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NCGNE0757_COMPLETE FILE - HISTORICAL_20170407
STORMWATER DIVISION CODING SHEET NCG PERMITS PERMIT NO. NCGNE DOC TYPE IS HISTORICAL FILE DOC DATE p YYYYMMDD R E C E Ai"rE'D 4 APR 18 ^.917 Energy,Mineral & ec Aril 7 2017 Lsrc ti :.:.�:'�j sect?on p > Land Resources ENVIRONMENTAL QUALITY Mr. Jacob D. Lubbe Gateway Recycling, Inc. DBA Gateway Recovery 173 Orbit Road Statesville, NC 28677 Dear Mr. Lubbe: ROY COOPER Governor MICHAEL S. REGAN Secretory TRACY DAVIS Director Subject: Name/Ownership Change Request No Exposure Certification NCGNE0757 Gateway Recycling, Inc. Formerly Gateway Recovery Iredell County The Division has reviewed your submittal of the permit name/ownership change form for the subject No -Exposure Certification. Division personnel have reviewed and approved your request to transfer the exclusion from NPDES stormwater permitting requirements. Please note that by our original acceptance of the No -Exposure Certification and by our approval of your request to transfer it, you are obligated to maintain no -exposure conditions at your facility. If conditions change such that your facility can no longer qualify for the no - exposure exclusion, you are obligated to immediately obtain NPDES permit coverage for your stormwater discharge. Otherwise, the discharge becomes subject to enforcement as an un-permitted discharge. Annual re -certification is required, and we have enclosed one blank Annual No Exposure Exclusion Self Re -Certification form for your use. Your certification of no exposure does not affect your facility's legal requirements to obtain environmental permits that may be required under other federal, state, or local regulations or ordinances. If you have any questions or need further information, please contact the Stormwater Permitting Program at (919) 707-9220. Sincerely, Original Signed By Richard L. Riddle for Tracy E. Davis, P.E., CPM, Director Division of Energy, Mineral and Land cc: Mooresville Regional Office Stormwater Permitting Program Nothing Compares--,_.- State of North Carolina I Environmental Quality I Energy. Mineral and Land Resources 512 N. Salisbury Street I Ib]2 Mail Service Center I Raleigh, North Carolina 27699-1b12 919 707 9200 Ar'� Division of Energy, Mineral & Land Resources Land Quality Section/Stormwater Permitting NCDENR National Pollutant Discharge Elimination System PERMIT NAME/OWNERSHIP CHANGE FORM EHnwogncM uo NartnK fisougees YvL�'O FOR AGENCY USE ONLY Date Received Year Month Day 1. Please enter the permit number for which the change is requested. , l C V r + E0 !'sj NPDES Permit (or) Certificate of Coverage _ II. Permit status prior to requested change. 1 /� a. Permit issued to (company name):t b. Pers illegally, responsible for permit: (j r r� av— 1 V t...'-� First / MI I "Kt BAR20W1 Y✓rc;G1a--j p 1�R g4g QUO&tom. c. Facility name (discharge): d. Facility address: e. Facility contact person: Title Permit Holder Mailing Address City State Zip Phone Fax /7; r/ 1 Address City State Zip First I MI I Last Phone III. Please provide the following for the requested change (revised permit). a. Request for change is a result of Change in ownership of the facility Name change of the facility or owner 1j'other please explain: I IQ b. Permit issued to (company name): & o' joo e L Y" c. Person legally responsible for permit: J U CyGh First Ml Last tP(o t"0t.4 Tit e 1 -�z Or h)l Permit Holder Mailin Address City State Zip � � 670 3 S1 z l oic-al e t".Qy re co v� Phone ,, -nail Address a r j, d. Facility name (discharge): L Cic lCeG( e. Facility address: Q r>> f p ry �OZPtI V 1 ��� Addres I� �- 07� 72 City State f. Facility contact person: uUak L�:' First MI Last Phone E i{ Address �o `_ �, ,' � 1V. Permit contact information (if different from the person legally responsible for the permit) V',`Jl 9� Revised Jan. 27, 2014 NPDES PERMIT NAMEIOWNERSHIP CHANGE FORM Page 2 of 2 Permit contact: First MI Last Title Mailing Address City State Zip Phone E-mail Address V. Will the permitted facility continue to conduct the same industrial activities conducted prior to this ownership or name change? Yes No (please explain) VI Required Items: THIS APPLICATION WILL BE RETURNED UNPROCESSED IF ITEMS ARE INCOMPLETE OR MISSING: [—t/ This completed application is required for both name change and/or ownership change requests. [� Legal documentation of the transfer of ownership (such as relevant pages of a contract deed, or a bill of sale) is required for an ownership change request. Articles of incorporation are not sufficient for an ownership change. The certifications below must be completed and signed by both the permit holder prior to the change, and the new applicant in the case of an ownership change request. For a name change request, the signed Applicant's Certification is sufficient. PERMIJTEE CERTIFICATION (Permit holder prior to ownership change): 1 Chorks , Iftftest that this application for a name/ownership change has been reviewed and is accurate and complete to the best of my knowledge. I understand that if all required parts of this application are not completed and that if all required supporting information is not included, this application package will be returned as incomplete. Signature Date APPLICr,]WERTIFICATION I 'ac attest that this application for a name/ownership change has been reviewed and is accurate and complete to the best of my knowledge. I understand that if all required parts of this application are not completed and that if all required supporting information is not included, this application package will be returned as incomplete. ,g,, ,/ W2-cl / ate PLEASE SEND THE COMPLETE APPLICATION PACKAGE TO: Division of Energy, Mineral and Land Resources Stormwater Permitting Program 1612 Mail Service Center Raleigh, North Carolina 27699-1612 Revised Jan. 27, 2014 BILL OF SALE AND ASSIGNMENT GATEWAY RECOVERY, INC. ("Seller"), for and in consideration of two million seven hundred thousand dollars ($2,700,000.00), the receipt and sufficiency of which is hereby acknowledged, does hereby sell, assign, transfer, grant and convey unto GATEWAY RECYCLING, INC. ("Purchaser"), Purchaser's successors and assigns, all of the right, title, and interest of Seller in and to the assets of Seller used in its business (the `Business"), free and clear of all liens, security, interests, leases, and other encumbrances, including the assets set forth below (collectively, the "Assets"), but excluding the Excluded Assets set .forth in Section 1.13 below: 1.1. Tan 'ble Personal PropaM and Leasehold Improvements. All of Seller's tangible assets, including all furniture, fixtures, equipment, vehicles, tools, computer hardware and computer peripherals, materials, and supplies (collectively, the "Tangible Personal Property"), and leasehold improvements owned by Seller. The Tangible Personal Property includes the personal property listed on Schedule 1.1 hereto. 1.2. Invento Seller'snarketable inventory of scrap metal located at 173 Orbit Road, Statesville, North Carolina 28677 (the "Premises") on the date hereof with a fair market value of $200,000 (the "Working Capital Inventory"), Seller's marketable inventory of scrap metal at the Premises on the date hereof that is being held by Seller on consignment (the "Consignment Inventory"), and Seller's, marketable inventory of scrap metal at the Premises on the date hereof that is not included as Working Capital Inventory, Consignment Inventory, or Payables in Transit (the "Remaining Inventory" and together with the Working Capital Inventory and Consignment Inventory, the "Inventory").- The Inventory includes the items listed on Schedule 1.2 attached to the parties' Asset Purchase Agreement dated December 6, 2016 (the "Asset Purchase Agreement' 1.3. Records. All of Seller's records, including electronic records, relating to the operation of the Business, including customer records; supplier records; employee records; financial records; database files; and all other books, records,'Sles, and documents relating to the Assets or arising out of or in connection with the Business. 1.4. Contracts. All of Seller's rights, powers, obligations, and remedies under those, material contracts set forth on.Schedule 1.4 attached to the Asset Purchase Agreement, 1.5. Licenses. All franchises, licenses, permits, authorizations, approvals, consents, and other rights, used in connection with the Business (collectively, the "Licenses"), if. and to'the extent that they may be lawfully transferred by Seller to Purchaser. Seller will provide Purchaser reasonable assistance post -closing to obtain the Licenses in Purchaser's name. 1.6. Warranties. All warranties, rights, and claims of Seller under all existing manufacturer's warranties relating to any of the Assets. .1.7. Intellectual Property. All of Seller's intellectual property rights pertaining to the Business, including all service mark, trademark, and trade name rights in the name "Gateway Recovery," all logos usedin the Business, Seller's domain name "www.gatewayrecovery.net," the associated website, including content and software, any other URLs registered by Seller, social media pages, art, -graphics, copy, marketing plans and strategies, and all trade secrets and confidential information owned by Seller or otherwise material to the Business. 1.8. Goodwill. All of Seller's goodwill as a going concern relating to the Business. 1.9. Telephone Numbers:and Listins;E-Mall Addresses. Seller's telephone numbers and facsimile numbers, and all e-mail addresses, and telephone book listings pertaining to the Business. 1.10. Software. All of Seller's computer software, media, programs, licenses, and documentation used in the Business and all data and information contained therein, and all manuals, documentation, and code related thereto, to the extent that they may be lawfully transferred to Purchaser. 1.11. Advertising. All of Seller's existing advertising and promotional materials. 1.12. Other Assets. All other assets of every kind and nature owned by Seller and used in connection with the Business, except for the Excluded Assets. 1.13. Excluded Assets. "Excluded Assets" rneans (a) SelIer's cash and cash equivalents as of the date hereof; (b) money. in bank accounts and in other accounts as of the date hereof; (c) accounts receivable arising from goods sold -or services provided by Seller on or prior to December 6, 2016; (d) Seller's deposits; (e) Seller's company record books; (f) SelIer's records relating solely to (i) liabilities of the Business not assumed by Purchaser hereunder, or (ii) assets specifically excluded under this Section 1.13; (g) cellular telephone plans and equipment used by the Charles J. Rowe and his family; and (h) those assets set forth on Schedule 1.13 attached to the Asset Purchase Agreement. To have and to hold the same .unto Purchaser, Purchaser's successors and assigns, forever. Seller covenants and agrees to and with Purchaser, Purchaser's successors and assigns, to warrant and defend the sale of the property against all and every person or persons whomever. The terms of the parties' Asset Purchase Agreement, dated as of December 6, 2016, are incorporated herein by reference. Capitalized terms used but not defined herein shall have the meanings given 'such terms in the Asset Purchase Agreement. Nothing contained in this Bill of Sale and Assignment, express or implied, is intended to or shall in any way be construed to modify, expand, limit, or otherwise affect the provisions of the Asset Purchase -Agreement. To the extent that any provision of this Bill of Sale and Assignment conflicts or is inconsistent with the terms of the Asset Purchase Agreement, the Asset Purchase Agreement shall govern. [Signature. Page to Follow.] IN WITNESS WHEREOF, Seller has executed this Bill of Sale and Assignment on December 7, 2016, effective December 8, 2016. GATEWAY RECOVERY, INC. By: Char es J. Rowe, President STATE OF NORTH CAROLINA ) _ ) 5s. COUNTY OF __ sy Io ) The foregoing instrument was acknowledged before me by Charles J. Rowe as President of Gateway Recovery, Inc. on December 7, 2016. My Commission expires_ G- rg-`Z2` Witness my hand and official seal. Notary Public OUASUPSONS NOTARY PUBLK ftrali'c� Chan lane it. 2W Schedule 1.1 Tangible Personal Property 12/6/2016 Quanity Serial number HRB Baler 1 1731 L&P Strapper for HRB 1 3742 Excel Baler 1 HV 1091 Shaker Table 1 B7619 Shear, McIntyre 1 204E Gensco Portable Shear 1 LS1511 Wire Stripper 1 7087 Stretch Wrapper 1 7DI90371001182 Scale #1 (1Ok) 1 Scale #2 (5k) I Scale #3 (5k) 1 Scale #4 (5k) 1 Bobcat #4 1 335051 Bobcat #5 1 A3NT15432 Grapple Bucket A 1 456107004 Grapple Bucket B 1 456107116 Forklift #6 - 5k 1 78607 Forklift #8 - 5k 1 15964 Forklift. #9 - 3k 1 10397 Forklift #10 - 5k 1 404626 Forklift #11 - 5k 1 66590 Squeeze rotator A I TL 1115771 Squeeze rotator B 1 H984800 Box clamp A I 7954918TO4 Box clamp B 1 1670573 Electric pallet jack 1 22762 113 Steel Boxes, 1.4 yd 113 93 Steel Bins, 0.7 yd 93 627 Totes, NF 627 118 Totes, Fe 118 Innovex Delta 1 500154 Innovex Delta Classic 1 561412 ROM Software 1 5800 Server I Desktop computers (10) 10 Laptop computers (2) 2 Phone system I Tractor24, 2003 Mack I 1M1AA18Y53W151564 Tractor 26, 2007 Mack I 1M1AK06Y47N021751 Schedule ] . i Tractor 27, 2012 Mack 12 Open top trailers 72 Van trailers 17 Storage trailers 1 Flatbed trailer Benlee R/O trailer Ace R/O trailer 28 Roll off boxes 1997 Toyota T 100 2010 Toyota Camry 2014 Dodge Charger Total value 1 t2 72 17 1 1 1 28 1 1 Schedule 1.1 I M I AW07Y3CM017189 IB9A12627DB180018 I B9RA4023 DC941003 JT4TN 12D4V0029206 JT4TN 12D4V0029206 2C3CDSHG7EH235093 A W ASSET P' U' lk"C- F ['A,' _S E' , 'A � G_'R i E* M_EjN Tf rz- C V ,�r) MAR2 0 Gitewa -y Recycling,Inc.,In-a,14okh'C ii- (�-Piirchitsde j,,Gat6wkY Recoivdry, Inc., a - 9. North Carolina corporation"(:"Seller"}, and.Charld . J., Rqwei an,individual entcrjnO this Asset Purchase Agitiphe'n't (this,"Agrepment'.) dated Dedtffibe'r. 6, 20 6., RECITALS'. A. Sdiir, is ejfgaged`i&.the .business of: acyuiiinTecycling, ,and'.iellifig§cM'P' rdetaljthe Ifusin'&_s's'J. Th ei-,guiifiesig,'Is, lo6fed','it 173 i Road;-Statesville,14ith-C'4fo . iini,.;8677 B. Sel[O',duifes',toise ll;substahtiOly, idl, of the4 assets, of the ,Business toTurchaser, and -Purchaser &sires'tq,,PuT�hae;sUb assets - of i the! gus Lin ess' I "purs.4antito from, Seller the. terms sef, forth ' belOw. N6w, bmiuoRE,I, in''i'c'onsidirafidh of the-Ibrej6ifig 6& the mutual co-vehanits,. promises, ag.reeIngpt's, rep tifi es di rqsep qq�,,Waffaxiti :and con tions contWhed'herein, agree as Ilows: brcbpeind-Sale-biAssets. bM the terms4nd'subje6vio the 66iditions�sk forth ifi.thi]s Agreement. Selig r fthaser. agrgeS to *C*e,.;a&ept, and ki�q_ Oire'.ft6i'�'Silldr�; ill tof.ifi�:�i of Seller'in and,to th� assets of Seller used in th e,Busiii6ss_I (the:as . sqtS errid pur-siaAi- to &S. Agreement. arc collectively . I _�Jqig tratisf o-- her e-in . as the but, exc u t,- E�clud diriji4imSec-66n IA3). r-e- tifitd', t ed', As�ets, (as *, "' "•: -:. tri Except ,as. -provided heicin r With -fesod toAhe. Lease;-, 66.Remainmg Ventor--y kna:iheC8nM&rncnt 11*6.twy�,the Assets, shall lbel,traniieired;t6,,Ourch'a',-r�i.'7' 66&`,�and I,.:&lidr, of`ahy;-ima..All "Iteps;. security interests; di. !s,Ieases;oro erencurn rances of Whatever nitur .-. The Assets.'include M the �NWWino: 111. tangible assets; �ricluding ails ftirxiittire,,` fiit6ies,equ biiio t" ��e 'cle compytpr peripherals,. materials; and, supplies ;(collectively,, -1&-."-D Me Personal ts erso 4easehold,Ai74rovetheb r o"id b�., Seller property i4tid `On'9ch6'ddI iil.11' ,hgreito_. . j!j&oveMen , All of'selei',S. t - hardware 'and too S,- COMN iigibt*le 6-hfiail L 'Property" r6p , er . ty) anti`. iii4erty. 4n6luaes' tfie Personal' jtiVene td Sell' 'S. MijkCiab, 'm�ml',av th-eTrdinis , r e inven ry,ott��Ojt es onthe :Date afair,` $160,000 ji:i� Closifig , ' itniAetValUe (thp, pr.. g Capital limtritory'), '9616, S e t- -oneCI in held xiiAdiabl inventory -vent o-ty- 6 scrap,, the' ds 9 _,abY. SOIld or : jL g.. maike fab inventory consignment "Cons ignin vind,giileesle invc y etal -at the. pt, nveV!!ory 6f incitt6a, onswment Premises oil -the, dos" "' ,Date thif:i�,n' A !:a�- *6AEQ ;Capital Inventory, 'C' .in Iry, .9 - - - � -e .." 1.11 , .,z `!&Mtory'. or. Pqqbles-'ih'TiijisiV(thd R") Imi A��,W6 'Capital en y"and.togetherwith ns!&=�erxt iil�ent6j��, I�Y, �he -Invento , ryiXoudis the -items liked, on- -�nVentory.-and�Co Irive.ato T, -Schedfile emto. 0 2,h -13, -Records. Ali',, bi - §eIt6ri:- ie&rds,,..j`nc-lu"g eleiidtonic.- records.. relating, -to the, ' opinti n of. the, Bustness, ;including 6uA664r., d, 'supplier records,' .,employee. -,k4p .;.,epap oyee. recor&—fifiancial" ,!words;, datitbaseBe$; and.'aftdiher-b,6 -,-kl§ 0 Ot" recoro out of or, in connection with the Businesslcolkct!v4, t� .-46C�kl. 1.4. 'Contracts: All<ofeller's;sights; powers;tobligations;;asd,reniedies:wider�those inaterial'cbntracts set forth on'Schedule-1:4:(the"Assu�tted'Contiscts°')'; H L& Licenses.. All. franchises;.,licenses,,-permits; atithorizations, .approvals, consents,. and. other rigbts;,used: in connection-wi h th6:Business (collectively, the "I:icenaes'), if:and4ta the extent ,th I they may'be;lawfiilly;transferred•by Seller to Purchaser. Seller `will' provi�cle Ptircl►aser reasonable assistance:p6st-closing to ;obtain the�liceiises in:Piucl3aser's.naine . -- < 4:6: Warranties. All warranties„ rights, axid clainns,4.:Sellet, 'under -gall' existing manufacturer's wairasitie§ relating.to any: of the Assets.: 1.7.. Intetlectusl;Prrtierty. All:of 5eller's;intellecfuat=property/rigtits peztaining,to the .Business; including all` service , maiic; "trademark, and ;trade name .`rights . in the name _ "Gateway Recovery;" all ,loges used' in. the Business, `Seller's'�`diimairi� tiarne: "www.gatewayreco�erymet," the associated-wc6; ite,;incl'uding+content and•soifi are,5 any,otlier bRLs:'reg stered'. iy'Seller, social media. ,pages, art, g�•aphic;I "copy, riiark'eting plans and .strategyes;-.and.+,all''trade .secrets and confidential iriforriiatibn owned by Seller. or othervv�se material °to the Business. 1.8.: - Goodwill: All�of Seller's.goodwill:4s a;going,concem relating,to.the:Business: 1.9. Telenhonc -Nunebersr-snd Lisiinik_ E4iai1' Addresses: 'Seller's- telephone, numbers and facsiriiile.numbers;"and all email adnresses; and telepkone bOk listings.pertaiGuing fo tYie. Business. ;1,10 ; So are,:rAll of Seller's .carriputer' soliware; -rnedia, programs, 'licenses, -and documentation used"is the Business . and 1 all F data and; information, contained therein , slid{ alit inanual5; doeumentatton,, and. c e related theretci ,'(collectively; "`Software';" to the> d�dent-tliav, ey; may l e 'lawfully transferieci to'Pui�cl�ser: - - - • - ' Adeirtising. Ali af,Seller's existing advertising and..proinotignal,niaierials: 1.1 ;Other Assets: Allrothei assets af•every kind andbidure o_ wned,b S_elle'r•and.used in connection with the"Business, except fo`r the:Excluded"Assets:- 1:13.. Excluded. Assets:. -As -.used -in'• this, Agreement,, "Excluded Assets" means. (a) Seller<'s cm6,and'cash - ui�alents as;of.ihe,bl ing Date (as defined in'Section 4 1); (b):rxioney-ih baiilc accounts and in other accounts as of the Closing Date; (c) accounts receivable-artsirig fro>n:goods'sold or seMces'provided by. Seller,on°or:prior to!th'eEftie ve,Trine ,(d) Sellei's:eiepasits;,(e)'Seller's company record' books; (f) Seller's° records relating solely tub{i)' liabilWes-,,of'the:'Susmessi not assumed by Purchaser-hemunder;,or (i.i)•assets.spec�fically exeluded under;this`Seetian-1.13,,(g) cellular.telebadne plans and equipment used! by ihe:. Poncipal` and, his f unft; and (h) those •assets set forth on' Schedule. Z; Purctia`se Pace ana�Payiaerit:� Subject to tl e:adjustirients disci''ibedj�iplow, the &refiase price to: -lie. paid liy Purchaser, t ' Seller far the -;Assets (either th'a i� the Cans gament inventory sad .the is'rnw a . ;Remaining, lnventory} is $2;7U0,{t00,.(the.' Purchase Price":}:. `�Thd Purehase'.Psice: shall; be.payable.:as.. follows: . _ - , .. .. .. - --. _ ',Earnest.Money DgRoAL: , `2.1.1:.;An initial earnest money, eposii'has been dLposifed in>the.trust :account ;of Purchaser'sicounsel,'Izbiky & Associates PLLC;(',P�rcha`s_er's Counsell'in the, amount, of $30;000:. The earnestmoney, depo5tt.`sliall,be-applied tothe'PurchasePrice'at1he7Closingreturned to'Purchaser if fist"s:bremsacti©n cloes:not'cii�se;due to;tlie�failRire of.a condition-seV bith in Section'S.5`to be!s' sfied;, ,._. or paid,io'Seller rf Purchaser'does;not:close thiis•'tisnsaction fgr;a-•reason'�bther.thah-. failure of,a condition:set?foith`in�Section•5.5 to'be.satisfiW. . 2:2.. Binds Diie et':Clasini., At46 Closing,`Purcbaser, 5ha11'pay Seller,$1;70D,QOCI, in _i'mmediately4vailal le fiinds; subjec( adjust neat as;seVforth,liereiri 23. Pz'omisiary Note. A►t the Closing,.•Purchaser shall;ni i,a promissorynote (the "Note") payable to'Selle_r in -,-hie principal,aroount_of $-750,000 plus:interest at the rate,of 6% per year, 231:. ''I he.Note shall ;be•payable'over-ten' years'(i:'e:,. i 120 month term), with interest at the rate' of b%,� per'year No payments�`,iball' bc-; due under'.. the-. Note .until ,the second anniversary of:the Closing.Date;: interest:shail accrue.during that period, _ana,it,shial',be'ad_ded to the, theiipal: Subject to the' n-outstanding prncoccudence of a Principal Iacrease.Eveht'(defined belavv},-on. the `second anniversaiy of the Closing' Daie;;an"n;tl e:same:date of each -month :theiea_her, Purchaser. shall_'niake a`totah,of'ninety six.•e.qualkmonthly: payrnenis•:of.,prii:cipal' arid' interest,invthe-arnount' of .$I L109:37 td'Seller until the-Note`is paiu',in full: The Note shall•.be secured;by:s seciirity'interest in .the Asse�ts,`by means of a security agreemen[ [the:"Security: Agreement".), .which lien shad Se subordinated to the'lie-n of 'Steaifns Bank; :the •'hender'r'providing fuiancirig.,to, Purchaser .for this tiaasaction (the ..< - Leiide 'I) on terms customary fqf like transactrohs and•seasoriablysatisfactory to',Seller. At the.Closizig, ;Seller shall.execute-any cgri�e`sponding subordination.SagreemenLs, and'other,documents, regvired:by,tlie Lander: Ttie Note;shall.providefor a;ten day written notice and nght�.ti� ,no-prepayment•penalty; and,tht Seller -shall have customaryreinedies•uponr'default. Jaco( §l; bbe;s#iall personaily guaranty�the - �_ - , -- payiiSents owed undei.the Note;, .2,3 2 The' Note'shahl proiride foi,arten;day grace ppriod,-a late.charge of5°!fl on paynients:not made .within 'such,tcn'.day grace,penod, acceleration upon default after an,additionaf ten days•wiitten notice and'rightkta.cure; idefault=rate of ipterest.ofY12%per'}►ear, nn,Prepaymentpenalty, _.. and the then outstanding balance of the Note shahl_lie;due on the sale of the Business, upon a change of control of Purchaser; or upon aiiy. action iif,'banlcriiptcy by Purchaser. Notvirithsta:zding the foregoing„ the ,payment,terms of.the Note are subject tithe apprbval of the Leniier acid Wady be modified as necessary to .satisfy -,Lender's requuiemen'ts if.:Seller oth`erwik. agues =to :such mod cations aft co�nsultatxon'with Purchaser and'Lender regarding suc.-rpquu'einents;,Whichtiagreement•sltall not be unreasonal;ly withheld'or :delayed: � _ .. - - r _ - 23.1 The ;Not6-.shdl I.provide, for San, increase 'n` ihe,,pii 6tW balance owed under the Note if.l:ender fails;to make paymcnts,of the Lender Holdback to'Seller,whcn sucbi payments, :. •would'be;due if1'urchaser and'Lender;satisfied,all oftlieirrespective obligations.sucliithatLerider�was required.to,release,the-L:ender,Holdback=as.descrilaeiiin Sectiim�2.4,{a'"Principat• Increase! Event .Upon:the occuirre a of a Principal; increase Event •(a},the.amount &a.v' rider fails..to,pay Seller shall' (J Id77l91.6 - 3 +be added},€o the then=outstadding;pnnciPal'of.the Note; {b)Jii6h increased;principai`amaunt shall be amordied.ovei.the remaining term ,of ttie Note, "and {c);provided+Purchaser cs not-inrde ult+under the _Note, Purchaser shalf'make:e4ualy_ thly payiirents of"principal aqd interest to Seller, as°acljustcd+for. the;increased•principal Embo.6t, until,the.Note'is paia;in frill' - ;23.4. The Note shall;�be�siibJect•to-a''right,otsetoff.as,follows...If,,after,the. 'Effective',-T'me;(as;'defined.in Section`5`.1-},,Purcli g:,'lias;p,indemnity cla m:pt rmmt•to Seddon 9.1, 'then; Purchaser. shall,provide Seller with written notice: iif srich' clkkm Seller dial �fiave, thirty, days s within,whach,to resolve:such+claim,orkto prov�cle,writteii`nohce.that Seller desputes sitch,clairti:: if Seller, . does not resolve such;claim to the , reasonable'sadsfaction ofi Purchaser, or dispute sb6h . claim within such' thirty-4ay.p i6d, then Pufcliaser.Ti y pdy,"such,.ar4 unt(s) and -receive a;credit•to be applied to the next due monthly iustallrnent(s) under the,Note pup to the am -u_ qs_ . so paid by Purrliaser. .4, . 'Lender. Soldbackc :Pursuant to:. the 'endei•.s, requrements;►50,000 of they Pi mhase•:Price:shall+be,delivered to-t1 c4i;e der':at.the,Closing.,(the;' LUndet-Holdback;').. On or about each: of the first three anniversaries.of, tlie; Closing. Date,'the. Lender shall .release $83;334 -to •Seller, eXcept."in #lie iv' -of "a defaultg:by: Piucliaser;underfany=of�.the agreements. betyveegr'P=haser' and - - „. .L:ettdei,. in which case Le-nde'r shillA retain, any,' unpaid ;amounts nf, &-Lender Holdback. -Seller, shall execute such.reasonable docetmerlts-aslieq csted by,the Lender.to�give effect to the•Lender Holdback: I. Jnveutory Price, Prior;to'Closing; Seller will `run as iaventory,repgrt from its'Rucyclirig Operations. Manager' (ROM) .tracking software ;of ��a[l �inveritory_'iteins arod will conduct a : Fhysical Tt • :inveritnry:of any Paystiles in TcanSit,{aS;defined in°Section 8):-From.the date•of-#lie=inventoryreport•to, the; Effe Time, all` clianges to' Inventory (if+'any}'well be'tracked bYy Seller: } Tfi , Working Calaital .Inventory;,the,•Paytibi6s;iii�'Transit.,and'the(other' Assets described in,SectionI sh_ali b,64ansferred'to ,. �Purcliaser•it the Effective Time:ii exchange foi�tbe Eurclissc Price.-Tlre.prsce,to be paid by Purcliasei to Seller. 'for. the �.Consignment 'inventory `arid f the `Remasning Inventiorya(the "InveritciryPrice") ",shall be payable a's,foligvvs'. , . 3:1.'Con sitrnment Iiiventyry:, The -Inventory Pfim-for the,.Coir"s�gtrmentIiavcntory tshall' be deteimined'upon•the:s _ of d of -the ConSijA_Mcnt Inventory and siiall'equal'tl elesser of (a}• $i0,0U0;.or (b)'S0%;of the aggregate grossprofit(i.a,,sales,pnce.lesspu'N!Wc,price)-from the`sale of all' of the'ConsignirientInventory: - - - . - JI ,1kemalriini'li3ventory 'The Inveptory,Price for,,the:Remiib.i ig_Inventory,shall be j determined on' -an item=by-iteFn baasis'and the Inventor �Pri foi each item-ofRemainingrIn 'e'nfoiy�shall equai.the actual price tl at'Seller has;paid,(c}r v�nll�Pay)'for''siich'itern of Reniainirigflnveiitnry as set3fastli 'Ion the 1tE3M:inventory.rreport on the,Cµlosing Date 0.as such ' "" nt: maybe adjusted'ta the_4i� teal amount paid liy Seller,relating :to purchase tickets`outstanding,as;ofthe,Effective TiMc. `3:3: Payment of thelnventory_ Price: Be ing'on,the- 6Aee th`(15ih):ofd gm the7sec T calendar m6nth-after the Closing Date acid on the fifWenth;,,(l5tlij'oifeach montli;tliereafter;-Purclaser shall deliver to!Seller'by wire transfer' W'certified.check the+Inventory+Price,of each item of Remaining 'Ihventory'or all oft he'Consigiicnent Inventory transferred hereunder, that is sola!in the'pr or month.: v .� . . - F. . .. - . .. _ , - - 7 777MA 4 �4. Allueatioits�:l'ro-rations.. ,4J.. -Allosid6ns it -the Niihase*rice-. Thd') ur h ' Price'shall'be•allocated among, ,_ fife Assetsn accordance with'the allocation set .forth in*Schedule 4 1 Each of the parties shall report the • purchase and sale -of the, Assets: in -accordance=with such ;allocation foi' federal,'state; and ,lacal .tak. purposes, including such reports.�to.,be, il`cd 'on Internet Revenue ,Service Form, 8594 by 'each of the 4�2 Pru-ratlons�+sits All items of ercpense regarding the Assets.or the Business that'praperly apply, to.penods'comiaencing pnor to and'endXng after'the Efl'ective;Time shall >,e prorated -ibetween Sellef and Purchaser as of';the,'Eff&nve Time.,These items shall-includ .4 applicable; personal' property-isxcs; prepaid expenses, andcustomer deposits.=If:Sellerhas;paid a deposi# to a t ii party; and. thet`third party, will�mtairi such deposits far,t3tic benefit of Purchaser"fol_lowin$ the'Ctosing_; Purchaser will reiimbiirse: Seller for such deposit at tbe;'losing.- 5. Tbe:Closin •y5:1 The Closfne. Upon"the,teims and'subject to the�cbnditiotis•of-th►s A". gthe Closing shilttake piece on pr_tiefare December. 8; 2416 (the ".CL'os Date', at'such°tim and:place,as is agreed:upan by tlie.parties, The Closing shall�be effective;as of�l°2:011 a:'m:.on file oay a8ei file Glosirig. ,Dat, ;(the"Effective Timo., w - Y 4 :5.2: sellerls, aiaa Princin l's°_-Deliveries..Af..the'.Closing, ,`Silica shall •.exeaiite� and, deliver to•Purctiaser a;bill:of sale and'assig=ent and:Vehiole.titles endorsed for.transfer to Purchaser, 'Sellex' aril'Principal, shall • executPeu'chaser •, a :non-com. ition .. snd non -solicitation :agreemesitas'proviiled'for in Section}? 7;'Setlersliall deliver°.t1ie Lease',(as defined in Section ,7,9}; and ., ; Seller'shall deliver to'Pulchaser appropriate conipany.resolutions.approving #lus:transaction.-In,addition; :Seller*,and Principal shall execute and deliver other doctunents at�'the,Closing as.apprapriate::Any.title :transfer fees relat�g;to thie tran5fei of vehicle utles,heieunder shall°be'paid ley Purchaser: - 5:3. :n1r6nie0s Deliveries:=• AAia the'Closiiig, `Purchase shall pay to : Seller. `the: cash •portion�of.the Purchase Pfice,-as'adjusted as set forth•Herein;'detiVer.the,t.ender3Hbldliack�ta 'the Lender; and Purchaser •shall, execute rand deliver to tSeueru Nie'Lease, : Nate, lieasonal.,guamtn , and -:Security Agreemot,,and appidpri6i-corripan re `.solutionsapgroviii$Ais transaction.'In+addition. Pur-chaser shall' execute and..deliver other,doc c'nts at.lie Closing as appropriate: - 5A;: Setler.!S-•Coiiditioimsi to -Close. Sellers. ofiligation to close the trarisa bons contemplated herebi at-tie:Clasiag shall'1 e'snliject to'Seller's"receipt of Purchaser's deliveries -set forth in-Sectioii 5:3:and the.complete'satisfacti'-- and+fulfillment:of.all;afthe following conditions;precedent;.. any, or •all of which, may, be waived in wfiole :ar in .pelt �liy� Seller .(but no such waiver` of any .such condition precedent-:shall`!be ar••consiitute,a•'waiver, of any other covenant, ,promise; ,agreement, �iepresentation; or warranty madeliy-Purcha`ser.m this Ageemerit):;. 5:4'.I.-, All representations.a_ nd;warrantiesimade by•Purchaser-in.this,A:greement shall-be.true and-accurate-as,of the ClosirigDate: 5A.L A11 -covenants; promise's; . an&,agreeS eft, made by Purchaser in this. Agreenient-and:all 'other, actions required 'to; be,peiformed `or complied with by.Turi-- a' ser,ufidei this Agreement prior.to or:at-the Closing.sioIiave.been Qly;performed oracompl ed with by Purchaser. 5:4.3:, Vibe parties shall' have; acting, in good. faith, agreed, upon the items• that, ,pursiiant to the ternis.of this'Agreemetit, are, to+be`agreed�,upon.by the,part�es`.prior to tlie-Closing; o Which items include,the term-s'af,thei Glosing:documents. 5:5:. :PuichasWs'Cnridittons to Close:fPurchaser's obligation to.clgse Ai,trinsactions *contemplAdd hereby k.thCC16ssng shall's6e-subject'to.,Purchaser's. receipt'of Seder's,and 'Principai's- -aeliveries,set f�iih- in Section 5!2:end�:tl e,complete satisfaction,andTfulfill Ent of, all f6f the following, conditions ,precedent;,any.or all,of which,i6y,be-.waived id'whoie or. in, part .bV Purchaser;(but no such �wajver: of• any ;such :condition.�precedeiit ;shall`. lze� or. constitute -a waiver. cif' any covenant,' promise, agreement jepresentation; or,warranty mtide by .S eller.'or Principal iu" this' Agreemciit):. 0A.' All repres6i ions made=�by `Seller -.and •Principal • M'. this -Agreement�Asll-be-true and accurate�asLbf,,ttie Closing Dateu 5:5.Z ..-All;coveriants ,promises;,4nd agre! iments.h"Ae,by 5e11er-,and/&,Priricipal 'inlhis Agreement and all.othertactionsoreguired1d,be performed ar complied:with 6y,SeH` aad/or Principal under this Agreement prior`�to,orsat theClosing�shall:•have,beea�fuliypeifottned or complied with by.Seller artd/or.Principal; S:S:3: There Lis no material; ad�erse'change-in�the Business -or the.Assets on or, .5:5.4::Purcliaser sliall'liave rdce'iVed,a',written4&m comtiiitment ftm.Lender:for crngof the, the 1"iusri, 6r 7actton�• contemplated:fiereby .on terms .,acceptable to in its :so Puio3►aser le' discietion,:anc1 such loan shall be; funded`at thq�Closin�g i 5:5:5. The' parttes=;sha11 shave, a'c ng;in; good faith; agreed•.upan, the Item, virhicli ' itemstha tothefClosug,pursunoAe-terms••ofthism+to. be�agreed;up9n,byithi tpaiiies,ppor•, items.iiclude.tiemd .gocuments: _ 5:6. :Notice of Terini�iation:=Purchaser and,Seller.each:`shallj.have until.and including the Closing,Date to."notiiy'tbe,"other=party xn�writing;that �t is terra+nat�ixg'& Agreement because a condition set frith rzi Sections,5 S;or 5:6"as:applicable;^,has'not;lieen satisfied.' Upon•termmatton;;this. Agreement shall became.null „and Ovoid; ,all parties . Shall t-be . fully and ' completely rele' sid{l"erefront (except � for.;tlie aonfidentiality:obligattotis.;:set forth ui'Sectran�,11);s sail `each;party shall promptly return to.the; others all documents,, materials; and'�Confideatial :.lnforination (as defined ii� S"oe_n 1 l )_-bf `such other parties then m1 thc. Receiving "Parry's (as & ed'in Section. l•1);possession.. Upon termination of this Agreemem;pursuant to-thisSectiofi S.b, the>earnest•rnone}r deposi#;shall,be.harOed in;accardance with Section'2: I -It. _ �3�e !6. %yreseietnd4ns and"Warrsntles: ti.1. Renresentationg`aid•W��ties�bv�Seller'Rnd Priridpsl:Sellar.andFriacipal, jointly and severally, represent avid wai-rant!to Purchaser asfallows: 61.1; -TitleA6 t;se Assets.'Wler hastgoodRaud-•rnerchantablc-tidc�to, aft of tlie, ;Assets; ar„as-td Software, valid software:iicenses., A-1.Z:.• Assets: Transferred. Free.'of^i�en,�:.Except es. provided herein with- _ :_• - ;ro&d;to, thi seine; the Remaining ,Inventory and the Consignrne:it�Iniienio ; tt�e,AssetsRwitl be. tY- transferred atjthe Closing free and,clear of any liens,' encumbrances,�or claims iif any natuce,rincluding liens {for taxes; except foi sales.or use taxes`arisipg' from the,s. e l ereunder;;gili cli Ps�rcl aser shall' -pay.. is 13: 'Condition and Sufficiency; 4,Assets. Eacfl'. item, of, Tangible Personal. Property is:in good;opecating coalition,and"repaii and'free of defect<S;:subject to ordinary vi+ear:aud tear, and ' has.,been reasonabl}r . maintained. The .'Assets ;are sufficient, for the 5contiiiued •conduct;. of the �- Business.after,the.Closing`in sutistaiitialfy the: samet,manner as coniiNted-prior•to the,Gtosing;and constitutes all of, the f ng�ts,;}propeity! and assets, irecessary'to ,cd'nduct ,the -Busirtess,.sitbstautially as, currently.condudta None pfthe ;Excluded•Assets aie material'to'the Business. 6:1:4. , Liventor.: Tiie Inventory is iri.ainotiiits;ranl is of a type; consistent with that maintainediby;Seller iii the''ordin*r course o IBusiness consisteawith past practice: 161 5., 'insurance.: Since-Ja ivary 1,,.2015; .(a),'Seller �hasrrecetveA= o notice of default, cancellation; or terrninati6wwith resp' a". any.of its existing insurance polices; and (b) Seller } ,hasznot Been refiised an}i. insurance, nor has coverage, been reduced,. with resgcci,to-any-aspect of its . operations Theme •are; no pending `or,? tQ" t ie'Knowledge of fthdipal tlireatenal,.'.(Bputes relatm .to coverage ar other"disputed elaims-,under any of seller!s�ibsurance,policies:• Since;'January.1, 2015; there have.b'een no material+claiiins rude under.;aay insurance policy of:Sellrr; in'any way,ralating; to'.the . ,Business that have n it icen disclosed'Ito Piu�cliaki by ,,Seller's -insurance ageni: 'Seller:-.ha_s ,p_ ioyided P�er wittiia list'of'"iaisurance�poixcies cup tW inaintainediby'Sekler. . 6;1:6.- Tax.•Matter� ;Seller has'binily filed -all federal, .state, 'and,f local• to retains or reports re'uircd;,to be filed by Seller: Seller�hasf'paid,; ©r� ibas'properly provided` fora"their payment.when'due;,all�federal;,:sta'te;cand,iocal'taxes=,{andfall' interest,.;Ities„ar additioi�stci tax thereon;, if*.any?; iiicludirig.all income; sales,,, use,' property, ipayroll; :unemployment withholding;, occupation, gross-receipts;^value,addeds excise; and'"estimated taxes,due or,which!later;becorne,d_ue:and ..y N payable by Seller -with respect to;.all taxable periods;iip to and ►ricludit�g the•period''fending on.,the: Elosing:)ate ''There are no, due and unpaid:assessmenis oi;proposals,by;any taxi_.&T. horny for taxes forwiiich Seller does not have•aoequate ivser` es,, 6m'are no`'periding audits'of Seller; and' Sell&Ias. �." 'riot waived restrictions on assessment or collection of taxes.or consented to'the:extensian of any statute, of ltinitations,related to.any federal;'state, or lircal-taxes., All'taxes that Seller is°or was°:required by law to: wythhold' or doll ect".have :.beeri,duly withheld .or collected sisd; to the _extent required, have"beed,paid to the proper governmental' or rein atoryofficial„body,;or;ai►thority�("Goyemmeritiil�Authority''}, or person:. 4 A MA94. (V 6.1.7.,.CoMh lance.*vith t,sws: To' the: actual: knowledge 'ofT incipal, after, due inqu�Fy Seller atid'the Business are in su> stantial rAmpliance with,all taws„`statutes, riiles`,.regulatioas; :&odes ,and ordinances of;any Go�erriniental Aiitliority (caihecti'vel'y; "Laws';) that'epply to the Business, or the.Assets. Neither, Seller nor Prinicipaihas'mceived any written of oral) notice:that-Seiler or the Business is not in comp}iarice with'any:Laws: f -6.1.9. Licenses ;To the=actual knowledge of Principal; after due. inquiry, Seller ,has,all'L•icenses.npcessary'to 6perate5the:.Business;.and except as provided on. Schedule 6.1:S;:the Licenses. are valid.':and: in, effect .&hWifle 6.I:S'sets.'forth►s complete iand--accurate, list'�of Licenses, including file date ,of 'expuation and the`'Governmeirtal' Aiitliority, or .other issuing :entity.. To the Knowledge: of; Principal,. except ,as provided on,,Schedule• 6.1 S, no event has• occurr4 that, with or i without. notice• or: lapse of ,time--,oc both .:would "reasonably ,bec?c' cd'46,resulv in the - revocation,, .. Su spension;,lapse, on mitatibri'of an`y Li%ense. So- ftwaire..Seller lias,-fulty:Paici;:valid; and eaforceableTIicenses,to_ use'alI Software. 'cudehtly,'beuig.- used by.w, , Seller'sha11 ", pr`ovrde the Software, including any. -,relat6f.- doclirrrentation;. to: Yurcliaser; atrClo'sing.,Selle% daesynot own any -;Software grid does not use • any . Softwar ,e-icept for.commercially available,off the -stiff Software. Al1l.Sofiware:licensestthat have',an'" ongoing pay; ent,obligations'are set forth oh'the'Assumed,C-6d Pict schedule" �_ _ 61.A0A;i&i&4ri)ceed fi . No 'litigation; ,;arbitration, investigation, or. other proceeding,of:or,_1?efore $ny court, arbitrator, 'or Governmental' Authority which relates to 'Seller; Priniaipal; any Asset,;or ilia=Busiiness+js pending:or,°fo the Kiibwledge of Principal;,threatened -.-Neitherjzz : 9ell6f ndr"Principal, is.a party to or subject to` the'provisions of any•judg eiit; `o`rder, writ, injunction, decree;soi,award of.anycourt,,,arbitrator; or Gover'nmentax•Auth'ority. which would adversely affect Seller; ttie'Business the Assets, :or tl e' transactions conit plaW'herehy: 61 11Ahj'ellectWfl P apei:M�.;The-c6nd&t�'6f.thd.Business,'does nat:`infringe or: atherwise;vialate and, has nat-iit aay hme,uring the tfiree years :prior to fire date of this, -Agreement infringed'"or otherwiseiviolatedany.intelleifual property.oir othes,propirieta y.iigbts•of auy,individual or co many, and there i5 no claim or: other faction-pen,ing; or to,the �Knawledge of Principal, threatened, alleging;Ilany .such .infringerriet t or violation or. challeraging3 Seller's -rights", in -or to zany �inieilectual , pr9perty used .in the Business; anii, to the i Knowledge F of ` Nincipal,- there`.; is, no eicisting >fact or circumstance.that., ould;be reasonably expected.ta give:iise-to'any.such claim or tither action..Ta the r, ¢ Knowledge of Princigal;.no.person:isuinfringing;orotherv+nse violating anyrrigts:of Soller'in aiiyof its. ' intelfkft a property:- - f6:T.12;'Finaifdia ' taternen '�`Tiie:finariciai;statements=concerning tlie.Birsmness. that;SellerAW:provided,to;Purchaser;including'iuiaudited�balance°siseets:ah relidedprofivand loss stateineats ai<Selfer,an�i copies of filed state and,.fedeial`tax returns -of S_ 6ller-.far'eacb:of.the ycim ended December 31; 2013;�20i4, ar3d 2015; and intenm:balanr Wheats aind'prolit!and loss,,statefnadhts through. -October,, , <2016"(collectively, the -"Financial Statements"), fairlyfpresent, tp all lliaterial .respects,: the-, financial` condition�of Seller., and he results of its �peraiioas:ass�of.'the,'datmthereof and! throughoufthe periods,;covered�tliere }!::;The_re�has been Rio matenaf adverse{change; in the':finaricW condition' or the results: of operations of.tfle,Business sI46 the,date;of,the-Financial m Stateents and;tHere'.9hkU be no. material adverse'change in'the fnar�cral,condition or,the•:results.ofpperations•ofthe'Business during,the period between.the'execution of this.Agreetnentari'd:the Closing Date:. 6.1.13. Accnuati-Payable.I cept for,Payables.in'Transit,.Seller. has turiely.paid ,or will-dinely pay any and • alf acccionis payable_ and s_lialiilities due and. payabl6by. Seller as of 'the Closing Date `in connection with the operationiof- tlie-Business,,except..4o the,extent -that Ahe same Are- beu>g duly, contesteii liy Seller and such,contest.doesiiot.adversely affect'Furchsset's:at;llity to operate, the Busirie5s.from and after*the C1osing.Daie. There have been•nomaterial'expenses reyuired.to operate: tlie.Business that are not'mcluded in the 1+inancialiStateinents: 6.1.14. The'•Rec_ords: Tlie' Records that shave, been delivered by Selier to ,Puichaser or thit�shall be delivered-bY Sciler,to'=Purchaser after-,the,&id.6iCof-are�true-and cortect in rall•materital 'respects:. C6&acts:;The Assumed:Cont ds.:areand tading;contracaml obligations of all parties 'thereto:and are'enforceable:in accoidance.with their `rrspective,terms. Seller is ri not-in°defaulf under aaY:sUct3acontract, amd tot the Knowledge: of Piiricepal;;nd�evenvfiis;occurred that, with :or wittioutnotice'or lapseof time,or both; wou]d"reasonably be ,expected to c+esuli'in a defatilt;by >- any other part}r=to ariy sucli'contract Seller�4has"providedsFurchaser'with a:true and'rorrtplete capY of each written ct contza,,and a,su iaq .oithe tents of each Oral contract, that ismaterial`to-the operation of tie - Business: - - - 6.1.16r rn6i yment,Mlatti&,, 6:1:161:.T6ere; are. Tito existing " collective barining. agreements;, employment contracts;. verbal conunitments;, or obligations (otherr_than oral` at -wily .employment .agreements) relating to ,Seller's employees, or.7consultants: These; are no •labor• unions or :other o ations. resentiri , ' rep _ g Purporting=to:represent,•ar:aitemptiiig.to.represent. ariy-empl6yees,einployed- in the operation ofthbIiusine'ss. r b 1.161 Schedule•�6.1.T6-sets., forth a complete) and •acc4rate HA of all employees• and consultants employed or engaged5by Seller iri- connectiowvith its Business (inbluding. any employee•w#o'is;an inact<ve;ciriployee7an.paid%orsunpaidi.leave of absence),;iucluding each such. persori's naive, title, date of.hire, and current.coiupensationmte and'other'campensatron;;and'a,complete and'accurate list+update Schedule: 6 1 i6- prior to Closing to the extent any.event-happens-that reOuires an u' ate, to,ntake�•it,true and ;accurate 'as'Of' the Closing Date:. " -- J 6:1:16.3:,Witliiri :9t)-days,following 4he Closing -,Date -an_d in• the ordinary course_of B Seller's usiness, Sell&-vvili'have paiitto jts.eiaiployee&and consultants; all wages,' bonuses,, -commissions ,and other benefits and:sums,due oi,acarnea,to:such epaployees:and-consultants, including 4accrued==employee vacation time, as of tl►e Effective'I'ime;,under Seller's`employee benef,,#.plans (arid�all requ4reci. taxes,-wurgnce; ,social' security, arid.'witliliold�ngs thereon}:. Seller 'lnrs tinkly, , paid, .all contributions; premtuin payments, anal other experises_A quited under, any employeeteneff Ii n: 6.1 &4. Seller` has ,not, received' written,,:or, oral notice i that any: of the- employees of Seller,will`terminate;etnpl'oyirient.,withi.S ler{pri6i,to die:Closing Date dr,not.commence, employment wiffiTurchaser following the'Closmg - t�� - '6.1.17. � u lie Netlier•.Seller' nor Principal' lies•. received • any';written or oral natice.thai any of -the suppliers o€ goods or services to the Business -wili,cease to,:continue•to.omvide goods or:services to the•SusiineSs or Purchaser;; or will'materially clisuge thi�terms puisuant to which. goods or servicesare•sald i the•Business after:Closing,,Seller.hasprovided -Purch'asei: wittfa complete: and' . accurate list, with contact : iiaformation; of every mdzvdual and entity .from vvliom. Seller: has purchases 40ds and! materials'ia the past'five years; and the .aniiiaal arraaunts•of such purchases. 6.1.'ii Customers: ;Seller ..maintains - g'erierally good' relatianships with its customers arid.therefiave:been no mate'rial'disputes witi�.any.custoiner since'7anuary i, 2015, Seller has' opeiated'the Business in the,ordinarycourse and'has.not made agreements with; customcrs,that,Would <(a)have.tlie iiiipact•of,accelerating'items to thtI;6 fit'of Seller Qr Principal pnior•to the Effective Time; tor' (b),create ;`discounts, or. other:obligations -f the, -Business after--the"Effective. Time! outside of.•the• oidinary course: Norse :of Seller'§ customers has .infarined' Seller or. Principal,,eitler: orally ar in writing;. that such, -customer (i)• will cease td.bt,3Asvustomer of'Sell&` (iij will reduce ihereittent:oto which,.or- materially•alter the •terms.on'which,- such Fcustomer, will,u►•tlie_fiiture_purcliase gofroris Seller;,or'(iii) is: having, financial difficulties or will"• dot pay in, full ahy,'of Seller's .accounts. receivable. Seller -has "provided Purchaser•wiih a coinplete:;andE.accurate,`list,;•with:contact.information, of evm.-individual and ent►ty to whorri,Seller has,sold��goods; and materials ii � the past five yetirs,;:and-the annual amounts:of such purchases. - �6.1.19. Premmises., fi.l:19:l.,Tlie current use;and operation of the: Premuses, ih the'conduci'of tile'Business•does not violate intiany•respect aAy-xastrument of reco, Ii fectmg the Premises. To, the _.. 'Kiiowledge.of Pnncipal, there is no VkoiatioAYOf,SII3►,covenant,' canditiori,.restricfaion;,easement, or order of any 4o apfnentaf. LUthority'liaving juiii ction over,the-Ptoriiises or of anya60t r person entitled, to, criforce the'saine.affecting the Premi1.ses_or�the use..orbecispancy}tlieieof,;or:of any lease agreenient.that will affectthe,Premises`aferthe Closing_Dateaother.than;tbe-Lease:,The.Premvsesyli- idecjuate:r'iglits of access,=i6r, edicated public'ways� aiid aift,-.iserved',by °.water; electric, ,sewer, ,telephope;,.gas, 'and oer th necessaryservices apprapriate,for operating the Btitsiness as curireiitiy cnniiucted ,., Y _ ., . 61.19.2;. To , the t Knowlcojge: of Pnncioiil,, G there, :are : nor , Hazardous Substances on, or imder,the Premises that require iiniedi.ation under imy. Enviro iintal Law, ordutaiice, ordirective. N-ither.Selle -nor'Principal; nor;the-affiiliated entity, that owns the,Pretaisgs,.bave received. any �wtitteh - cornniunioation 'from , any rGovernnientid' Mthority',tliat alleges that. Seller 'is' not in complianee:with,anyE_ irormental,I:aw:.,Ezcept-as-otherwise-Aisclosed,ta,Purchasei;:Seller, Principal„ i d•tiie-affIiated entity 164owns.the*PrCni.ses are not subject to,any.outstanding,order pertaining to the 'Premises:relatirig<to compliance with,any')✓;r ironmental I;aw or,requuringzmvesdgation, cleanup, or ®_ . - = nionitoring oi'- ai ardous Substances under aViytEnvirorirtientalE�i.aw. There`:is no tienvironmerital-claiin peAding:or, to the Kiiawledge of Principal; thieatened;against Seller,;Princigal, the"affiliafed'entity.t list. owns,thecPretiiisRes, or;any person whose l�ability.,for any:environmental rclaii ,Seller has-retaiiiai or assumed co ntractually.;Tii.ttie Knowledge,of Principal; there"are`Qo pastsor=present actions„activities,. circuni tBliCes,.conditions;,events:or incidents (iiiclitding't1Ye rele85� of,Bny HazS ous Sul�st8nces):&I could fonts the<> asis,•ofany environrizental•clsim'against.Selid,'Pnncipal; �the.affili'ated enti_ty_thaVowns the Pre i`ses, or against any person woo"se':liatiitity for pyt environmental `claim. Seller has or bw Have ret$iiied or assumed�ctintractually: �To the Knowledge of ......Pnpa meithci�Sel_ler not the affilist6d entity ;thit'•owns,the Premises,ha�e•release&Hses that,regmres reiriediation,.uinder any Environinentai Iaw, ordinance, or directive., As'. -used Herein, "Environmental 10 Laws`means:an' id'aff applicable federal; state'aad local'statutes, igWatioiLs;:ordutarices and`rules.-as . ;presently existing or as may;be=amended:or-adop"ted; 4, , e fc tuive, pertaining to;tlie pr;otecfiori ofhiif� 6n -heitlth:and/or the environment;,and'"Hazardous Substances" in Bans: ai►y,haT.ardaus;..taxic:or radioactive• substance; waste, 'or' _rhatenal, including -without � limitation^ petrole�icn' oil; and its, fraehoris listed, a'governeii,cir defined'by, applicable Eisvironiiientsl.Laws.. _ 6:1.20:No.:Cdnfiiet:IM' ZL'A'ee'iiijgk;: ;Seller. is. not a party to any contract, ;ag�reement� or ;otliet_obliation that' i5•'iai ,default �i that`will` become ,in;defaeLlt by reason of the :executidn.and,consuriLmation of t}iis Agreement or the transactions:contemplated-hereby.:Tliere are no agreements in effect'.that prevent 8e11er,or.,Priric�pal`from.coAcluding;the.tmnsactions described b - �n"this Agreeinenf. r . 6.1:21. Conseht§. the texecution,, delivery rand performance: by 'Seller :and, .Principal,_of`this Agreement, and'all�other agreements contempiated`therebY,::does not. require' any consent;; approval, authorization,'registration=or, filing�wLth„or any other action' by, any Governmental Authority or-py:other person or. entity,prior•to de Closing:' 6.1.22.'No Material 0'iriissions.or Miire6resentations. Tlie'repr e-intatiotis and warranties in -this, Secti6n:6:1,':and •"any :documents referenced"in this Agreement- that liaye been. furnished'to,Purchaser.by'Seller or-lPfincipai:i#a�hot'contam any untiue-statement,of a biedhal"fact-or omit to,,state any material fact necessaryorder;'taiziake the statements:conWndd herein:iuid therein, ,in: light . of ,ttte circumstances - :under ,which` they, :were made; riot misleading ,: 'Except 4. for -,the. representations, and,ivarranties contained'; Fn t3�i"s� Section 6 1,. nc-�tlLer .Seller, Prin' cipra not any other.' person -has representation;arwarcaaty, eitl}}er written"or s r _ 3:. ' ;oral; ari;behalf of Seller or Principal, tncluduLg,with respect to:any;Pralections,.prospeGts,7fuhire results ofoperatioiis-.ot future fiitaiicial'.cond tion aftlie,Business:` h 'Adverse Conditions. To the Knov&dge'of•Principal, then :is no existing conditibu, state•of.facts orrcirc�utListanaes'thatYis i�easonably�likely:to: aiiversely:affect the Business or ., prevent, Pucliaser•from profitably carrying.on=the.Busiiiess.- 6.1:24:,Coaraany+Statui.,Seller It:a eo poration duly,incorporeted:and existing, in:good-standing budder,the la_ws-ofthe State°of-North'Cairolina Charles 1. Rowfis-the.sole shareholder,= '-and soWdirectoi of Seller:. Y 6.1.25.'Compariy Actions: All actions,.required:•of Seller.hereunder, Jhcluding. : the ; ezeeution of,"this. Agreenierit •and ilie non-compeution aid . non -solicitation agreement, _ and the ,•consummation of411 transactions ,ptovided .for- herein , and':therein, .have -,' have- been duly' authgrized :by ;appropriate actions. of•'Seller's :,board ent, the non -'competition and now �. solicitation'agreement;.and.each;of the other;closing docunients�have been;;and shall be; duty executed ,arid delivered`tiy Seller aril Principal, andi_are, or; hall be when; elivcredvalid aiid;enforceable-against Salle; and Pi=incipalIin�accordance.witii theLr,respective teriLs �. - 6.11&-Rggre4ntations, Accurate:. ,A11 +representatian5 .and WaCranheS' coIItainediin`thi5�id►greelneA#-511a11°be of the iia�te'of.tnis'Agreeincht-an&"d arid, osing D"ate. V of Seller's . =and i 'Principal's ddrrect,. accurate,. _arid effective.as 6:1.27:,Kn6wledge� of '•Principal; As used' Herein, the 'terhi,"Knowledge °of :Principal":rrieans tiie,actual'knowledge'of Charles J. Rowe. - - + 6.2. Representations- Add _=Warraoties.- by Purchaser.. Purchaser represents and warrants W Seller as follows: _ - _ -- w 6.2.1:. Np_ConllictinE Aareemeats:-Purchaser is -.not, a,;party' to any contract,. agreement,,.or other� l: me.-iii•default'by reason=of"the execution and consniriiriation of..this ,Agreerncht. ; , 61i Comuany•Staids Ptirahaser is a.corporation.-duly:for ned:arid existing in good:staiiding under the laws of die"State,of Wrth'Carolsna: V 61:3., `Comlpan Actions...: All;.;actions ��required of Purchaser hereunder,, including the execution of this Agreement ands the;corysumination .dfIall transactiops provided' fa herein;. have been,'duly ;authorised=by i3ppinp`riate:.actions,4 Purchiser.'s. shareholders_ •and; b6ard. of directors ' rli :Agieeinent�and�each of.tti'e,ottier-closiig,.documents,bsve been,,iaih shalt;be;. duly cxecuted:and dehverreedl by'Ptucliaser, grid are or shall lie when delis ed;-;Yali&and ea%rcealile a?" , Purchaser m accordaince with their-respectiv'e.terins: - 6.Z:4: Renresentaflons- Accprate:.All;'tof •Purchaser's rep;_resentations and warranties contained;iti tliis:Agreemeat Shall'tie correct, accurate; and effective as of t}ie,date of,this Agreement and as of the fClosi E?ate: 7. Additional`Covenants.� 7.1. C6hduet ©f:BusinBeiiwve' i tlie'&t'e•of,this,Agreement.aud the. Clasiug, Sellei shall (a) operate, t1ie: Biisines§� aiily in the ordtnaryt course of business m,a� -manner .� aansistent WihnJthe�past practices of-5ellet; (b)'excepi�as',othervi►ise direeted'by Purchaser,in writing, use :its best efforts to preserve: intact:Seller's c�trrerrt`:FiuSiness orgaii�zation,.'keep available ttie services of Seller's employees;,and mmtaixi=Seller;s.i-66tions•and•gi c— w"I' 'with suppliers, custonsers;,'creditors, ' landlords, employees, agents, and others`havtng:iiusine I relationships with the'Biisines's;.(c)`confer with rl?urchaser;prigr to IMplementimg :operational decistans of -'-a aiatewrial nature; `(d) report+periodically=tfl Purchases concerriing_the•status of•Seller's business operatroris, finances, and:iriver�tory;levcNi including rmmedrately'prior to ttie Clasing*T?ate,! (ejmake no materialchFungesin;manageirientspersoniiel wrtltoiit _. prior consultation with{Purchaser(f):maiistain tiie?Assets:in,a state ofrepaii<.and conditiar�:that c§;Aplips' F} with legal,regiurenients and.is consistentvitn:the regiiuments andiiorsiai induct of the Business, (g) keep in�full force and effect,.v�nthout. amendment';all material rights relating to,the Business, (h).comkply +with all leggl retluireri eats:and'contr_actual obligations:applicable3to,thezoperatsons,of:the;Busmess, (i}: continue" ih frill force' and affect: the `�insttraage ;coverage ,which they Business:,cucrentiy, bas, or substantially, equivale€it"pone es;;{j} riiaintainrall.=books`and recards.of.Seller relii6g to the=Business in, the ordiriaryi course, of liusiaes5 consistent�vvitli the past practices-6fSeHtgr, and' (k) not,seU any -of the. Assets;,except in die ordinary coursemf business.consisteis€ with pqst practrces: 6' 7.:. Purchaser's Due Dili�erice Prlor;tu�Clasin "Pur�cliaser and:its representatives: shall be'afforded : reasonable access,'=upon reasonable nirtice` to Sellei,,'to iflspect any, ' and' • aU items relating ;to tlre'Bustness. atid.67 Assets,'including Seller%s � nanciii inforciiation, Seller's contracts,, ttie Recoi&; the inventory,, all'. other- Assets, :and'. the, Premises, . in a. aianuer thi t : does . not irrtreasonably. interfere with=the operation of the Business;;praveded,however; that Pixrcbaser shalltnot'.contact Seller's empioyees-� without'th6 prior consent of.Sellei. Seller:shall, upcin ,:request of Puuchasei; -promptly. make ;available to ;l'urctiaser alC such !teens ,for .Purchaser's _review, :and'.Purchaser shall. maintain the. , confidentiality'of such.items..pursa'- toSectiont l l' of this'Agreement: 73: 116elusivi Uptil ..tbe earlier of; the 'Elosing rUate; or-therdate: on whiel; this .Agreement,is. tern inateiipursusiit.-to' 'Sectioq 5.6,'Se11er,agrees:that:it will not,direntiy, or mdii&d .solicit or.encourage other offers; or proice �nformatiai� to; or:disci�ss•a•sale of-tbe.Business'wth any N ,'potentiai�acquirer siiil'will promptly notify;Purchaser if such offer or uiquiry is receive �trai.' it�;amazaton7.4. ands. nnregrgopetiofeBunows:,(i:ules-owe#ebyPncipalfargntesa_ n �notmoe.than•0hotirs-per; week durngthe frstF60 hays'immediately=followingtheClbsiiig Date -(the "lnitiai=Penod"); and (u)"unless otherwise agreed:by Priacipat,;not to ex'* (ee F 0:hoiirs,perweekt during • the 120 days 'isnnzediately followings tt�e end' of the 'Initial 'Periods .Pr cipal `shall not I be , entitled to additional,consideration or;conipensution far the: familiarization aricl training p gvi&dIdufing the initial' Period Purchaser shall pay Principal ;$5;0001 "on •the 30th, `+60th ,90th; and 120tii, daji after, ;the Initial Period'in.exchange far.ttie,fanii �aiizahtira{and'training provided dnnng such,peiiod.'Duzing theslaitiai, Term and '.the 1220 • days thereaf3er; Principal shall 'u§e lris`reasonable-�efforts to - timely` respond to 1'urdaier,.and,to be:availalile:{far telephone and7.e-.mail consultation .Pui�chaser,.skiall pr'ovide.Principai 1 .. _ _ reasonable,notice pn —r'to,requesting in-person,cansultations.at the:W6e ses..l?urehaser itcknowle'dges.- , that Principalkwili•have, limited availability:during"previous ly scheduled!vacation times�from�`tiece bet 2$; 2016 through Januarjr 4, 9017. and from February ;.20 i 7 tliraiigh February` 10; 20l 7: 7S: Book"s andiRecords:'.AaiLatii[ity. For,:a period of.thzee-.year; after the -Closing Date,: Seller° will�ha_ve, at reasonabletunes.and witlitre'asonable'iaotice;access.to,the:Records Purchaser has-obtaiined• from Seller .ta, the extent trier Seller Will 'req M access. to the .Records for, tax; or. other legitimate , business reasons; provided, linwevcr,'that,rnotb h - - thin. sectioii shall :impose, a, dtitjr. an Purchaser to maintain the'Records•in any;partictilar!form or'for, any :partldin ttiime period,+and Seller }shalltmaintain•as;confidentiaLaay,trade'secrets;o confidential infatinatian sevforth in sucb� ea4itis: ._ - - 7.6. Transfer- of -Phone. Abd:• Fax •Nuinbetiwa d, URI:s:. "Promptly, 'following•'th_ e- Closing, Seller shall reasonably cooperate with�PurcYiaser to` effectua#e'the�transferato,Purchaserof all. .L telephone and"faicsttnile niunbers, .iTRLs, email�a�ddresses, utilities; and ether Assets that require Seller's, participation- #o'Vans— f .7.7. Non-Competftion and.Noa-Boll _ta F d tfon 'Agr. � f - _ ears eement. For a peno o •after the,Closing Date;;Seller:and Principal each agree not to"ofrectlY,or tndirectlyw(a) solicrr:any past; ;present, or"future CWtotneirs or etnployees-6f the,Buisiaess,.or.,(b) coin with-Puroh�asee,.includin g by, engaging in tfie•basiness of acquiring, prbcessing,� recycling and sellingsc i metal; anyavhere vvi�thin a 150 mile,raidi.l. of tlie.l'rem!'ses*,,mea=A,iwa',striuoi,line. For,purposes-of:ttus.Air,e: ent; direct and 77 'indirect competiti©n or,solicitation:shal! iacludeaonipetittan or solicitation anywhere within a'ISU.inile .-radius of "Itlie:�Preniises as- a • sole &oOAeiqr;, partner;' corporate officer, director, -shareholder,'tneniber, manager, employee,, agent, independent contractor; trustee, or' ip arij+ other mower in which either. Seller _ ar Principal holds uiy ' i nefictal .interest. business; 'derives atiy income. fmm such. -business. or�piovides,any-servrce,,sncluding-thet>zenefit of'.its ehis�regutation oT know liow;�tij such, T3- , business; However, notwithstanihng;the foiegoing,;neidier Seller nor, Principafsdall,oe;precluded from, owning less thad.l%:of the;issued�arid oritstih*g;sharesof stock,bf-4,ofib icly traded•compaEny. At the Closing;'Seller.and Principal sliall'euter'into,a,separa`' .!iori-cornpetitinri'and non-soliciiatiom.agieemeut i41uding`these.tern s;, �LosgpajAggi, in,the' &r thiid is any�loss:or damage-to,any of the�Assets avany time prior'tothe„Closing,;ttie nslc of,los§-shall:be'upoa`SeHer: ARer,`ttie,+Clo-SW iiff,risk,of,loss or .. damage'shall be;upon Purchaser:, IS, tzimises-Lease, A(thei C1oIsing;;Pufchaser-snall' entei into a lease with the_edtity affiliated with Seller that:awns .the' Premises {the: "Lease")t The Lease shall*be for, an initial tern' -of. five.- years; with one option -to renew the terni,of the L;case for an addrtional•6ve year term. The -Lease shall be a'triplesnet l'easet{ rovided that .i:aridlord shall be�responsible.for,capital expendiiim,and major. repairs not -caused.by Purchaser to- -the.extent the usefullifc.of sVch jtem exten&beyon&the terffi bf 6—L. ease); with uiiii, 'base rent for, the initiai'term in the amount=of $54;0()0 per year.. On,the-firsi clay;of the, fourth leasetye*, and,dh th'e feist.day.of.the;fif� andjji thyW_ iAhcmAii, the,base rerit",un'dei;tbe.Lease-shall increase�by 5 W. per. annum.. On the jiist day of the ;seventh�lease year; and im the'fiist°daynf,each,lease year .thereafter, . the base rent,.under,the Lease •shall 1 be �adlusteii by as - aniout�t 'equal } to the percentage change. from the previous aiuiiversary ofjtheiCfosing'Date iii'tli'e 'All Uiban'Consuniei'Fitice•Index .apptLoble!tolStat6s 41e, North Carolina. The ii iii shelf provide Purchases.�vrth':a•rightjofffrrst offer on 1.4. i" the:FIft nises, .wheiel y if Seller°s,'affiliate;that'owns tbe'Premises desires ta:setl the:Pi�rr'iises the ovvrier zs611 negotiate -exclusively. with Purchaser; in, good faith; fora.perroai of at least sixty days fa •ti4e"sale of 'the'Piebiises"to Pu ehase-i,'on muniilly,agreeab4e•terms:. t 7:10.. 'Itive>itoryt. Purchaser shall,pay .Seller' for .the: Inventory on ,the dates; and: in the amounts,set forth-in.Section-3: . T . . , . 7.11': 6d Seller wWj'oiixtIY•,.mek!ivith,the emplvyees'of the l3usitiess to+seciue theEr pcist-Cios44involveinetit-with the Coizipany..As part of that, they wil ;offer:retcri€ion�borxuses,;to, be,paid'in;pari by Seller and impartl y,;Purchaser; iii the -amounts. :and to.the employees 3isted on Schedale-CIA6;•payable,oh fire fisst'anrruveFsary,of the:Closmg'Date, At` least.ten•days'before•those.boriuses'aie'payable; Seller.5hai1`reniiC$G0;0()U to Purchaser;to.pay its,portion of.tlie retention.bonuses (x e:,i60%,of such reteritian laonuses);.provided that the .'amount of°Seller'sIwd :Purchaser's share of.the retention bonuses:shall'be reduced!"prvliortignallyAp the="exterit, any' ,employee- loseshis,or her right to.a retention'bonus..W Y _ . - - , .: ' 8.; Llsftiilltles�of Seller.'Seller.'stiall'fie,anii:reraiii•solely'lisble>setdr�_ ponsiblefoi all�debts, obltgabbns, duties,"and'liabilities:relating,toithe�operaUori'of�the Business pnor:to.the-Ef%chve Time,, including all accountsTayable,.local, state;;and federal tax liabilities,.payroll.taxYliabilities, and accrued vacation tirue' fcir Seller's erho 6yees, tiut not including l?ayali[es in:Transi (ttie "Itetanned'L.rabilitses"): r� Purcliaser_iioes nat,and slisll'iiot assume; agreeto,paY;rorpay.any of'the.ketaiaedd abilities. Tlse onty, contiacts,of,Seller that,Purchaser shad! assume:af dr.the,Clasing,are't a AssEimed Contracts; but.cinly.to; the "tent, that tlie,oliligitions under�siich contracts are required to be performed,after•thi ',0osing Date and are,noi.the result of bieaclies violations "ef acuons"oi atnassions of vtolatio of-;lariv+occtirriiag or.,taken�on or:prior,to�the Closing.Date. Ito'paytiany amounts owed to The tivrdlpartiei-for-AM!Payables-'in Trarrstt.. terrru "Payables iiiwTransit"''leans all i7TT�.6 14 items 'of-iriventoi;y..that;Aii:lo'ckted on the','Pfc'�ffi'is'ei is`df flfe!Effecti` ve.Tiine.t*;hiLV-e -notiie6nvcighed. -and tagged by S611q s a:in,vds ofiii fiedod ,g& . -W.Oik 1ib-es, -r- -77. 9. In'dibififficad6n.-, e and Unii6id'.--geller,and Principal; Jointly.. and, severally, on `b6half of themselves and: their --respeciiveSc ;'irs , personals SAd legal: successbri, . amd, assigns, ,shall ;defend, iAden `ni6j,'- and,,. hold , h #m less'-' Purcha'sied And- its, shareh6ld' CTSI managers; their resoqqbvel.h pirs, 1pdrsonaIr, z"Jed representativesegua dians, 'suq- sgp,, gfi"assigns,,6OMNan(against MStaqy+:aidall' thteits,,Iiabi-litie�,,taxesiintmi;�ltme�;-.penalties;-suits; kti' dd .:ac ons,,prwxe, gsj.1deffiah&, damages losses„ cogts,:and (inc uding'att6rndys_'. ;and, e'xperti' fees,Anccourt costs): OC-every bird. nature arising out of;=ng &,in!connection wAk. 9.1.1.• Any mate"', -misiepii�`s6iitioii;,'o-mi'ssio"n; or' .b_fekh,by Seller, aindlor. Principal'of-any r�seintati 0-ii,or warranty, i�ontainedl-in,this ;)kgr-e6ni'oe., Ip,_4ny.agrc"cieni between .N=fk§er and'. Sellcr_ni&4P_iin are Tri 6p31, .9.1'j..*,An�.ma't'en"al',nont)crformance"�ailu"re,toZoi y,,or breach r.btiibh Lof or default .by,$c)ler�and/6rkicipii,ofany;c6v6iAiyt,-,Oromise,-oragrefient.oteiler-an&orOiinci in this Agrecnht-6fifi any -agreement be asW,andSiflcr:idd/KJPrinOpal thatare ck6&fted and/or. Pfifi691' 't li'r N�c j erj - y �...Jp ,p An- es;,br liabilities {includingnixes, but 913, yTa�d all -dibtg;,6bIikaU duo. M. excluding- pk,iyA'bl ;f��iq id gefl��,aiiny of theAsscts, q;tn- nWor that apse pri6r to, the -Effectiv6 yT- d any de!ts-'L,.;bliia�ons,�'dA��es,,ot,liabiliiies ofSellei-reiiitih - . .- �_. . _, r..,__.. _. . - �:, - __ - I Seller -relating 9 retaii invoices, pr..b,iUsIor.such,dcbtg- tq,,qAy,Assct, incd� 6y �ifid� e S, . - - ' �'i'&,4ctkiiiel gab" obli' 'on Auti 5 ing ifichidijag. are -on., or. -Liabiliti I es. ,9.2.. ,_ .in. d--it0,LsU_ cc. essors . aMrassigas;s4all defend, ifidepa64aiid4h6ldiharm es Principal (inchi"-gid. capacity, indivi4ioy �or,ndiredtIy- through. his'de�ignated'cntit ai`a,6nsultant, 'the--Closfn&Date) aid;Wlei its MrecWrS -agents, 'servants; _and e�ppigypps@kd,torit.res&'�tivi. 'member, ma, -cf,, shareholders; '40JArepresentatives, - g-i�amaps,".Succpssqrs;andlassigns, fro in, pqqlagaim..,any ;claims, tbieatsliabilities;; inter,tSWL actions, itdihgsp effm s daiigc�, isses. Costs, and'pcnsei:(in�WdngiAttor n*t "ecs,and`6irt,costs) W�Wery kind and nature atiM fi or-miconnectionvitfif g out o�- i6iii-iri fr�* !M9 . ..... 9.1 1. AJay 7bu,u,'s'sion;,4r '�Ibfckc by, Purcha-siiif 6f � an- y-- repret&fitAtion-� or warranty coptaiffie&otn thrk'Agre"pntLOT in. any,of th6 lddicumenfi;, ik6&utcd,afid deji7v6i-ed by, Purchaser pursuant hereto: -9i2;1.-,:Any rri`=ce',. to comply, � or, breach'; by,;Putchaser of any co'nonp��_ ve�t, 001rirfi. I- eernint hkw- in -6Iis,A—' e akUmcrifts promise,. of Pure me.ht,! or, in any of th. ex&utcd,an&deliv=d byPurchaser parsiiant n,eTeto:, 9:3.3' Any afid,all dents;• obligations;• duties, ror Iabilities. Of kirchaser,-reliting -to the'business activity of the<Business that,ariseaft_er-tfie'Effective Time or relating.to.the.Payatiles in -Transit;lthat•Vias not caused by:an'action-or• inaction of,Setter, or t ,e Principal:. 93.. of ThiM-ii t "Claims-* 9 3.I. In, the event of an'y�thirdr.garty. claim;; threat; liability,itax;�ihi erest, fine, :. penalty, ,:suit, . actiari, proceeding; demand, ^damage;, loss; cost, or ezpenae with respect to which ii demnity'is or. may- be sought hereunder(an�"Indemnity,Claim"), the inderciu�iified party shall piomptly notify tlie'isfdemtufying Party of such Indemnity-Clai�ii,� specifying reascipablerdetail ttte'Indemnity Claim and khe,ciicu�nstarices uudertwhicli it;airise; altlioug 'the failuie�ta provi&written•notice, shall not,discharge'the.:obligations'.afzthe.indemmtyin'g party.. -The indibmifyib91 party ,may,electto askwbe the defenseoCsuch iits-ezpenac;i'byr,proy'idng';.written notice•to the mde ahified ;party;withiia�ten';days afterWthe,indemnifying;paityr°receives,6o ce•of tlie_lnOe__` Claim,;and the indemnifying'party%sfiallpiompily engeige,couiasel,reasonably acceptable to the'•.i�zdemriif�ed,party to _ - _ direct and`conduct suchr- defense; provided,however;,tliat the, in-emnifed party shall haveiNe,right'to, engage: its own counsel, at its own expense; to . oafticipiAd -jn • stiich defense.' )n the; event the. indemnifying:party,'does'not,so. elect'to•assume,the!defense,af such.Indeziinity Claim:in-the manner ,specifiecl•above,ro'r' if in the reasonable op>yuon of c'& c el tojhe indeIIibified�paity,,theie are defenses available. to � theindemnified (party than are, different:: firm �}or ;additional ;.to . those available to the indemnifying party ar that.give rise to a f6terial.;coriflict between the defense of the;indii_hhified party sand oFthe indemnifying paity„then upaa:notice•to'the-indemnifying party,:tlae�indexnnifie&paity-may elect to-erigagc.separate caunsel'to conduct its defenki; at;the!eicpense:of:the indemnifying party, and. the indemnifying party, shall tint have the right to direct oriiduct sueh'defense 93.2' ;In. ;the . event the : indemnifying party assumes 'the ..defense of oily, >;lndeibhity.Claim., it.niay at�any time tiotifprthe tnct rl- iifed'.paity of its intentnon #o; settle; comp ruse; or.satisfy.such,Indemnity,.Claim and may.make;such-settleme;nt;,compromise, `oi- sactissfaciion,(at its owri eipense),'unless'within tvventy days•.afier;the;:giving of-,such.natice?the indetrfn fied`party'gives notice , rof its'inteauon to assume the defense of the Itidemriity Claim; in'wluch event•the,`inde�nifyMg Party sliaill?berelievediof.its,dutya)iereiinder to`,iniie'nkUV the'iadehiriifiedsp prc�v3 v6ciwever ,that it. �y;`,:_ shall no[•settle,the Incie pity C1aim utiiess the settlement does`inot entail' any admissinn:ofiliability,on f . tlic part . of any. inden reified party.' , and ,.thte l 5et#lement, tiialudes-an . unconditional .:release,, of each, ;indemnifiediparty, reasonably satisfactory�to the",M-_. 'i. R. party from ailrlosses vrath,respect-_ such. -Indemnity Claimm :Unless the indemnified party. shall,have,,,&ven,the notice referied to in=the precednng. ,sentence, :(a) i6e indemnir; i- g panty shall not canseAt to .or make.. any :settleixiept„ coccsp inise, or satisfactionrwitli-respect to thealnddf iity.Ciaim without tis`e,.prI.iar writer► consent:of;the indeiririified. ,party,, vihich� consej.rit.A&U. not ,be unreasonably withheld,' and *(b)i aniyr setklement, co mpromise,: or -satisfaction.niade by.the rode ' 'f hng party with iespect'to,such, Ifidemnity Claim,shall`hot be deemed to lia�ve.been'consentedl to tiy,indshalf66 oe:l�inding;ppoh the'indesnsiifiedparty. _ - 9A. , Satisf`acbbia cif Direct:ClMnis..In the,eve`nt-a party -liana dir'ect,clairri;against the; other, Party pursuant t i.: Section , , - or"9: '. the Rarty,.Qvith: ttiet.. m ,sliallt provide:kthe f other; Part}': with ttotyce of its alaiin, and�;so;long as flint party does not dispute such claim, the party. shall pay the amounts owizl;within:thirty'days In th`e event there is a bona fde disputeras to" any3siuount;oweii,pursuant to,tws .Section-9'.4 the -dispute resolution,terms set,#artli'iri Section 12, i'f sliall.apply, d37T29Ld- ab4 ,, 9.5.. 'it nitationwo jIndO-officail n: 9:5.1. ,No'twithstanc#�ng'anyth►ng to,�the coi�trazy contaified Aa,.thisAgreement, '(a) neither, Seller:nor,Pribcipai,slialilk'Uable;to Purcliaser;.,rior st aft'4 �chase'r 6i Liable to,'Seller or Piincipal;,for indertirnfication underAhis,`Sectiori 9,. afid ,no•chiim far indemnification �tnay',bemade -a mast an , -`unless slid untik the `' to amount of a1l:dania es-mdugrkl-by the livable.- li; y:p�y; el - V r $ Y r P_ ^PmtY that -a . available' for indemrii5cation,urider this;Section`9-exceeds=$25,400 (the `:`Basket",) ,in -which' event apart .flight to be tridernnified shall appiY*io�a clasins'for indemnification under -this Section 9: =(including;, ts,e . amount: of the: `Basket), .and €excePtf ;that the .Basket 'limitation shall -scot apply- to Purchasei'S failure to,pay any'amotutts.owed to'Seller under the Note; (b) ihe,m_ axiriium aggregate 4 ' liAbilrty of ,Seller 'and/or- Principal Ito Pt►rch'aser undei. this ='Agreement; 'or. from Purchaser i •Seller and/or,Prmcip- sh'all'notlexceedthe PurchaserPrice,exceptthis:lmiMonshall not applyto,the grossly aegligen`t'acmor,wihftil misconduct of eAer;party;in perfortziing tts�oolig> tiorts:usider this; Agreement;. .and,(c);,neither,Seller'nor•Pnricipal� shall�5e,liablc,under tI",Sbction'9 for,anydamages•bas _ upon or ansmg,out of�any inaccuracy ut'or;breac� of:aa}r of the representations=or warianties of Seller -and/or t Principal, if Purchaser had'actual lozowledge `of such i6accur�acy:or', irAch prior"to the Effective Time. ' 0.5.2: 'The ,iip6eriti6ohs- and.' wai i ibis made. by;- Seller, -'Principal;.. ,and Purchaser in S&iion. 6 hereof, and in -an}► ,documents-delivereii-' or. to be. delivered..pursuant ,to this Agreealent; :shall survive •for : a period ��oF- two years alter. ;the `Closing. ,, e, except that, those <_ representations•°and+.warranties:set•faith•in:5ectiori-61k1_(Title"tpi,the.Assets} -Section�,61:2 (Assets. Transferred Free of Liens);.Secfiofr 6:1:6, i'Taz:lviatters), Section 6 1:'16 (Employrrient 1vt tters); Section •61:19';(Pretnises),'Seciion,'S:1 5,(Seiler,Coinpany.Actions)andSectioni62:3y(Furcbeser Company A�tions);,shali'sutyive until, the=expiration of the apPlicanie?statutes of tuinitation with'respect to: such representations .and marraaties: After ,tile; expiration :;date of, such °representations `and -.warranties; -n6 ciatra,foi indemnificatson based oit such', representations or warsantiesimay�+lie'asserten, except. that :claims first;asserted'in writing: With•reasonable,detail,beFore,therexpiraticrii`date rnay'be,pursµed.until= they are:finally;resiilved: - - 10�• Ein�10 ree Matte_i s...Eiccepi� for Purchaser's€porfsam:of;tlie ,eIIiployee, retention bonuses described in" Secti6fiR, i l" (i.e , 40% .-of not,, bonuses),: Puieliaser..does.. not,, assume any -liabiltes duties; or obligatidns of Seller with respect to•any current or, past:etiloyees of 5elker,;tinyof 'Seller's employee benefits or,benefit-pleas; or any other employdnent related;Iialiility, duty;.or ol,ligation of Sellei Wl atsoever: - R .L. ConfidentlaMy- `Each .' panty:. who • :receives: (a, `°Receiving Party") 'confidential or. _ proprietary M ormation:of tkte.paut}i dtsclosing,it {the Misclosing P,arty"), iucluding-inforsiiatton relating to eaeli party's.processes, services; customer and 5upplier,lists,,prtcing.and rriarketing pleas; policies -and strategies; • details ;of'custonier;,,.stippl►er,., and' -consultant ,cimtracts; • operatic"rts methods,. techniques; , busuiess.plans, trade_secrets, proprietary i_nformation,;and all:gther sntellecitial;property:of, arrelated to;. the Business, t1ie,'Principal; :Seller, or; P+ircliaser' (f`Coafidential''Informatfon") acknowledges .the •,confidential' and;proprietary' iii ie af,theiConfidential Infarinativn;,and the;Receiving Party agrees;that v >, , s- �. x �m }, SUCK ConSdential.lriformation (a) shall be`kept confidential by the_lteeesving,Pirty; (b)-sltall'i be used :For, any _reason or purpose atlier than to evaluate'aud consummate the tisnskU(;is•contemplated;by.this, A,gree:iient,'and, walla respect to,Purchaser, the,oxeration of}the`=Business•from and after the,_Cldsing- Date,;and; with respect,to-Seller and'Prifi6pal .the`opera_tian of tWBusifless,pnor to;the Closing•Date.or, 'if. the. Closing. does,mot occi The•.parties agree tliai Co"denti lnfnrmation -may, be dtsclo"sed'�to .attorneys, accountants; and 'other advisers,advising•each;partyin regards to_;this' trarrsaction:(col[ectively,, t]772PAA. // 17 «(/// `:Representatives so; long.asstheAecei In Party uses- commercially reasonable efforts,to .ensure that thcy ntaintairi thirconfideritial'natuie of the:,CBnficlentiaformatlon: In°addition;,fhe;part�es age.that a the restrictions set "forth' in this_Secti11 shall' itot apply to than"part of,the:Confidential' Information,of ra Disclo5ing.Part}+that a Receiving,P.arty.detnonstrates�,(a) was,,is or'becomes geneimly�availaiile to the public, other than as a iesult of a;breach of this Agirterit by`the Recetving Party or•. it_s Representatives;' (b) was or is developed by the Receiviitgx`Party ihdepen'iEendy, of"and without refeience to aryy ,Confidential Iuformati6n,oit1' Disclosing Party; or•,(c) •was, is- or=becomes, available to the -Receiving Party on :a noncdnfidential;.liasis6from a .thrrdparty notiboiindtby a 'confidentialityagreement or any legal, ftducsary'.or oilier; obligation, restricting, disclosure.' This' Section l l�•sh f suivive the Closing or. •any pre-Closirig.termination'ofihis Agreement •12. Miscellanedns.. 12;1:.'Survivsia of. itom'sentatiii1k _Warranties, taut &Ueemeais. Siibiiet to the survival periods,expressly.stated,herein, ail'0f tl e,napresentations .warranties, covenants,.proinises,-and greemeiits'of.the'parties,codtasned ui this Agreement, rind anY dociunents:cielivered or�to be -delivered pursuant;to this Agreement; -shall'survmve the ezecutiori and'dejivery.of this Agreement: i2.2r Entire, - ement. ;TliisrAgreenteniieanstitutes ihe�entiie, integrated,ageeinent of the:partres with respect to�the"subject nnatter hereof, and supersaies any and all pnor,understatidings_,, correspondence; negotiations; and�agreements "of -the partite vsrithi`respect�to",tlie•subject znstter hereof _.t - A2:3". ,"didmeat;':Waiier. No'prbvisioit:of thii Agreement may be-amended,'waived; =or,odie'm*se-modi-fied:without the.prioiwrittenco`nsent,of ali ofthe:applicable:part e`s hereto: No action. taken pursuant to this; Agreement, ,including',any` rnvestigation ,by. or,.on behalf�of any party, .shall be: f deerrted-to consUtute;a4waiver by the'partyrtalring" stick action of cornpliancecwith:any;repi,eseritation;, •.warmniy;'covenan� or.:agreement herein-coritained° The waiveriby anyparty hereto ofabreach 4'any pro�isian or condition contained in.this,Agreement shall not-operate:o- . .construed . I • v�raiver�of any' .r l - :sul�seguentbreach of of any-other.conditions-hereof: 12:4:; Iri#ernretatiori. _For, :purposes of this.. Agreement; �(i).' thc- words "incuudc; ","includes"' and "including"`are: dee_ rit_ed, to. h& followed ny the.'words `°i n-"thout =liiicntation; ' (u) -thd w_ ord', tt , d ii '- fl'Lt � ff'E --• � f/�Ei .„ .: � , !f, or/ is�notexalusive;,arid'(c);tine"words..hereisi;:. hereof,: `hereby;, ;Hereto and.:°ltereunder ieferto' ,this-.Agreemheiht as a whole., Uniess'the: context otherwise• requires;.references ,herein: (aj to, sections;, .... _ 1 • by schedules and exl► bits mean the;sections of, i rid stcheaes`and,eihibits attached to,` -this Agreenien °(b).; to -an agmerrierit, instruihdr t ou6tlier.document ineans".such,4greeniei% insM mentor other document as. :amended, supplemented and' modified frgm tune m Rime;to,�the,extent; permitted liy the ,proinseons ihereof;,and'�(c) to•a,statute means:such statute as,am6iled,,froin trrne to tune°andincliides'any successor legislation thereto aril any: regulations.,prornulgat ., ,thd dhder .This Agreement. shall be' coc�stnied without regardlto any:presumption:or•rule requiring constnctiop•or,Intcrpietationi,agWst the party drafting•ap instiumentror causing,aiy.instruniient'to be;iirafted. The schedules and a iibits.referred to �. ta' t . heretm:shall be!constrtied with, and'as,an integral ip rh,af; t1t:s-Agreementjo,ilie sartte,extentias,if•they ,were set;forth:'verbatim'heMn All,,references�toF``$"=or;"dflllors_" mean the;lawful°ctitrency,ofihe United. ,States of America. `.Whenever the inasculirie its used .inr•.tliis Agreei€iedt,..the-?same shall :include .the feminine and- whenever the 'feminine, is kusetlJ he�retn;, the.; same; sl Ai ;include. the masculine, where appreipriafe :Whenever the'sirig filar is,used to thi's Agreerrient; the, same; shall inclitde'the plural, m8 whenever the plural,is,iased'trerein,.the same shall tnclu&the sirigttlar, where;appropriate: The.section 137TM 6 ,18' nand.dtherheadipgs-contai_aed,in- this .Agreement,are4or,rdgren6e F4*ses only an&shail•not Oda the: neaamg:or interpretation of: this•Agreetr►encY -_ 12.5:., ,Assit=_nabfilt:v. This Agreement, shall °not -be; assignable• by- Oy ;party: hereto .: - -without the prior wntten,cansent�of-tl�e•_other parties. 12.ti., Binding E.f%c#; Benefit: Subject to•the,Wnitations set forth in,Section 12-5, this 'Agreement shall inure,to'tlie beriefif of•and be bin`di ig,upon"the�piirtie' hereto and their respective heirs, personal' -and` legal':representatives, gtii-di-;successors,; and,,penriitied, gssigns. Not}iin_ g-•-in. this• Agreesaeat; express or. implied, is: intended; to .confer' upon any, other. person :ithy rights; remedies, . obligations;.or 4iabilitim, except, tliat�Sectio"n 9 `is 1:n' 6ded�.to'benefit-the Ifider�iiiified.paities referenced °therein: . . -- - . _ - . . - . - -. - .12J. Severabiliti'Any provis'ion�diliis{Agzee ri_ent-that is,Lheld,tiy a court or arbitrator sdciontobohi}`bto theexof`competcnt.jur'i prohsbiton' or_ uneriforceaility;. terit'oftsuch without invalidating or ` rendering unenforceable the .remaining. pmvisidns of this Agreerizent. r 1Z:8: PDF�° Coti>tte arts: �tiis Kgfeeinent" and the other agreements• and'• documents; 1:contemplat6d hereon rna'y' be executed'ia;coutiterparts,,eac6 of wlii6� "I ,66:h4ari'onginal,":and•all �ofwhich when atTixed together sha3l,constrtute-one and. the same iris__runient. Signature`s•exchariged by, facSimile or tlier electrowc,means (including,.pdf by email)'',shall t de &6na ra origmalFgnatures for.all .purposes:. ... _ s _ - - - .12.9:. Governin ` Laiv. `Tliis•'Agreeuieet- shall' be goyernedi.by, construed, interpreted,', and enforced in accordarice:with`.the laws ;of.ttie State: of North Carolina (without regard to its coriilicts of la*s docttines):, , . _ itIO4 Attorn s':,Fees. If,any.action is institiited''liy aparty.tgenforce any provisions of. this Agreement; attorney -fees costs shall�be:awarded Eo:the.prevailing;p^arty: •12.11.i iSyd6,-Resoludof;: Any_ •dispute`•that irises under, this Qurch- 'e and,. sale . txansactioii; or under•any nfthe doc imentsseiiecuted fit, the:closing, of:thrs.purchase `and,We transaction; Vvhich'theparties:caririot otherwise:resolve;;stlall:l e•initiallyi;submitted:to inedaation to Statesville;.Nort>i Carolina'pefore a mediator agreed upon }►,the partres;.if the parties cannot agrep.upon a•itted�ator, then, .they skull submit their dispute td-the American,,Arbitration ,Association, foi lied ation, If a. - dispute is not. F resolved,within- thi * days ;af &-,holding of a mediation session; then rt shall belsi b itte(ffor binding 'arbitration to t}ie Ariierican Arbitration Association nearest toi Statesville; North.Earolina pursuant.io its• Camm'eicsal Alltitration.ltules,,excepCthat sputes w�thin,their, jurisdk6onal,lirrut shall:be,resalved in:the email claiins,ar co�n�ty coons of•Iredelltpunty, and (b);di§puteS lri wtuchia party 5eW tijunctive. relrt:f shalI'i a icsolved' in the district courts of,Iiedell Coirrity;�in whirls case,all cIgtri liial be resolved,: in'"such lawsuit. The-parties,consent•to;peno-nal,ji risdiction and >venue being`proper:tn such courts:4n,an, ;arbrtrati6 thi. arbitrator's tar `shall be •firtai,and' bin'diijg: and may. be entered' in 'sny-,, ur having jurisdiciion,thereof e _ - _ - 12.1.2: Notices. All" noticek.requests .demands, consents,:and:other cominunicakioiis that arc-recjuired•or rna}►`be giveri:uniier this Agreeirient (collectively,`thc "Notices) -shall tre in writing;attd' •lg- shall.+lie given .either (a) by pei5onal detivery.•againsya3receiPted-;copy, {b} by=certif d or registered` United Slates mail, return, receiptiegiiested; postage prepaid,. (c) 'by iecggnized` overriight.:delivery service, or (d) by email;. with confirrfiation,of delivery,.to the,addresses-set:foith,below,,or to•such other 'address of which written notice -in accordance With,thWSection_ 12.12.9h2ill:have_been provided -by such party: Notices may only -be given in the',madher•descfibed in -I". Section-II.."ll,and.shalf-be deemed received.when.given' iji'su& cnaiiiier. 12:13., Further Asgnrane `.-Each of.the parties t6lhis:Agreemem-;shall cooperate with the other: and execute, ani�liver,,fa' "tlie 'other parry to this Agreement such_other :instrument' : and -documents and take such otlier actions as may •be-reasbnably-tiquested from time-t� 01m6,by the. other party to this:Agreemeat as tiecessary.to carry.aut'or evidence the purposes of this Agreement: 12A4 Costs .arid .Expenses..Each of die-: parties shall, be solelytresponsible:for'its,•own costs. and expenses I incurred' in<connection with this A'gre6nen•t and, the transactions :contemplated hereby. - . (Signature P, dge(s): to Follow) .i37T 41.6 i20'.. IN WITNESS, -WHEREOF; O*-,h6.ex66td'hisA- empt isldft.dati flist set forth- above. 'SELLER Gal&w4y.Rec O-very,., Inc. By: Add'24v A Anig; �11 PRINCJAL, tharlesi.v. k;wd, IddNidually Address for. notice is the §a;ne.a-s'seller. MACkASEA Gateway Recycling; Inc:. Or PWI lacobb.,abe-;'Preitda'it Address: - ,Efna I il-'� 'aeo'- h4hk . 21 HCDENR North Carolina Department Of cEnvironmeri and ,Natural RSSCI;rC_H evedy waves , erdue r-c5/efrlcr Mr. Chris Delzell Gateway Recovery, Inc. 173 Orbit Road Statesville, North Carolina 28677 Dear Mr. Delzell: 0i'fision cf tiNater Cuality Colson H. Suilins Director . February 7, 2011 Dee feernan Secreiary C�. Subject: No -Exposure Certification NCGNE075#7 Gateway Recovery, Inc 173 Orbit Road, Statesville, NC Iredell County The Division has reviewed your submittal of the No -Exposure Certification form for Exclusion from NPDES Stormwater Permitting. Based on your submittal and signed certification of no exposure at the above referenced facility and the site visit of July, 2010 (pre -application), the Division is granting your conditional exclusion from permitting as provided for under 40 CFR 122-26(g), which is incorporated by reference in North Carolina regulations. Please note that by our acceptance of your no -exposure certification, you are obligated to maintain no -exposure conditions at your facility. If conditions change such that your facility can no longer qualify for a no -exposure exclusion, you are obligated to immediately obtain NPDES permit coverage for your stormwater discharge. Otherwise, the discharge becomes subject to enforcement as an un-permitted discharge. You must self re -certify your No -Exposure status annually using the included form or obtain NPDES permit coverage for any stormwater discharges from your facility. The annual self re -certification form should be maintained on site and does not need to be submitted to DWQ unless requested. Your conditional exclusion from permitting does not affect your facility's legal requirements to obtain environmental permits that may be required under other federal, state, -or local regulations or ordinances. If you have any questions or need further information, please contact Marcia Allocco at (704) 663-1699, or at marcia.allocco@ncdenr.gov Sincerely, for Coleen N- Sullins cc: Stormwater Permitting Unit No- Exposure Files (Cory Larsen) Mooresville Regional Office One Location; 610 East Center Ave., Suite 301 Mooresville, NC 28115 North Cdrohna Phone: (704) 563-16991 Fax: (704) 663-60401 Customer Service: 1-877-623-6748 Inlemet: /atltrally No -Exposure Self Re -Certification Information: You are obligated to maintain no-exoosure' ccnditions at your facility. If conditions change such that your facility can no longer qualify for a no -exposure exclusion, you are obligated to immediately obtain NPDES permit coverage for your stormwatur discharge. Otherwise, the discharge becomes subject to enforcement as an un-permitted discharge. State statute provides for fines of up to $25,000 per day for un-permitted discharges. Your conditional no-exoosure exclusion must be self re -certified at least annually as follows: - Complete the re -certification at a minimum of once per year using the included Self Re - Certification Form. (additional copies can be downloaded from http)/portal.ncdenr.org/vveb/wglws/su/npdessw#Nc_Exposure_NPDES ) - Maintain a record of re -certifications on file at the facility. Do not submit the re -certification to DWQ unless requested. If requested, submit a copy of the re -certification to the Division and/or the municipality in which the facility is located. -During an inspection by DWQ or local government, provide the re -certifications immediately upon request. - Notify the Division of any changes in ownership, significant facility and/or activity changes, or if the facility can no longer maintain no -exposure. -Allow the NPDES permitting authority or, if discharging into a municipal separate storm sewer system, the operator of the system, to: (1) inspect the facility; and (2) make such inspection reports publicly available upon request. * "No exposure" means that all industrial materials and activities are protected by a storm resistant shelter to prevent exposure to rain, snow, snowmelt, and/or runoff. Industrial materials or activities include, but are not limited to, material handling equipment or activities, industrial machinery, raw materials, intermediate products, by-products, final products, or waste products. Material handling activities include the storage, loading and unloading, transportation, ❑r conveyance of any raw material, intermediate product, final product or waste product. (40 CFR 122.26(g)) Information and forms related No -Exposure Certifications can be accessed on the website at.- httpi//portal.ncdenr.org/web/wq/ws/su/npdessw#No—Exposu re_N P DES Rev. 28Ju12010