NCG080780_COMPLETE FILE - HISTORICAL_20140724

-STORMWATER DIVISION CODING SHEET
RESCISSIONS .
PERMIT NO..
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DOC TYPE
E� COMPLETE FILE - HISTORICAL
DATE OF
.RESCISSION
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North Carolina Department of Environment and Natural
Pat McCrory
Governor
Mr. Keith Stark
Cape Fear Paving, LLC
310 Sampson Street
Wilmington, NC 28401
Resources
John E. Skvarla, III
July 24, 2014
Eic8Sec(retary
AUG 11 1014
By.•—�
Subject: Return of Permit Transfer Request
Cape Fear Paving/Waste Industries
Ref. Permit NCG080780
New Hanover County
Return #1302
Your request to transfer coverage under an NPDES General Permit received on or around November 20,
2013,is being returned unprocessed due to:
❑ Check for $100.00 made payable to NCDENR Is missing.
C7 Application is Incomplete.
❑ Application package Is missing the supporting documents.
l� Misfiing copy of county map or USGS quad sheet with facility clearly marked.
11�Other
M
Please contact me to discuss any questions on this action or on permit rescission requirements, either at
[phone] or at ken, pickle®ncdenr.gov.
Enclosures•
Lease Agreement between Cape Fear Paving and Waste Industries (applicant only)
Email confirmation of this action
SS
SPP: NCG080780 file
DEMLR Wilmington Regional Office
Division of Energy, Mineral, and Land Resources
Energy Section • Geological Survey Section • Land Quality Section
1612 Mail Service Center, Raleigh, North Carolina 27699-1612.919.707.9200 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina 27604 • Internet: htto://oortal.ncdenr.org/web/Ir/
An Equal Opportunity 1 Affirmative Action Employer - 50% Recycled 110% Post Consumer Paper

Pickle, Ken
From: Pickle, Ken
Sent: Thursday, July 24, 2014 2:25 PM
To: '[e-mail]';'[e-mail]'
Cc: Alexander, Laura; Bennett, Bradley; Sams; Dan
Subject: FW: Stormwater permit name change request: RETURNED
Good afternoon, Mr. Stark,
Thank you for your time this afternoon.
We are returning unprocessed your request to transfer coverage under our stormwater permit Certificate of Coverage
NCG080780. As per your description of the commercial activities at 310 Sampson Street in Wilmington, and as I
suspected, your facility is not a regulated industrial activity under the NPDES Stormwater Permitting Program rules.
Typically a contractor's home office and yard are not regulated activities under the federal NPDES rules.
I have copied Mr. John Pfleger of Waste Industries to alert him to our action on yourjoint request to transfer coverage.
Since we are denying the, request to transfer coverage, Waste Industries remoins the permittee of record. We will of
course entertain a separate request from Waste Industries to rescind their permit for this site since there is no longer
any industrial activity that would be regulated for stormwater discharges under NPDES rules. Unfortunately, our
internal procedures will not allow me to move ahead on the obvious path without Waste Industries specific separate
request to rescind the permit. Our permit rescission request form may be down loaded from this website location:
http://Dortal.ncdenr.org/web/Ir/npdes-stormwater
Gentlemen, please contact me if you have any questions or if I can help speed along a request to rescind the permit for
Waste Industries.
Ken
Ken Pickle
Environmental Engineer
NCDENR I DEMLR I Stormwater Permitting Program
1612 Mail Service Center, Raleigh, NC 27699-1612
512 N. Salisbury St, Raleigh, NC 27604
Phone: [phone]
Fax: [phone]
Email: keen plckleCMncdenrgov
Website: http://portal.ncdenr.org/web/Ir/stormwate
** Email correspondence to and from this address is subject to the North Carolina Public Records Law and may be
disclosed to third parties unless the content is exempt by statute or other regulations.**
From: Pickle, Ken
Sent: Wednesday, July 16, 2014 10:14 AM
To: '[e-mail]'
Cc: Alexander, Laura; Bennett, Bradley; Georgoulias, Bethany
Subject: Stormwater permit name change request
Good morning Mr. Stark,

RE:,Stormwater permit Certificate of Co.verage,NCG08O78O; your request to transfer coverage
I have called for you this morning, and left a message with your office.
I'm not sure you need coverage under our stormwaterGeneral Permit for the operation of a general contractor's office
and yard. And 1 think we should speak voice -to -voice to clarify this for me. ,
We are in receipt of your request to transfer coverage under our stormwater permit from Waste Industries LLC to Cape
Fear Paving LLC, signed by you and John Pfleger on November 20, 2013. Assuming that you sent it to us sometime
around the signature date, I'm not sure why we have delayed responding until now. My apologies for the delay.
The application has been processed by our staff and has come to me for signature. I note that it appears that your
business activity is different in character from the Waste Industries operation that preceded you on the site. Our
permits are based on matching certain categories of industrial activity with certain General Permits in order to control
the potential for stormwater,pollution associated with.the particular industrial activity at those sites. (NCG080000
matches up with the prior Waste Industries activity at your site.)
It's
not clear to me that you need coverage:urid our permit. Considering activities that'might be related to your
operations, coverage under a stormwaterpermit would be required if:
• You were operating an asphalt plant at the site. If you are, coverage under NCG16-Asphalt is appropriate, not a
transfer,of,NCGO8,
• You were operating either a fixed or portable ready -mix concrete plant at the site. If you are, coverage under
NCG14-Ready-Mix Concrete is appropriate, not NCGO8.
• The site was home base for a fleet of vehicles,, you were regularly performing vehicle maintenance at the
site. If you are, NCG08 is the appropriate General Permit for storm water discharges, and we could make the
transfer from Waste Industries to Cape Fear Paving. Some types of vehicles would qualify you for this permit,
and some other types would not. "Vehicle maintenance" is defined in federal rule to Include washing vehicles
and fueling vehicles, as well as what you might normally think of as vehicle maintenance.
• You were engaged in an activity similar to the Waste Industries activity that preceded you. Again, in that case
NCGO8 would be appropriate. In one way this bullet is a slightly different res-statement of the bullet
immediately above.
• You were engaged in some sort of manufacturing at the site. In that case we have 20 General Permits specific
for the industrial manufacturing sector that you are engaged in.
Initially the "Paving" in your company name caught my eye. Then the description of the permitted activities in your
lease with Waste Industries served as corroborating information, it seemed to me.
I will hold this request for permit coverage for a few more days, but then I intend to return it without granting the
permit transfer. Please contact meta discuss. IIII be.out of the office.this Thursday (tomorrow)4hrough next Monday.
Unless I hear from you, I will return the application on next
Wednesday.
FYI, if we deny your transfer request then Waste Industries remains our permittee, and it could be construed that they
are still obligated to comply with the permit until they request, and we grant,,rescission of the Certificate of Coverage
under our permit. I realize that this aspect may not directly concern you.
Ken

hen Pickle
Environmental Engineer
NCDENR I DEMLR I Stormwater Permitting Program
1612 Mail Service Center, Raleigh, NC 27699-1612
512 N. Salisbury St, Raleigh, NC 27604
Phone: [phone]
Fax: [phone]
Email: ken, pickleaOncdenraov
Website: hrto•//portal ncdenr ora/web/Ir/stormwater
** Email correspondence to and from this address is subject to the North Carolina Public Records Law and may be
disclosed to third parties unless the content Is exempt by statute or other regulations.**

LEASE AGREEMENT
THIS LEASE. AGREEMENT ("Lease") is made and entered into this � day of
�5+ 2012 by and between WASTE INDUSTRIES, LLC, a North Carolina limited
liability company ("Landlord"), and CAPE, PEAR PAVING, LLC, A North Carolina limited
liability company ("Tenant").
RECITALS:
Landlord, for and in consideration of the rents and all other charges and payments
hereunder and of the covenants, agreements, terms, provisions and conditions to be kept and
performed hereunder by'renant, demises and leases to Tenant, and Tenant hereby hires and takes
from Landlord, the premises described below ("Premises"), subject to all matters hereinafter set
forth and upon and subject to the covenants, agreements, terms, provisions and conditions of this
Lease for the term hereinafter stated.
NOW TIIEREFORE Landlord and Tenant agree to the following, unless otherwise
specifically modified by provisions of this Lease:
TERMS.
1.1 Premises. The Premises demised by this Lease is that land lying and being in
New Hanover County. North Carolina, and being more particularly described on Exhibit A
attached hereto and made a part hereof, such, land being located at 310 Sampson Street,
Wilmington, North Carolina.
1.2 Lease Tenn. The term of this Lease shall be for a period of five (5) years
commencing August I, 2012 unless otherwise terminated or extended as provided for herein
("Term"). Upon mutual written agreement of the parties, the term of this Lease may be
extended.
1.3 Rent. The basic rent for the first Lease year is $120,000.00 payable in equal
monthly installments of one twelfth (1/12) of such annual amount each month. In addition to the
basic rent, Tenant shall pay Property Taxes, Insurance, and any other charges required to be paid
by Tenant hereunder (all sometimes collectively being referred to as "Rent").
1.4 Tenant's Limited Right to Terminate Lease. Simultaneously with executing this
Lease, the Tenant has entered into an Operation Agreement with Landlord's affiliate to permit
Tenant to operate certain business operations on the real property located at 3612 Highway 421,
Wilmington North Carolina, pursuant to the terms therein. The Operation Agreement contains a
provision entitling Landlord's affiliate to terminate the Operation Agreement for convenience
upon a ninety (90) day written notice to Tenant. In the event that Landlord's affiliate exercises
this right to terminate the Operation Agreement for convenience, then Tenant, under this Lease,
shall have the right to terminate this Lease upon a ninety (90) day written notice to the Landlord.
REAL-6816-53- 376080-v3

2. DELIVERY OF POSSESSION. If Landlord is unable to deliver possession of
the Premises to Tenant on the Lease Commencement Date this Lease shall not be void or
voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom, nor
shall the expiration date of the term be extended, but in such event Tenant shall not be liable for
any Rent or other charges due under this Lease until such time as Landlord lenders delivery of
possession of the Premises to Tenant. Should Landlord tender possession of the Premises to
Tenant prior to the date specified as the Lease Commencement Date, and Tenant elects to accept
such prior tender, such prior occupancy shall he subject to all terms, covenants and conditions of
this Lease, including the payment of Rent. Landlord and Tenant acknowledge and agree that
Tenant shall accept possession of the Premises as of the Lease commencement Dale and that
payment of Rent shall commence on such date notwithstanding that Tenant shall not have
completed the upfit of the Premises.
3. PAYMENT OF RENT. Tenant shall pay Landlord the Rent and any other
payments due under this Lease without prior notice, deduction or offset, in lawful money of the
United States in advance on or before the first day of each month, except that the first month s
Rent shall be paid upon the execution hereof, at the address noted in Section 26, or to such other
party or at such other place as Landlord may hereafter from time to time designate in writing.
Rent and other amounts due under this Lease for any partial month at the beginning or end of the
Lease term shall be prorated.
4. PERMITTED USES. The Premises are to be used only Ibr purposes of
operating Tenant's ongoing general contractor business specializing in site work, clearing and
grubbing, demolition, storm water, water and sewer, sidewalks, curb and gutter, paving and
related businesses ("Permitted Uses") and for no other business or purpose without the prior
written consent of Landlord. No act shall be done in or about the Premises that is unlawful or
that will increase the existing rate of insurance on the Building. In the event of a breach of this
covenant, Tenant shall pay to Landlord any and all increases in insurance premiums resulting
from such breach. Tenant shall not commit or allow to be committed any waste upon the
Premises, or any public or private. Tenant, at its expense, shall comply with all laws relating to
its use or occupancy of the Premises and shall maintain the safety, care and cleanliness of the
Premises or the Building to ensure the preservation of good order therein.
5. COMPLIANCE WITH ENVIRONMENTAL LAWS. In its use and
occupancy of the Premises, Tenant shall at all times obey and comply in all material respects
with all lawful requirements, rules, regulations, and ordinances of all legally constituted
authorities, existing at any time and in any way affecting the Premises or the use of the Premises
by Tenant. Without limiting the foregoing, Tenant further covenants to keep and maintain the
Premises in compliance with all applicable federal, state and local laws or ordinances pertaining
to or regulating the transportation, storage, use or disposal of Hazardous Materials
("Environmental Laws"). If during the Term of this Lease Hazardous Materials shall
contaminate the Premises or the soil or surface or ground water thereof or thereunder or there
shall be any related loss or damage to person(s) or property, except to the extent caused by
Landlord, then Tenant shall: (i) notify Landlord promptly of any release, contamination, claim
of contamination, loss or damage, (ii) after consultation with Landlord, clean up such release or
contamination in compliance with all applicable statutes, regulations and standards, and (iii)

indemnify, defend and hold Landlord harmless from and against any claims, suits, causes of
action, loss, damage, costs and fees, including attorneys' and other professionals' and engineering
fees and costs, arising from or connected in any way with any such release or contamination,
claim of contamination, clean up of such release or contamination or other loss or damage,
including, without limitation, the costs and expenses of environmental assessment and testing.
This provision shall survive termination of this Lease.
As used herein, the term "Hazardous Material(s)" shall mean any substance or material which
has been determined by any state, federal or local governmental authority to be capable of posing
a risk of injury to health, safety or property, including without limitation asbestos, petroleum
products, biological and medical wastes, samples or substances, explosive, corrosive or
radioactive materials and all of those materials and substances designated as hazardous or toxic
as defined in or under any applicable federal, state or local law, and the applicable regulations
thereunder, and any other material which any governmental agency or unit having or claiming
appropriate jurisdiction shall determine from time to time to be harmful, toxic or dangerous.
6. LATE CHARGES. Tenant hereby acknowledges that late payment to Landlord
of Rent or other sums due hereunder will cause Landlord to incur costs not contemplated by this
Lease, the exact amount of which will be extremely difficult to ascertain. If any Rent or other
sum due from Tenant is not received by Landlord or Landlord's designated agent when due, then
Tenant shall pay to Landlord a late charge equal to ten percent (10%) of such overdue amount,
Plus any attorneys' fees and costs incurred by Landlord by reason of Tenant's failure to pay Bent
and other charges when due hereunder. The parties hereby agree that such late charges represent
a fair and reasonable estimate of the cost that Landlord will incur by reason of Tenant's late
payment. Landlord's acceptance of such late charges shall not constitute a waiver of Tenant's
default with respect to such overdue amount or estop Landlord from exercising any of the other
rights and remedies granted hereunder.
7. REPAIRS AND MAINTENANCE. Landlord shall maintain, or cause to be
maintained, the roof and the structural components of the building and other structures located
on the Premises, except any of such repairs rendered necessary by the negligence or willful
misconduct of Tenant, its agents, customers, employees, independent contractors, guests or
invitees, the repair of which shall be paid for by Tenant within ten (10) days of Landlord's
written demand. Subject to Landlord's right of access pursuant to Section 15, Tenant shall be
exclusively responsible for all other maintenance, repair and replacement to the exterior and
interior of the Premises, and Landlord shall be under no obligation to inspect the Premises.
Tenant shall promptly report in writing to Landlord any defective condition known to it which
Landlord is required to repair, and failure to so report such defects shall make Tenant responsible
to Landlord for any liability incurred by Landlord by reason of such conditions. Tenant hereby
waives the right to make repairs at Landlord's expense under any other law, statute or ordinance
now or hereafter in effect. In addition to the foregoing, Tenant shall be responsible for the
repair, replacement and maintenance of the HVAC system. Tenant shall obtain an annual
maintenance contract for the HVAC system and provide Landlord with a copy of the same.

8. UTILITIES AND SERVICES. Tenant shall be solely responsible for paying the
costs of all electric, water, natural gas (if applicable), telephone and other utility services to the
Premises and maintaining and repairing such utility systems.
9. PROPERTY TAXES. "Property Taxes" shall mean any form of assessment,
license, fee, rent tax, levy, penalty (if a result of Tenant's delinquency), or tax (other than net
income, estate. succession, inheritance, transfer or franchise taxes), imposed by any authority
having the direct or indirect power to tax, or by any city, county, state or federal government or
any improvement or other district or division thereof, on the Building or any part thereof, the
land, the parking area, or any other legal or equitable interest of Landlord in the same. Tenant
shall pay to Landlord, within fifteen (15) days of Landlord's delivery to Tenant a copy of the tax
bills for all taxes applicable to the Premises the amount of such bills. Tenant shall pay before
delinquent, any and all taxes, levied or assessed, and which becomes payable on Tenant's
inventory, equipment, trade fixtures, leasehold improvements and other personal property
located in the Premises.
10. LIABILITY INSURANCE. "Tenant shall, at Tenant's expense, obtain and keep
in force during the term of this Lease, (a) hazard insurance on the Premises and all improvements
and fixtures thereon and thereto insuring the same for its full replacement value; (b) standard fire
and extended coverage insurance on all of its personal property, including removable trade
fixtures, located in the Premises and on its non -building standard leasehold improvements and all
other additions and improvements (including fixtures) made by Tenant ; (c) a policy or policies
of comprehensive general liability insurance, including personal injury liability, contractual
liability, products and completed operations liability, such insurance to afford minimum
protection (which may be effected by primary and/or excess coverage) of not less than
$1.000,000.00 for personal injury or death in any one occurrence (with $2,000,000.00 in
umbrella coverage) and of not less than $1,000,000.00 for property damage in any one
occurrence (with $2,000,000.00 in umbrella coverage). The limit of any of such insurance shall
not limit the liability of Tenant hereunder. If Tenant fails to procure and maintain such
insurance, Landlord may, but shall not be required to, procure and maintain the same, at Tenant's
expense to be reimbursed by Tenant within ten (10) days of written demand. All insurance
required to be obtained by Tenant hereunder shall be issued by companies acceptable to
Landlord. Thirty (30) days prior to the Lease Commencement Date, Tenant shall deliver to
Landlord certificates of liability insurance required herein with loss payable clauses satisfactory
to Landlord. Any deductible under such insurance policy in excess of One "Thousand and
No/100ths Dollars ($1,000.00) must be approved by Landlord in writing prior to issuance of such
policy. No policy shall be cancelable or subject to reduction of coverage.except upon thirty (30)
days' prior written notice to Landlord. All such policies shall name Landlord and its agents as
named insured, shall be written as primary policies not contributing with and not in excess of
coverage which Landlord may carry, and shall be written with an insurance carrier satisfactory to
Landlord. Tenant shall obtain any revised or increased coverage required by Landlord within
thirty (30) days of any such notification from Landlord.
11. FIRE INSURANCE - FIXTURES AND EQUIPMENT. Tenant shall maintain
in full force and effect on all Tenant's trade fixtures, equipment and personal property on the
Premises, a policy of all risk property insurance covering the full replacement value of such
4

property. Tenant shall provide and keep in force with companies satisfactory to Landlord,
business interruption and/or loss of rental insurance in an amount equivalent to six (6) months
Rent which shall not contain a deductible greater than One Thousand Dollars ($1,000,00).
Tenant shall furnish Landlord with a certificate of such insurance naming Landlord as an
additional insured. No policy shall be cancelable or subject to reduction of coverage except upon
thirty (30) days' prior written notice to Landlord.
12. DAMAGE OR DESTRUCTION. Should the Premises be damaged or
destroyed by fire or other casualty, Landlord may either (i) terminate this Lease or (ii) upon
receipt of insurance proceeds, repair or rebuild the Premises, provided that such insurance
proceeds are sufficient to so repair or rebuild the Premises to substantially original condition. In
the event that Landlord elects to repair or rebuild the Premises, Rent will be reduced to such
extent as may be fair and reasonable under the circumstances. Upon Landlord's termination of
the Lease in accordance with this Section 12, (i) Rent will cease and abate from the date of such
damage or destruction and (ii) insurance proceeds, if any, paid to Tenant on account of such
damage or destruction shall be delivered to Landlord except.that any insurance proceeds paid to
Tenant for damage or destruction of Tenant's personal property shall remain the property of
Tenant. Except to the extent of the negligent acts or omissions or willful misconduct of
Landlord or its agents, employees, contractors, invitees, or licensees, Landlord is not responsible
to Tenant for any damage caused to Tenant's personal property and trade fixtures located on the
Premises.
13. ALTERATIONS AND ADDITIONS: REMOVAL OF FIXTURES. Except
as otherwise provided in this Lease, Tenant shall not make or allow to be made any alterations,
additions or improvements to or on the Premises without first obtaining the written consent of
Landlord. Any such alterations, additions or improvements shall be made at'I'enant's sole
expense, according to plans and specifications approved in writing by Landlord, in compliance
with all applicable laws, by a licensed contractor, and in a good and workmanlike manner
conforming in quality and design with the Premises existing,as of the Lease Commencement
Date, shall not diminish the value of the Premises and shall at once become a pan of the realty
and shall be surrendered with the Premises. Upon the expiration or sooner termination of the
term hereof, Tenant shall, upon written demand by Landlord, at Tenant's sole expense, with due
diligence, remove any alterations additions, or improvements made by Tenant, designated by
Landlord to be removed, and repair any damage to the Premises caused by such removal. Tenant
shall remove all of its movable property and trade fixtures which can be removed without
damage to the Premises at the termination of this Lease, either by expiration of the term or other
cause, and shall pay Landlord any damages for injury to the Premises or the improvements
resulting from such removal. If Tenant shall fail to remove any of its property of any nature
whatsoever from the Premises or the improvements at the termination of this Lease or when
Landlord has the right of reentry, Landlord may, in accordance with the provisions of applicable
statutes governing commercial landlord and tenant matters, remove and store such property
without liability for loss thereof or damage thereto, such storage to be for the account and at the
expense of Tenant. If Tenant fails to pay the cost of storing any such property within thirty (30)
days, Landlord may sell any or all such property at public or private sale, without notice to
Tenant, and shall apply the proceeds of such sale to the following costs in the following order:
(i) the cost and expense of such sale, including reasonable attorneys' fees, (ii) the payment of the

costs or charges for storing any such property, and (iii) the payment of any other sums which
may then be or thereafter become due Landlord from Tenant under any of the terms hereof. The
balance, if any, shall be paid to Tenant.
14. ACCEPTANCE OF PREMISES. Tenant has inspected the Premises and
accepts them in their "as is" condition.
15. ACCESS. Tenant shall permit Landlord and its agents to enter the Premises at all
reasonable times to inspect the same; to show the Premises to prospective tenants, or interested
parties such as prospective lenders and purchasers; to clean, repair, alter or improve the
Premises; to discharge Tenant's obligations when Tenant has failed to do so within a reasonable
time after written notice from Landlord; and to post notices of nonresponsibility and similar
notices and "For Sale" signs'and to place "For Lease" signs at any time. Tenant shall permit
Landlord and its agents to enter the Premises at any time in the event of an emergency.
16. WAIVER OF SUBROGATION. Whether the loss or damage is due to the
negligence of Tenant or Tenant's agents or employees, or any other cause, Tenant hereby releases
Landlord and Landlord's agents and employees from responsibility for and waives its entire
claim of recovery for (i) any loss or damage to the personal property of Tenant located on the
Premises arising out of any of the perils which are covered by Tenant's property insurance
policy, with extended coverage endorsements, or (ii) loss resulting from business interruption or
loss of rental income, at the Premises, arising out of any of the peri Is which may be covered by
the business interruption or by the loss of rental income insurance policy held by Tenant. Tenant
shall cause its insurance carrier(s) to consent to such waiver of all rights of subrogation against
Landlord.
17. INDEMNIFICATION. Tenant shall indemnify and hold harmless Landlord, its
agents, employees, officers, directors, partners and shareholders from and against any and all
liabilities, judgments, demands, causes of action, claims, losses, damages, costs and expenses,
including reasonable attorneys' fees and costs, arising out of the use, occupancy, conduct,
operation, or management of the Premises by, or the willful misconduct or negligence of, Tenant,
its officers, contractors, licensees, agents, servants, employees, guests, invitees, or visitors in or
about the Premises or arising from any breach or default under this Lease by Tenant, or arising
from any accident, injury, or damage, howsoever and by whomsoever caused, to any person or
property, occurring in or about the Premises. This indemnification shall survive termination of
this Lease. This provision shall not be construed to make Tenant responsible for loss, damage,
liability or expense resulting from injuries to third parties caused by the sole negligence of
Landlord, or its officers, contractors, licensees, agents, employees, or invitees.
18. ASSIGNMENT AND SUBLETTING. Tenant will not assign, transfer, sublet
or encumber this Lease without obtaining the prior written consent of Landlord.
19. ADVERTISING. Tenant shall not display any sign, graphics, notice, picture, or
poster, or any advertising matter whatsoever, anywhere in or about the Premises at places visible
from anywhere outside or at the entrance to the Premises without first obtaining Landlord's
written consent thereto, such consent to be at Landlord's sole discretion. Tenant shall be

responsible to maintain any permitted signs and remove the same at Lease termination. If Tenant
shall fail to do so, Landlord may do so at Tenant's cost. Tenant shall be responsible to Landlord
for any damage caused by the installation, use, maintenance or removal of any such signs.
20. LIENS. Tenant shall keep the Premises free from any liens arising out of any
work performed, materials ordered or obligations incurred by or on behalf of Tenant, and Tenant
hereby agrees to indemnify and hold Landlord, its agents, employees, independent contractors,
officers, directors, partners, and shareholders harmless from any liability, cost or expense for
such liens. Tenant shall cause any such lien imposed to be released of record by payment or
posting of the proper bond acceptable to Landlord within ten(10) days after the earlier of
imposition of the lien or written request by Landlord. Tenant shall give Landlord written notice
ofTenam's intention to perform work on the Premises which might result in any claim of lien, at
least ten (10) days prior to the commencement of such work to enable Landlord to post and
record a Notice of Nonresponsibility or other notice deemed proper before commencement of
any such work. If Tenant fails to remove any lien within the prescribed ten (10) day period, then
Landlord may do so at Tenant's expense and Tenant's reimbursement to Landlord for such
amount, including attorneys' fees and costs, shall be deemed additional Rent.
21. DEFAULT.
21.1 Tenant's Default. A default under this Lease by Tenant shall exist if any of the
following occurs:
21.1.1 If Tenant fails to pay Rent or any other sum required to be paid hereunder when
due; or
21.1.2 If Tenant fails to perform any term, covenant or condition of this Lease except
those requiring the payment of money, and'renant fails to cure such breach within fifteen (15)
days after written notice from Landlord where such breach could reasonably be cured within
such fifteen (15) day period; provided, however, that were such failure could not reasonably be
cured within the fifteen (15) day period, that Tenant shall not he in default if it commences such
performance within the fifteen (15) day period and diligently thereafter prosecutes the same to
completion; and
21.1.3 if Tenant assigns its assets for the benefit of its creditors; or
21.1.4 If Tenant shall have abandoned or vacated the Premises; or
21.1.5 The chronic delinquency by Tenant in the payment of monthly Rent, or any other
periodic payments required to be paid by Tenant under this Lease, shall constitute a default.
"Chronic delinquency" shall mean failure by Tenant to pay Rent, or any other periodic payments
required to be paid by Tenant under this Lease within three (3) days after written notice thereof
for any three (3) months (consecutive or nonconsecutive) during any twelve (12) month period.
In the event of a chronic delinquency, at Landlord's option, Landlord shall have the additional
right to require that Rent be paid by Tenant quarter -annually, in advance.

21.2 Remedies. Upon a default, Landlord shall have the following remedies, in addition
to all other rights and remedies provided by law or otherwise provided in this Lease, to which
landlord may resort cumulatively or in the alternative:
21.2.1 Landlord may continue this Lease in full force and effect, and this Lease shall
continue in full force and effect as long as Landlord does not terminate this Lease, and Landlord
shall have the right to collect Rent and other charges when due.
21.2.2 Landlord may terminate Tenant's right to possession of the Premises at any time
by giving written notice to that effect, and relet the Premises or any part thereof. On the giving
of the notice, all of Tenant's rights in the Premises shall terminate. Upon such termination,
Tenant shall surrender and vacate the Premises in the condition required by Section 23, and
Landlord may re-enter and take possession of the Premises and all the remaining improvements
or property and Q1ect Tenant or other person or persons claiming any right under or through
Tenant or eject some and not others or eject none. ']'his Lease may also be terminated by a
judgment specifically providing for termination. Any termination under this section shall not
release Tenant from the payment of any sum then due Landlord or from any claim for damages
or Rent or other sum previously accrued or then accruing against Tenant. Upon such termination
Tenant shall be liable immediately to Landlord for all costs Landlord incurs in reletting the
Premises or any part thereof, including, without limitation, broker's commissions, expenses of
cleaning and redecorating the Premises required by the reletting and like costs. Reletting may be
for a period shorter or longer than the remaining term of this Lease. No act by Landlord other
than giving written notice to tenant shall terminate this Lease. Acts of maintenance, efforts to
relct the Premises or the appointment of a receiver on Landlord's initiative to protect Landlord's
interest under this Lease shall not constitute a termination of Tenant's right to possession. Un
termination, Landlord has the right to remove all Tenant's personal properly and store same at
Tenant's cost and to recover from Tenant as damages:
(a) The worth at the time of award of unpaid Rent and other sums due and payable
which had been earned at the time of lemiination; plus
(b) The worth at the time of award of the amount by which the unpaid Rent and other
sums due and payable which would have been payable after termination until the time of awards
exceeds the amount of such rent loss that Tenant proves could have been reasonably avoided;
plus
(c) The worth at the time of award of the amount by which the unpaid Rent or other
sums due and payable for the balance of the term after the time of award exceeds the amount of
such rent loss that tenant proves could be reasonably avoided; plus
(d) Any other amount necessary which is to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform Tenant's obligations under this
Lease, or which, in the ordinary course of things, would be likely to result therefrom, including,
without limitation, any costs or expenses incurred by Landlord: (i) in retaking possession of the
Premises; (ii) in maintaining, repairing, preserving, restoring, replacing, cleaning, altering or
rehabilitating the Premises or a portion thereof, including such acts for relctting to a new tenant

or tenants; (iii) for leasing commissions; or (iv) for any other costs necessary or appropriate to
relet the Premises; plus
(e) At Landlord's election, such other amounts in addition to or in lieu of the
foregoing as may be permitted from time to time by the laws of the State of'North Carolina.
The "worth at the time of award" of the amounts referred to in Sections 23.2.2(a) and (b)
is computed by allowing interest to accrue at the maximum interest rate allowed by law on the
unpaid rent and other sums due and payable from the termination date through the date of award.
Tenant waives redemption or relief from forfeiture under any other present or future law, in the
event Tenant is evicted or Landlord takes possession of the Premises by reason of any default of
Tenant hereunder.
21.2.3 Landlord may, with or without terminating this Lease, re-enter the Premises and
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 Tenant. No re-entry or
taking possession of the Premises by Landlord pursuant to this section shall be construed as an
election to terminate this Lease unless a written notice of such intention is given to Tenant.
22. SUBORDINATION. This Lease is and shall be subordinate to the lien of anv
mortgage, deed of trust, ground lease or underlying lease now or hereafter in force against the
Premises, and to all advances made or hereafter to be made upon the security thereof. This
provision of the Lease shall be self -operative, provided, however, that upon request of Landlord,
Tenant will execute a subordination agreement or other documents evidencing such
subordination, all in recordable form. Tenant shall execute and return to Landlord any such
subordination documents within ten (10) days of Landlord's written request. If Tenant does not
provide Landlord with such subordination documents within ten (10) days of Landlord's written
request, then Tenant hereby authorizes Landlord to execute such subordination documents acting
as duly authorized agent for'fenant, and Landlord may declare Tenant in default of this Lease.
In the event any proceedings are brought for foreclosure, or in the event of the exercise of the
power of sale under any mortgage or deed of trust made by the Landlord covering the Premises.
Tenant shall attorn to the purchaser at any such foreclosure, or to the grantee of a deed in lice of
foreclosure, and recognize such purchaser or grantee as the Landlord under this Lease. The
provisions of this article to the contrary notwithstanding, and so long as Tenant is not in default
hereunder. this Lease shall remain in full force and effect for the fill term hereunder.
23. SURRENDER OF POSSESSION. Upon expiration of the term of this Lease,
Tenant shall promptly and peacefully surrender the Premises to Landlord in as good condition as
when received by Tenant from Landlord or as thereafter improved, reasonable use and wear and
tear excepted, all to the reasonable satisfaction of Landlord. If the Premises are not surrendered
in accordance with the terms of this Lease, Tenant shall indemnity Landlord and its agents,
employees, independent contractors, officers, directors, partners, and shareholders against any
loss or liability including reasonable attorneys' fees and costs, and including liability to
succeeding tenants, resulting from delay by Tenant in so surrendering the Premises. This
indemnification shall survive termination of this Lease.

24. HOLDOVER. If Tenant shall, without the written consent of Landlord, hold
over after the expiration of the term of this Lease such tenancy shall be deemed a
month -to -month tenancy, which tenancy may be terminate as provided by applicable state law.
During such tenancy, Tenant agrees to pay to Landlord, each month, the greater of the fair
market rental value for the Premises or one hundred fifty percent (150%) of the Rent payable by
Tenant for the last month of the term of this Lease.
25. CONDEMNATION. if twenty (20) percent or more of the Premises or of such
portions of the improvements as may be required for the reasonable use of the Premises, are
taken by eminent domain or sale under threat of condemnation by eminent domain, this Lease
shall automatically terminate as of the date title vests in the condemning authority, and all Rent
and other payments shall be paid to that date. Landlord reserves all rights to damages to the
Premises for any partial or entire taking by eminent domain, and Tenant hereby assigns to
landlord any right Tenant may have to such damages or award, and'fenant shall make no claim
against Landlord or the condemning authority for damages for termination of the leasehold
interest or interference with Tenant's business. Tenant shall have the right to claim and recover
from the condemning authority compensation for any loss which Tenant may incur for Tenant's
moving expenses, business interruption or taking of Tenant's personal property (not including
Tenant's leasehold interest).
26. NOTICES. All notices and demands which may be required or permitted to be
given to either party hereunder shall be in writing, and shall be sent by United States mail,
postage prepaid to the addresses set out below, and to such other person or place as each party
may from time to time designate in a notice to the other. Notice shall be deemed given upon the
earlier of actual receipt or seventy-two (72) hours after deposit in the United States mail, postage
prepaid.
If to Tenant:
with a copy to
If to Landlord:
B&K Coastal, LLC
P.O. Box 2101
Wilmington, NC 28402
Attn: J. Keith Stark
The MacDonald Law Firm, PLLC
1508 Military Cutoff Road Suite 102
Wilmington NC 28403
Attn: James A. MacDonald
Waste Industries, LLC
3301 Benson Drive, Suite 601
Raleigh, NC 27607
Attn: Michael T. Inglc
Fax No.: [phone]
Phone No. [phone]
10

with a copy to Lisa Inman, General Counsel, at the same address.
27. MORTGAGEE PROTECTION. Tenant agrees to give any mortgagee(s) and/or
trust deed holder(s), by registered mail, a copy of any notice of default served upon Landlord,
provided that prior to such notice Tenant has been notified in writing (by way of notice of
assignment of rents and leases, or otherwise) of the addresses of such mortgagee(s) and/or trust
deed holder(s). Tenant further agrees that if Landlord shall have failed to cure such default
within the time provided for in this Lease, then the mortgagec(s) and/or trust deed holder(s) shall
have an additional thirty (30) days within which to cure such default or if such default cannot be
cured within that time, then such additional time as may be necessary if within such thirty (30)
days any mortgagee and/or trust deed holder(s) has commenced and is diligently pursuing the
remedies necessary to cure such default (including but not limited to commencement of
foreclosure proceedings, if necessary to effect such cure), in which event this Lease shall not be
terminated while such remedies are being so diligently pursued.
28. COSTS AND ATTORNEYS' FEES. If Tenant or Landlord shall bring any
action against the other, arising out of this Lease, including any suit by Landlord for the recovery
of Rent or other payments hereunder, or possession of the Premises, the losing party shall pay the
prevailing party a reasonable sum for attorneys' fees and costs in such suit, at trial and on appeal.
and such attorneys' fees and costs shal I be deemed to have accrued on the commencement of
such action.
29. LANDLORD'S LIABILITY. Anything in this Lcase to the contrary
notwithstanding, covenants, undertakings and agreements herein made on the part of Landlord
are made and intended not for the purpose of binding Landlord personally or the assets of'
Landlord but are made and intended to bind only the Landlord's interest in the Premises, as the
same may, from time to time, be encumbered and no personal liability shall at any time he
asserted or enforceable against Landlord or its stockholders, officers or partners or their
respective heirs, legal representatives, successors and assigns on account of the Lease or on
account of any covenant, undertaking or agreement of Landlord in this Lease.
30. ESTOPPEL CERTIFICATES. At any time and from time to lime, Tenant shall
execute, acknowledge and deliver to the requesting party without charge, a certificate evidencing
(a) whether or not this Lease is in full force and effect, (b) whether or not this Lease has been
amended in any way, (c) whether or not there are any existing defaults by either party hereto to
the knowledge and belief of the certifying party and specifying the nature of the defaulls if any.
and (d) the date to which Rent has been paid. Each certificate delivered pursuant to this Section
30 may be relied bn by any prospective purchaser or transferee of Landlord's interest hereunder
or by any holder or prospective holder of a first mortgage of landlord.
31. TRANSFER OF LANDLORD'S INTEREST. In the event of any transfer(s) of
Landlord's interest in the Premises, other than a transfer for security purposes only, the transferor
shall be automatically relieved ofany and all obligations and liabilities on the part of Landlord
accruing from and after the date of such transfer, and Tenant agrees to attorn to the transferee.

32. RIGHT TO PERFORM. If Tenant shall fail to pay any sum of money, other
than Rent, required to be paid by it hereunder or shall fail to perform any other act on its part to
be performed hereunder, and such failure shall continue for ten (10) days, Landlord may, but
shall not be obligated so to do, and without waiving or releasing Tenant from any obligations of
Tenant, make any such payment or perform any such other act on Tenant's part to be made or
performed as provided in this Lease. Landlord shall have (in addition to any other right or
remedy of Landlord) the same rights and remedies in the event of the nonpayment of sums due
under this section as in the case of default by Tenant in the payment of Rent. All sums paid by
Landlord and all penalties, interest and costs in connection therewith, shall be due and payable
by Tenant on the next day after such payment by Landlord, together with interest thereon at the
maximum rate of interest permitted by law from such date to the date of payment.
33. NO ACCORD OR SATISFACTION. No payment by Tenant or receipt by
Landlord of a lesser amount than the Rent and other sums due hereunder shall be deemed to be
other than on account of the earliest rent or other sums due, nor shall any endorsement or
statement on any check or accompanying any check or payment be deemed an accord and
satisfaction; and Landlord may accept such check or payment without prejudice to landlord's
right to recover the balance of such Rent or other sum and to pursue any other remedy provided
in this Lease.
34. GENERAL PROVISIONS.
34.1 Acceptance. This Lease shall only become effective and binding upon full
execution hereof by Landlord and subsequent delivery of a signed copy to Tenant.
34.2 Marpinal Headings, Etc. The marginal headings, Table of Contents, lease summary
sheet and titles to the articles of this Lease are not a part of the Lease and shall have no effect
upon the construction or interpretation of any part hereof.
34.3 Choice of Law. This Lease shall be governed by and construed in accordance with
the laws of the state of North Carolina.
34.4 Successors and Assiens. The covenants and conditions herein contained, subject to
the provisions as to assignment, inure to and bind the heirs, successors, executors, administrators
and assigns of the parties hereto.
34.5 Recordation. Neither Landlord nor Tenant shall record this Lease, but a short -form
memorandum hereof may be recorded at the request of either party.
34.6 Ouict Possession. Upon Tenant's paying the Rent reserved hereunder and observing
and performing all of the covenants, conditions and provisions on Tenant's part to be observed
and performed hereunder, Tenant shall have quiet possession of the Premises for the tenor hereof,
subject to all the provisions of this Lease.
34.7 Inability to Perform. This Lease and the obligations of Tenant hereunder shall not
be affected or impaired hecause Landlord is unable to fulfill any of its obligations hereunder or is
12

delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, acts of
God, or any other cause beyond the reasonable control of Landlord.
34.8 Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void,
or illegal shall in no way affect, impair or invalidate any other provision hereof and such other
provision(s) shall remain in full force and effect.
34.9 Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive
but shall, whenever possible, be cumulative with all other remedies at law or in equity.
34.10 Entire Agreement. This Lease contains the entire agreement of the parties hereto
and no representations, inducements, promises or agreements, oral or otherwise, between the
parties, not embodied herein, shall be of any force or effect.
34.11 No Joint Venture/Partnership. The parties expressly acknowledge that the
relationship between the parties is that of landlord and tenant and that no partnership, joint
venture or other relationship exists between the parties.
['HE FOLLOWING PAGE IS TI-113 SIGNATURE PAGE
13

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the day and
year first above written.
LANDLORD:
Waste Industries, LLC,
a North Carolina limited liability company
By: _
Name: A,
V"e-c P, esldeil
TENANT:
Cape Fear Paving, LIX
A North Carolina limited liability company
By: _
Name:
Title:
14

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the day and
year first above written.
LANDLORD:
Waste Industries, LLC,
a North Carolina limited liability company
By: _
Name:
TENANT:
Cape Fear Paving, LLC
A North Carolina limited liability company
14

EXHIBIT A
PREMISES
Being all of Tract 1 as shown on a survey of Mid River Heavy Industrial Park for Samson
Development, L.LC and Sound Development General Partners recorded in Map Book 39, Page
33 of the New Hanover County Registry, reference to said map being hereby made for a
complete description of said property.
15