and entitled "Disposable Tracts' for the Town
' of Beaufort. Copy of said map is attached hereto
I:
{ as Exhibit A and incorporated herein by''reference-
To HAVE AND TO HOLD said lands and premises, together wi h all `f
.. iprivileges a hto belonging to the said parties of the second
� Bes and appurtenances tereunB.. g
;!part aad their heirs, successors in interest and ass„for the igns term and upon
the conditions hereinafte•. set forth:
1. This 1'aase shall begin as of the*first;'day of September, 1978. I..:
and unless sooner terminated as herein provided, shall exist.and continue until) ..
of Au{,ust,, 198s. .:. .. ..
2. The Town of Beaufort shall make a good faith effort to.
petition the Forth Carolina General Assembly for legislation enabling the Town
of Beaufort to lease•the above dock -areas for a"periodlof time in excess of tent
i1.
11 years. !it the present time the North Carolina General Statute pertaining to
municipal corporations does not allow the Town of Beaufort to lease the above
described dock areas for any term in excess of ten years. In the event the i
y L LryY
4 .Tiorth Carolina General Assembly should pass legislation granting .to the Town
4, mow'
� of Beaufort authority to lease the above described dock arias for a period of
time in excess of ten years, then this lease to the parties of the second part
''l�i„•a�-azshall be automatically extended for another tin years upon the same terms and
✓ x.r - conditions with the renewal period to expire on August 31, 1998. I
3. As rental for said premises the parties of the second part �
V;

'f f
shall ;pay to'o•.,mer by mail or at the place of business of the Town of Beaufort on
' 'Pollock Street, Beaufort, North Carolina, and without notice or demand therefor,'
the sum of $810.00 per month, payable on or before the first day of each
�Icalendar month for then current month. The monthly rental shall be paid in
advance and lessees shall tender to the Town of Beaufort their first rent for �
it
lithe month of September, 1978, upon their execution of this lease.
I
II 4. It is expressly agreed that the demised premises shall during
the term of this lease ba use,; exclusively for the rental of boat slips and
!1 .
1docksareas and related marina activities. The lessee shall not allow shrimp
u
lboats, menhaden boats, work boats, barges, tugs and other commercial fishing
boats and vessels of a commercial nature to dock at, tie up to, or use the dock
areas. Sports fishing boats, charter boats, sail boats, pleasure boats and
:vessels of this general nature shall be allowed at said dock. The dock located .
'at the south end of the intersection of Front and Turner Streets as shown on
the -zap attached hereto as Exhibit A shall remain available for use by the
.general public subject to the rules and regulations established, maintained, and
enforced by lessee. The lessee sl-.all allow the general public to tie up to and '
. use this dock for a period of time not exceeding two hours in each twenty four
'hour period. On and after each two hour period within each twenty four hour
i period, lessee shall have the right to charge the member. of the public so using
said dock an hourly rate of $10.00 per hour for each hour or part thereof in
excess of the allowed two hour period. The Town of Beaufort reserves the right
to re.•iew and =pprove all rules and regulations established, maintained, and
enforced by lessee with regard to the length of time the public may tie up to
-hand use the dock area at the south end of the intersection of Front and Turner '
i
Streets.
5. Lessee shall b,, responsible for and shall pay for all
maintenance of the docks including repairs and replacement of piers, pilings,
sc7port, and other structural parts of the dock areas as may be required by
the Town of Beaufort during the term of this lease and any renewal period which.
may be allowed hereafter. The lessee shall insure that the docks constitute no,
safety hazard to members of the public and persons using said docks and that
the same are kept and maintained in a good state of repair. All maintenance
and repairs shall be at the expense of lessee and the Town of Beaufort shall
!� have the right to periodically inspect said docks in order to insure that the
docks are being maintained and repaired in a manner satisfactory to the Town.

♦.. '.. ri 1 .;,, t,.r,�,1� A . 1',tC. �y, Y c � .5� vex r}''�i.�r .
t r I! f _ Fk-,S.�vYx-�i'+k-''9lF^W.R a,"]•"t. '.a�'i4''�eu ,7'--�s'e',z
"%44& ,s,`a}sik* C.�rlt•°;.t 'tiyrr� tk�+��,
' In the event lessee fails to maintain and repair the docks in`�a moans=
' f
satisfactory- to the Tom, than�the Tova of Beaufort, shall. have therright to `
'I terminate this lease•; howcvet,.said Tom shall use. good faith and make only
' those demands which are reasonable. •"'?-:"�
6. Lessee shall be responsible for keeping the dock areas'ol....
Ilattractive to the public, and safe with regardto' use of the docks by'cir`stooiers;
tenants, and the general public. The lessee shall establish rules�'forsuse•'of �`
,,,the docks and piers to insure the safety of the public and patrons and users o£'
IIthe docks; the Town of Beaufort reserves the right to approve or disapprove these
Il rules before they are placed into effect. -
I�
7. Lessee shall maintain at all times a policy of comprehensive*
Il liability insurance which shall cover any and all claims for iujury, death or ••'
.Il damage to property which may be made against the Town of Beaufort -resulting from
lithe lessee's lease of the docks and the use of the docks and piers by the lesser,
and his tenants, customers and the public in general. The comprehensive
i
liability insurance shall be in the following minm imuamounts:
$300,000.00 - Each claimant•, $500,000.00 - Each occurance;7.
i
II$300,000.00 - Property damage.
8. Lessee shall hold the Town of Beaufort Harmless from any and
l
all claims which may be made against the Town.arising,from lessee's lease of
- t`• Ij the docks and piers and any and all claims for dead,, personal injury and damage
.I to property while lessee is in possession of the docks under, the terms of this
"'�'`''�' • lease,-lncludi r ag. payment' of a reasonable attorneys fee in the event a claim is
made against the Town of Beaufort resulting from lessee'a lease and possession
s
- of. the dock areas.
k 9. 'Lessee shall enforce and maintain rules that prohibit the
discharges sewerage and othet'trash into Taylor's'Creek or at any point on
Pront Street excep_ for the area specifically designated for the discharge of
� z
< ' `° r.� •F7 as erage: aad other trash he Town ,of, Beaufort hereby designates the south I
`" _ 't t `a wad -of T�urner 5Z,wet for the discharga of sewerage in the sumptank to be
k`�. < to wr• e �7 T�.x4"^f 'rrs �, f r^ h t -tn, .y. - _
? '{' �loc.ated the Tova is thin general vicinity -and for the placement of trash is '
6e located at the south end of Turner Street. Lessee shall
tY•f-�+x"M�'r+�''.,c•4.°""'�'�,s ! � t s � •fr;'7+ � C ' $,i: ,� �
elice-the dock areas and the boardwalk to insure that sewerage and other trash
1101 ''' .. n' oacdw.�a'NO";S&�'^.w.zlaswdP�a�' ue�;�.�:, fe°.:Y�'oe�tr .'. ems.:._,. ...� I ..
ake place

3x,1';�'2>:, xt>4X .n-". > 4- r•... ri.� .Sr'X ...r-' 4 r' `11from the public -. .
p parking lot locrred ,between Craven and Queen Streets on .the
south side of Front Street in the Town of Beaufort. Lessee shall insure that
.. '- ladeqate'safety precautions and rules are established for all fueling operations
. Ijby customers and oatrons of the docks in the permitted fueling area. The building
inspector for the Town of Beaufort will periodically inspect the fueling sits.
Ito insure that lessee, is complyiug with all State and local regulations with
I
..':: regard to the. handling -of fuel and that the fueling operations do not constitute
a hazard to the public. In the event the building inspector for the Town of
Beaufort is of the opinion that the fueling operations do constitute a hazard I
itd: t'he public and other vessels and customers in and around the docks and in the
�I downtown area of .Beaufort, the Town of Beaufort shall have .the authoriFy to
;order the lessee to cease all further fueling operations within the Lock areas.
i;
I 11. Lessee shall be required to post a performance bond in the
I
�iamount of $10,000.00 payable to the Town of. Beaufort simultaneously with the
. i
%execution of this lease by lessee. The condition of the performance bond shall I
be that lessee shall carry out all the terms and''conditions of this lease. 'In
i
;.the event lessee should default in any of the Terms and conditions of this lease,
said performance bond shall be forfeited to the Town of Beaufort. In lieu of
Ia perfnrmance bond, lessee may post a cash bond in the sum of $10,000.00 which
I
.. jjshall be retained by the Town of Beaufort to insure lessee's performance of thei
�I
N obligatitas imnosnd by this lease. In the event lessee should default according
1i.to the terms and conditions of this lease, then the Town of Beaufort shall
+='-"�ai::�n•,...have- the right to retain the cash bond. _
r...1t
�? 12. Lessee shall be responsible for the payment for all I
II electricity, water, and other utilities used in the dock area. All utilit_:.. I
will be listed in the name of the lessee and it shall be his responsibility to I
,pay £or all utility charges. i
13. Lessee is hereby given an easement over the public parking
i
lot areas located on the south side of Front Street and on the boardwalk so
that lessee will have access for the purposes of ingress, regress and egress
1
from Front Street to the dock areas. Easement given herein is a non-exclusive i
easement and citizens of the Town of Beaufort and the public in general shall
also have the right to use said parking'lot and boardwalk. The public parking I .
'I immediately north of the, dock areas shall not be obstructed by .the lessee nor
,l.,,p�.
any of his customers or patrons, nor used by lessee or his customers and patrons
yam. .:. ; •_ .. I

:..
,• -
exce;itfor the purpose of ingress, regress and egress to and from Front Street i
,.y
J
-
to the dock areas.
14. All signs, advertisements and notices proposed by_lessee.fat I,
`••`'r�
the deck areas shall be approved by the architectural board of review for the
i• , ''L.:
Town of Beaufort before lessee can install same.'
,,.
15. Lessee shall, without any prev ious demandtherefor, pay the j
a.
1iR
1
'Trent railed "for herein at all times and in the manner provided'fot, and
k,
p:>
j
iievent of the failure on the part of the lessee to pay said rent 1¢ accordance
Y
)
Town of Beaufort may forthwith take poasessicn
with the terms of this lease, the
of the dock areas after giving tan (10) days notice that said rent is due and , ,
Y
I�j period
has not been paid; if said payment is not made within said tan (10) day p
£.
I{
of Beaufort may forthwith.take possession of the dock areas without `
the Town
and remedies that the Town of Beaufort may have
li
: '.,.
`
of the rights
rjeopardizinB any g
j _: .,
i
�as result of the default by lessee of the terms and conditions of this lease.
e
a
{i Tn the event'lessee should default on the stipulations, terms, agreements and
F
y':
I� .. .,,
iu this lease, and the 'lessee should fail to correct the sane
{R venaiits'e'oniaired'
•
A
jjvithLn ten days after notice has been given by the Town of Beaufort to lessee,
x.
"
'�,"��'•
the Tows of Besufort shall have the right to re-enter the premises and to
K.
then
of the dock areas. The Town of Beaufort shall
'
-
i repossess and take possession
ill
%hereafter have such other rights and remedies as against lessee as prov.ded by
a
. ..:: :. ...."
"
j,...
...
in the event lessee should be ajudged bankrupt or insolvent by any federalL.
-
':1 ` , .{�
law
--' the term of,chis lease, the
court of competent jurisdiction during .
ter.>t-
j1
or state
lease terminated' and cancelled
i
:.:::''('''
at its option declare this
Town of Beaufort may P
,
o£ Beaufort may take possession of said premises. Further, should
xi
the Town
become vscant dux lag the term Of this lease
S'
-�
I
the lessee allow the dock areas to
lime when the rent shall be or become due and unpaid hereunder, the Town
at any
either by force or otherwise without
;gryer
Y
-6f Beaufort may re-entthe premises
P... the Town of Beaufort may terminate this
r�being
Viable for prosectuion therefor and
e1.
lean .
16. L essee.shail take .good care of the leased premises and at
_
�'theeador'.otfier expiration of the term of this lease shall deliver said
make ulcerations, additions
..
`�preioiszs .in good order and -condition. Lessee may
dock area p ovided lessee shall first obtain from the
�:.: µ tf
.vTava. of Beaufwct its vritten consent as to the planned"al era ons.
C
or impro•ements. All alterations, additions or improvements made by the lessee:
�*4 ai "�Yn j2t i
tdurin{5 the course of his occupancy or the term of this lea
se shall inure to
j �

I
the benefit. of and be the property of the Town of Beaufort upon the termination
of this lease, and such alterations, additions and improvements will be surrendered
with the premises when the same are surrendered by the lessee to the Town of
Beaufort.'
Lessee at his ow,, coat and expense shall comply with all i
rules, regulations and requirements of the Town of Beaufort, the State of North
Carolina', and the United States which are applicable to the dock areas for the
prevention or abatement d`_ nuisances or other grievances arising out of the !
I
Il manner of the occupancy of the dock areas during this lease by lessee. . The
I�Town of Beaufort shall have the right to enter upon the dock ar as during the
I
�I term of this lease at all reasonable hours for the purpose of examining and i
iiinspecting the same.
ii
., 18. The lessee shall have no authority to assign this lease
ii without first obtaining the written consent of the Town of Beaufort. The Town
Ii of Beaufort shall not withold written consent of an assignment or the sub-
letting of the premises cr the dock areas provided the financial ability or
i!
status of the proposed assignee is equal to or exceeds that of the lessee.
'Lessee shall not occupy or use or permit or suffer to he occupied or used the
dock areas for any business or purl+use which would violate zoning laws of the .
�i Town of Beaufort, or which may constitnLe a hazard on account of fire or
ii other danger to the Town of Beaufort or its citizens.
i 19. Lessee shall repair as soon as possible any and all damage
i
itcaused to the clock areas by fire, accident, or other casualty during the term
option and expense cause the,dock areas
of this lease. Lessee may at his own
i� to be insured and in case of damage or destruction lessee may use all sums
I:
�! collected from insurance in repairirg.or replacing said docks.
'i IN TESTIMONY WHEREOF, the Town of Beaufort has caused this lease
;i to be executed by its Mayor, attested by the T.+ten Clerk, and seal.:d with seat ,
of the Town of Beaufort, all by authority given by the Board of Commissioners
ii
for the Town of Beaufort, and Lessee has caused their bands and seals to be
placed hereon on the date above written.
`ATTEST': `�.';.• .
C. BLANKEN$HIP",C9WN.SL
TOWN OF BEAUFORT '
BY:
Mayor ..
I

(SEAL)
NORTH CAROLINA
!�CARTERET COUNTY
This tbe29th day of August, 1978, personally camp before me,
Lois M. Deese _ Notary Public of said county and state,
A. C. Blankenship, who being by me duly sworn, says that he ;snows the coenon
seal of said Iown of Beaufort, and is acquainted a;.th Richard -Babcock, Sr.,
Mayor of the Town of Beaufort; and that he, the said A. C. Blankenship is the
clerk Li the Board of Commissioners of said Town, and saw the said Mayor sign
the foregoing instrument, and that he the said •jerk signed his name in
attestation of the execution of said instrument in the presence of said May:.
of the Town of Beaufort.
Witness my hand and sea:.
My,Conpission Expires: 1/24/83
i.:_ F '1/24/83
.,NORTH CAROLINA
... CARTERET COUNTY
I Lois M. Deese
� Xo' ry Public
a Notary Public in aid for
the State ai,G Jot .cy aforesaid, do hereby certify that Haywood Weeks, Jr.)@Ud .
I
90C6idOtXX79 , personally appeared before me this
date, and acknowledged the due execution of the foregoing instrument. t
Witness my hand and notarial seal, this the 29th day of August I
1975. ,
. ,
No---ta///ry Public
NORTH CAROLINA. CARTEREf COUNTY
:Mg 6mmission Expires:
{{
TUC. :EIiC "a1;i;iC3t?(c) etd.16'r.�:��..... �__."::--Js (a re)
_ 1/24183
c ,' t, `.: ;:.:: i. s i '/'rant was presented fp,
GI
n t4i utf e in Boo
J 4 1. ,+,jry Gf iL
rrJJ �
19Z... at `i �clork� _.M.
q
L
?c"'E F:'E3F GEEP,
Register of Deeds
-

t
_ 6 � \ .�
��
ry F .. -`\ Y

4hy�{~�}{.yY���r4���1'�'Sti"
NMI� 1
".ar�Md�ms,�`4 'iyubod - r • Jr. .
Bmrz�u wA7�7r UUEFeFaZES, DC.
BYTvf
Yi{iv1eA
.ATaEsr: (SEAL)
u
f- -j 2 CWH CAeiCIJTFA
:. T*n Tome of Beaufort in aiSpecial Meeting duly called on the
21st dap of.Wvmiber, 1979, daps hereby direct the Mayor to give the consent on
_behalf of the Ttnn of Beaufort that the lease dated 29 Purust 1978 by and
`betreen-the Tcvm of Beaufort, a municipal corporaticn, and Haywood Weeks, Jr.,
ray be assigned to Beaufort Waterfront Enterprizze<, lnc. subject to the terns
and conditions of this essigmeht a-d further directs the 33�nr s>: t:c 7ttm
'p Clerk to execute this assigrrent.
U
This 21st day of Dbvmber, 1979.
4
IS
2x.ai.
fin-, ..ATRS•ST-e.(�L �=-=11:.
nays j
1
�Y5 1 Y
•m��' �' n STF�v. t .

9
1, Iris M. Deese, :Votary Public do Certify tat Weeks, 'x-'
4 personally appeared before ne this day and ack-nowledgecl that I,- Ls sec:ret3r:
of the Beaufort Waterfront Enterprizes, Inc., and that by duly cl'Aaen
and as the act of said Corporationj the foregoing mstrmy-nt --ms signer
nwre, by its president, sealed a. n*-
d attested to by ,L-is as 4seC==_tar.
Witness my hand and notarial seal this 21s' , -y cf
1979.
.4y.Ca=issicn Expires: 1/24/83
'NO'F ; M CARDLIWA
akR= cxmy
I, Lois M. Deese, Notary Public ck, certif"', t�,.at C. B,2.-e
personally appeared before me this -Lay cd acl--xvIedged . tat s 'vhe
clerk fo= the -own of Beaufort, a miicipal corporation, arr: .at by aut-Ori!-Y
duly given and as the act of said mmiciap corporation, the foremi;ng
m, by, its Mk=, sealed zv-4 attested to by
instrment was signed in its Tim
himself as its Clerk.
Witness my hand and notaLial seal, this 21st day of
NOverner,
1979.
A
Y q Gmumssion Expires. 1/24/83
.qoterry A104-1-
Nom—;nfr. qU+NT
71a foe�7-d !n Ir .7-�!s n Sh MM 3S VL•
send4 A mordei in ft. O'Ace in
thisE'e7'ilrn IrZ.,
by G
Siis PVW*
eg;-v-r of Dze&

(b? ALTERATIONS, IMPROVEMENTS, AND CHANGES
PERMITTED, LESSEE shall have the right to make such alterations,,
improvements, and changes to the buildings and improvements which,
may from time to time be on'the premises as LESSEE may deem
necessary, or to replace any'su.cb building with a new one of at
least equal value, provided that prior to making any structural
additions, improvements; or 'changes, or to replacing any such
building, LESSEE shall obtain LESSOR'S written approval of. plans
and specifications there for ,'which approval LESSOR shall not
unreasonably withhold, provided that the value of the building
shall not be diminished and;the structural integrity of the
buildings shall not, be adversely affected by any such
alterations, improvements, or changes, or that any proposed new .
building is at least equal in value to the one it is to replace,
as the case may be. In'the.event•of disapproval by LESSOR,
LESSOR shall give to'LESSEE'in itemized statement of reasons.
therefor. LESSEE .will in 6o,,'event make any'alterations,
improvements, or other changes of any kind'to the buildings or
premises that will decrease the value of such buildings or
premises, or which will adversely affect the stuctural integrety
of the buildings and. premise's: ' Prior to commencing any work .that
will cost in excess' of.tive.'ibousand dollars ($5000). LESSEE
shall furnish, on demand, with ajgood and sufficient surety bond;
insuring the complet_ion'of.such work and payment of all bills
therefor.
(c) Any new buildings and improvements constructed
by the LESSEE on the premises on and after February.l, 1984, and
all alterations, improvements, changes, or additions made in or
to the premises shall be the. property of LESSOR, and LESSEE shall
have only a leasehold interest therein, subject to the terms
%ereof.
16.. CONSTRUCTION OF DOCKS AND OTHER IMPROVEMENTS ON TRACT
TWO.
(a) PLANS AND,SPECIFICATIONS. LESSEE has
previously prepared and forwarded to LESSOR a site plan and.
specifications for the docks, ipiers and other improvements to be
constructed on Tract'Two of"the leased premises which plans and
specifications are in the possession of LESSOR. Said
specifications are entitled,""Dred.ging and Pier Construction Inlet
Inn, Beaufort, North Carolina", dated October, 1983, and prepared
by John R. Andrews and Associates, C..E., together with the
drawings of John R. Andrews and Associates dated September 9,
1983, and as revised on October 4, 1983. The site.plan, drawings
and specifications of John it. Andrews and Assocites referred to
herein are incorporated herein by reference as if fully set out.
All dredging, construction and other work
contemplated and carried out with regard to construction of
the improvements on Traet Two as shown on the plans, drawings and
specifications of John R. Andrews and Associates shall meet all
of the requirements, laws and conditions of Unite.d.,StatesCorps
,Corps of Engineers, the Office of Coastal Area Management of the
North Carolina Department of'Natural Resources and Community
Development, the Town of Beaufort, and the County of'Cartier et,
and any other local, state and federal agencies having
—10—

-jurisdiction over the same.
Not later than forty-five days later than. 'the date'of,
execution of this lease, LESSEE shall a[ its expense commence and.
shall thereafter diligently prosecute to completion the
construction of the docks, piers, pilings, dredging, boardwalks,.,
and other structure's and improvements on Tract Two of -the leased
premises in'acc.ordance with the construction plans and
specifications referred to herein. Provided, LESSEE shall no„t be,
required to construct and complete the dinghy dock along .th.e:
western boundary of Tract One or the easternmost dock reserved•by.y..
LESSOR for use by the public along the easternmost boundary :: o f:;
Tract Two unless such construction and arrangements fo�. payment
for installation and completion of the dinghy dock and the public.:'
'dock are arrived.at between LESSOR and LESSEE.'
Prior to the commencement of the construction and
improvements contemplated herein, LESSEE shall furnish LESSOR
with a good and sufficient surety bond gauranteeing the'faichful
performance of construction of such buildings and improvements
and the'payment of'all bills therefor.
(b) ALTERATIONS, IMPROVEMENTS AND CHANCES
PERMITTED. LESSEE shall have ,the right to make such alterations,:
improvements and changes to the piers, pilings and docks.areas
which exist from time to time on Tract.Two of the leased.premises
as LESSEE may deem necessary, or to replace any such piers,
pilings or docks with a new one of at least equal value,
provided, that prior to making any substantial improvements or
changes to the design or layout of the dock areas, LESSEE shall
obtain LESSOR'S written approval of such plans and
specifications therefor. LESSOR shall not unreasonably withhold
its approval with regard to- changes in.the.-layout, design or type
of construction and installation of the piers, pilings and 'dock
areas provided the changes and completed improvements will be at
least equal in value to the ones they replace, utility and
efficiency of the proposed changes are at least equal to the
system for which the proposed changes are to replace, and the
proposed changes are in compliance with all applicable codes and
regulations. LESSEE will in no event make any alterations,
improvements, or other changes of any kind that will decrease the
value of such piers, pilings or dock area. Prior to commencing
any..work that will cost in excess o-f $5000, LESSEE shall furnish
LESSOR, on demand, with a good and sufficient surety bond
insuring the completion of such work and payment of all bills
therefor.
(c) DISPOSITION OF NEW IMPROVEMENTS. All pilings,
.piers, docks and other structures and improvements installed or
constructed by the LESSEE on Tract Two of the leased premises on
and after February 1, 1984, and all alterations, improvements,
changes, or additions made in or to Tract Two shall be the
Property of LESSOR, and LESSEE shall have only a leasehold
interest therein, subject to the terms hereof.
17. REPAIRS AND DESTRUCTION OF IMPROVEMENTS.
(a) A MINTENANCfi-9jOF IMPROVEMENTS. LESSEE shall,
throughout the term of th is'`Iease, at its own ex ense a_nd its nw�
eo-st wi thaut—s�i expense to,LESSOR keep and maintain the
premises, including all,buildin;gd,'and improvements of every kind
which may be a part t;herreof „'azd''a,ll appurtenances thereto,
including piers, docks, pilings, sidewalks, parking lots and
-1]-

d t' ; v r- .• n : � a n } a'�: � n t C n ere. r
iS
condition anc'•repair,'dno ex�. ep '•a.5 sneatahh}y°`(i'pTov2.dAd
restore and rehabilitate any irpr¢?Emaq`ts;;. of<';a.ny' Kirid,;;ehict,.tiiay
be destroyed or damaged by fire,'storm,�f:loo.d, wind, casualty-,
collision, or any other cause whatsoever. except for damage or
destruction caused LESSEE'S buildings or improvements and
premises by the Town of Beaufort and its employees and agents.'
LESSOR shall not be obligated to make any repairs, replacements,
of renewals of any kind, nature or 'description, whatsoever.to -the
demised premises or any buildings or improvements thereon except.
for damages 'or destruction caused by LESSOR and its agents and
employees. LESSEE shall comply with and; abide with all ..federal
state, county and municipal statutes and ordinances, laws and:-•...•.
regulations affecting the demised premises. ;:hp imDr.ov;ementg
thereon, or in any activity on or in such premises.
(b)..DAMAGE TO AND DESTRUCTION: OF IMPROVEMENTS. Th'e .
damage, destruction or partial destruction of any building or
other improvements which is a part of the premises shall not
release LESSEE from any obligation hereunder,.excep't as .
hereinafter expressly -provided, and in case of damage to or
destruction of any such building or improvement,. LESSEE shall at,
its own expense promptly repair and restore *the ssme.to -a
condition as 'good or better than that which existed prior to such
damage or destruction. .Without limiting such. obligations of
LESSEE, it is agreed that the proceeds of any insurance covering
such damage or destruction shall be made available to LESSEE and
LESSOR jointly for LESSEE'S use in carrying out such repairs or
replacement.
(c) DAMAGE OR DESTRUCTION OCCURING TOWARDS END OF'
TERM. Anything to the contrary in the immediately preceding
paragraphs of this section notwithstanding, in case of
destruction of the building on the premises. -or damage thereto
from any cause so as to make -it untenantable occuring*during the
last ten years of the lease hereof, LESSEE, if not then in
default hereunder,may elect to terminate this lease by .written
notice served on LESSOR within thirty days after the occurence of
such damage or destruction. In the event of such termination,
there shall be no obligations on the part of LESSEE to repair or
restore the building or improvements 'nor. shall the LESSEE
have any sight to receive any proceeds' collected under
any insurance policies covering such buildings or any part
thereof. In the event. of such damage or destruction, LESSEE
hereby assigns any right to receive ',any such insurance proceeds
to LESSOR. Upon such termination, all rent, taxes, assessments
or other sums payable by LESSEE to LESSOR hereunder shall be
prorated as of the termination date, and in the event any rent,
taxes, or assessments shall have been, -paid in advance, LESSOR
shall rebate the same for the unexpired period.fnr which payment
.shall have been made. Provided, LESSEE shall. not have the'right to
terminate said lease in the event the damage of destruction was
caused 'by the willful acts or omissions of LESSEE or its agents
or employees, or in the event said damage or destruction is not '
covered by insurance proceeds. to, the extent of at least 85Z of
the full replacement value of the buildings -or improvements ad
damaged or destroyed.
.-�..x-rnr���rrre—ev-e-trr
of such destruction or damage during the last ten years of the
term hereof, LESSEE does not elect to terminate this lease, the
proceeds of all insurance covering such damage .or destruction
shall be made available to LESSEE and LESSOR for LESSEE'S use in
carrying out such repairs or replacements, and LESSEE sball:be
obligated to repair or rebuild the building as above provided.

x` 4? aigfr f J truX �r
LESSEE shall ful,.l'- and'°'*pp6iN tP pay ;for lel"�"wa'cer�,;gas',`
he :',light, power, telephone, serv.i.'ce.,' and`,other,?yuo. is^ucilitiec'
of every kind furnished to the premises, throughout. the tern
hereof, and all other costs and expenses of every kind whatsoever
of or in connection with the use, operation, and maintenance of
the premises and all activities conducted thereon, and LESSOR
shall have no responsibility with regard thereto.
i LIENS.
(a) LESSEE'S DUTY TO KEEP PREMISES FREE OF LIENS.
LESSEE shall keep all of the premises and every part tberof and
all buildings and other improvements at any time located thereon
free and clear of any and all mechanic's,'materialmen's, and
other liens for.or arising out of or in connection with work of
labor done, services .performed, or materials or appliances'used
or furnished for or in connection with the operations of LESSEE*.
.any alteration, improvement, or repairs or additions which'LESSEE
may make or permit'or cause to be made, or any work or ,
construction, by, for or permitted by LESSEE on or about the .
premise, or any obligations of any kind incurred'by LESSEE, and -
at all times promptly and fully to pay and discharge any and all•
such claims on which any such lien may or could be based, and'to.
Indemnify LESSOR and all the premises and buildings'and
improvements thereon against all such liens and claims of liens
and suit's or other proceedings pertaining' thereto: LESSEE' shaII
give LESSOR written notice no less than fifteen 'days in advance'
of the commencement of any constuctions, alterations, additions,
improvements, or repairs estimated to cost in excess of,$1000.
(b) CONTESTING LIENS. If LESSEE desires to contest
any such lien, it shall notify LESSOR of its intention to do so
within ten days after the filing of such lien; In such case, and
provided that LESSEE shall on demand protect LESSOR by a good and
sufficient surety bond against any such lien as to any,
cost,liability, or damage arising outof such cont'est;` LESSEE
shall not be in default her.eunder uncil thirty days after the
final determination of the validity thereof, within which time.
LESSEE shall satisfy and discharge such lien to the extent held
valid; but the satisfaction and discharge of any such lien shall
not, in any case, be delayed until execution is had on any
judgment rendered thereon and such delay shall be a default of
LESSEE hereunder, In the event of such contest, LESSEE shall
protect and indemnify LESSOR against all loss, expense, and
damage resulting therefrom.
20. INDEMNIFICATION OF LESSOR.
LESSOR shall not be liable for any loss, injury, death or
damage to persons or property which at any time may be suffered'
or sustained by LESSEE or by any person whomsoever may at any
time be using or occupying or visiting the demised premises or be
in, on or obout the same, whether such loss, injury, 'death, or
damage shall be caused by or in any way result from or arise out
of any act, omission, or negligence of LESSEE or of any occupant,
subtenant, visitor, or user of any 'portion of the premises, or
shall result from or be caused by any manner or.thing whether of
the same kind as or of a different kind than the matters or
things set forth above, and LESSEE shall indemnify•LESSOR
against all claims, liabilities, loss, or damage whatsoever on
�co v-n-t o-f--a-ng -s u e-h—l-o s s-,—i x�}u-ram-,—death-,—oz=d-am s g-�.—L&53EF
hereby waives all claims against LESSOR for damages to the
buildings and improvements that are hereafter placed or built on
the premises and to the property of LESSEE, in, on, or about the
premises, and for injuries to persons or property in or about the
-13'=

certificates thereof, to LESSOR, and in'the event Of the.fai`.ure;`
• of the LESSEE, eitherto effect such insurance in the-names
hereincalled for or to pay the premiums therefor or to deliver
such policies, or certificates thereof, to LESSOR, LESSOR shall
be entitled, but shall have no obligation, to effect such
insurance and..pay the premiums therefor, which premiums shall be
repayable to LESSOR with the next _installment of rental, and
failure to repay the same shall carry with it the.same
consequences as failure to pay any installment of rental: Each
insurer mentioned in this. section shall agree, by endorsement on
the policy or policies issued by it, or by independent instrument
furnished to LESSOR, that it will give to LESSOR thirty days
written notice before the .policy or policies in question shallbe'.'
altered or cancelled LESSOR agrees that it: will not
unreasonably withhold its approval as to the form or the
insurance company selected by LESSEE.
(d) DEFINITION OF FULL REPLACEMENT VALUE.' The
term "full replacement value" of improvements as used herein,
shall'mean he actual replacement cost thereof from .time to time
less exclusions provided on the' normal fire and flood insurance
policies. In the event either party believes that the replacement
value has increased or.decreased, it, shall have the right, but as
excepted below, only at intervals of not less than five years, to
have such full•repl'acement value redetermined by the fire
insurance company which is carrying the largest amount of fire
insurance carried �on'tbe demised premises (hereinafter referred
to as "impartial appraiser"). The party desiring to have the
full replacement value so determined by .such' impartial appraiser
shall forthwith on submission of such determination of such
impartial appraiser give written notice to the other pary hereto.
The determination of. such impartial appr.ai.ser shall be final and
binding on the parties hereto, and LESSEE shall forthwith
increase (or may decrease).the amount of insurance carried
pursuant to this section as the case may be to the amount so
determined by the impartial appraiser. Such determination shall
be binding for a period of five years, and until superseded by
agreement by the parties hereto or by a subsequent
redetermination by an impartial'appraiser. If during any such
five year period LESSEE shall have made improvements to the
premises, lessor may have. -.after such full replacement value
redetermined at any time after such improvements are made,
regardless of when the full replacement value was last
determined:
(e) ADJUSTMENT OF COVERAGE. In the event that
either party shall at any time deem the limits of the personal
injury or the property damage public liability insurance then
carried to be insufficient, the parties shall endeavor to agree
on the proper and reasonable limits for such insurance then to be
carried and such insurance shall thereafter be carried with the
limits thus agreed on until further change pursuant to provisions
of this section.
(f) BLANKET INSURANCE POLICIES. Notwithstanding
anything to the contrary contained in this section, LESSEE'S
obligations to carry the insurance provided for herein may be
brought wi tin the coverage o a so—ca a blanket policy or
—16—

p:_`li:ies of insurance carried and maintained by LESSEE;
provided, that the coverage afforded LESSOR will not'be reduced
or diminished or otherwise be different from that which would
exist under a separate policy meeting all other requirements in
this lease by. reason of, the use of such blanket policy of
insurance, and provided -further that the requirements of the
foregoing paragraph (e) of this section are otherwise satisfied.-
27. PROHIBITION OF INVOLUNTARY ASSIGNMENT; EFFECT OF
BANKRUPTCY OR INSOLVENCY,
(a) PROHIBITION OF INVOLUNTARY ASSIGNMENT.
Neither this lease nor the leasehold estate of LESSEE nor any .
interest of LESSEE hereunder inthe demised premises or in the
buildings or improvements thereon. shall be subject to involuntary
. assignment, transfer or sale, or to assignment, transfer or sale
by operation of law in any manner. whatsoever (except through
statutory merger or consolidation, or devise, or .intestate
succession) and any such attempt at involuntary assignment,
transfer or sale shall be void and of no effect.
(b) EFFECT OF BANKRUPTCY. Without limiting the
generality ofthe provisions of the preceding paragraph (a) -of
this section, LESSEE agrees that in the event. any proceeding_
under the Bankruptcy Act or any amendment thereto be commenced by
or against LESSEE, and, if against LESSEE, such proceedings shall
not be dismissed before either an adjudication in bankruptcy
orthe confirmation of a composition, arrangement,'. or plan or
reorganization, or in the event LESSEE is adjudged insolvent or
makes an assignment for benefit of creditors, or if a receiver is
appointed in any proceeding or action to which LESSEE is a -party,
with authority to take possession or control of the demised
premises or the business conducted thereon by LESSEE, and such
receiver is not discharged within thirty days lifter his'
appointment, any such event or any involuntary assignment
prohibited by the provisions of the preceding paragraph (a) of.
this section shall be deemed to constitute a breach of this lease
,by LESSEE and shall, at the election of LESSOR, but not
otherwise, without notice or entryor other 'action'of LESSOR
terminate this lease and also all rights of LESSEE under
this lease and in and to the demised 'premises and all rights of
any and all persons claiming under the lease.
28. NOTICE OF DEFAULT.
Except as to the*provisions of sections,12 and 28 hereof,
LESSEE shall not be deemed to be in default hereunder in the
payment of rent or the payment of any mouies.as herein required
or in the furnishing of any bond or insurance policy when
required hereunder unless .LESSOR. shall first give to LESSEE
thirty days written notice of such default and LESSEE fails to
cure such default within such thirty days. Provided; that is said
default is of such nature that it cannot be cured within thirty
days, and LESSEE thereafter proceeds to the curing of such
default with all possible diligence, then LESSEE shall not be
deemed in default except ss to the 'provisions of 'sections 12 and
28 hereof.
7-

. -. .. 3�=y-e�?�S'.F
ry%'➢�' F
1F�44� r2� `n .
... Y .� i
38. UDAG'GRANT AGREEMENT AND CONDITIONS THEREIN.
The terms and *conditions of the Urban Development Action
Grant No. B-82-AB-3,7-0085 received by LESSOR from the United.
States Department of Housing and Urban .Development witb regard to
the construction and financing'of the 'inn proposed by LESSEE.and
construction, financing and completion of public and private
improvements as described by said UDAG Grant, is incorporatd
herein by reference as if full set Out :.'`LESSOR and LESSEE agree
to fully comply with al-1 of the'terms.and conditions set.forth'
therein and to take such actions and .to, prepare and'execute all
drawings -and -other documents as may be -required in order to fully
comply with the terms and conditions:thereof:
With regard to the UDAG Grant of Two hundred Sixty-two
thousand dollars ($262,000) to be received by the Town of
Beaufort from the United States Department .of Hous'ing and Urban
Development, the Town of Beaufort pursuant.to the -terms of said-
UDAG Grant agrees to loan to the'LESSEE the sum of $262,000
according to 'the terms and at the inter.est.rate as set forth in
Exhibit E to.said Grant Agreement, said -Exhibit E being
incorporated -herein by reference. LESSEE shall execute and
deliver to LESSOR a deed of trust or other security interest in
the leasehold estate of LESSEE in the leased premises and all
fixtures, equipment and.personal property of the LESSEE. LESSOR
may also.require that LESSEE assign its leasehold rights as
additional -security with regard to repayment of the indebtedness.
of $262,000.. Any encumbrance or granting of''a security interest
in the leasehold estate of 'LESSEE may be.subordinate:to a first
deed of trust, assignment or other encumbrance of LESSEE'S .
leasehold interest in the premises with -regard to the
construction and/or permanent loan contemplated in the amount of
Seven hundred Eighty-six thousand dollars ($786,000).
LESSEE further covenants'LESSOR that it has received firm
comittments from lending institutions and other private and/or
governmental agencies or institutions which assure the LESSEE of
funding and the financial capabilities of carrying out,
completing and operating the inn and improvements required by the
terms of this lease.' The failure or inability of LESSEE to
complete the buildings and improvements in accordance with the
plans and specifications set forth herein with due diligence and
within eighteen months from the date hereof except for acts'of
God or similar catastrophes justifying LESSEE'S failure or
inability to complete the 'same, shall constitute default.
39. MISCELLANEOUS PROVISIONS.
LESSOR and LESSEE further agree:
_22_

t
r'a)' N6' waxv'e.'r of'a'hreach of any.the covenants
of this lease contained shall, be construed to';b`e.awaiver of any
• succeeding breach.
''(b) . Time is of the essence in every particular,
and particularly -where the obligation to pay money'is involved.
( c ) All'arrearages in the -payment of rent if more•
than thirty days delinquent'on and after its due date shall bear
interest from toe.due date until paid at. tbe`le'gal rate of
interest.
(d). No modifications, releases, discharges or
waivers of any provisions hereof, shall be of any force, value or
effect unless .in writing. and signed by the .parties hereto.
(a) This .agreement shall be binding on the parties
hereto and their heirs, executors, administrators, successors,
legal representatives, and assigns.
(0 This instrument contains -the whole agreement.
be the parties and there are no collateral agreements,
stipulations, promises, inducements or undertakings whatsoever
which are not expressly contained in this instrument.
(g) As used herein the singular shall include the
plural and the feminine, masculine and neuter genders are
'interchangable unless otherwise noted. Unless"the context
otherwise requires ;,"premises" refers to both tracts of land and
all buildings and improvements thereon.
IN WITNESS WHEREOF LESSOR AND LESSEE have executed this
lease on the date above written.
IN. WITNESS WHEREOF, the Town of Beaufort has caused this
lease to be executed by its Mayor and Clerk to the Board of
Commissi.oners for the Town of Beaufort, ''and has caused the
seal of the Town of Beaufort to be placed thereon., and the
LESSEE'S by and through their general partners have executed
this lease on the date above written.'
TOWN A BEAUFORT
(SEAL)
yce FulfOrd, Af -
ATTEST:
t '
A. C. Blankenship, To Clerk
IN ET INN ASSO A ES
BY:
W.y s ,General Partner
BY:
x in t , an ral Partner
B �
Holmes, General Partner
BY: A' L�
David Weil, General Partner
-23-

STATE OF NORTY CAROLINA . COUNTY OF CARTERET
On this theta 1�';4 day of January, 1984, personally appeared
before -me, the undersigned Notary Public of the County and State
aforesaid, A. C. Blankenship; being by me'duly sworn, says that he
knows the common seal of the Town of Beaufort, and in acquainted'
with Joyce Fulford, Mayor of the Town of Beaufort, and that he is
the Town.Clerk for the Town of Beaufort,:and that he saw.the said
Mayor sign the foregoing instrument, and that -be, the said Clerk,
signed his name in attestation of the execution of said instrument
in the presence of said Mayor of the Town of Beauf-ort..
Witness .my hand and seal, this
My commission expires y �%F4
STATE OF NORTH CAROLINA-
theOU0 f4. day 'of Januar,y;ti 1- $4':
NotYry Public
COUNTY OF,,4s4+-yTL
I; a Notary Public of.the State and County aforesaid, hereby
certify that DeWayne H. Anderson, William G. Benton, David A. Holmes,
and David Weil, general partners in Inlet Inn Associates, a North
Carolina Limited Partnership, personally appeared before -me this day
and acknowledged the due execution of .the foregoing instrument.
Wi hand and seal, this the,j /af-• day of January, 1984.
d FJBL CppR,'C'
My in is ohs ea ¢a es:'/D /8 B1.
2�f�' y Notary Public
ro V9 TEDDER -
My mmiwon expires
0-1ober 18, 1986 '
w County of Forsyth '
24-

NORTH CAROLINA
SUBLEASE
F..'CARTERET COUNTY
THIS'CONTRACT OF SUBLEASE, made and entered into
of April, 198,41.by and between INLET INN ASSOCIATES,
Limited Partnership, party of -the first part, hereinafterjoalli
"!Owner," and BEAUFORT WATERFRONT ENTERPRIZES,'INC.*,, party':� .. pf.-:V
T second part, hereinafter called "Lessee";
W `XtT N
THAT
sub ject to the terms and conditions hereihaft%
'the Owner does hereby sublet. sublease A. ti
.1k ase un
:'
part and the party of the :ssoond' a abqept-i-'.ap
those certain. improvements to` be part'doe hereby
.constructed upon, real property;.
z, located in the Town of -Beaufort, Carteret Countye-Rorth.: a
i..' more particularly described in "Exhibit An attached hereto andcma6e.
Part hereof, said property being a portion of the lands'..x ease
Owner by the Town of Beaufort, hereinafter referred to -*as.'" W
evidenced by that.c o
e3Ftain Lease dated January il, -198 4
referred to as" "Underlying Lease."
TO HAVE AND TO 'HOLD said • "lands 'and pr
emises?'t9geth
privilegesAx al
and appurtenances thereunt ';sedd.:p4
o,belonging tw.the,
the second part and their hpirsu-Successors. in interesf_,.,4n0.:_',.A'.q
the term .and uppu :�hq,dpndo %itns hereinafter s et.,.:f -15
V
1. - This Sublease shall'�'
-begin ar,'of thejqt.
such time ..that. the. docks t ol� be constru
cted byy
Vea;
chever occurs sooner, and unless sooner:-t erm hate
'however,p sai d* docks,W3 be -'cqmpj ied e on 0e.1':before,hKi
-the* event said docks. -are not completed withi4;
this 'Sublease shall be adjusted - by. mutual consent of '; 0
This, Sublease shall exist and *continue until the 31st'da
y of
1998:-' The £fbregoing.*notwithatandingp.,this *Sublease will. to
upon the terminatlon.of ..,'.that R _9r.tain Lease betw
dated August..1978
;2. Lessee shall not do or permit to be done any.jk . 0 , ti : ,p
onditicn:
or thing which would or might constitute a default under the.; .1.
lying Lease...
:3. ..The' initial rental .for .said premises the .Pgrty­ of e -sq.
part shall pay to Owner by mail or at the place of-'b'
Owner, us
and without notice or demand therefor, the'sum-
of` .
month 'payable on or before the first day of each
the then current r 4hon
1,,d -.J.b
month.; The monthly rental shall be P
a
i
`rj

This initial rent shall be increased to the extent that the actual
cost of installation of the water and electrical lines to the
4!.
improvements exceeds the estimate of W. H. Weaver Construction.Com-
pang. The monthly rental shall be increased as follows: excess
actual cost,*X1C1M=x12AVXd1XddMXVAXyx3afdt equals the additional monthly
"• ;`
rent. The Owner shall notify Lessee of the increased costs and the'
increased 'due
rent monthly. ► plus 13FA interest divided by 172
W.
;
4. It is hereby agreed that the amount of rental as set fort
above shall be adjusted annually, based upon the actual cost of
funds paid by Owner for the construction of the improvements. The
initial rent has been calculated based upon an interest factor off
thirteen percent (13%). To the extent that the actual interest paid•_:....:.:„
by the Owner exceeds that.rate, the rent due from the Lessee shall.
increase by the actual interest rate applied to the costs of the
improvements which the parties agree as $125,000.00. The additional.',:_'r;``;
rental shall be paid annually by Lessee upon written request from..' •'<;;,:.;:•.:
Owner certifying the actual interest rate paid for the preceding
year.
5. It is expressly agreed that the demised premises shall,
during the term of this Sublease, be used exclusively for the t 1'
ren a
of boat slips and dock areas and related marine activities. The '
Lessee shall not allow shrimp boats, menhaden boats, work boats,
barges, tugs and other -commercial fishing boats and vessels of a
commercial nature to dock at, tie up to, or use the dock areas.:.' -
Sports fishing boats, charter boats, sail boats, pleasure boats and
vessels of this general nature shall be allowed at said dock.
6. Lessee shall be responsible for and shall pay for 'all .'of
..
the regular maintenance of said docks including repairs, replacement,,kr
of piers, pilings and supports, ands other structural parts of the.;; .'':'0,;5`"
dock as may be. required by the Owner during the term of this Subs'::;;':• •:;`.'tea'
lease. .The Lessee shall insure that the docks constitute no safety
t"r
hazard to members of the y public and persons using said .docks, and
that the same are kept and maintained in'a good state of repair.
All•maintenance and repairs shall be at the expense of f repasseeir.
the Owner shall have the right to periodically inspect said docks in::
order to insure that the docks are being maintained and repaired in ,`_...
a manner satisfactory to the Owner.
7. It is further agreed and understood that if said docks are'`''''.
substantially damaged by fire, flood, hurricane or other act or
natural catastrophe, then this Sublease shall be terminated at the.
option of Lessee. However, Lessee shall insure said premises for
their full replacement value•. Subject to the rights of the Town,
the Lessee shall have the option in the event of destruction of said
docks to use said insurance proceeds to repair or replace said dock
or piers and upon the completion thereof maintain said Sublease .
until the expiration of same. Inothe event Lessee fails to maintain
or,repair the docks in a manner satisfactory to the Owner and the
adjusted for normal inflation, - _- _ •.r « y� r.�ao..� ao. oe
�� 2

Town, then the Owner shall have the right to terminate this Sub-
lease; however, the Owner shall. use good faith and make only those:. ":.:*•,
demands which are reasonable and shall notify. Lessee of what acts-'
Owner contends Lessee should make to said pier and Lessee shall'haV'e.."*
ten (10) days from said notification to'begin to effect such.repairs;..
S. Lessee shall be responsible for keeping the dock areas
clean; attractive and safe with regard to use of the docks by custO-�,­?
mers and tenants. .The Lessee shall establish rules for use of the
docks and piers to insure the safety of the patrons and users of
docks; the.Owner reserves the right to approve or disapprove these ...:.,.
rules before they are placed into effect.
9. Lessee shall maintain at all times a policy of comprehensiyR'.,'t
liability. insurance. which shall' cover any and all claims of injuryr.;.c;'jwY�.i-:
death or damage to property which may be made against Owner or.:the.:�•:`:P -, ;..
Town resulting from the Lessee's sublease of the docks and the' Uise:of �'":
the docks and piers by the Lessee and its tenants, customers and the i:r::;;.
public in general. The comprehensive liability 'insurance shall beiin'
the following minimum amounts.:
$ 300,000.QO -.each claimant;
$1,000,000.00 each occurrence; and
$ 300,000.60 - property damage.
10. Lessee shall hold the Owner harmless from .any and all 44im9`<•'
which may be.made against the Owner arising from Lessee's sublease -.of...
the docks and piers and any.and all claims for death, personal in
and damage to property while Lessee is in iu
4 P P Y possession of the docks;.: -.',.';:?`
under the terms of this Sublease, including payment of a reasonable ....`
attorney's fee in the event a claim is made against the Owner resglt-::`
ing from Lessee's sublease and possession of the dock areas. •.r
11. Lessee shall use its best efforts to enforce and maintain ";,:•.z:
rules that prohibit the discharge of sewage and other trash into: "
Taylor's Creek or at any
y point of Taylor's Creek that would abut"doc$h....:
subject to this Sublease except those areas specifically designated..;';=',
for the discharge sewage or other trash. Lessee shall use its•bes:,,r:p:
efforts to police the dock areas and the boardwalk to insure that-.-:
sewage and other trash is not being discharged in any area along the
waterfront in and around the docks. In the event it finds that .some
individuals are, in fact, discharging sewage and/or other trash then*
Lessee shall notify the proper authorities of said violation. In -the
event Owner contends that there are certain boats discharging --sewage
and/or other trash, then it shall report same immediately. to Tenant...:s:::.
who will, in turn, report same to the appropriate governmental au
ority. c...
•.;.a�;.
12. Lessee shall be responsible for the payment of all elect=l-.;s',
will be listedin the name of the Lessee and it shall be his responsi-:�
li,
bility to pay for all utility charges. '
- 3 -

13. All signs, advertisements and notices proposed by Lessee for,.
the dock areas shall be approved by the Owner before Lessee can instalj;
same, which approval will not be unreasonably withheld.
14. Lessee shall, without any previous.demand therefor, pay`the
rent called -for herein at all times and in the manner provided for, itrid;f::.
in the event of the failure 'on the part ' of the Lessee to pay ,said rent:
in accordance with the terms of this Sublease, Owner may forthwith take`:
possession of the dock areas after given. ten (10) days' notice that.:�al{t:
rent is due.and`has not been paid;'if said 'payment is not made withih.;;;`.
said ten (10)-day period, the Owner may forthwith take possession of.
dock areas without jeopardizing any of the rights and remedies that the'...'
Owner may have as a result of the default by Lessee of the terms and'::'::`
conditions of this Sublease. In* the event Lessee should default on the
stipulations, terms, agreements and covenants contained in this'Sublease;.
and the Lessee should fail to correct the same within ten (10) days
after notice has'been given by the owner to Lessee, then the Owner shal.
have the right to re-enter the premises and to repossess and take'possps-
sion of the dock areas. The Owner shall .he;eafter have such other';.,.',;;';
rights and remedies as against Lessee as provided by law. In the%pvent�•;_:
Lessee should be adjudged bankrupt or insolvent by any federal'-or
court of competent jurisdiction during the term of this Sublease',.'lthe
Owner may at its option declare this Sublease terminated and cancelled'•;
and the Owner may taki possession of said premises. Further, should the.,:
Lessee allow the dock areas to become vacant during the term of this
Sublease at any time when the rent shall be or become due and unpaid "4
hereunder, the Owner may re-enter the premises either by force or other
wise without being liable for prosecution therefor and the Owner -may
terminate this Sublease.
15. Lessee shall take good care of the leased premises and At.th@; :
end or other expiration of the tern of this Sublease shall. deliver., said
premises in good order and condition, reasonable wear and tear'"exgppte& ,
Lessee may make alterations, additions or improvements in 'the dock'- areal;!`?:
provided Lessee shall first obtain from the Owner and the Town itB Wxitr":
ten consent as 4...
to the planned alterations; additions or improvements; .• ,.
which consent will not be unreasonably withheld. All alterations;'•pdd1:-*.'.n
tions or improvements made by the Lessee during the course of its.oeeu- :
pancy or the term of this Sublease shall'inure to the benefit of and
the property of the Owner upon the termination of the Sublease, and such`.
alterations,' additions and improvements will be surrendered:with_ tq';;.•.::,;:
premises when the same are surrendered by the Lessee to the .Owner
h
16. Lessee at its own cost and expense shall. comply with all`'rules_:
and regulations and requirements of the Owner, the Town, the State, of,
North Carolina, and -the United States, which are applicable to the dock-.
areas for the prevention or abatement of nuisances or other grievances
arising out of the manner of the occupancy of the dock aras during this
sublease by Lessee. The Owner shall have the right to enter upon* the
dock areas during the term of this sublease at all reasonable hours for.
the purpose of examining and inspecting the same.
.
4 -

17. The Lessee shall have no authority to assign this Sublease
without first obtaining the written consent of.the Owner, which
consent shall. not be unreasonably withheld: Lessee shall not
or use or permit or suffer to be occupied or used the dock areas.
any business or.purpose which wouldviolate zoning laws of the To Wn
or which may constitute a hazard on account of fire or other danger . ......
to the Owner and Town or its citizens.
18. Lessee acknowledges the responsibility of the Town and
Owner to provide to Branch Banking and Trust Company and Fairleigh
Dickinson two (2) mooring spaces for vessels not exceeding forty -five -':I.,."-,
(45) feet in length. The Lessee will post such signs and establish'
such rules and regulations so as to insure that such spaces are
continuously available.to such parties..
19. The Lessee agrees to provide priority status to the -guests..
of Owner's Inn for use of the property that is the subject of this
Sublease. The Lessee shall use its best efforts. to provide continuous
access to the dock area to the Owner's guests.
A:
IN TESTIMONY WHEREOF, the Owner has caused this Sublease'.to, be
cuted by its General Paktner, and Lessee has caused its seal to be affixed '*
hereon on the date hereinabove written.
INLET INN AfflSOCIATES, a North 'Caroling.
Limite r
By:
BEAUFORT WATERFRONT ENTERPRIZES' 'INC
By:
ATTEST:
Pres
%
I -e Secretarycretary 0
d The foregoing notwithstanding, the Owner
(AFFIX C08PORATE SEAL) reserves the right to modify the terms of this
Sublease in accordance with the requests of its
mortgagee(s).- If Lessee does not accept such
modifications, this Sublease shall terminate..
INITIALS.-.
see - 5 -

STATE OF NORTH CAROLINA - County of
I, a Notary Public for th above County and State, do her eby certify
that HAYWOOD WEEKS JR., personally appeared before me this day and .acknowledged'.
the execution of the foregoing instrument.
WITNESS'my hand and official stamp or seal, this day of
Notary Public
My commisssiori.expires: `•
My ovuumaawn rxNges ucwuer 16, 1968
it)TAIUAL STAMP/SEAL:
i
STATE OF NORTH CAROLINA - County of
I, a Notary Public for the above County and State, do hereby certify
that ;; ....
personally: appeared. before me this day and
acknowledged the execution of the foregoing instrument. �..."'R��'•,,:;.y.r,:
WITNESS my hand and official stamp or seal, this day of
If 1984.
Notary Public.'
My Commission expires: ?s'
NOTARIAL STAMP/SEAL
i
r,

g■
�I
1
H
EXHIBIT A
Docks to be leased to
Beaufort Waterfront Enterprizes, Inc. .
r

NORTH CAROLINA
CARTERET COUNTY -
AGREEMENT
THIS AGREEMENT AND AMENDMENT TO LEASE, made and entered
into this a74A day of 14ar7a_sue , 1987, by and between the
Town of Beaufort, a Municipal Corporation, hereinafter called
"Owner" and Beaufo.rt Waterfront Enterprizes, Inc:, a North
Carolina Corporation with its principal office or place of busi-
ness in Beaufort, North Carolina, hereinafter referred to as
"Lessee";
W I T N E S S E T. H:
THAT WHEREAS, on or about August 29, 1978, Owner entered
into a Lease with Haywood Weeks, Jr., which Lease is recorded in
Book 416, Page 308, Carteret County Registry, which Lease by
reference, is incorporated herein; and
THAT WHEREAS, said Lease was assigned on or about
November, 1979 by Assignment recorded in Book 433, Page 470,
Carteret County Register of Deeds, wherein said Lease was assigned
to Beaufort Waterfront Enterprizes, Inc., the above named Lessee;
and
THAT WHEREAS, the Town of Beaufort leased certain dock
space to Inlet Inn Associates, a North Carolina Limited
Partnership, on or about March 19; 1984, and a Memorandum of said
Lease was recorded in Book 495, Page 253, Carteret County .
Registry, which Memorandum of Lease is incorporated herein by
reference. That there were two subsequent Subleases, wherein the
property or dock area, as described in the Memorandum of Lease in
Book 495,.Page 253,.Carteret County Registry, was sublet to
Beaufort Waterfront Enterprizes, Inc., and later by Amendment of
Sublease dated August 5, 1985, the parties heretofore amended said
Lease, all documents are incorporated herein by reference; and
THAT WHEREAS, the initial terms of said Lease had a pri-
mary term which was to expire on August. 31, 1,988. That there were
renewable'opticns.contained in said Lease and subsequent
Amendments so that said Lease could be extended for an additional
ten year period, through and including -August 31, 1998, if the
Town received the authority to do so by act of the North Carolina
Legislature; and
THAT WHEREAS, the North Carolina Legislature adopted
legislation which allowed the Town to lease the dock area as
described in the above referenced Lease through and including
August 31, 1998. That the Town of Beaufort has heretofore met and
agreed to extend the Lease as hereinabove described through August
31, 1998, subject to the, same terms and conditions as contained in
those documents, as hereinabove set forth; and
THAT WHEREAS, Lessee and Owner desire to have constructed
on property which is not embraced in said Lease a bath house for
men and women, for the boaters who use those facilities as
described in said Lease. At the present time, Lessee is using
certain facilities he had constructed in what was known as the old
Beaufort Police. Station on Front Street, and as soon as the
showers are complete that he' is constructing on the property as
hereinafter described, then Lessee shall turn said police station
property, together with the facilities therefn, over to Owner; and
THAT WHEREAS, the area that will now be incorporated in
the Lease as, hereinabove set forth is that tract of land being
more particularly described as follows:
BEGINNING at a point in an agreed line between
the Town of Beaufort and Sonny Geer, said
point being located S 33-37 W, 73.95 feet from
the southern right-of-way line of Front Street;
thence from said point of beginning, S 56-23 W,
22.29 feet to a concrete seawa-11; thence with
.said seawall, S 33-37 W, 33.15 feet to a point
at the corner of said seawall; thence N 56-23 W,
22.29 feet to a point; thence N 33-37 E, 33.15

-2-
feet to•the POINT OF BEGINNING, containing
738.91 sg. ft. all bearings true meridian.
It is further agreed and understood that•.the above
described area shall be incorporated into the property of the
Lease as hereinabove set forth, and that each and every Lease
shall expire on August 31, 1998'.
THEREFORE,•in.consideration of Lessee bulkheading,
filling and constructing the bathhouse as hereinabove set forth
and other valuable considerations, and the premises hereinabove
set forth, the above described property is herein incorporated
into the Lease as hereinabove set forth subject to the terms and
conditions as contained therein, and that same, all of said Lease
shall expire on August 31, 1998, unless said.agreements are
hereinafter extended,. It is 'further agreed and understood that
Lessee's requirement to maintain insurance 'as set forth in the
original Lease'between Lessee and Owner,.shall apply to this pro-
perty subject to this Lease, and shall remain in full force and
effect. That further; the above described property and the
building to be constructed by Lessee will be subject to the main-
tenance -requirements of the original Lease as contained in
Paragraph 5, and all terms and conditions as contained in
paragraph 5 shall apply to Lessee as if hereinafter fully set
forth. All other terms and conditions as contained in said Lease
shall remain in fullforce and effect.
IN WITNESS WHEREOF, the Town of Beaufort had caused this
Amendment of Lease to.be executed by'its Mayor and attested by it:
Town Clerk, sealed with the seal of the Town of. Beaufort, all by
the authority given by the Board of Commissioners for the Town an(
Lessee has caused its hand and seal to be 'placed thereon on the
date above written.
ATTEST: SEAL
A. C. Blankenship,
Town Clerk
TO OF BEAUF RT
;
BY : /�G ll�
Jyce P. Fulfor&,
M�ayor /
BEAUFORT WATERFRONT
EN E PRIZES, IN .�'
BY:
Haywood Weeks, Jr.,
President
v

-3-
NORTH CAROLINA
CARTERET COUNTY
I, i .cc��. ��%Ci a Notary Public of the
County and aforesaid, dertify that A. C. Blankenship per- .
sonlally came before me this day and acknowledged that he is Town
Clellk of the Town of Beaufort, a Municipal Corporation, and that
by uthority duly given and as the act of the Town, the foregoing
instrument was signed in its name by its Mayor, sealed with its
Tow Seal and a.ttested by him a.s Town Clerk.
Witness my hand and notarial seal., this %- day of
1987. .
\ '/ i c�
)gdtary Public
My Pommission Expires:
NOR H CAROLINA
CAR ERET COUNTY
I,' A/%GGY C_ &mje'/15 ,' a Notary Public of the
Cou ty and State aforesaid, certify that �rF,.N E , d eu,4xEy
per onally came.before me this day and acknowledged that he
is Secretary of Beaufort Waterfront Enterprizes,
Inc., a North Carolina Corporation, and that by authority duly
given and as'the act of the corporation, the foregoing instrument
was signed in its name by its_ President, sealed with
its corporate seal and attested by -A" as its
Sec etary.
Wit eR ss my hand and notarial seal, this day of
LZ&A" .j , 1987.
My
Public
;yriOTA(,y :,
ssion";--rpx.)iaLIC'
a.� per'... •:iy,�;

STATE OF NORTH CAROLINA
COUNTY OF CARTERET EXTENSION OF LEASE
THIS AGREEMENT, made and entered into as of this 1st day of
September, 1993, by and between BEAUFORT WATERFRONT ENTERPRISES,
INC., herein called TENANT, and the TOWN OF BEAUFORT, a municipal
corporation, herein called LANDLORD;
WITNESSETH THAT:
On August 29, 1978, LANDLORD leased to Haywood Weeks, Jr., the
docks in the Urban Redevelopment Plan of the Town of Beaufort, and
on November 21, 1979, this Lease was assigned by Haywood Weeks,
Jr., to TENANT, and the obligations of the.TENANT under the Lease
were guaranteed by Haywood Weeks, Jr.
TENANT has requested LANDLORD to extend the Lease for an
additional five (5) years to expire. on August 31, 2003 and to
adjust the rent for the remaining term of the Lease and the
extended term of the Lease to provide for an.' annual rental of
TWENTY-NINE THOUSAND FOUR HUNDRED FORTY AND 00/100 ($29,440.00)
DOLLARS, with an annual adjustment based on the Consumer Price
Index, and LANDLORD has agreed to do so upon condition that TENANT
abide by all other terms and conditions of the Lease, pay the rent
timely when due, improve the docks in the demised area by a sum of
not less than SIXTY THOUSAND AND 00/100 ($60,000.00) DOLLARS and
submit evidence to LANDLORD of .such improvements and the costs
thereof, and open TENANT'S books to examination by agents or
representatives of the LANDLORD beginning in 1998 at the beginning
of that Lease year.
'Commissioners dul
its
intent to extend the Lease and modify it in accordance with the

2
preceding paragraph, caused a publication of notice of such intent.
to be made, held a public hearing on the question, and following
the public hearing approved the extension of the Lease with the
further qualification that during each year of the Lease, including
its extended term, the rent will be adjusted upward in accordance
with the Consumer Price Index published by the United States
Department of Labor, but not providing for an adjustment downward
in the event of:a'decrease in the consumer Price Index.
NOW, THEREFORE, in consideration of the premises and the sum
of TEN ($10.00) DOLLARS by TENANT to -LANDLORD paid, the receipt of
which is hereby' acknowledged, LANDLORD and TENANT do agree as
follows:
I. The Lease between LANDLORD and TENANT referred to above
is hereby amended to provide that it shall be extended through and
including August.31, 2003.
2. The rental to be paid by TENANT to LANDLORD beginning with
the Lease year from September 1, 1993 to August 31, 1994, shall be
TWENTY-NINE THOUSAND FOUR HUNDRED FORTY AND 00/100 ($29,440.00)
DOLLARS, which rental shall be paid in monthly installments in
advance of TWO THOUSAND FOUR HUNDRED FIFTY-THREE AND 34/100
($2,453.34) DOLLARS beginning on or before September 1, 1993 and
continuing on or before the first day of each and every calendar
month thereafter during the Lease term and any authorized extension
thereof.
3. TENANT shall make improvements to the docks and piers in
the demised area to change one (1) or more of these docks and piers

3
to floating docks at a cost of not less than SIXTY THOUSAND AND
00/100 ($60,000.00) DOLLARS.
Before embarking upon such
improvements, TENANT shall submit to LANDLORD plans and
specifications for such improvements and obtain LANDLORD rS.approval
thereof, which approval shall not unreasonably be: withheld . TENANT
shall submit to LANDLORD evidence satisfactory to LANDLORD that the
cost of such improvements have at least equaled SIXTY THOUSAND AND
00/100 ($60,000.00) DOLLARS. These improvements shall be completed
on or before the 31st day of August, 1998, upon failure of which
this Extension of Lease shall be null and void without further
action by LANDLORD.
4. During each year of the 'Lease term and any authorized
extension thereof beginning with the Lease year starting on
September 1, 1994, the rental to be paid by TENANT to LANDLORD
shall be adjusted upwardly in accordance -with the increase with the
Consumer,Price Index for All Items for All Urban Consumers (1982_
84=100) published by the Bureau of Labor Statistics of the United
States Department of Labor (hereinafter called the "Index").
Rental for each Lease year shall be determined as follows:
A. (1) As promptly as practicable after the end of each
lease year of this Lease (hereinafter sometimes called the "Lease
Year", the Lease Year ending August 31, 1994 being called the "Base
Year"), LANDLORD shall compute the increase, if any, in the cost of
living based upon the Index.
"vs' me first
month of the Base Year, shall be the "Base Index Number" and the

4
corresponding Index number for the first month of the Lease Year
for which rent is being determined shall be the "Current Index
Number."
(3) The Current Index Number shall be divided by the
Base Index Number. From the quotient thereof,* there shall be
subtracted the integer 1, and any resulting positive number shall
be deemed to be the percentage of increase in the cost of living.
(4) The percentage of increase multiplied by TWENTY-
NINE THOUSAND FOUR HUNDRED FORTY AND 00/100 ($29,440.00) DOLLARS,
the annual rent specified for the Base Year, shall be the increase
determined by the requirements of this provision regarding rental
for the Lease year for which rent is being determined.
(5) LANDLORD shall, within a reasonable time after
obtaining the appropriate data necessary for computing such
increase, give the TENANT notice of any increase so determined, and
the LANDLORD'S computation thereof shall be conclusive and binding,
(but shall not preclude any adjustment which may be required in the
event of a published amendment of the Index figures upon which the
computation was based),. unless the TENANT shall, within sixty (60)
days after the giving of such notice, notify LANDLORD in writing of
any claimed error therein. Any dispute between the parties as to
any such computation shall be determined by arbitration, with
LANDLORD selecting one (1) arbiter, TENANT' selecting one (1)
arbiter, and these two (2) arbiters selecting a third arbiter, and
the decision of any two (2) or more arbiters shall be final and
binding upon the parties, and LANDLORD and TENANT shall pay equally

5
any costs involved in such arbitration.
B. The rent, as so determined (i.e., the annual rent
specified for the Base Year and the "increase" calculated in
accordance with the provision for calculating rent for all Lease
Years except,the Base Year) shall be the rental to be paid during
the Lease Year for which rent is then being calculated. Any rent
due for any period which elapses before the LANDLORD has provided
TENANT with the new rent figure will be due and payable within
thirty (30) days after TENANT has notice of the new rental figure.
In.the interim, TENANT will continue to pay the monthly rental
which has been paid up until that time. If it is later determined
that the rental as calculated by LANDLORD is erroneous, the party
found to owe the other any sum as additional rent or as a refund
for rent overpaid shall make payment of such sum within thirty (30)
days of notice of such sum being due.
�. C. If publication of the Index shall be discontinued, the
parties hereto shall thereafter accept comparable statistics on the
cost of living as they shall be computed and published by an agency
of the United States of America or by a responsible financial
i
periodical of recognized authority then to be selected by the
parties hereto, or, if the parties cannot agree upon a selection,
by arbitration as provided above. In the event of (1) .use of
comparable statistics in place of the Index as above mentioned, or
(2) publication of the Index figure at other than monthly
intervals, there shall be made in the method of computation herein
`� provided for such revision as the circumstances may require to

0
carry out the intent of this provision regarding rental adjustment,
and any dispute between the parties as to the making of such
adjustment shall be determined by arbitration as above provided.
5. Beginning with September 1, 1998, TENANT shall make
available to LANDLORD all of TENANT'S books and records regarding
its income and expenses and all' other business records of its
operations at and from the leased premises. LANDLORD may inspect
or audit all such records at all reasonable times during regular
working hours.
6. Except as herein specifically or by necessary implication
modified, the aforesaid Lease dated August 29, 1978, as amended by
the Assignment dated November 21, 1979, and the Agreement and
Amendment of Lease dated August 27, 1987, shall remain in full
force and effect.
7. The guarantee of Haywood Weeks, Jr., dated November 21,
1979 shall remain in full force. and effect, and Haywood Weeks, Jr.,
executes this Agreement for the purpose of assenting thereto and
for the purpose of guarantying the TENANT'S performance under the
Lease and all modifications thereof, including this Agreement.
IN WITNESS WHEREOF, TENANT has executed this instrument in due
and lawful manner the day and year first above written, LANDLORD
has caused this instrument to be executed by.its Mayor and attested
by its Town Administrator and its seal to be hereto affixed all by
order of its Board of commissioners duly given in meeting duly
assembled on September 13, 1993, and Haywood Weeks, Jr., has
' executed this Agreement as Guarantor the day and year first above

V ,
� I
7
written, all in triplicate originals, .one of which is retained by
each of the parties.
ATTEST:
Town. Adminis rator
BEAUFORT WATERFRONT ENTERPRISES, INC.
By: i�.4 7 �/�
Pre 1 ent '
TOWN OF BEAUFORT
By: fia ,:K, P.Cj7)UA
mayor I r
S L)
Haywood Weeks, Jr.

rr
i v
j.
:r 8
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, a otary Public of said County and State do hereby certify
that ds- /� F personally appeared before me
this date and acknowledged that he is Secretary of Beaufort
Waterfront Enterprises, Inc., --a-corporation, the foregoing
Instrument was signed in its name by its President, sealed
with its corporate seal, and attested by herself/himself as its
Secretary.
WITNESS my hand and Notarial Seal this ,. h��Am 0'•,,d ay of
993.
ly
My commission expires: 9 9 chi.=
? No ry Public Vq
: O
s
STATE OF NORTH CAROLINA ��'•��0� •••...•••• G ��.`�
COUNTY OF CARTERET '•••l NTy,
Y'ODP gnuua�`
This 44� day of Septsmber, 1993, personally came before me,
a Notary Public of said County and State, Gordon M. Davis, who
being.by me duly sworn, says that he knows the common seal of said
Town of Beaufort, and is acquainted with Kathryn Cloud, who is the
Mayor of said Town; that he the said Gordon M. Davis, is the duly
appointed and designated Town Administrator of said Town, .and saw
the said Mayor signed the foregoing instrument, that he the said
Administrator signed his name in attestation of the execution of
said instrument in the presence of said Mayor of said Town.
WITNESS my hand and Notarial Seal this the t 2 day of
1993.
My commission expires:
41
tary Pub 1c
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, a Notary Public of said County and State do hereby certify
that Haywood Weeks, Jr., personally appeared before me this date
and acknowledged due execution of the foregoing instrument.
WITNESS my hand
.SegjMbe� 1993.
My commis ion expires
7 W
and Notarial Seal
CI
o.- NTY, _a
of

STATE OF NORTH CAROLINA
BILL OF SALE AND ASSIGNMENT
COUNTY OF CARTERET
This Bill of Sale and Assignment executed this day of
May, 1999, by Inlet Inn Associates, a North Carolina Limited
Partnership, P. O. Box 21, Winston-Salem, North Carolina, herein
"Seller"; and Beaufort Waterfront Enterprises, Inc., a North
Carolina.Corporation, 500 Front Street, Beaufort, North,Carolina
28516, herein "Buyer";
W I T N E S .S ET H:
WHEREAS, Seller is currently the Tenant and Lessee of a tract
of. land on Taylor's Creek, Beaufort, North Carolina, on which
Tenant has constructed bulkheading, docks and other improvements,
which tract of land is leased from the Town of Beaufort to Seller
herein under a lease dated January 31, 1984, and said tract of land
is described as Tract 2 therein;
WHEREAS, said Lease Agreement originally provides for a lease
term of twenty-five (25) years beginning February 1, 1984, and
extending through January 31, 2009, with an Amendment to the Lease
Agreement dated November 13, 1984, granting to Lessee Inlet Inn
Associates the right to renew the lease for two (2) /additional
terms of ten (10) years each, and, one final term of seven (7)
years, so that in the event the options to renew were exercised,
the lease on Tract 2 would extend through January 31, 2036, in
accordance with the original Lease Agreement, as amended;
WHEREAS, Sellers desire to assign and transfer Seller's
leasehold- n-ueres-u-im-TracL�sa ±-Lease-Agreement; as-we-l-l-as
convey and transfer all docking facilities and improvements

thereon, to Buyer herein, based upon payment by Buyer to Seller of
a purchase price of $110,000.00, and Buyer thereafter proposes to
contract with and lease from the Town of Beaufort Tract 2 on a long
term basis, conditioned upon Seller and the Town of Beaufort
entering into an Amendment to said Lease Agreement which deletes
Tract 2 from Seller's lease with the Town of Beaufort, and
terminates Seller's rights and interests in Tract.2;
NOW, THEREFORE, in consideration of the sum of $110,000.00 and
other valuable considerations paid by Buyer to Seller, the receipt
and sufficiency of which are hereby acknowledged, Seller and Buyer
have agreed as follows:
1. Assignment of Leasehold Interest. Subject to the Town of
Beaufort's consent to this assignment and the Town entering into a
separate long term lease hereafter with Buyer for the waterfront
tract described herein, Seller does hereby assign and convey to
Buyer all of Seller's leasehold interest in Tract 2 as described in
that Lease Agreement dated January 31, 1984, as amended, described
as follows:
On the southside of Front Street and being all of water
Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Town,.
Carolina, to include all riparian and littoral rights incident
thereto, and to consist of the land and riparian and littoral.
rights incident thereto on the south side of the Front Street
right of way, and lying between the east line of Queen Street
and the west line of Pollock Street, except for the 66 foot
tract of land on the south side of Front Street owned by
Robert H. Stevens, which consists of the west one-half of Lot
260, and the east one-half of Lot 261, Old Town. Tract 2 is
the same real property conveyed to the Town of Beaufort by
deeds from John and Jean Campabosso recorded in Book 483, Page
361, from Carteret Services, Inc., to the Town of Beaufort
rec�rd€d—I-ff-266k--3-5� F—S—f1ia ,
2

Jr., to the Town of Beaufort in Book 393, Page 294, Carteret
County Registry, and Deed of Easement from Branch Banking and
Trust Company to the Town of Beaufort, with regard to water
Lots 263, 262 and the eastern one-half Lot 261, Old Town,
Beaufort, North Carolina.
2. Transfer of Equipment, Improvements, Permits and Related
Assets. In connection with the assignment of the leasehold
interest for the real property described in Paragraph 1, Seller
does hereby grant, convey, transfer and sell to Buyer and its
successors in interest and assigns, all of the following fixtures,
equipment, permits, and other tangible and intangible_ personal
property as follows:
a. All bulkheading, pilings, docks, and floating apparati
owned by Seller and located within the boundaries of said real
property as described in Paragraph 1 above;
b. All electrical and water lines, connections and equipment
to the extent that Seller owns or has an interest in the same;
C. All State and Federal dredging, construction and
maintenance permits for the docks, entrance ways, channel into the
dock areas to the extent that Seller is authorized to transfer and
assign such rights under said permits;
d. All subleases and boat slip rentals for any of the docks
or slips within said dock areas as described in Paragraph 1 above,
with revenues from the slips being effective only as to rentals and
revenues to be paid on and after the effective date of this
assignment and with Seller reserving any rents which are due Seller
for Seller's ownership and occupancy of the dock improvements prior
to the effective date of this assignment.
3

r
3. Amendment to Existing Town Lease. Seller agrees to enter
into an amendment with the Town of Beaufort deleting the real
property described in Paragraph 1 above from Seller's lease with
the Town of Beaufort, and to execute such documents as may be
deemed necessary in order for the Town to enter into a direct lease
for the dock, improvements, and real property' described in
Paragraph 1, to Buyer herein.
4. Condition of Improvements. As Buyer. has been subleasing
the tract of land described in Paragraph 1 together with the docks
and improvements thereon, from Seller since January, :1984, and
Buyer has infinite knowledge as to the shape and condition of said
real property, docks and improvements, then Seller is transferring
and conveying said docks and improvements "as is", and Buyer hereby
accepts said docks, improvements, equipment "as is".
TO HAVE AND TO HOLD said leasehold interest and personal
properties described herein unto the Buyer and its successors.and
assigns in as full a manner as Seller is authorized and empowered
to convey the same. Said assignment of Seller's leasehold interest
will be subject to the remaining terms and conditions of the Lease
Agreement between the Town of Beaufort and Seller dated January 31,
1984 as amended, until Seller's leasehold interest in said .tract on
the Beaufort waterfront is terminated, and said tract is then
leased on a long term basis to Buyer.
Seller covenants with Buyer that Seller owns and possesses
said leasehold interest, improvements, permits and other assets
being transferred or assigned herein, that Seller has the right to
4

v Y
i
convey or assign the same, that the same are free and clear of all
liens and encumbrances, except as set forth herein, and that Seller
will warrant and defend the title thereto against the lawful claims
of all persons whomsoever.
Said leasehold interest and improvements are presently
assigned and mortgaged to Banc One, successor to First American
Savings Bank, first lienholder, a second lien mortgage of Seller's
leasehold interest on the waterfront tract to the 'Neuse River
Development Authority, Inc., and a third lien mortgage of Seller's
leasehold interest to the Town of Beaufort in connection with a
UDAG loan. Seller further warrants and represents to Buyer that it
will have paid off and satisfied all three mortgages prior to or
concurrent with the execution and delivery of this Bill of Sale so
that upon the effective date and delivery of this Bill of Sale,
Seller's leasehold interest and the assets being conveyed herein,
shall be free and clear of all liens and encumbrances.
IN WITNESS WHEREOF, Inlet Inn Associates, a North Carolina
Limited Partnership, has caused this Bill of Sale to be executed by
its general partners on the day and year first above written.
5

INLET INN ASSOCIATES, a North
Carolina Limited Partnership
By: (SEAL)
David Weil
General Partner
Bv: (SEAL)
DeWayne H. Anderson
General Partner
By: (SEAL)
William G. Benton
General Partner
STATE OF NORTH CAROLINA
COUNTY OF
I, a Notary Public for the County and State aforesaid, certify
that David Weil, DeWayne H. Anderson, and William G. Benton,
General Partners of Inlet Inn Associates, a North Carolina Limited
Partnership, personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
Witness my hand and official stamp or seal, this the
day of May, 1999.
My Commission expires:
c:\docs\resident.sal\inletinn.bill
2
Notary Public
EXECUTED COPIES OF
THISDOCUMENTARE
MATTERS OF RECORD

S
i
3E
q
0
0
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
AGREEMENT, MODIFICATION
AND EXTENSION OF LEASE
THIS AGREEMENT, MODIFICATION AND EXTENSION OF LEASE, made
and entered into as of the It:!2--day of May, 1999, by and between
the TOWN OF BEAUFORT,- a municipal corporation (hereinafter referred
to as '"Landlord"); and BEAU FORT WATERFRONT ENTERPRISES, INC. W(hereinafter;�referredtto.; as+�., e!r nt" W I T N E S S E T H
WHEREAS, Landlord entered into a Lease with Haywood
Weeks, Jr. dated August 29, 1978, which Lease was assigned by
instrument dated November 21, 1979 to Tenant (the "Lease"); and,
WHEREAS, Landlord and Tenant entered into a Lease
Agreement dated August 27, 1987 (the "Bathhouse Lease"); and,
WHEREAS, Landlord and Tenant entered into an Extension of
Lease dated September 1, 1993 (the "Lease Extension"); and,
WHEREAS, the property covered by the Lease, the.Bathhouse
Lease and the Lease Extension is generally known as the original
Beaufort Docks; and;
WHEREAS, Landlord leased certain property lying to the
east of the original Beaufort Docks to Inlet Inn Associates by
dodumentg+dated.:iJanuary31>q 1984q which< propertyp.wasnb sed, by
Inlet Inn Associates to Tenant by document dated April' 1- 1984,
the property covered by such lease and sublease being generall}
known as the Inlet Inn'Docks; and,
t
WHEREAS, Tenant has agreed to purchase from Inlet Inr
Associates all of its interest in the Inlet Inn Docks and to conve)
same to Landlord; and, .
WHEREAS, in consideration of the foregoing conveyance of
the Inlet Inn Docks by Tenant to Landlord, Landlord has agreed tc
,
(the "Docks Lease") as is hereinafter more particularly set forth.

A
•yY
NORTH CAROLINA
CARTERET COUNTY
I, p(Lggy L7-, Y p��, , Notary Public
the county and Staff Aforesaid, cer 'fy that
F\-ykvm-rj;� ;�Jj✓ , personally came before me This
day and acknowledged that (s) he is the ,0 � of the
TOWN OF BEAUFORT and that by authority duly —fig ven, and as
the act of t �P wn,. the foregoing instrument was signed in
its name by K. n r �' �Lc1y_, as the QvnV
of the TOWN OF BEAUFORT sealed with its official se 1 and
attested by him as the M C�,j6✓ of the TOWN OF BEAUFORT.
Witness my hand and notarial seal, this the
a� day of q , 1999.
i
%%�� �� N y Public' "
My Commission Expires: a"AlliJl� Kot a fzv
NORTH CAROLINA
CARTERET COUNTY
I, a Notary Public of the County and State .
aforesaid, certify that, e- rni.Personally came before
me this day and acknowledged that _ he'is Secretary of
BEAUFORT WATERFRONT ENTERPRISES, INC., a North Carolina
corporation, and that by authority duly given and. as the
act of the corporation, the foregoing instrument was signed
in its name by its President, sealed'with its
corporate seal and attested by him/her as its
Secretary:
Witness my hand and official stamp or seal,
this r day of -Harp, 1999. 1
rvozary ruAl��
My Commission Expire .`aD +++++P+Ggpi ,
r I'sPX�P..........
• �A
r �A®IARio I
0.
U B OG
i �..........
4

0
Lying and being in the Town of Beaufort, Carteret County, North
Carolina and being more particularly described as follows:
Lying and being on the south side of Front Street and being all of
Water Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to'consist of the land and riparian and littoral
rights incident thereto on the south side of the Front Street.right
of way and lying between the.east line of Queen Street and the west
line of Pollock Street except for the 66 foot tract of land on the
south side of Front Street owned by Robert H. Stephens which
consists of the west one-half of'Lot 260 and the east one-half of
Lot 261, Old Town.
90-0064(A)
NBMAIN\364193.1
7
Exhibit A

' J� 73oz-4g9l F 3 Tax Parcel Number: Y
Prepared by: Richard t.� tanley, P. O. Box 150, Beaufort, NC 28516
Mailed After Recording to: Beaufort Waterfront Enterprises, Inc.,
Brief description for Index: Beaufort Township
NORTH CAROLINA QUITCLAIM DEED AND BILL OF SALE
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
This Deed and Bill of Sale ma this Ist day of June, 1999, by and
between Inlet Inn Associates, North Carolina Limited Partnership,
Grantor(s), and Beaufort WaterfrontEnterpxises, Inc., a North Carolina
Corporation, Grantee(s) of,;
WITNESSETH:l
That said Grantor(s), for and in consideration of the sum of Ten
and 11/100 ($10.00) Dollars(s) to their in hand paid, the receipt of
which is hereby acknowledged, have remised and by these presents do
remise, release, and forever quitclaim unto the Grantee(s) and their
heirs and assigns all right, title, claim and interest of the said
Grantor(s) in and to a certain tract of parcel of land lying and being
in the County of Carteret, and State of North Carolina, in Beaufort
Township, and more particularly described as follows together with all
improvements and fixtures thereon..
See Exhibit A attached hereto and incorporated herein by reference.
TO HAVE AND TO HOLD the aforesaid tract or parcel of land and all
privileges thereunto belonging to the Grantee(s) and their heirs and
assigns, free and discharged of all right, title claim, or interest of
the Grantor(s) of anyone claiming by, through, or under them.
IN TESTIMONY WHEREOF, said Grantors) have hereunto set their hand's
and seals the day and year first above written.:
INLET INN CIATES,
06/07/99 A NORTH LIN LIMI:TEH PARTNERSHIP
$220.00 By: r„V1 (SEAL)
STATE OFH David Weil, General Partner
I?jJNA Real Estate
Excise Tax
STATE OF NORTH CAROLINA COUNTY OF CARTERET
I, a Notary Public of the County and State aforesaid, certify that
David Weil, General Partner of Inlet Inn Associates, a North Carolina
Limited Partnership personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.
W#tes5 my hand and official seal this the 1st day of June, 1999.
NOTARY ,PUBLIC (SEAL)

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
DEED AND BILL OF SALE
This Deed and Bill of Sale, made as of the day of
June, 1999, by and.between Beaufort Waterfront Enterprises, Inc.,
a North Carolina corporation ("Grantor"), and the Town of Beaufort,
a North Carolina municipal corporation ("Grantee");
W I T N E S S E T H:
That the Grantor, for and in consideration of the sum of
Ten Dollars ($10.00) and other good and valuable consideration to
it paid, the receipt of which hereby is acknowledged, has remised
and by these presents does remise, release and forever quitclaim
unto the Grantee, its successors and assigns, all right, title,
claim and interest of said Grantor in and to a certain tract of
land lying and being in Beaufort Township, Carteret County,
North Carolina, together with all improvements and fixtures
thereon, said parcel to be more particularly described as set forth
on'Exhibit A attached hereto and incorporated herein by reference.
To have and to hold the aforesaid parcel of land and all
privileges thereunto belonging to the Grantee and its successors
and assigns, free and discharged of all right, title, claim, or
interest of Grantor therein.
IN TESTIMONY WHEREOF, Grantor has caused this instrument
to be properly executed as of the day and year first above written.
Beaufort Waterfront Enterprises, Inc.
By:
ATTEST:
Secretary
resident
EXECUTED COPIES OF
THIS DOCUMENT ARE
MATTERS OF RECORD

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, , a Notary
Public in and for said County and State, do hereby certify that
personally appeared before me this
day and acknowledged that he is Secretary of BEAUFORT WATERFRONT
ENTERPRISES, INC., a corporation, and that by authority duly given
and as the act of the corporation, the foregoing instrument was
signed in its name by its President, sealed with its corporate
seal, and attested by himself as its Secretary.
WITNESS my hand and.-hotarial seal, this the day of
, 99.
Notary Public
My Commission Expires:
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
The foregoing certificate of
a Notary Public of said County and
State, is certified to be correct. This instrument was presented
for registration this day and hour and duly recorded in the office
of the Register of Deeds of Carteret County, North Carolina, in
Book , Page
This day of r 1999, at
o'clock .M.
Register of Deeds
NBMAIN%365977.1

Lying and being in the Town of Beaufort, Carteret County, North
Carolina and being more particularly described as follows:
Lying and being on the south side of Front Street and being all of
Water Lots 258, 259, the west one-half of 260, the east one-half of
261, and all of Lots 262 and 263, Old Town, Beaufort, North
Carolina, to include all riparian and littoral rights incident
thereto, and to consist of the land and riparian and littoral
rights incident thereto on the south side of the Front Street right
of way and lying between the east.line of Queen Street and the west
line of Pollock Street except for the 66 foot tract of land on the
south side of Front Street owned by Robert H. Stephens which
consists of the west one-half of Lot 260 and the east one-half of
Lot 261, Old Town.
Exhibit A
90-0064 (A)
NBNAIN\364193.1

e.
Rfax-IP • Pa 2/4
05/21/2003 16:16 2527266974 KIRKMAN
s�uFORr
05/21/2003 16:40 2527283982
TOWN OF B EAINORT
2l5 Pollock Street, P.0.13OX 390
Beaufort, N.C. 2 M16
[phone], [phone] fax
www.beaufortnc.org
STATE OF NORTH CAROLINA
couNTY OF CARTERE .
LEASE MODUICATION; AND EXTENSION AGREEMENT
PAGE 02/04
PAC•+-= 02
THIS TEASE MODIFICATION AND Mnl3NSIOPI AC,REENENT ('Ag='nt.)' is
entered into this the 12th day o£Fehmary, 2003, by and between BEAUFORT WATEWT-ON"
ENTERPRISES, INC. C essee"). and the TOWN OF BEAUFORT, a North CaroMA mi ulieipal
corps -&M C'Owner').
WITNESSETH.
WHEREAS, Owner and Haywood 'Weeks, Jr. executed a Lease dated August 241,197 3
and recorded in Book 416, Page 303 in the oJMce of the Register of Deeds of Carteret :ount:p
("Original Lease"), wherein Owner leased to Haywood Weeks, Jr. certain docks as described 12
the Lease; and,
WHEREAS, by Assignment dated November 21, 1979, recorded inBook 433, Pe go 47' 9
itt the office of rho Register of Deeds of Carteret County, Haywood 'Weeks, Jr. assigned his
interest as Lessee under the Original Leaser to Lessee; and.
WHEREAS, the -Original Lease has been amended and extended by: (1) an AmesAamt
ase to Ledated August 27,1997, recorded In Book 571, kage 424 in tbo office of the Roo ster r. f
Deeds of Carteret County; (2) an Odension of Lease dated September 1, 1993; and, (3) 81
Agreement, Modification and Extension of Lease dated May, 26. 1999 (the Original 'Lease mi
all previous amendments, modifications and extensions thereof are referred to hereinafter as th;
"Lease') ; and,
WHEREAS, said Lease includes the current docks shown on the attachment to (:AA7.'k
Permit No.1-03 dated Jatmary 13, 2003 and issued to the Town of 13eaufort and all other dock s
described in the Lease (all premises subject to the Lease collectively referred to hereinafter as tkm
"Premises"); and,

i
' Rfax-IP • Pg 3/4
05/21/2003 16:16 2527266974 KIRKMAN PAGE 03/84
EDLnRT PAGE a3
Q5/21/2®93 152.40 2627293982
Q,/MUAS,tgwehas agreed to experATwoHmmdred Fity Thousw dandNo/l00Doilmus
5%000.00) for the construction of the project aPProved by said Permit is cousidmado'n of the
OOwnees sgreeramt to modhy and extend the Lease and Owner has agreed to do so.
NO W'fiffiRgFOV,E• for and is consideration of the premises, for and in considerstimofth,:
mutnmd promises and agreements set forth herein, and for and in consideration of other g rod anr.
valuable consideMHOB, the receipt and sufficiency of which are hereby acknowledged, Om nee' aw:l.
Lessee hereby agmze as follows:
1. Lessee ShAR expend Two Hundred Fifty Thousand and Na/100 Doha .
($250,000.00) to construct andhmmaiioating docks upontheportionoftbePrwniset
shown on (the"GAMAPcnff) Lesseasball
comme ee construction
v&hiaa time after the
demmence construction of the ep aced dodos thereafter
Shall diligently Pursue snob
demolition of the docks to be replaced and tbereaiier
cons tructionto completion. The fivamsg docks shall be constfucted according to the
plans tilled"SoundMarimeMating Dock System'.' (the"Plans' providedbyLessee
to Owner on February 11, 2003. The floating docks t
ball be deemed a part of the
Premises and shall be inchuled in the term "docks'' as used is the Lease. At the
termination of the Loose, Owner stall be Beamed the owner of rile floating docks.
2. Lessee gbsii deposit Two Hundred Fifty 'Thousand and No/lot? Dollars
($250,0o0.00) in good fluids huo an escrow account to be hold by Word for dts>nd Svm►etdn
P.A,asEscrow Agent pursumttosnfiscrewAgrev=Apro icing
of said funds during construction of the foregoing docks based upon invoices from
Lessee's contraetor(s) and/or supplier(s) submitted by Lessee to Ward and Smith,
P.A. Copies of all sucb invoices and paymetu disbursement records will be timely
provided to Owner by Ward amid Smmtb, P•A• and S=b invoices and payment
disbmuseaaentmordswillbe available to Owner at a» {y tinmeuponthewrGxenrcTw
of owner • In. the event Lessee "deianit on Its obligation to build the Boating
docks as provided herein, odw than for Treasons beyond the control Of Lessee, time
Owner moray complete the project according to the Plaids and the CAMA Permit and
Ward and Smith, P.A-, as escrow agent is speciilwlyauthorized by Lessee to paythe
Owner for completion oftbe project from the escrow account In the evcat Owner
OOmpletesthe project using the fiords ofLessee as provided iatbepreceding senDwo-,
this Agreement shall remain in full £once and effect as though Lessee completed
construction oftbe project
3. The term ofthe Lease hereby is m xteaded from the current expiration date of
August 31, 2008 to and including May 3I, 2012. .
4. Theammnalrent for the Premiseswill irmsec:inanamountofFourThousand
and No/100 Dollars: ($4,o00.00) per year (payable in the amount of Tlt= Hundred
Thirty Three mid 331100 Dollars per month) commencing upon the date of the
comple£wn. of, the project mramized by CAMA Perr* No. 1-03 and extending
through and including August 31, 2008.

• RfdiZIP 09 414
05/21/2003 16:16 2527266974 KIRKMAN PAGE 04/04
— — — — — — PAGE 04
15.40 2527203982
5. The unmet rout for the Premises wIll increase by b;e mthe amount of"ll+ra
T w..d Mallo/1ooDoUars (S36,000.00) Perff•�� September 1,2008 snit
•ThousandaadNO1100DoUsrspeir' � °
eon*nimg through and 1n�din6 MV 31, 2012.
rs ofa=LW rent to be naadeby Lessee'
. TbO air and all em s �sedw a Premises or other iimduetc
b.
Owner Sour x emee Po Qmd 10 the Lease.
7. Farcept as grain. Provided. each aad every pr,oysion of the Leamd effect m inc.� s
mvisions for rent escalation, shall ranam �smcttded by ak2itt� dooumerlt
of the term of am Lease as ex6endedber�5'
aoacated by Owner' and i-e'w'
has executed tid9 imatrumetd m due �d iavrfulma tnear tti a
E.J yy17 NESS WIiF.R>;OF• ties its to be execuW by its AW It
dmr and year first above writtm and Ov+aer has °ffm all order of its Hoard of Commitsionc rs
and attested by its Town Clerk and its seal W be affncc by
properly ,j•ivCn as of the day and Year first above written.
]BEAUPORT WATETtP1tONT��E3,W.C.
@E
ByjjayVmo Wd ks, 7r.., Preddent
T(
B1
a'ITRgT-
L)

LEASE MODIFICATION AND EXTENSION AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
THIS LEASE MODIFICATION AND EXTENSION AGREEMENT
("Agreement"), is entered into this the 8th day of September, 2003, by and between
BEAUFORT WATERFRONT ENTERPRISES, INC. ("Lessee"), and the TOWN OF
BEAUFORT, a North Carolina municipal corporation ("Owner").
WITNESSETH:
WHEREAS, Owner and Haywood Weeks, Jr. executed a Lease dated
August 28, 1978 and .recorded in Book 416, Page 308 in the office of the Register of
Deeds of Carteret County ("Original Lease"), wherein Owner leased to Haywood Weeks,
Jr. certain docks as described in the Original Lease; and,
WHEREAS, by Assignment dated November 21, 1979, recorded in
Book 433, Page 470 in the office of the Register of Deeds of Carteret County, Haywood
Weeks, Jr. assigned his interest as Lessee under the Original Lease to Lessee; and,
WHEREAS, the Original Lease has been amended and extended by:
(1) an Amendment to Lease dated August 27, 1987, recorded in Book 571, Page 424 in
the office of the Register of Deeds of Carteret County; (2) an Extension of Lease dated
September 1, 1993; (3) an Agreement, Modification and Extension of Lease dated
May 26, 1999; and a Lease Modification and Extension Agreement dated February 12,
2003 (the Original Lease and all previous amendments, modifications and extensions
thereof are referred to hereinafter as the "Lease"); and,
WHEREAS, said Lease includes the. remaining fixed dock located in front
of the building known as the "Beaufort House" and also located at the eastern end of the
Town's southernmost bulkhead on Taylor Creek and all other docks described in the
Lease (all premises subject to the Lease collectively are referred to hereinafter as the
"Premises"); and,

2
WHEREAS, Lessee has agreed to expend a minimum of Fifty Thousand
and No/100 Dollars ($50,000.00) for the construction of improvements to the aforesaid
remaining fixed dock in consideration of the Owner's agreement to modify and extend the
Lease and Owner has agreed to do so.
NOW, THEREFORE, for and in consideration of the premises, for and in
consideration of the mutual promises and agreements set forth herein, and for. and in
consideration of other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Owner and Lessee hereby agree as follows:
1. Lessee shall expend a minimum of Fifty Thousand and No/100
Dollars ($50,000.00) to construct and install a floating dock to replace the remaining
fixed dock located in front of the building known as the 'Beaufort House" and also
located at the eastern end of the Town's southernmost bulkhead on Taylor Creek. Lessee
shall commence construction of the floating dock within a reasonable time after the
demolition of the dock to be replaced and thereafter diligently shall pursue such
constriction to completion. The floating dock shall be constructed to the same standards
and quality as the floating docks constructed by Lessee in the Spring of 2003 and located
just to the west of said dock. The floating dock shall be deemed a part of the Premises
and shall be included in the term "docks" as used in the Lease. At the termination of the
Lease, Owner shall be deemed the owner of the floating dock
2. Upon (a) approval of the aforesaid construction by the Town of
Beaufort Historic Preservation Commission; (b) the awarding of a grant for funds to pay
a portion of the cost of the removal of the fixed dock and its replacement with a floating
dock as set forth herein (said grant funds together with the funds to be paid by Lessee as
set forth herein shall total a minimum of Ninety -Five Thousand and No/100 dollars
($95,000)); and (3) the issuance of a CAMA Permit for the construction set forth herein,
Lessee shall deposit a minimum of Fifty Thousand and No/100 Dollars ($50,000.00) in
good funds together with any grant funds which are made immediately available to
Lessee, but excluding grant funds made available to Lessee only on an incremental basis
during construction of the foregoing dock, into an escrow account to be held by Ward and
Smith, P.A. as Escrow Agent pursuant to an Escrow Agreement providing for
disbursement of said funds during construction of the foregoing dock based upon

3
invoices from Lessee's contractor(s) and/or supplier(s) submitted by Lessee to Ward and
Smith, P.A. Copies of all such invoices and payment disbursement records will be timely
provided to Owner by Ward and Smith, P.A. and such invoices and payment
disbursement records will be available to Owner at any time upon the written request of
Owner. In the event Lessee shall default on its obligation to build the floating dock as
provided herein, other than for reasons beyond the control of Lessee, the Owner may
complete the project. according to the Plans and the CAMA Permit and Ward and Smith,
P.A.,• :as escrow agent is specifically authorized by Lessee to pay the Owner for
completion of the project from the escrow account. In the event Owner completes the
project using the funds of Lessee as provided in the preceding sentence, this Agreement
shall. remain in full force and effect as though Lessee completed construction of the
project.
3. The term of the Lease hereby is extended from the current
expiration date of May 31, 2012 to and including June 30, 2013.
4. Except as herein provided, each and every provision of the Lease,
including provisions for rent escalation, shall remain in full force and effect until the
expiration of the term of the Lease as extended hereby or until amended by a written
document executed by Owner and Lessee. Without limiting the generality of this section,
and byway of illustration; the annual rent for the term extended by this modification and
extension agreement will include the $36,000.00 (pro -rated for June 2013) increase
provided in the February 12, 2003 lease modification and extension agreement between
the parties.
5. This lease modification and extension agreement is conditioned on
the Owner receiving a cash grant for dock replacement in the amount of approximately
$31,000.00 by September 1, 2004.

BEAUFORT WATERFRONT ENTERPRISES, INC.
0
4
IN WITNESS WHEREOF, Lessee has executed this instrument in due and
lawful manner the day and year fast above written and Owner has caused this instrument
to be executed by its Mayor and attested by its Town Clerk and its seal to be affixed all
by order of its Board of Commissioners properly given as of the day and year first above
written.
M.
By. -
ATTEST:

ADJACENT III PARIAN PRO ER');'X OWNER STXr1; EENT '
(1POR A NER/AVOORING PII.INGS/BO�1TC,11;7yBOATIIOUSF)
I lien:by certify that I own property adjacent to Town of Beaufort s
(Narao of Property Owner)
prolx:rty 10CAW at Dock in Front of Beaufort House on Front Street
(I.ni, Ttlock, Roadd eeic.)
on Taylors Creek in Beaufort
N.C.
(VVnierboriy) � ('i'owu and/or County)
Me has described to ilia, as shown below, the development he is proposing at that location,
and, T have no objections to his proposal. I understand that a pier/mooring
pilings/bonilift/boathouse must be set back a mininwm distance of fifteen feet (15') from my area
of riparian access unless waived by nte.
T &.not wish to waive the setback requirement
d4 wish to wive that setback requirement,,
------------------
D �'NCRII'TI )N AND/OR DRAWING OF PROPOSED DEVELOPMENT:
NEW ROMN& IWK (To be fllletl in by Melipidrtal prop sirs de .1 » e'rt
W141CH9EAACE�Dr4X�DOCK tt� ir���aiiorl'r1146SOCKS
r---, y
Hume
_Havwood,Weeks, Beaufort Waterfront
Print or Type Name Enterprises
'T'elephone Number �`�

`r
NCDENR
North Carolina Department of Environment and Natural Resources
. Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Acting Director William G. Ross Jr., Secretary
NOTICE OF VIOLATION
January 21, 2005
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Town of Beaufort
C/o Mr. Haywood Weeks
500 Front Street
Beaufort, NC 28516
RE: NOTICE OF VIOLATION AND REQUEST TO CEASE UNAUTHORIZED
DEVELOPMENT- CAMA VIOLATION #05-02C
Dear Mr. Weeks:
This letter confirms that on December 28, 2004, Mr. Mark Hardeman and Mr. Ryan Davenport,
Coastal Management Representatives for the Division of Coastal Management were onsite at your
property located at 500 Front Street, known as The Beaufort Docks, within the Town of Beaufort,
Carteret County, North Carolina. The purpose of the visit was to investigate unauthorized
development in the form of expansion of the existing marina within the Taylor's Creek. Again, on
December 30, 2004, Mr. Mark Hardeman and I visited. the site to confirm the normal high water.
contour line, and to take measurements of the newly replaced dock.
Information gathered by me for the NC Division of Coastal Management shows that you have
violated the terms or conditions of State Permit No. 36765-C which was issued to the Town of
Beaufort, C/o Mr. Haywood Weeks, by the Coastal Resources Commission and the North Carolina
Department of Environment and Natural Resources. I hereby request that you immediately CEASE
AND DESIST such violations and comply with the terms and conditions of the above permit.
On 12/22/03, State Permit No. 36765-C was issued to the Town of Beaufort, C/o Mr. Haywood
Weeks for the replacement of the fixed docks with floating docks on the east end of the marina
within Taylor's Creek Public Trust Waters. This development was to take place on property located
in Carteret County, North Carolina, at 500 Front Street, Beaufort, NC. The permit was issued for a
CAMA Major Development in an Area of Environmental Concern, in accordance with North
Carolina General Statutes (N.C.G.S.) 113A-118. This permit included the following terms and
conditions:
1. The marina was to be replaced within the existing marina footprint, except that it could be
moved 10' waterward to align with the other marina docks.
151-B Hwy. 24, Hestron Plaza II, Morehead City, North Carolina 28557
Phone: [phone] FAX: [phone] Internet: www.nccoastalmanageme6t.net
An Equal Opportunity 1 Affirmative Action Employer— 50% Recycled 110% Post Consumer Paper

"
4
Town of Beaufort
Page 02
January 21, 2005
2. The permit prohibited the creation of new slips or the enlarging of existing slips.
3. The development as proposed was for a 232' x 8' main dock. These dimensions are
reflected on the submitted plat stamped received on December 19, 2003, and are as
authorized in the permit.
4. The permit is attached to conditions T15A NCAC 07H .2000, which states that all
development activity must be setback 15' from adjacent riparian corridor lines unless such
is waived by the adjacent riparian property owner.
5. The General Permit is issued contingent upon the accuracy of all information submitted by
the applicant.
For the following reasons, you are in violation of the above terms and conditions of your permit:
1. The docks as constructed exceed the pre-existing marina footprint to the east by 10'.
2. The main dock as constructed is 242' in length.
3. The additional 10' in length has either enlarged slips or created a new slip.
4. The additional 10' appears to be, and has been reported to be, within the 15' required
setback.from the adjacent riparian corridor, and no waiver has been submitted.
5. One of the two signatures/notifications of the adjacent riparian property owners that are
required for the issuance of a General Permit was not that of the adjacent riparian property
owner, making State Permit 36765-C void from the date of issuance.
6. A mooring piling has been installed at some point in time to the east of the marina footprint
and within the 15' required riparian corridor setback on the mainland side of the marina
with no evidence of authorization.
If the terms and conditions of a permit are not complied with, the permit is null and void from the
date of its issuance. In order to determine if the aforementioned development activity may have
been permitted via the CAMA Permit process and to determine if the activity is consistent with the
North Carolina Administrative Code, Title 15A, 07H State Guidelines for Areas of Environmental
Concern, I am requesting that Mr. Haywood Weeks, as the responsible party, provide the Division
with the following:
1. Provide written signatures of no objection or Certified Mail Return Receipts of notification
from the adjacent riparian neighbor to the east.
2. Provide a waiver of the required 15' riparian corridor setback for the current development
from the adjacent riparian property owner to the east.
Please note that if the above -referenced information is not submitted within a reasonable
timeframe, the development will be deemed inconsistent with state guidelines, and will have to be
restored to the previously authorized dimensions and configuration.
A civil penalty of up to Twenty -Five Hundred Dollars ($2500) may be assessed, or an injunction or
criminal penalty may be sought against any person who violates a CAMA Major Development
permit. It is the policy of the Coastal Resources Commission to assess a minimum civil penalty of
$500.00 against all violations of this type. This is done to recoup some of the costs of investigating

Town of Beaufort
Page 03
January 21, 2005
violations and/or to compensate the public for any damage to its natural resources. Whether a
higher amount will be assessed will depend on several factors, including the nature and area of the
resources that were affected and the extent of the damage to them. If restoration of the affected
resources is requested but is not undertaken or completed satisfactorily, a substantially higher civil
penalty will be assessed and a court injunction will be sought ordering restoration (N.C.G.S. 113A-
126).
The relevant statutes and regulations are available from this office, and I am willing to assist you in
complying with the requirements of these laws. A site inspection will be made in the near future to
determine whether this REQUEST TO CEASE AND DESIST has been complied with. I request
that you contact me immediately.
Thank you for your time and cooperation in resolving this important matter. If you have any
questions about this or related matters, please call me at 252 808-2808. Upon submittal of all
required information showing that your development is consistent with T15A NCAC 07H, or
completion of restoration to the satisfaction of the Division of Coastal Management, you will be
notified as to the amount of the civil assessment for failure to act in accordance with the terms,
conditions, or requirements of your permit.
Sincerely,
Tere Barrett
District Manager, MHC DCM
Cc: Ted Tyndall, Assistant Director, DCM
Roy Brownlow, Compliance Coordinator, DCM
Terry Parker-Eakes, Manager, Town of Beaufort
Henry Wicker, USACE

FOR CAMA APPLICATION ONLY
Beaufort Docks

SCEN
DOLPHIN•HORS

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I,* i c

DCM ENFORCEMENT TRACKING REPORT
�1 Issuer
Field Rep. ��,_ i Violation Base No.
LPO� 1i n / A B C D
LPJ' �m N� l�SiZc�Lt �d Violated Permit No. —
(Ir applicable)
Violation Description - Was activity permittable? Yes / No
Initial Discovery Date r I� /� C Discovery Method
Violation Description ��(n „ .(�l �t���V�1 ",r`"j ^• �` (�,•��s �(�'tk� � • � �Y.Lw�
olo in"i i4c ?. 4-Z r V
Respondent Information Prior Violations in same AEC: Yes / 'o Case Number ©5 Z
Respondent Names) pgp�h 0- ��.4 1 @ID 11A 0 1 n 1 � (a ow r en Contractor)
Address �() ��tc.n'tti".. ��r .._r�fe. Cityllj-QC;c.tZU.,0 i State`—ki Zip
Phone#
Email it1(,V('
Fax #
^ /� /N1•
'ClV(o,C. �
Violation Type:
Project Type:
Authorizations Required:
Site V' its Respondent Site Visits Respondent
o Pemit
Private/Community
/} Present Present
ermrd C n I to
ovt.7Public
Minor D&F
Expired Permit
Comm
General
e� (/ S
1000 71q&7t
Inconsistent wl Rules
O 7� 7
Violation Location and Site Description
Rover File
Project Location: County 04""" � �, Ze�—( Shoreline Length I SCi
Street Address/
/SState
�Road/ Lot#is) SAV: Not sure Yes %NJ
Sandbags: Not Sure Yes
Subdivision -1 ( PNA: Yes Adjacent
ZIP �� T ORW:. Yes Adjacent
City �.e.�u I ram"'- Crit. Hab.
Phone # ( ) River Basin �C Photos es No
Adj. Wtr. Body' i4"L's (2&�Q�„ Ina /ma /unkn) Waiver Required YesN.
Closest Maj. Wtr. Body p uf� C z In DWQ Buffer Area Yes No
Restoration
NOV Date
Initial Req. Comp. Date
Extension Granted
Yes No
CNOV Date
Date Comp. Observed
Restoration Letter
Acceptance Date
Penalty Assessment
71.0409 Ref.
Recomm. Assess.
DCM Assess.
Sent to Respondent Date
A /Permit Fee
App./Permit 1�l
���
0—"
$ �(�,
$
Rcvd. by Dist. Mgr. Date
Penalty
$
$
Assessment Extended Yes
No Willful/Intent.
$
$
Continuing
$
$
Other
$
$
Total

Formal Assessments, Appeals and Reductions
Date Long Form Submitted Assessment Appealed Yes No
Date Formal CPA Submitted
Penalty modified
Final Assessment $ Date
Attorney General's Office for Injunction or Formal Collection
Date sent to AG
Date Collection Let. Sent
Respondent not responsive to penalty/NOV Injunction to complete restoration
Date Demand Let. Sent
Violation Activities and Impacts
AECs Affected: 1
CW f EVV PTA' ES PTS
OEA F
PWS: FC:
Other:
Restoratiop Required by the Respondent Yes / No
Wetlands Impacted? Yes / No
SA DS CI SY A
SS SC SP 404
� I
Dimensions in excess Final dimensions
Dimensions to restore
of permit/ unauthorized activities allowed
Development Activities
Habitat Description
NOTES:
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Date
Date Case Closed
If yes, which types:
LS TY
Actually restored