20090565 Ver 1_Executed MBI_20110711

REPLY TO
ATTENTION OF
DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT CORPS OF ENGINEERS
69 DARLINGTON AVENUE
WILMINGTON NORTH CAROLINA 28403 1343
July 9, 2012
Regulatory Division
Action ID No SAW 2009 00832
Mr Taylor Downey
Weyerhaeuser Real Estate Development Company (WREDCO)
Post Office Box 12768
New Bern North Carolina 28561
Dear Mr Downey
0 - D&LP.5
JUL 1 1 2o12
Enclosed is one copy of the executed Mitigation Banking Instrument (MBI) establishing
Bachelors Delight Stream Mitigation Bank located in on the east side of Gum Branch Road (SR
1308), within Bachelors Delight Swamp watershed north of Jacksonville Onslow County North
Carolina
With the execution of this MBI Task 10 in Table 4A and 4B of the MBI has been
completed and the initial 15% of the total credits are now available for immediate use This
credit release consists of 25 6 wetland credits and 3 976 linear feet of stream credits As
disclosed in our February 21 2012 a mail our Nationwide Permit No 27 which authorizes the
physical improvements /construction of the bank has been verified until March 18 2013 Please
be aware that all improvements /construction in Jurisdictional waters and/or wetlands must be
completed by that date or reverification from our office will be required
If you have any questions or comments please contact Mr Mickey Sugg at the Wilmington
Regulatory Field Office telephone [phone]
Enclosures
Sincerely
Jean B Gibby
Acting Chief Regulatory Division
Wilmington District

2
Copies Furnished (with enclosures)
Mr Scott Dahlquist Vice President
Weyerhaeuser Real Estate Development
Company (WREDCO)
32820 Weyerhaeuser Way S
Federal Way, Washington 98003
Mr Christian Preziosi
Land Management Group Inc
3805 Wrightsville Avenue, Suite 15
Wilmington, North Carolina 28403
Mr David Ashcraft
NC State Natural Resources
Foundation Inc
Campus Box 8010
Room 3060 Biltmore Hall
Raleigh North Carolina 27695
Mr Glenn Catts
Hofinann Forest Liaison
College of Natural Resources NCSU
2023 Biltmore Hall PO Box 8002
Raleigh North Carolina 27695
Vr In MMillan
No� C olna Departmnt of
Eironment and Natural Resources
Webscape Unit
1650 Mail Service Center
Raleigh North Carolina 27699 1650
Mr Jeffrey Garnett
U S Environmental Protection Agency
Wetland Section Region 4
61 Forsyth Street S W
Atlanta Georgia 30303 8960
Mr Roy Brownlow
North Carolina Division of Coastal
Management
400 Commerce Avenue
Morehead City, North Carolina 28557 -3421
Copies Furnished (without enclosures)
Mr John Ellis
U S Fish and Wildlife Service
Post Office Box 33726
Raleigh North Carolina 27636 3726
Mr Steve Sollod
North Carolina Division of Coastal
Management
1638 Mail Service Center
Raleigh North Carolina 27699 1638
Mr Ron Sechler
National Marine Fisheries Service
Pivers Island
Beaufort, North Carolina 28516
Ms Molly Ellwood
North Carolina Wildlife Resources
Commission
127 Cardinal Drive Extension
Wilmington North Carolina 28405
Pace Wilber Ph D
Atlantic Branch Chief
Charleston (F /SER47)
Southeast Regional Office NOAA Fisheries
Post Office Box 12559
Charleston South Carolina 29422 2559

3
Ms Joanne Steenhuis
Division of Water Quality
North Carolina Department of
Environment and Natural Resources
127 Cardinal Drive Extension
Wilmington North Carolina 28405
Ms Jennifer Derby Chief
Wetlands Section Region IV
Water Management Division
Environmental Protection Agency
61 Forsyth Street
Atlanta Georgia 30303 8960

AGREEMENT TO ESTABLISH THE BACHELORS DELIGHT MITIGATION BANK
IN ONSLOW COUNTY, NORTH CAROLINA
(USACE Action ID No 2009 00832)
This Mitigation Banking Instrument (MBI) is made and entered into on the -!t day of
2012, by the Weyerhaeuser Real Estate Development Co (WREDCO)
hereinafte ponsor and the U S Army Corps of Engineers (Corps), and each of the following
agencies upon its execution of this MBI the Environmental Protection Agency (EPA) the U S
Fish and Wildlife Service (FWS) the National Marine Fisheries Service (NMFS) the North
Carolina Wildlife Resources Commission (NCWRC) the North Carolina Division of Coastal
Management (NCDCM) and the North Carolina Division of Water Quality (NCDWQ) The
Corps, together with the State and Federal agencies that execute this MBI are hereinafter
collectively referred to as the Interagency Review Team (IRT)
WHEREAS, the purpose of this MBI is to establish a mitigation bank to be known as
Bachelors Delight Mitigation Bank (Bank), providing compensatory mitigation for unavoidable
wetland impacts separately authorized by Section 404 Clean Water Act permits and /or Section
10 of the Rivers and Harbors Act permits in appropriate circumstances
WHEREAS, the Sponsor is the record owner of that certain parcel of land containing 237 32
acres located in Onslow County North Carolina, as shown on the Conservation Easement
Survey entitled Conservation Easement Survey for Weyerhaeuser Real Estate Development
Company — Portion of Onslow 19 Tract (Sheets 1 through 11) dated July 6 2010 revised May
27 2011, prepared by McKim & Creed, attached hereto as Appendix B Tract A and
incorporated herein by reference and as described in the Bachelors Delight Mitigation Bank
Restoration Plan (October 2010 Mitigation Plan or Mitigation Plan) attached hereto as Appendix
A and incorporated herein by reference
WHEREAS the Board of Trustees of the Endowment Fund of North Carolina State
University (Endowment Fund) is the record owner of that certain parcel of land containing
123 98 acres located in Onslow County North Carolina as shown on the three (3) separate
Conservation Easement Surveys entitled Conservation Easement Survey[s] of [13 19 acres,
89 98 acres 20 81 acres, respectively] for the Board of Trustees of the Endowment Fund of NC
State University Portion of Hofmann Forest dated June 15 2011 and July 6 2010
respectively prepared by McKim and Creed, attached hereto as Appendix B Tract B -1 Tract B
2 and Tract B 3 and incorporated herein by reference and as described in the October 2010
Mitigation Plan attached hereto as Appendix A and incorporated herein by reference
WHEREAS the Endowment Fund by Agreement dated February 6 1987 retained the NC
State Natural Resources Foundation Inc (Foundation) to provide the Endowment Fund with
management services for the Hofmann Forest which includes Tract B 1 Tract B 2 and B 3
WHEREAS the Sponsor has entered into an Agreement dated February 1, 2012
(Agreement) with the Foundation to implement and operate a wetland and stream mitigation
bank a portion of which is located on Tract B 1 Tract B 2 and Tract B 3
Page 1 of 16 Pages

WHEREAS the Endowment Fund at its meeting held on September 16 2010 approved the
grant to the Foundation of a conservation easement over Tract B 1 Tract B 2 and Tract B 3 for
the purpose of forming the Bank as anoint project between the Foundation and Sponsor
WHEREAS the agencies comprising the IRT agree that the combined sites totaling 36130
acres (and being all of Tract A Tract B 1, Tract B 2, and Tract B 3 as identified above) are a
suitable mitigation bank site and that implementation of the Mitigation Plan is likely to result in
net gains in wetland and/or stream functions at the Bank site and have therefore approved the
Mitigation Plan
WHEREAS the Foundation has certain rights regarding the use and management of the
Bank site under the Agreement referenced above with Sponsor,
THEREFORE, it is mutually agreed among the parties to this MBI that the following
provisions are adopted and will be implemented upon signature of this MBI
Section I General Provisions
A The Sponsor is responsible for assuring the success of the restoration enhancement and
preservation activities at the Bank site and for the overall operation and management of the
Bank The Sponsor assumes the legal responsibility for providing the compensatory mitigation
once a permittee secures credits from the Sponsor and the District Engineer of the U S Army
Corps of Engineers Wilmington District (DE) receives documentation that confirms the Sponsor
has accepted responsibility for providing the required compensatory mitigation
B The goal of the Bank is to restore, enhance and preserve first order streams, zero order
streams, riparian (non nverine) wetlands, and non riparian wetlands and their functions to
compensate in appropriate circumstances for unavoidable wetland and stream impacts authorized
by Section 404 of the Clean Water Act permits and or Section 10 of the Rivers and Harbors Act
permits in circumstances deemed appropriate by the Corps after consultation through the permit
review process with members of the IRT
C Use of credits from the Bank to offset wetland impacts authorized by Clean Water Act
permits must be in compliance with the Clean Water Act and implementing regulations
including but not limited to the 404(b)(1) Guidelines the National Environmental Policy Act
and all other applicable Federal and State legislation rules and regulations This MBI has been
drafted in accordance with the regulations for Compensatory Mitigation for Losses of Aquatic
Resources effective June 9 2008 (33 CFR Parts 325 and 332) (Mitigation Rule )
D The IRT shall be chaired by the DE The IRT shall review documentation for the
establishment of mitigation banks The IRT will also advise the DE in assessing monitoring
reports recommending remedial measures, approving credit releases and approving
modifications to this instrument The IRT s role and responsibilities are more fully set forth in
Sections 332 8 of the Mitigation Rule The IRT will work to reach consensus on its actions
Page 2 of 16 Pages

E The DE after consultation with the appropriate Federal and State review agencies through the
permit review process, shall make final decisions concerning the amount and type of
compensatory mitigation to be required for unavoidable permitted wetland impacts, and whether
or not the use of credits from the Bank is appropriate to offset those impacts In the case of
permit applications and compensatory mitigation required solely under the Section 401 Water
Quality Certification rules of North Carolina the N C Division of Water Quality (NCDWQ) will
determine the amount of credits that can be withdrawn from the Bank
F The parties to this MBI understand that a watershed approach to establish compensatory
mitigation must be used to the extent appropriate and practicable Where practicable, in kind
compensatory mitigation is preferred
Section II Geographic Service Area
The Geographic Service Area (GSA) is the designated area within which the Bank is authorized
to provide compensatory mitigation required by DA permits The GSA for this Bank shall
include the White Oak River Basin, Hydrologic Unit 03030001 in North Carolina (refer to
Figure 4 of the Mitigation Plan) Note that following 14 digit Hydrologic Unit Codes (HUCs) of
the White Oak River Basin are excluded from the identified GSA (1) 03030001040005 (2)
03030001040010 and(3)03030001040020
The service area is based on the location and scope of the project which will generate tangible
water quality benefits in one of the main tributaries of the White Oak River through the cessation
of agrncultural/silvicultural land use activities and the restoration of headwater stream and
wetland ecosystems Use of a Bank site to compensate for impacts beyond the GSA (including
areas within the excluded 14 digit HUCs identified above) may be considered by the Corps or
the permitting agency on a case by case basis
Section III Mitigation Plan
Any Mitigation Plan submitted pursuant to this MBI must contain the information listed
in 332 4(c)(2) through (14) of the Compensatory Mitigation Rule
A The Bank site is a currently managed for silvicultural and agricultural production A more
detailed description of the baseline conditions on the site is contained in the Mitigation Plan
B The Sponsor will perform work described on Section 4 and Section 5 of the Mitigation Plan
including 9 679 linear feet (If) of Priority I stream restoration 7 0821f of zero order stream
restoration 5 9281f of Level II stream enhancement, and 11400 If of stream preservation
Additional work within the Bank will restore 60 acres (ac ) of riparian (non nvenne) wetlands
and 85 ac of non riparian wetlands A total of 28 ac of riparian (non rivenne) wetland
enhancement 48 ac of riparian (non rivenne) wetland preservation, 13 ac of non riparian
wetland preservation, and 129 acres of stream buffer /upland buffer will also be included within
the Bank The work associated with the Bank will include backfilling of existing ditches,
construction of new stream channels and planting of native hardwood seedlings
Page 3 of 16 Pages

The purpose of this work and the objective of the Bank is to restore enhance, and preserve the
wetlands and stream systems associated with headwaters of Bachelors Delight Swamp
Development of the Bank will reduce nutrient inputs, stormwater discharge, and flow velocities
in a watershed that is experiencing rapid development
C The Sponsors shall monitor the Bank Site as described in Section 7 of the Mitigation Plan,
until such time as the IRT determines that the success criteria described in Section 7 of the
Mitigation Plan have been met
D The members of the IRT will be allowed reasonable access to the Property for the purposes
of inspection of the Property and compliance monitoring of the Mitigation Plan
Section IV Reporting
A The Sponsor shall submit to the DE for distribution to each member of the IRT an annual
report describing the current condition of the Bank and the condition of the Bank in relation to
the success criteria in the Mitigation Plan The Sponsor shall provide to the DE any monitoring
reports described in Section 7 of the Mitigation Plan
B The Sponsor shall provide ledger reports documenting credit transactions as described in
Section VIII of this MBI
C Each time an approved credit transaction occurs the Sponsor must notify the DE within 30
days of the transaction
Section V Remedial Action
A The DE shall review the monitoring reports and may at any time after consultation with the
Sponsor and the IRT direct the Sponsor to take remedial action at the Bank site Remedial
action required by the DE shall be designed to achieve the success criteria specified in the
Mitigation Plan All remedial actions required under this section shall include a work schedule
and monitoring criteria that will take into account physical and climactic conditions
B The Sponsor shall implement any remedial measures required pursuant to the above
C In the event the Sponsor determines that remedial action may be necessary to achieve the
required success criteria it shall provide notice of such proposed remedial action to all members
of the IRT No remedial actions shall be taken without the concurrence of the DE in
consultation with the IRT
Section VI Use of Mitigation Credits
Description of Wetland Community Types
A Wetland community types found in a mitigation bank will be described in accordance with the
procedures found in the NC Wetland Assessment Method (NC WAM USACE 2007) It is
Page 4 of 16 Pages

expected that impacts to the NC WAM types listed below will be compensated by the Mitigation
Types as listed in order to qualify as In Kind mitigation Exceptions to the use of In Kind
mitigation may be allowed at the discretion of the permitting agencies on a case by case basis
Table 1 Wetland Community Tvaes
Mitigation Type
NCWAM Type
CAMA Coastal Wetland
Salt/Brackish Marsh*
Riparian (Rivenne)
Rivenne Swamp Forest/Non Tidal Freshwater Marsh Tidal
Freshwater Marsh
Riparian (Non- Rivenne)
Bottomland Hardwood Forest, Headwater Wetland, Flood
Plain Pool Mountain Bog*
Non Riparian
Non Rivenne Swamp Forest Seep Small Basin Wetland
Pocosins Estuarine Woody, Pine Flat Pine Savannah,
Hardwood Flat
Table 2 Mitigation Types and Quantities (acres/if)
Streams (linear feet)
Priority 1
Zero Order
Enhancement
Type
Restoration
Restoration
Level 11
Preservation
SBCF
Hewitts Branch
5 103
500
4 900
656
Huffmans Branch
3 445
1 404
2000
1200
431
Bachelors Delight Swamp
4 777
3 428
5 300
Half Moon Creek
1 131
901
147
TOTAL
9 679
7 082
5 928
11 400
1 234
RATIO
1 1
1 1
1 5 1
2 5 1
NA
CREDITS
9 679
7 082
3 952
4 560
1 234
GRAND TOTAL
26 507
Wetlands (acres)
Proposed
Type
Acreage
Ratio
Credits
Riparian Restoration
60
1 1
60r
Riparian Enhancement
28
21
14re
Riparian Wetland Preservation
48
51
10re
Non Riparian Restoration
85
11
85r
Non Riparian Preservation
13
71
2re
SBCF /U land Buffer
127
NA
0
TOTAL
361
171
r= restoration credit re= restoration equivalent credit
Page 5 of 16 Pages

Table 3 Mitigation Credits by Stream and Wetland Type
Mitigation Type
Quantity (If /ac)
Credits
Stream
34 089
26 507
Riparian Non Rivenne Wetland
136
84
Non Riparian Wetland
98
87
includes credits derived from Stream Buffer Correction Factor (SBCF)
B It is anticipated by the parties that in most cases in which the DE after consultation with the
IRT has determined that mitigation credits from the Bank may be used to offset wetland impacts
authorized by Section 404 permits and/or Section 10 permits that the Restoration Equivalents as
enumerated above constitute credits that are considered to be equal to restoration credits for the
purposes of compensatory mitigation Therefore the use of Restoration credits or Restoration
Equivalents credits or any combination thereof is acceptable to the DE for any permit
requirement so long as the required amount of credits are debited for a given mitigation
requirements It is also understood that in order to satisfy mitigation requirements imposed by
the NC Division of Water Quality restoration impact amounts must be at a minimum of 1 1 such
that for every one acre of impact at least one acre of mitigation must be in the form of
restoration Additionally decisions regarding stream mitigation will be made consistent with
current policy and guidance and will be made on a case by case basis Wetland and stream
compensation ratios are determined by the DE on a case by case basis based on considerations of
functions of the wetlands and/or streams impacted the seventy of the wetland and/or stream
impacts the relative age ' of the mitigation site, whether the compensatory mitigation is in kind,
and the physical proximity of the wetland and/or stream impacts to the Bank site
C Notwithstanding the above all decisions concerning the appropriateness of using credits from
the Bank to offset impacts to waters and wetlands as well as all decisions concerning the amount
and type of such credits to be used to offset wetland and water impacts authorized by Department
of the Army permits shall be made by the DE, pursuant to Section 404 of the Clean Water Act
and implementing regulations and guidance after notice of any proposed use of the Bank to the
members of the IRT and consultation with the members of the IRT concerning such use Notice
to and consultation with the members of the IRT shall be through the permit review process
Section VII Credit Release Schedule
All credit releases must be approved by the DE in consultation with the IRT based on a
determination that required success cntena have been achieved
A Credit Release Schedule for Forested Wetlands If deemed appropriate by the IRT fifteen
percent (15 %) of the Bank s total restoration credits shall be available for sale immediately upon
completion of all of the following
1 Execution of this MBI by the Sponsor, the DE and other agencies eligible for
membership in the IRT who choose to execute this MBI
2 Approval of the final Mitigation Plan
3 Mitigation Bank site has been secured
4 Delivery of the financial assurance described in Section IX of this MBI and
Page 6 of 16 Pages

5 Recordation of the long term protection mechanism described in Section X of this MBI,
as well as a title opinion covering the property acceptable to the DE
The Sponsor must complete the initial physical and biological improvements to the Bank site
pursuant to the Mitigation Plan no later than the first full growing season following initial
debiting of the Bank Subject to the Sponsor s continued satisfactory completion of all required
success criteria and monitoring additional restoration mitigation credits will be available for sale
by the Sponsor on the following schedule
1 15 % upon completion of all initial physical and biological improvements made pursuant
to the Mitigation Plan (total 30 %)
2 10% after first year if interim success measures are met (total 40 %)
3 10% after second year if interim success measures are met (total 50 %)
4 10% after third year, if interim success measures are met (total 60 %)
5 10% after fourth year, if interim success measures are met (total 70 %)
6 10% after fifth year if Success Criteria are met (total 80 %)
7 10% after sixth year, if vegetative Success Criteria are met (90 %) and
8 10% after seventh year, if vegetative Success Criteria are met (100 %)
Provided that all Success Criteria are met the IRT may allow the Sponsor to discontinue
hydrologic monitoring after the fifth year The Sponsor will be required to monitor vegetation
for an additional two years after the fifth year for a total of seven years
B Credit Release Schedule for Streams The following credit release schedule applies only to
those stream protects where Restoration or Enhancement I has been performed where pattern
dimension and profile or dimension and profile (respectively) have been-improved Projects
constructed on the outer coastal plain that are subject to the Coastal Plain Information Paper
(USACE/DWQ 2007) where an engineered stream channel was not constructed, will be subject
to the criteria enumerated for wetlands above
If deemed appropriate by the IRT, fifteen percent (15 %) of the Bank s total stream credits shall
be available for sale immediately upon completion of all of the following
1 Execution of this MBI by the Sponsor the DE and other agencies eligible for
membership in the IRT who choose to execute this MBI
2 Approval of the final Mitigation Plan
3 Mitigation Bank site has been secured,
4 Delivery of the financial assurance described in Section IX of this MBI and
5 Recordation of the long term protection mechanism described in Section X of this MBI
as well as a title opinion covering the property acceptable to the DE
Page 7 of 16 Pages

Table 4A Credit Release Schedule for Wetlands
Subject to the Sponsor s continued satisfactory completion of all required success criteria and
monitoring additional stream credits will be available for sale by the Sponsor on the following
schedule
1 15 % upon completion of all initial physical and biological improvements made pursuant
to the Mitigation Plan (total 30 %)
2 10% after first year provided channel is stable and all other success measures are met
(total 40 %),
3 10% after second year provided channel is stable and all other success measures are met
(total 50 %)
4 10% after third year, provided channel is stable and all other success measures are met
(total 60 %)
5 10% after fourth year provided channel is stable and all other success measures are met
(total 70 %)
6 15% after fifth year provided channel is stable and all other success measures are met
(total 85 %)
A reserve of 15% of the Bank s total stream credits shall be released any time after two Bank
full events have occurred in separate years provided the channel is stable and all other Success
Criteria are met In the event that less than two Bank full events occur during the monitoring
period, remaining credit release shall be at the discretion of the IRT
Page 8 of 16 Pages
Projected
Percentage of Wetland
Credits
Cumulative
Task
Completion Date
Credits Released (%
Released
Credits
cumulative
Released
10 Signing of the MBI
1/15/11
15 (15)
256
256
Recordation of Conservation
Easement Deed Delivery of
Financial Assurances
2 0 Completion of Physical and
2/2012
15 (30)
256
512
Biological Improvements
3 0 Year 1 Fulfill Success
1/2013
10 (40)
17 1
683
Criteria
4 0 Year 2 Fulfill Success
1/2014
10 (50)
17 1
854
Criteria
5 0 Year 3 Fulfill Success
1/2015
10 (60)
171
1025
Criteria
6 0 Year 4 Fulfill Success
1/2016
10 (70)
17 1
1196
Criteria
7 0 Year 5 Fulfill Success
1/2017
10 (80)
17 1
1367
Criteria
8 0 Year 6 Fulfill Success
1/2018
10 (90)
17 1
153 8
Criteria
9 0 Year 7 Fulfill Success
1/2019
10 (100)
172
171
Criteria
TOTAL
100%
171
Subject to the Sponsor s continued satisfactory completion of all required success criteria and
monitoring additional stream credits will be available for sale by the Sponsor on the following
schedule
1 15 % upon completion of all initial physical and biological improvements made pursuant
to the Mitigation Plan (total 30 %)
2 10% after first year provided channel is stable and all other success measures are met
(total 40 %),
3 10% after second year provided channel is stable and all other success measures are met
(total 50 %)
4 10% after third year, provided channel is stable and all other success measures are met
(total 60 %)
5 10% after fourth year provided channel is stable and all other success measures are met
(total 70 %)
6 15% after fifth year provided channel is stable and all other success measures are met
(total 85 %)
A reserve of 15% of the Bank s total stream credits shall be released any time after two Bank
full events have occurred in separate years provided the channel is stable and all other Success
Criteria are met In the event that less than two Bank full events occur during the monitoring
period, remaining credit release shall be at the discretion of the IRT
Page 8 of 16 Pages

Table 4B Credit Release Schedule for Streams
Section VIII Accounting Procedures
A The Sponsor shall develop accounting procedures acceptable to the IRT for maintaining
accurate records of debits made from the Bank Such procedures shall include the generation of
a ledger by the Sponsor showing credits used at the tune they are debited from the Bank All
ledger reports shall identify credits debited and remaining by type of credit and shall include for
each reported debit the Corps ORM ID number for the permit for which the credits were utilized
and the permitted impacts for each resource type Each time an approved credit transaction
occurs, the Sponsor must notify the DE within 30 days of the transaction
B The Sponsor shall prepare an annual ledger report, on each anniversary of the date of
execution of this MBI showing all credits used any changes in credit availability (e g,
additional credits released credit sales suspended) and the beginning and ending balance of
credits remaining The Sponsor shall submit the annual report to the DE for distribution to each
member of the IRT until such time as all of the credits have been utilized or this MBI is
otherwise terminated
Section IX Financial Assurances
A The Sponsor shall provide financial assurances in a form acceptable to the IRT sufficient to
assure completion of all mitigation work, required reporting and monitonng and any remedial
work required pursuant to this MBI These financial assurances are provided in the form of two
performance bonds A construction bond in the sum of $222,300 00 represents 30% of the
protected construction planting and contingency costs associated with the activities described in
Page 9 of 16 Pages
Projected
Percentage of Wetland
Credits
Cumulative
Task
Completion Date
Credits Released (%
Released
Credits
cumulative )
Released
10 Signmg of the MBI
1/15/11
15 (15)
3 976
3 976
Recordation of Conservation
Easement Deed Delivery of
Financial Assurances
2 0 Completion of Physical and
2/2012
15 (30)
3 976
7 952
Biological Improvements
3 0 Year 1 Fulfill Success
1/2013
10 (40)
2 651
10 603
Criteria
4 0 Year 2 Fulfill Success
1/2014
10 (50)
2 650
13 253
Criteria
5 0 Year 3 Fulfill Success
1/2015
10 (60)
2 651
15 904
Criteria
6 0 Year 4 Fulfill Success
1/2016
10 (70)
2 650
18 555
Criteria
7 0 Year 5 Fulfill Success
1/2017
15 (85)
3 976
22 531
Criteria
8 0 Documentation of Two
TBD
15 (100)
3 976
26 507
Bank full Events in Separate
Years
TOTAL
100%
26 507
Section VIII Accounting Procedures
A The Sponsor shall develop accounting procedures acceptable to the IRT for maintaining
accurate records of debits made from the Bank Such procedures shall include the generation of
a ledger by the Sponsor showing credits used at the tune they are debited from the Bank All
ledger reports shall identify credits debited and remaining by type of credit and shall include for
each reported debit the Corps ORM ID number for the permit for which the credits were utilized
and the permitted impacts for each resource type Each time an approved credit transaction
occurs, the Sponsor must notify the DE within 30 days of the transaction
B The Sponsor shall prepare an annual ledger report, on each anniversary of the date of
execution of this MBI showing all credits used any changes in credit availability (e g,
additional credits released credit sales suspended) and the beginning and ending balance of
credits remaining The Sponsor shall submit the annual report to the DE for distribution to each
member of the IRT until such time as all of the credits have been utilized or this MBI is
otherwise terminated
Section IX Financial Assurances
A The Sponsor shall provide financial assurances in a form acceptable to the IRT sufficient to
assure completion of all mitigation work, required reporting and monitonng and any remedial
work required pursuant to this MBI These financial assurances are provided in the form of two
performance bonds A construction bond in the sum of $222,300 00 represents 30% of the
protected construction planting and contingency costs associated with the activities described in
Page 9 of 16 Pages

the Mitigation Plan The monitoring bond, in the sum of $43 760 00 represents 10% of the
projected monitoring costs for the seven (7) year schedule described in the Mitigation Plan
B Financial assurances shall be payable at the direction of the DE to his designee or to a
standby trust Financial assurances structured to provide funds to the Corps of Engineers in the
event of default by the Bank Sponsor are not acceptable
C A financial assurance must be in the form that ensures that the DE receives notification at
least 120 days in advance of any termination or revocation
Section X Long Term Protection
A The North Carolina State Natural Resources Foundation (Foundation) a registered 501(c)3
entity will serve as the holder of the conservation easement (CE) for the Bank The Foundation
will maintain the CE in perpetuity and provide for the long term protection of the land through
annual monitoring activities Title to the land will reside with the current owners, WREDCO
(Tract A) and The Endowment Fund of North Carolina State University (Tract B) Refer to the
attached conservation easement plats for both tracts (Appendix B) The CE shall be perpetual,
preserve all natural areas and prohibit all use of the property inconsistent with its use as
mitigation property, including any activity that would materially alter the biological integrity or
functional and educational value of wetlands or streams within the Bank site consistent with the
Mitigation Plan The purpose of the CE will be to assure that future use of the Bank site will
result in the restoration protection, maintenance and enhancement of wetland functions
described in the Mitigation Plan
B The Sponsor shall deliver a title opinion acceptable to the DE covering the mitigation
property The property shall be free and clear of any encumbrances that would conflict with its
use as mitigation including but not limited to any liens that have priority over the recorded
preservation mechanism
C Subsequent to the recording of the CE the Sponsor may convey the Bank Site property either
in fee or by granting an easement to a qualified land trust state agency or other appropriate
nonprofit organization The Sponsor is responsible for ensuring that that the CE is re recorded to
ensure that it remains within the chain of title The terms and conditions of this conveyance shall
not conflict with the intent and provisions of the CE nor shall such conveyance enlarge or modify
the uses specified in the CE
The CE must contain a provision requiring 60 day advance notification to the DE before any
action is taken to void or modify the CE, including transfer of title to or establishment of any
other legal claims over the project site
Page 10 of 16 Pages

Section XI Long -term Management
A The Foundation (as identified above) will be responsible for the long term management of
the site The primary objective of the long term management is to ensure the protection of the
site in its natural state
B An endowment will be provided to the Foundation by the Sponsor to assist with the long-
term management expenses of the Bank site
Section XII Default and Closure
A It is agreed to establish and/or maintain the Bank site until (i) credits have been exhausted or
Banking activity is voluntarily terminated with written notice by the Sponsor provided to the DE
and other members of the IRT, and (u) it has been determined and agreed upon by the DE and
IRT that the debited Bank site has satisfied all the conditions herein and in the Mitigation Plan
If the DE determines that the Bank site is not meeting performance standards or complying with
the terms of the instrument appropriate action will be taken Such actions may include but are
not limited to suspending credit sales adaptive management decreasing available credits
utilizing financial assurances and terminating the instrument
B Any delay or failure of Bank Sponsor shall not constitute a default hereunder if and to the
extent that such delay or failure is primarily caused by any act event or conditions beyond the
Sponsor s reasonable control and significantly adversely affects its ability to perform its
obligations hereunder including (1) acts of God, lightning earthquake, fire, landslide, or
interference by third parties, (ii) condemnation or other taking by any governmental body (iii)
change in applicable law regulation, rule ordinance or permit condition or the interpretation or
enforcement thereof (iv) any order .judgment action or determination of any federal state or
local court administrative agency or government body, or (v) the suspension or interruption of
any permit, license consent authorization or approval If the performance of the Bank Sponsor
is affected by any such event Bank Sponsor shall give written notice thereof to the IRT as soon
as is reasonably practicable If such event occurs before the final availability of all credits for
sale, the Sponsor shall take remedial action to restore the property to its condition prior to such
event, in a manner sufficient to provide adequate mitigation to cover credits that were sold prior
to such delay or failure to compensate for impacts to waters including wetlands authorized by
Department of the Army permits Such remedial action shall be taken by the Sponsor only to the
extent necessary and appropriate as determined by the IRT
C At the end of the monitoring period upon satisfaction of the performance standards the
Sponsor may submit a request to close out the Bank site to the DE The DE in consultation with
the IRT, shall use best efforts to review and comment on the request within 60 days of such
submittal If the DE determines the Sponsor has achieved the performance standards in
accordance with the mitigation plan and all obligations under this MBI the DE shall issue a
close out letter to the Sponsor
Page 11 of 16 Pages

Section XIII Miscellaneous
A Any agency participant may terminate its participation in the IRT with notice in writing to all
other parties to this MBI Termination shall be effective seven (7) days from placing written
notices in the United States mail Member withdrawal shall not affect any prior sale of credits
and all remaining parties shall continue to implement and enforce the terms of this MBI
B Modification of this MBI shall be in accordance with the procedures set forth in 332 8 of the
mitigation rule
C No third party shall be deemed a beneficiary hereof and no one except the signatories hereof,
their successors and assigns shall be entitled to seek enforcement hereof
D This MBI constitutes the entire MBI between the parties concerning the subject matter hereof
and supersedes all prior agreements or undertakings
E In the event any one or more of the provisions contained in this MBI are held to be invalid
illegal or unenforceable in any respect, such invalidity, illegality or unenforceablility will not
affect any other provisions hereof and this MBI shall be construed as if such invalid, illegal or
unenforceable provision had not been contained herein
F This MBI shall be governed by and construed in accordance with the laws of North Carolina
and the United States as appropriate
G This MBI may be executed by the parties in any combination in one or more counterparts
all of which together shall constitute but one and the same instrument
H The terms and conditions of this MBI shall be binding upon and inure to the benefit of the
parties hereto and their respective successors
I All notices and required reports shall be sent by regular mail to each of the parties at their
respective addresses provided below
Sponsor
Mr Scott Dahlquist Vice President
Weyerhaeuser Real Estate Development Company (WREDCO)
32820 Weyerhaeuser Way S
Federal Way, Washington 98003
Taylor Downey
Weyerhaeuser Real Estate Development Company (WREDCO)
Post Office Box 12768
New Bern NC 28561
Page 12 of 16 Pages

Sponsor's Agent
Mr Christian Preziosi
Land Management Group, Inc
3805 Wrightsville Avenue, Suite 15
Wilmington, NC 28403
Corps
Mr Mickey Sugg
U S Army Corps of Engineers
Regulatory Division
69 Darlington Avenue
Wilmington, NC 28403
EPA
Ms Jennifer Derby
Wetlands Section Region IV
Water Management Division
U S Environmental Protection Agency
61 Forsyth Street SW
Atlanta Georgia 30303
FWS
Mr Pete Benjamin
U S Fish and Wildlife Service
Fish and Wildlife Enhancement
Post Office Box 33726
Raleigh North Carolina 27636 3726
NMFS
Mr Ron Sechler
National Marine Fisheries NOAA
Habitat Conservation Division
Pivers Island
Beaufort North Carolina 28516
NCWRC
Ms Molly Ellwood
North Carolina Wildlife Resources Commission
127 Cardinal Drive Extension
Wilmington, NC 28405
Page 13 of 16 Pages

NCDCM
Mr Roy Brownlow
North Carolina Division of Coastal Management
400 Commerce Avenue
Morehead City, NC 28557 3421
NCDWQ
Mr Ian McMillan
North Carolina Division of Water Quality
NCDENR Webscape Unit
1650 Mail Service Center
Raleigh North Carolina 27699 1650
Page 14 of 16 Pages

IN WITNESS WHEREOF, the parties hereto have executed this Mitigation Banking
Instrument entitled "Agreement To Establish The Bachelors Delight Mitigation Bank in
Onslow County, North Carolina"
Spon r
By Date 1(p
U S Army Corps of Engineers
Page 14 of 14 Pages

(Version June 2009)
IN WITNESS WHEREOF the parties hereto have executed this Agreement entitled
"Agreement To Establish Bachelors Delight Stream and Wetland Mitigation Bank in
Onslow County, North Carolina"
U S Environmenta otection Agency
BY Date
(retlands er y ChiI er M agement Section
16

(Version June 2009)
IN WITNESS WHEREOF the parties hereto have executed this Agreement entitled
"Agreement To Establish Bachelors Delight Stream and Wetland Mitigation Bank in
Onslow County, North Carolina"
N C Division of 'Coastal Management
By Date
Gregson D fe ctor
21

RECEIVED
(Vernon June 2009) FEB 2 4 2011
REG WILM FLO OF(
IN WITNESS WHEREOF the parties hereto have executed this Agreement entitled
"Agreement To Establish Bachelors Delight Stream and Wetland Mitigation Bank in
Onslow County, North Carolina"
N C Dn ision of Water Quality
By D ate 2� /a
yndi Karoly, Branch C f
Wetland and Stormwater Branch
19

List of Appendices
Appendix A (CD copy) Bachelors Delight Stream and Wetland Mitigation Bank - Final
Mitigation Plan (October 20 10)
Appendix B Conservation Easement Surveys (Tract A Tract B 1 Tract B 2 and Tract B 3)
Appendix C Map — Geographic Service Area
Appendix D Construction Costs
Appendix E Performance Bonds
Appendix F Conservation Easement Deed
Page 16 of 16 Pages

APPENDIX A (CD COPY)

APPENDIX B

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APPENDIX C

Neuse River Basin
Cape Fear River Basin
HUC - 03030007
Holly Ridge
N
0 4 g
Miles
l
�Sneads Ferry
.9.
Legend
Bank Site
Geographic Service Area
Bachelors Delight Mitigation Bank
Onslow County, NC
December 2009
Figure 4.
Geographic Service Area Map
AAMG
LAND MANAGEMENT GROUP m
Environmental Consultants

APPENDIX D

FORM OF PROPOSAL
Protect) ONSLOW 19 BACHELORS
DELIGHT
RESTORATION SITE
(Owner) Weyerhaeuser Real Estate
Development Company
(Contract) SINGLE PRIME CONTRACT
Bidder zinc
The undersigned as bidder hereby declares that the only person or persons interested in this proposal
as principal or pnncipals is or are named herein and that no other person than herein mentioned has
any interest in this proposal or in the contract to be entered into that this proposal is made without
connection with any other person company or parties making a bid or proposal and that it is in at(
respects fair and in good faith without collusion or fraud The bidder further declares that he has
examined the site of the work and the contract documents relative thereto and has read all special
provisions furnished prior to the opening of bids that he has satisfied himself relative to the work to
be performed
The Bidder proposes and agrees if this proposal is accepted to contract with the Weyerhaeuser Real
Estate Development Company in the form of contract specified belo�v to furnish all necessary mate
rials equipment machinery tools apparatus means of transportation and labor necessary to
complete the construction of
ONSLOW 19 BACHELORS DELIGHT RESTORATION
in full in complete accordance with the plans specifications and contract documents to the full and
entire satisfaction of Weyerhaeuser Real Estate Development Company and consultant with a definite
understanding that no money wilt be allowed for extra work except as set forth in the General
Conditions and the contract documents
Time of Completion and Liquidated Damages
Bidder hereby agrees to commence work under this contract within 10 days of receipt of the Notice to
Proceed and shall fully complete the project within (contractor specified) calendar days
after the Notice to Proceed Bidder also agrees to pay $500 00 as liquidated damages for each
consecutive day beyond the date of completion as submitted by the contractor and agreed upon by the
owner
SINGLE PRIME CONTRACT.
Base Bid Flue hs.c,rlced e.% .hail t kbou-'and Ls rhs. dr..d 5 0 oRars ($) $,�2�s 50
General Contractor h (-,i*N-k 0h�-ckcLc,\N C (fieS License Number to 1 a5
uuR oeirec
Unit prices quoted and accepted shall apply throughout the life of the contract except as otherwise specifically noted Unit prices shall be
applied as appropriate to compute the total value of changes in the scope of the work all in accordance with the contract documents
The bidder further proposes and agrees hereby to commence work under this contract on a date to be specified in a wntten order of the
designer and shalt fully complete all work there under within the time specified above Applicable liquidated damages amount is ilso stet d
above

UPDATED BID TAB
BACHFLORS DELIGHT - SCHEDULE OF UNIT PRICES
Item
Item Descn tion
Estimated
Quantity
Unit
Unit Bid Price
Bid Amount
1
Mobilization
1
LS
fb
OD
2
Cleanng and Grubbing
108
AC
°D
o0
3
Construction Surveying
10
LS
c
4
Im ervicus Select Matenai Obtained from Off Site
1 521
CY
00
00
5
Im erwous Select Material Obtained from On Site
10
CY
\ 00
00
6
Grading Excavate - 10 800 and Fill - 10 300 or Stockpile
1
LS
00
00
7
Flood lam Interceptor
22
EA
00
00
8
Misc CourseAggregate No 57 Stone
50
TON
o
00
9
Misc RipRap Class A
50
TON
un CO
00
10
Misc Rip Ra Class B
50
TON
00
00
11
Log Sill Obtained from On site
31
EA
Ol
12
Log Sill -0btamd from Off site
1
EA
kllbo 00
kaoo 00
13
Flood lain Sill
745
LF
1--k If 00
14
Log Step Sequence Obtained from On site
2
EA
0O
co
15
Log Step Sequence Obtained from Off site
1
EA
kumm 00
kLo 0. Oo
16
Permanent Fans Crossing
12
EA
0o
00
17
Temporary Construction Entrance
6
EA
2Lim 00
ikA L� 00
18
Pump Around
21
WK
co
06
19
Car Fiber Mat
12 991
SY
LA GO
00
20
Temporary Silt Fence
3 410
LF
a ,5
50
21
Temporary Rock Silt Check
21
EA
00 ofl
"o
22
Temporary Seeding
345
AC
00
23
Permanent Seeding
340
AC
p0 00
Total Bid
RS Liqu, Cj0
e.c�
t`t�ar4�n

A
0
Proposal Signature Page
The undersigned further agrees to execute the said contract and the bonds within ten (10) consecutive
calendar days after being given written notice of the award of contract
Respectfully submitted this day of co-e-MV--)ee t,q 2 O1 \
WITNESS
(Proprietorship or Partnership)
ATTEST
(Name of fidn or corporation making bid)
Title
(Corp Sec o Asst Sec only)
(CORPORATE SEAL)
Addendum received and used in computing bid
Addendum No 1 ►i 5 II Addendum No 3
Addendum No 2 t Addendum No 4
By
Signature
Name L_\ nk�d CA . Lo�cr
Pn t or type
Title \) kcc (kcs�den�
(Owner /Partner /Pres /V Pres)
Address isasa C,rc \e G �-anc.
-1 q
License No u 13 85
Federal I D No '�Lo 1gS-1�1a1
Addendum No 5 Addendum No 6
Addendum No 6 Addendum No 7

APPENDIX E

MITIGATION MONITORING/MAINTENANCE
PERFORMANCE BOND
Date bond executed 5117/12
Effective date 5/17/12
Principal Weyerhaeuser Real Estate Development Company
P O Box 12768 New Bern North Carolina 28561
Type of Organization Individual
Joint Venture
Partnership
X Corporation
State of Incorporation Washington
Surety(tes) Liberty Mutual Insurance Company
PO Box 34670
Seattle 14A 98124 -1670
Scope of Coverage Post Construction Monitoring (Task 3 through Task 9 (for wetlands) and
Task 3 through Task 8 (for streams) of the Mitigation Banking Instrument ( MBI )) for the
Bachelors Delight Mitigation Bank property to Onslow County North Carolina ( Mitigation
Project )
Total penal sum of bond $43 760 00
Surety s Bond Number 023012716
KNOW ALL PERSONS BY THESE PRESENTS That we the Principal and Surety(ies) hereto
are firmly bound to the United States Army Corps of Engineers ( USACE ) in the above penal
sum for the payment of which we bind ourselves our heirs executors administrators
successors and assigns jointly and severally provided that where the Sureties are corporations
acting as co sureties we the Sureties bind ourselves to such sum jointly and severally only
for the purpose of allowing a point action or actions against any or all of us and for all other
purposes Surety binds itself jointly and severally with the Principal for the payment of such
sum only as is set forth opposite the name of such Surety but if no limit of liability is indicated
the limit of liability shall be full amount of the penal sum
WHERE4S said Principal is required to provide financial assuiancc, for post
.,onstrttctton monitoring of the Mitigation Bank to accordance with the approved MBI and as
furthet described to the scopL of coverage above and

i
WHEREAS, said Principal shall identify a designee acceptable to the USACE for receipt
of assurance monies should a claim be filed by the USACE in the event the Principal does not
fulfill its monitoring obligations
NOW, THEREFORE, the conditions of the obligation are such that if the Principal shall
faithfully perform completion of Task 3 through Task 9 (for wetlands) and Task 3 through Task
8 (for streams) as identified in the approved MBI and as further described in the scope of
coverage herein, for which this bond guarantees completion, in accordance with the MBI as such
may be amended pursuant to all applicable laws statutes, rules, and regulations as such laws,
statutes rules and regulations may be amended
Or if the Principal shall provide alternate financial assurance and obtain the USACE
written approval of such assurance within 90 days after the date notice of cancellation is received
by both the Principal and the USACE from the Surety(ies), then this obligation shall be null and
void otherwise it is to remain in full force and effect
Such obligation does not apply to any of the following
(a) Any obligation of Weyerhaeuser Real Estate Development Company under a
workers compensation disability benefits or employment compensation law
or other similar law
(b) Bodily injury to an employee of Weyerhaeuser Real Estate Development
Company ansmg from and in the course of employment by Weyerhaeuser
Real Estate Development Company,
(c) Bodily injury or property damage ansmg from the ownership, maintenance,
use of or entrustment to others of any aircraft motor vehicle, or watercraft,
(d) Property damage to any property owned rented loan to, in the care custody
or control of occupied by Weyerhaeuser Real Estate Development Company
that is not the direct result of a construction or implementation activity for the
MBI
(e) Bodily injury or property damage for which Weyerhaeuser Real Estate
Development Company is obligated to pay damages by reason of the
assumption of liability in a contract or agreement other than a contract or
agreement entered into to meet the requirements of the MBI
t
The Surety(ies) shall become liable on this bond obligation only when the Principal has failed to
fulfill the conditions described above
Upon notification by the USACE that the Principal has been found in violation of the
requirements of MBI for failing to perform post construction monitoring activities for the
Bachelors Delight Mitigation Bank for which this bond guarantees performance the Surety(ies)
shall within sixty (60) days of receiving such notice either perform completion in accordance
2

with the MBI and the approved Mitigation Plan or issue partial or all of the penal sum (up to
$43,760) guaranteed for monitoring of the Bachelors Delight Mitigation Bank to the NC State
Natural Resources Foundation Inc ( Foundation ), a North Carolina nonprofit corporation a
charitable organization exempt under Section 501(c)(3) of the Internal Revenue Code of 1986,
and approved Designee for completion of the monitoring obligations as identified in the
approved MBI and accompanying Mitigation Plan but only to the extent that said funding from
the bond is sufficient to achieve these purposes The Foundation shall not be required to use any
of its funding resources to meet these obligations
The Surety(ies) herby waive(s) notification of amendments to the MBI permits
applicable laws statutes, rules and regulation and agrees that no such amendment shall in any
way alleviate its (their) obligation on this bond
The Liability of the Surety(ies) shall not be discharge by any payment or succession of
payments hereunder, unless and until such payment or payments shall amount in the aggregate to
the penal sum of the bond but in no event shall the obligation of the Surety(ies) hereunder
exceed the amount of said penal sum
The Principal may terminate this bond by sending written notice to the Surety(ies)
provided however that no such notice shall become effective until the Surety(ies) receive(s)
written authorization for termination of the bond by the USACE
Principal and Surety(ies) hereby may agree to adjust the penal sum of the bond yearly so
that it guarantees increased or decreased completion costs provided that no decrease in the penal
sum takes place without the written permission of the USACE
* * * * * * * * * * * * * * * * * * **
THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK
* * * * * * * * * * * * * * * * * * **

IN WITNESS WHEREOF, the Principal and Surety(ies) have executed this Performance Bond
and have affixed their seals on the date set forth above Designee loins in this Performance Bond
for the express purpose of acknowledging and approving its terms and conditions
The persons whose signatures appear below hereby certify that they are authorized to
execute this surety bond on behalf of the Principal Designee and Surety(ies)
PRINCIPAL
WEYERHAEUSE AL ESTATE
DEVEL NT O PANY
By
ott uist i Pres dent
[Corporate Seal]
DESIGNEE
CORPORATE SURETY(IES)
For each co surety provide the following
Liberty Mutual Insuance Company
PO Box 34670, Seattle WA 98124 -1670
Name and Address
State of Incorporation Massachusetts
Liability Limit
ure
�ohn W Lambdin, Attorney Tn Fact
Type Name and Title
[Corporate Seal]
NC STATE NATURAL RESOUR S FOUNDATION INC
By
Brenda E Brickhouse President
[C%crate Seal]
19

I Mils NUMIK UI- All UKNEY 15 NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND 5369213
This Power of Attorney limits the acts of those named herein and they have no authority to bind the Company except in the manner and to the extent herein stated
American Fire and Casualty Company Liberty Mutual Insurance Company Certificate No
The Ohio Casualty Insurance Company Peerless Insurance Company
West American Insurance Company
POWER OF ATTORNEY
KNOWN ALL PERSONS BY THESE PRESENTS ThatAmencan Fire & Casualty Company and The Ohio Casualty Insurance Company are corporations duly organized under the laws of
the State of Ohio that Liberty Mutual Insurance Company is a corporation duty organized under the laws of the State of Massachusetts that peedess Insurance Company is a corporation
duy, organized under the laws of the State of New Hampshire and West American Insurance Company Is a corporation duly, organized under the laws of the State of Indiana (herein
collecbvely called the Companies ) pursuant to and by authority herein set forth does hereby name constitute and appoint, ALLISON J RENZ MARK E. TAYLOR JOHN W LAMBDIN
CHERI DRAIN DIANE O CONNELL, RICHARD LAUER JR. RANA V AMAYA, BARBARA BAIL,
all Of the Oty of FEDERAL WAY . state of WASHINGTON each Individually if there be more than one named Its true and lawful attorney in -fact to make execute seal acknowledge
and deriver for and on Its behalf as surety and as its ad and deed any and all undertakings bonds recognizances and other surety obligations in pursuance of these presents and shall
be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons
IN WITNESS WHEREOF the PowerofAttomey has been subscribed byan authorized officerorof cialof the Companies and the corporate seals of the Companies have been affixed thereto this
7th day of May 2012
AN F�R� J *titY iN8&� e,5-- CROO* pg}E, American Fire and Casualty Company
The Ohio Casualty Insurance Company
cpvck* 1
�iPD"u Liberty Mutual Insurance Company
0 Cl SEAL ySE AL a SEAL � Peerless Insurance Company
c ca a�G'44 Co�Q��t '`'�''` �gNCE codQe West American Insurance Company
C B ^
y
.s STATE OF WASHINGTON ss Gregory W Davenport Assistant Secretary
COUNTY OF KING
00 On this 7th day of May 2012 . before me personally appeared Gregory W Davenport who acknowledged himself to be the Assistant Secretary of American Fire and
p Casualty Company Liberty Mutual Insurance Company The Ohio Casualty Company Peerless Insurance Company and West American Insurance Company and that he as such being
m authorized so to do execute the foregoing Instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer
m IN WITNESS WHEREOF I have hereunto subscribed my name and affixed my notarial seal at Seattle, Vyashington on the day and year first above written
kP ECo
NOTARY By V&AN—,) FA
PUB is KD o Public
O w oy o of Riley Y
C L° This Power of Attorney is made and executed pursuant to and by authority of the following By laws and Authorizations ofAmencan Fire and Casualty Company The Ohio Casualty Insurance
H Company Liberty Mutual Insurance Company WestAmencan Insurance Company and Peerless Insurance Company which resolutions are now in full force and effect reading as follows
0).9 ARTICLE N— OFFICERS — Section 12 Power of Attorney Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President and subject
o e to such limitation as the Chairman or the President may prescribe shall appoint such attomeys -in -fact as may be necessary to ad in behalf of the Corporation to make execute seal
E w acknowledge and deliver as surety any and all undertakings bonds moDgnizances and other surety obligations Such attomeys-in fact, subject to the limitations set forth in their respective
LV powers of attorney shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation When so
'o executed such instruments shall be as binding as if signed by the President and attested to by the Secretary Any power or authority granted to any representative or attorney in fad under
c the provisions of this article may be revoked at any time by the Board the Chairman the President or by the officer or officers granting such power or authority
ARTICLE )all — Execution of Contracts — SECTION 5 Surety Bonds and Undertakings Any officer of the Company authorized for that purpose in writing by the chairman or the president,
Zand subject to such mutations as the chairman or the president may prescribe shall appoint such attomeys -m fad, as may be necessary to ad in behalf of the Company to make execute
seal acknowledge and deliver as surety any and all undertakings bonds recognizances and other surety obligations Such attomeys -in fad subject to the limitations set forth in their
respective powers of attorney shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company When so
executed such instruments shall be as binding as if signed by the president and attested by the secretary
Certificate of Designation — The President of the Company acting pursuant to the Bylaws of the Company authorizes Gregory W Davenport, Assistant Secretary to appoint such
attorney in-fact as may be necessary to act on behalf of the Company to make execute seal acknowledge and deliver as surety any and all undertakings bonds recognizances and other
surety obligations
Authorization — By unanimous consent of the Company's Board of Directors the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the
Company wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds shall be valid and biding upon the Company with the
same force and effect as though manually affixed
I David M Carey the undersigned Assistant Secretary of American Fire and Casualty Company The Ohio Casualty Insurance Company Liberty Mutual Insurance Company West
American Insurance Company and Peerless Insurance Company do hereby certify that tre original power of attorney of which the foregoing is a full true and correct copy of the Power of
Attorney executed by said Companies is in full force and effect and has not been revoked
IN TESTIMONY WHEREOF I have hereunto set my hand and affixed the seals of said Comps, ies this t 1 rday of ;1 20 -L�
GAN FtR�9� �JQLSY iN3�j4, y NPUAq� CtINE� , c AMEp By �4 � p1 � � �'��' � Dawd M Carey Assistant Secretary
POA AFCC LMIC OCIC PIC & WAIC
LMS_12873 041012

V,
STATE OF NORTH CAROLINA
MITIGATION BANK PERFORMANCE BOND
TO DEMONSTRATE CONSTRUCTION AND IMPLEMENTATION FINANCIAL
ASSURANCE
Date bond executed 5/17/12
Period of coverage 5/17/12 - 5 417 / 2 o l 6
Effective date 5/17/12
Principal Weyerhaeuser Real Estate Development Company
P O Box 12768 N_ ew Bern, North Carolina 28561
Legal Name and Business Address of Mitigation Banker
Type of Organization
Individual
Joint Venture
Partnership
X Corporation
State of Incorporation — Washington
Surety(1es) Liberty Mutual Insurance Company
Name(s) and Business Address(es)
PO Box 34670
Seattle LTA 98124 -1670
Scope of coverage Construction and implementation of the Bachelors Delight Mitigation
Bank in accordance with the approved Mitigation Banking Instrument (MBI) and pursuant to the
requirements of Nationwide Permit 27 (Action Id 2009 00832) issued by the United States Army
Corps of Engineers (` USACE ) and the requirements of General Water Quality Certification
Number 3689 (DWQ Project # 09 0565) issued by the North Carolina Department of
Environment and Natural Resources — Division of Water Quality ( DENR ) including the plans
approved by said authorizations
Total penal sum of bond $222 300 00
Surety s bond number 023012689

Know All Persons By These Presents, that we, the Principal and Surety(ies) hereto are
firmly bound to the USACE in the above penal sum for the payment of which we bind ourselves
our heirs executors, administrators successors, and assigns .jointly and severally, provided that,
where the Sureties are corporations acting as co sureties, we, the Sureties, bind ourselves in such
sum ",jointly and severally" only for the purpose of allowing a,joint action or actions against any
or all of us and for all other purposes each Surety binds itself ,jointly and severally with the
Principal, for the payment of such sum only as is set forth opposite the name of such Surety, but
if no limit of liability is indicated, the limit of liability shall be full amount of the penal sum
WHEREAS, said Principal is required, to have an approved MBI in order to construct,
implement and manage the Mitigation Bank identified above and
WHEREAS, said Principal is required to provide financial assurance for construction and
implementation of the Mitigation Bank in accordance with the 2008 Federal Mitigation Rule (33
CFR. 332) and as conditioned within the approved MBI and
WHEREAS said Principal shall identify a designee acceptable to the USACE for
receiving assurance momes should a claim be filed as a result of Principal defaulting on its
mitigation obligations
NOW, THEREFORE, the conditions of the obligation are such that if the Principal shall
faithfully construct and implement the Bachelors Delight Mitigation Bank, for which this bond
guarantees construction and implementation, in accordance with the approved MBI and the plans
approved by such instrument, as such instrument and plans may be amended pursuant to all
applicable laws statutes rules, and regulations as such laws statutes, rules, and regulations may
be amended
Or, if the Principal shall provide alternate financial assurance in accordance with 33 CFR
332 and obtain the written approval of the USACE of such assurance within 90 days after the
date notice of cancellation is received by both the Principal and the USACE from the Surety(ies)
then this obligation shall be null and void, otherwise it is to remain in full force and effect
Such obligation does not apply to any of the following
(a) Any obligation of Weyerhaeuser Real Estate Development
Company under a workers compensation disability benefits or
unemployment compensation law or other similar law
(b) Bodily injury to an employee of Weyerhaeuser Real Estate
Development CoMpany Company ansing from, and in the course of
employment by Weyerhaeuser Real Estate Development Company,
(c) Bodily injury or property damage ansing from the ownership
maintenance, use, or entrustment to others of any aircraft motor
vehicle or watercraft
Form No 62 -342 900(1) amended April 2012 2

FA
(d) Property damage to any property owned rented, loaned to in the
care custody, or control of, or occupied by Weyerhaeuser Real
Estate Development Company that is not the direct result of a
construction of implementation activity for the Bachelors Delight
Mitigation Bank as stipulated in the approved MBI and required
pursuant to USACE NWP 27 and NCDENR General Water
Quality Certification Number 3689,
(e) Bodily mlury or property damage for which Weyerhaeuser Real
Estate Development Company is obligated to pay damages by
reason of the assumption of liability in a contract or agreement
The Surety(ies) shall become liable on this bond obligation only when the Principal has
failed to fulfill the conditions described above
Upon notification by the USACE that the Principal has been found in violation of the
requirements of the MBI by failing to perform the required construction and implementation
activities for the Bachelors Delight Mitigation Bank for which this bond guarantees performance
the Surety(ies) shall, within 60 days of receiving such notice, either perform such construction
and implementation in accordance with the MBI and other permit requirements and pursuant to
the approved Mitigation Plan or issue partial or all the penal sum (up to $222 300) guaranteed for
the Bachelors Delight Mitigation Bank to the NC State Natural Resources Foundation, Inc
( "Foundation ) a North Carolina nonprofit corporation a charitable organization exempt under
Section 501(c)(3) of the Internal Revenue Code of 1986, and approved Designee for completion
of the mitigation obligations to the extent that said funding from the bond is sufficient to achieve
these purposes The Foundation shall not be required to use any of its funding resources to meet
these obligations The bond funds will be used by the Designee for the express purpose of
completing the mitigation work per the terms and conditions of the approved MBI and the
approved Mitigation Plan (including contingency measures as may be deemed necessary) In
addition, work will be compliant with the corresponding USACE NWP 27 and NCDENR
General Water Quality Certification No 3689 issued for the project unless as modified and 1
approved by the USACE and NCDENR, respectively
The Surety(ies) hereby waive(s) notification of amendments to the Bachelors Mitigation
Bank plans permits, applicable laws statutes rules and regulations and agree(s) that no such
amendment shall in any way alleviate its (their) obligation on this bond
The liability of the Surety(ies) shall not be discharged by any payment or succession of
payments hereunder, unless and until such payment or payments shall amount in the aggregate to
the penal sum shown on the face of the bond but in no event shall the obligation of the
Surety(ies) hereunder exceed the amount of said penal sum
Form No 62 342 900(1) amended April 2012 3

The Principal may terminate this bond by sending written notice to the Surety(ies),
provided, however, that no such notice shall become effective until the Surety(ies) receive(s)
written authorization for termination of the bond by USACE
Principal and Surety(ies) hereby may adjust the penal sum of the bond yearly so that it
guarantees increased or decreased construction and implementation cost provided that no
decrease in the penal sum takes place without the written permission of USACE
IN WITNESS WHEREOF, the Principal and Surety(ies) have executed this
Performance Bond and have affixed their seals on the date set forth above Designee toms in this
Performance Bond for the express purpose of acknowledging and approving its terms and
conditions
The persons whose signatures appear below hereby certify that they are authorized to
execute this surety bond on behalf of the Principal, Designee, and Surety(ies)
PRINCIPAL CORPORATE SURETY(IES)
For each co- surety provide the following
WEYERHAEUSER REAL ESTATE
DEVEL NT Y
By
colt a quis President
[Corporate Seal]
DESIGNEE
Liberty Mutual Insurance Company
PO Box 34670, Seattle WA 98124 -1670
Name and Address
State of Incorporation Mas s aahus e t t s
Liability Limit $222.30000
LAJ
At.
L�
Sk atur
/'J/hn W Lambdin Attorney In Fact
Type Name and Title
[Corporate Seal]
NC STATE NATURAL RESOURCES FOUNDATION INC
By
Brenda E Brickhouse President
(Corporate Seal]
Form tic 62 342 900(1) amended April 2012 4

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THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND
This Power of Attorney limb the acts of those named herein and they have no authority to bind the Company except in the manner and to the extent herein
American Fire and Casualty Company Liberty Mutual Insurance Company Certificate No
The Ohio Casualty Insurance Company Peerless Insurance Company
West American Insurance Company
POWER OF ATTORNEY
KNOWN ALL PERSONS BY THESE PRESENTS That American Fire & Casualty Company and The Ohio Casualty Insurance Company are corporations duty organized under the laws of
the State of Ohio that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts that Peeress Insurance Company is a corporation
duly organized under the laws of the State of New Hampshire and West American Insurance Company Is a corporation duly organized under the laws of the State of Indiana (herein
Collectively called the Companies ) pursuant to and by authority herein set forth does hereby name constitute and appoint, ALLISON J RENZ, MARK E. TAYLOR, JOHN W LAMBDIN,
CHERI DRAIN, DIANE O CONNELL, RICHARD LAUER JR. RANA V AMAYA, BARBARA BAIL,
all Of the City 0f FEDERAL WAY , state of WASHINGTON each Individually if there be more than one named its true and lawful attomey4n fact to make execute seal acknowledge
and deliver for and on its behalf as surety and as Its act and deed any and all undertakings bonds recognizances and other surety obligations In pursuance of these presents and shall
be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons
IN WITNESS WHEREOF this PowerofAttomey has been subscribed by an authorized officerorofficial of the Companies and the corporate seals of the Companies have been affixed thereto this
7th day of May 2012
-CAN f/q 141 SO. e U F gt AMU_
.2
E¢ y S1.AL
GENE aG9gNCE CO��P
STATE OF WASHINGTON
COUNTY OF KING
American Fire and Casualty Company
The Ohio Casualty Insurance Company
Liberty Mutual Insurance Company
Peerless Insurance Company
West American Insurance Company
By
Gregory W Davenport, Assistant Secretary
On this 7th day of mall, 2M2 . before me personally appeared Gregory W Davenport, who acknowledged himself to be the Assistant Secretary of American Fire and
Casualty Company Liberty Mutual Insurance Company The Ohio Casualty Company Peerless Insurance Company and West American Insurance Company and that he as such being
authorized so to do execute the foregoing Instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer
IN WITNESS WHEREOF I have hereunto subscribed my name and affixed my notanal seal at Seattle Washington on the day and year first above written
�fl Rte✓
NOTARY � By IC•d{/1 I.P�I�.
PUBLIC KD Riley NotiiWIPublic
r
� WA
This Power ofAttomey is made and executed pursuant to and by authority of the following By-laws and Authorizations ofAmedw Fire and Casualty Company The Ohio Casualty Insurance
Company Liberty Mutual Insurance Company West American Insurance Company and Peerless Insurance Company which resolutions are now in full force and effect reading as follows
ARTICLE IV— OFFICERS Section 12 Power of Attorney Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and subject
to such limitation as the Chairman or the President may prescribe shall appoint such attorneys -in -fact, as may be necessary to ad in behalf of the Corporation to make execute seal
acknowledge and deliver as surety any and all undertakings bonds recognizances and other surety obligations Such attorneys -in -fad, subject to the limitations set forth In their respective
powers of attorney shall have full power to bind the Corporation by their signature and execution of any such Instruments and to attach thereto the seal of the Corporation When so
executed such instruments shall be as binding as d signed by the President and attested to by the Secretary Any power or authority granted to any representative or attorney -in -fad under
the provisions of this article may be revoked at any time by the Board the Chairman the President or by the officer or officers granting such power or authority
ARTICLE )all — Execution of Contracts — SECTION 5 Surety Bonds and Undertakings Any officer of the Company authorized for that purpose in writing by the chairman or the president,
and subject to such limitations as the chairman or the president may prescribe shall appoint such attomeys-in fact, as may be necessary to ad in behalf of the Company to make execute
seal acknowledge and deliver as surety any and all undertakings bonds recognizances and other surety obligations Such attomeys -in -fad subject to the limitations set forth In their
respective powers of attorney shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company When so
executed such instruments shall be as binding as if signed by the president and attested by the secretary
Certificate of Designation — The President of the Company acting pursuant to the Bylaws of the Company authorizes Gregory W Davenport Assistant Secretary to appoint such
attorney In-fact as may be necessary to act on behalf of the Company to make execute seal acknowledge and deliver as surety any and all undertakings bonds recognizances and other
surety obligations
Authorization — By unanimous consent of the Companys Board of Directors the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the
Company wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds shall be valid and biding upon the Company with the
same force and effect as though manually affixed
I David M Carey the undersigned Assistant Secretary of American Fire and CasLaly Company The Ohio Casualty Insurance Company Liberty Mutual Insurance Company West
American Insurance Company and Peeress Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full true and correct copy of the Power of
Attorney executed by said Companies is In full force and effect and has not been revoked
IN TESTIMONY WHEREOF I have hereunto set my hand and affixed the seals of said Companies this L7_ day of 20 17—
�aAAPI F /p_4Z SY INk, �� N Uq�F g��SUPA e
rA`PO "`���`-'° v� Ga Q ZgrP m �� ` Kg� `� a 'per 9y _ "7 13 C, -. I4CORPORA s6 ° W i �4tNVA�� 9Q s> i F
9s\ �t �t J� sQ S1 Al °� / T �� <`� Si 1.I��; By
G9 TY CO�Qp
10 David �av3� �+A �`� / David M Carey Assistant Secretary
POA AFCC LMIC OCIC PIC & WAIC
LMS 12873 041012

APPENDIX F

i iiiisoi iiioi iii ioiii 11111 iii iisii ieiii iii 11111 11111 iii 11111 11111 1111 1111
Doc ID 009790790013 TVPe CRP
Recorded 05/31/2012 at 09 28 07 AM
Fee Amt $26 00 Page i of 13
Revenue Tax $0 00
Onslow County NC
Rebecca L Pollard Reg of Deeds
BK3787PG331 -343
This instrument prepared by Ward and Smith P A
After recording mail to NC State Natural Resources Foundation Inc
NC State University
Campus Box 8010
Raleigh, NC 27695 8010
[OUT OF] Parcel ID 032416 and 032427
STATE OF NORTH CAROLINA
COUNTY OF ONSLOW
CONSERVATION EASEMENT
THIS CONSERVATION EASEMENT ( Conservation Easement ) made as of the date
of the notary acknowledgement for Grantor below by and between WEYERHAEUSER REAL
ESTATE DEVELOPMENT COMPANY, a Washington corporation authorized to do business in
North Carolina ( Grantor ) and NC STATE NATURAL RESOURCES FOUNDATION INC
a North Carolina nonprofit corporation ( Grantee )
The designation Grantor and Grantee as used herein shall include said parties their heirs
successors and assigns and shall include singular, plural masculine feminine or neuter as
required by context
RECITALS
WHEREAS Grantor owns in fee simple certain real property situated lying and being in
Onslow County North Carolina and more particularly described in Exhibit A attached hereto
and incorporated herein ( Property )
WHEREAS the Property is depicted on a survey entitled "Conservation Easement
Survey for Weyerhaeuser Real Estate Development Company Portion of Onslow 19 Tract —
237 32 Acres' prepared by McKim & Creed dated July 6 2010 revised May 27 2011 and
PAGE 1 OF 13 PAGES

recorded in Map Book 63, at Page 209 [Plat Cabinet N] in the office of the Register of Deeds of
Onslow County,
WHEREAS, Grantee is the NC State Natural Resources Foundation, Inc (a 501(c)(3)
non profit organization) is qualified to be the Grantee of a conservation easement pursuant to
N C Gen Stat § 121 -35, and is willing to accept this Conservation Easement under the terms
and conditions hereinafter described,
WHEREAS, Grantor and Grantee recognize the conservation scemc, natural, or aesthetic
value of the Property in its natural state, which includes the following natural communities pine
flat wetlands small stream swamp forest and coastal plain streams The purpose of this
Conservation Easement is to restore and maintain wetland and/or riparian resources to protect
wildlife, forests and open -space values and to further provide maintain, restore, enhance and
preserve wetland and/or riparian resources on the Property that contribute to the protection and
improvement of water quality flood prevention, fisheries aquatic habitat, and wildlife, plant and
forest habitat to maintain permanently the Property in its natural condition consistent with these
purposes, and to prevent the use or development of the Property for any purpose or in any
manner that would conflict with or sigruficantly impair or interfere with these purposes or the
maintenance of the Property in its natural condition No activity or use inconsistent with the
purpose of this Conservation Easement shall be conducted permitted or allowed on the
Property
WHEREAS, the preservation of the Property is required by that certain Mitigation
Banking Instrument for the Bachelors Delight Mitigation Bank ( "Mitigation Bank ") made and
entered into by and between the Weyerhaeuser Real Estate Development Co as Sponsor and the
U S Army Corps of Engineers and the several State and Federal agencies that are also
signatories thereto Department of the Army Action ID No 2009 00832 (the "Mitigation
Banking Instrument ") The Mitigation Bank is intended to be used to compensate for
unavoidable stream and/or wetland impacts authorized by permits issued by the Department of
the Army Grantor and Grantee agree that third party rights of enforcement of this Conservation
Easement shall be held by the U S Army Corps of Engineers Wilmington North Carolina
District ( Corps') to include any successor agencies) and that these rights are in addition to and
do not limit the rights of the parties to the Mitigation Banking Instrument or this Conservation
Easement
WHEREAS the parties hereto have mutually agreed to the terms of this Conservation
Easement as hereinafter set forth and
WHEREAS Grantor and Grantee do not intend that this Conservation Easement qualify
for any Federal Income Tax deduction Federal Estate Tax exclusion or State Income Tax credit
or deduction
NOW THEREFORE for and in consideration of the covenants mutual benefits and
representations contained herein and for other good and valuable consideration the receipt and
legal sufficiency of which is hereby acknowledged Grantor hereby unconditionally and
irrevocably grants and conveys unto Grantee its successors and assigns forever and in
PAGE 2 OF 13 PAGES

perpetuity a Conservation Easement of the nature and character and to the extent hereinafter set
forth over the Property described on Exhibit A together with the right to preserve and protect
the conservation values thereof as follows
ARTICLE I
DURATION OF EASEMENT
This Conservation Easement shall be perpetual This Conservation Easement is an
easement in gross, runs with the land described as the Property and is enforceable by Grantee
against Grantor, Grantor s successors and assigns lessees agents and licensees
ARTICLE II
PROHIBITED AND RESTRICTED ACTIVITES
Any activity on or use of the Property inconsistent with the purpose of this Conservation
Easement is prohibited The Property shall be preserved in its natural condition and restricted
from any development that would impair or interfere with the conservation values of the
Property
Without limiting the generality of the foregoing the following activities and uses are
expressly prohibited restricted or reserved as indicated hereunder
A Disturbance of Natural Features Except in connection with restoring and
maintaining wetlands and riparian resources as described in Article III or as
otherwise specifically provided herein any change disturbance alteration or
impairment of the natural features of the Property is prohibited Further any
introduction of non native plants and/or animal species on the Property is prohibited
B Construction There shall be no constructing or placing of any building mobile
home asphalt or concrete pavement billboard or other advertising display antenna
utility pole tower conduit line pier landing dock or any other temporary or
permanent structure or facility on or above the Property
C Industrial, Commercial and Residential Use Industrial residential and/or commercial
activities including any rights of passage for such purposes are prohibited on the
Property
D Ajzncultural Grazing and Horticultural Use Agricultural grazing animal
husbandry and horticultural use of the Property are prohibited
E Vegetation Except as specified herein no removal burning destruction harming
cutting or mowing of trees shrubs or other vegetation shall be permitted on the
Property with the exception of narrow pedestrian access trails to be used for
monitoring and/or educational purposes Access Trails In no circumstance shall
these Access Trails be wider than 8 ft wide
PAGE 3 OF 13 PAGES

No trees may be cut or removed and the natural features of the Property may not be
disturbed except for (1) eradication of non -native plant species (2) the construction
of fire lines, (3) as may be incidental to boundary marking, fencing, and signage
allowed or required hereunder (4) selective cutting and prescribed burning or
clearing of vegetation for fire containment, protection damage control, insect and
disease control, human safety restoration of hydrology and wetlands and wildlife,
plant and forest habitat enhancement subject, however, to 30 days written notice to
the Grantee and approval by the Corps except in the event of emergency
F Roads and Trails There shall be neither construction of roads, trails or walkways on
the Property, nor enlargement or modification to existing roads, trails or walkways,
with the exception of narrow, Access Trails
G Signage No signs shall be permitted on or over the Property except the posting of no
trespassing signs, signs identifying the conservation values of the Property, signs
giving directions or proscribing rules and regulations for the use of the Property
and/or sign identifying the Grantor as owner of the Property
H Dumping or Storage No dumping or storage of soil trash ashes garbage waste
abandoned vehicles, appliances, machinery or hazardous substances or toxic or
hazardous waste or any placement of underground or aboveground storage tanks or
other materials shall be permitted on the Property
I Excavation Dredging or Material Use No grading filling excavation dredging
mining or drilling, removal of topsoil sand, gravel rock peat, minerals or other
materials or change in the topography of the land in any manner shall be permitted
on the Property except to restore natural topography or drainage patterns
J Water Quality and Drainage Pattern No diking draimng dredging channeling
filling leveling, pumping impounding or related activities, altering or tampering with
water control structures or devices or disruption or alteration of the restored
enhanced or created drainage patterns shall be permitted on the property In addition
no diversion or causing or permitting the diversion of surface or underground water
into within or out of the easement area by any means removal of wetlands polluting
or discharging into waters springs seeps or wetlands or use pesticides or biocides
shall be permitted on the Property
K Development Rights No development rights that have been encumbered or
extinguished by the Conservation Easement shall be transferred pursuant to a
transferable development rights scheme or cluster development arrangement or
otherwise
L vehicles Except in connection with restoring and maintaining wetlands and riparian
resources as described in Article III or as otherwise specifically provided herein, no
operation of mechanized vehicles, including, but not limited to motorcycles dirt
bikes all terrain vehicles cars and trucks shall be permitted on the Property
PAGE 4 OF 13 PAGES

M Other Prohibitions No other use of or activity on, the Property which is or may
become inconsistent with the purpose of this grant the restoration and preservation of
the Property substantially in its natural condition, or the protection of its
environmental systems shall be permitted on the Property
ARTICLE III
GRANTOR S RESERVED RIGHTS
The Grantor expressly reserves for itself, its successors or assigns the right to continue
the use of the Property for all purposes not inconsistent with this Conservation Easement,
including but not limited to the right to quiet enjoyment of the Property the rights of ingress
and egress the right to hunt, fish and luke on the Property the right to sell transfer gift or
otherwise convey the Property in whole or in part provided such sale, transfer or gift
conveyance is subject to the terms of and shall specifically reference, the Conservation
Easement All rights reserved by Grantor are reserved for Grantor its representatives successors
and assigns and are considered to be consistent with the conservation purposes of this
Conservation Easement Grantor shall continue to own and may use the Property in any lawful
manner except for the specific restrictions and prohibitions made applicable herein to the
Property
Notwithstanding the foregoing restrictions contained in Article II and the other provisions
of this Conservation Easement Grantor reserves for Grantor its successors and assigns the right
to construct wetland and stream mitigation of the Property all as specified in accordance with
that certain detailed mitigation plan entitled Bachelors Delight Stream and Wetland Mitigation
Bank/ Onslow County North Carolma/Final Mitigation Plan dated October 2010 prepared by
Land Management Group Inc /Environmental Consultants and Florence & Hutchinson
Consulting Engineers relating to the Property and approved in accordance with the Mitigation
Banking Instrument for the Mitigation Bank ( "Mitigation Plan") It is recognized that some
disturbance and passage and use of mechanized vehicles will be necessary in connection with the
restoration of the Property and construction of wetland and stream mitigation Such activities are
allowed as provided in the Mitigation Banking Instrument and the Mitigation Plan approved in
accordance therewith
ARTICLE IV
GRANTEE'S RIGHTS
The Grantee or its authorized representatives successors and assigns and the Corps
shall have the right to enter the Property at all reasonable times for the purpose of inspecting said
Property to determine if the Grantor or its successors or assigns is complying with the terms
conditions restrictions and purposes of this Conservation Easement The Grantee shall also
have the right to enter and go upon the Property for purposes of making scientific or educational
observation and studies and taking samples The Easement rights granted herein do not include
public access rights
PAGE 5 OF 13 PAGES

ARTICLE V
ENFORCEMENT AND REMEDIES
A To accomplish the purpose of this Easement, Grantee is allowed to prevent any
activity on or use of the Property that is inconsistent with the purposes of this
Easement and to require the restoration of such areas or features of the Property that
may be damaged by such activities or use Upon any breach of the terms of this
Conservation Easement by Grantor that comes to the attention of the Grantee, the
Grantee shall notify the Grantor in writing of such breach The Grantor shall have 30
days after receipt of such notice to correct the conditions constituting such breach or
to commence cure if such cure would take longer than 30 days to complete If the
breach remains uncured after 30 days, and if Grantor is not diligently prosecuting
cure after 30 days the Grantee may enforce this Conservation Easement by
appropriate legal proceedings including damages injunctive and other relief
Notwithstanding the foregoing the Grantee reserves the immediate right to seek a
temporary restraining order injunctive or other appropriate relief if the breach of the
term of this Conservation Easement is or would irreversibly or otherwise materially
impair the benefits to be derived from this Conservation Easement The Grantor and
Grantee acknowledge that under such circumstances damage to the Grantee would be
irreparable and remedies at law will be inadequate The rights and remedies of the
Grantee provided hereunder shall be in addition to and not in lieu of all other rights
and remedies available to Grantee in connection with this Conservation Easement
The costs of a breach correction or restoration of the Property, including the
Grantee s reasonable actual expenses court costs and attorney s fees shall be paid
by Grantor, provided Grantor is determined to be responsible for the breach if
ordered by the court The Corps shall have the same right to enforce the terms and
conditions of this easement as the Grantee The Grantor and Grantee agree to provide
60 -day advance notification to the District Engineer of the Corps before any action is
taken to void or modify this Conservation Easement or in the event of transfer of title
to or establishment of any other legal claims over the Property
B No failure on the part of the Grantee to enforce any covenant or provision hereof shall
discharge or invalidate such covenant or any other covenant condition or provision
hereof or affect the right to Grantee to enforce the same in the event of a subsequent
breach or default
C Nothing contained in this Conservation Easement shall be construed to entitle
Grantee to bring any action against Grantor for any injury or change in the Property
resulting from causes beyond the Grantor s control including without limitation fire
flood storm war acts of God or third parties, except Grantor s lessees or invitees or
from any prudent action taken in good faith by Grantor under emergency conditions
to prevent abate or mitigate significant injury to life damage to Property or harm to
the Property resulting from such causes
P AGE 6 OF 13 PAGES

ARTICLE VI
MISCELLANEOUS
A Title Grantor covenants and represents that Grantor is the sole owner and is seized
of the Property in fee simple subject to taxes for the current year riparian and littoral
rights rights of others to the free -flow of waters in streams branches and canals,
easements of record or on the ground and other matters of record has good right to
grant and convey the aforesaid Property and that there are no outstanding mortgages
tax liens for prior years, or other liens on the Property which have not been expressly
subordinated to this Conservation Easement except as noted above Grantor further
warrants that Grantee shall have the use of and enjoy all the benefits derived from and
ansing out of this Conservation Easement and the Grantor will warrant and defend
title to the Property against the claims of all other persons
B Subsequent Transfers The Grantor agrees to mcorporate the terms of this
Conservation Easement in any deed or other legal instrument that transfers any
interest in all or a portion of the Property The Grantor agrees to provide written
notice to the Grantee of such transfer at least sixty (60) days prior to the date of the
transfer The Grantor and Grantee agree that the terms of the Conservation Easement
shall survive any merger of the fee and easement interests in the Property or any
portion therefore and shall not be amended modified or terminated without timely
notification to the District Engineer of the Corps as provided in Section V Section A
of this Conservation Easement and the prior written consent and approval of the
Corps
C Assignment The parties recognize and agree that the benefits of this Conservation
Easement are in gross and assignable in whole but not in part provided, however that
the Grantee hereby covenants and agrees that in the event it transfers or assigns this
Conservation Easement the organization receiving the interest will be a qualified
holder under N C Gen Stat § 121 34 et seq and § 170(h) of the Internal Revenue
Code and the Grantee further covenants and agrees that the terms of the transfer or
assignment will be such that the transferee or assignee will be required to continue in
perpetuity the conservation purpose described in this document Grantee shall provide
to Grantor at the time of such assignment the name address telephone numbers and
principal contact of the party to whom this Conservation Easement is assigned and a
writing executed by the assignee addressed to Grantor that the assignee has assumed
all of the obligations of Grantee hereunder Grantee its successors or assigns hereby
covenant and agree to monitor and observe the Property in perpetuity for such
purposes set forth in this Conservation Easement and to report to the Corps any
observed violations on the Property
D Entire Agreement and Severability This instrument sets forth the entire agreement of
the parties with respect to the Conservation Easement and supersedes all prior
discussions negotiations understandings or agreements relating to the Conservation
Easement If any provision is found to be void or unenforceable by a court of
competent jurisdiction the remainder shall continue in full force and effect
PAGE 7 OF 1 , PAGES

E Obligations of Ownership Grantor is responsible for any real estate taxes
assessments fees, or charges levied upon the Property Grantor shall keep the
Property free of any liens or other encumbrances for obligations incurred by Grantor
Grantee shall not be responsible for any costs or liability of any kind related to the
ownership operation insurance, upkeep, or maintenance of the Property, except as
expressly provided herein Nothing herein shall relieve the Grantor of the obligation
to comply with federal, state or local laws, regulations and permits that may apply to
the exercise of the Reserved Rights
F Termination Prior to Release and Use of Credits This easement is granted for the
purpose of facilitating the establishment of the Bachelors Delight Mitigation Bank as
a general use bank site providing compensatory mitigation of unavoidable wetland
and stream impacts separately authorized by Section 404 1972 Clean Water Act
(CWA) permits and/or Section 401 Water Quality Certifications from the North
Carolina Division of Water Quality (NCDENR) If prior to the release and use of
mitigation credits in the Mitigation Bank, circumstances or conditions arse that
render the property unsuitable or infeasible as a mitigation bank site as determined
by Grantor in its sole discretion, this easement shall terminate In such event the
Grantor and the Grantee shall loin to the execution of such documentation as may be
necessary to evidence such termination
G Extinguishment Except in the event of termination in accordance with Article VI,
Section F above this easement may only be extinguished in whole or in part by
judicial action
H Eminent Domain Whenever all or part of the Property is taken in the exercise of
eminent domain so as to substantially abrogate the Restrictions imposed by this
Conservation Easement Grantor and Grantee shall loin in appropriate actions at the
time of such taking to recover the full value of the taking and all incidental and direct
damage due to the taking
Proceeds This Conservation Easement constitutes a real property interest
immediately vested in Grantee In the event that all or a portion of this Property is
sold exchanged or involuntarily converted following an extinguishment (but not a
termination prior to the release and use of credits) or the exercise of eminent domain
Grantee shall be entitled to the fair market value of this Conservation Easement The
parties stipulate that the fair market value of this Conservation Easement shall be
determined by multiplying the fair market value of the Property unencumbered by
this Conservation Easement (minus any increase in value after the date of this grant
attributable to improvements) by the ratio of the value of this easement at the time of
this grant to the value of the Property (without deduction for the value of this
Conservation Easement) at the time of this grant The values at the time of this grant
shall be the values used or which would have been used, to calculate a deduction for
federal income tax purposes pursuant to Section 170 (h) of the Internal Revenue
Code (whether eligible or ineligible for such a deduction) Grantee shall use its share
PAGE 8 OF 13 PAGES

of the proceeds in a manner consistent with the purposes of this Conservation
Easement
Notification Any notice request for approval, or other communication required
under this Conservation Easement shall be sent by registered mail, postage prepaid, or
national overnight delivery service to the following addresses (or such address as
may be hereafter specified by notice pursuant to the paragraph)
To Grantor Weyerhaeuser Real Estate Development Company
Attn Taylor H Downey
2207 Trent Road
New Bern, NC 28560
To Grantee NC State Natural Resources Foundation Inc
NC State University
Campus Box 8010
Raleigh NC 27695 -8010
To the Corps US Army Corps of Engineers
Attn Mr Mickey Sugg
Wilmington District — Regulatory Branch
P O Box 1890
Wilmington NC 28402
Fax [phone]
K Failure of Grantee If at any time Grantee is unable or fails to enforce tins
Conservation Easement or if Grantee ceases to be a qualified grantee and if within a
reasonable period of time after the occurrence of one of these events Grantee fails to
make an assignment pursuant to this Conservation Easement then the Grantees
interest shall become vested in another qualified grantee of a conservation easement
as described in Article VI , Paragraph C of tins Conservation Easement in accordance
with an appropriate proceeding in a court of competent jurisdiction
L Amendment This Conservation Easement may be amended but only in writing
signed by all parties hereto and provided such amendment does not affect the
qualification of this Conservation Easement or the status of the Grantee under any
applicable laws and is consistent with the conservation purposes of this grant
M Present Condition of the Property The wetlands scenic resource environmental
and other natural characteristics of the Property and its current use and state of
improvement are described in the Mitigation Plan prepared for and on behalf of
Grantor and acknowledged by the Grantor and Grantee to be completed and accurate
as of the date hereof Both Grantor and Grantee have copies of this report It will be
used by the parties to assure that an) future changes in the use of the Property will be
consistent with the terms of this Conservation Easement However this report is not
intended to preclude the use of other evidence to establish the present condition of the
Property if there is a controversy over its use
PAGE 9 OF 13 PAGES

N Conservation Purpose Grantor and Grantee, for themselves, their successors and
assigns, agree that this Conservation Easement shall be held exclusively for
conservation purposes set forth herein and in the Mitigation Banking Instrument
O Recording Grantee shall record this instrument and any amendments hereto in a
timely fashion in the official records of Onslow County, North Carolina and may
rerecord it at any time as may be required to preserve Grantee's rights
TO HAVE AND TO HOLD the said rights and easements perpetually unto Grantee for
the aforesaid purposes
IN TESTIMONY WHEREOF, Grantor has caused this instrument to be executed by its
duly authorized officer as of the date of the notary acknowledgement for Grantor below
Grantee loins in the execution of this Conservation Easement to acknowledge, confirm,
and agree to the terms conditions limitations and provisions contained herein
* * * * * * * * * * * * * * * * * **
THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGES AND EXHIBIT A FOLLOW
* * * * * * * * * * * * * * * * **
PAGE 10 OF 13 PAGES

GRANTOR
WEYERHAEUSER REAL EST.
A WashtnuKEMornoratiM
STATE OF WASHINGTON
COUNTY OF KING
DEVELOPMENT COMPANY
Pr o�pOr�
SEAL
"4,tNS16to*
I certify that the following person personally appeared before me this day, acknowledging to me
that he or she signed the foregoing document for the purpose(s) stated therein and, if other than
in an individual capacity in the capacity indicated having been first authorized to do so Scott
Dahlquist Vice President of WEYERHAEUSER REAL ESTATE DEVELOPMENT
COMPANY
Date m �rcan 'b'D, '� 01 a
My commission expires
�, /
F i•
PAGE 11 OF 13 PAGES
Dorothy Churchill
Notary PUbllc
State of Washington
My Comm EM 12 03 13

GRANTEE
NC STATE NATURAL RESOURCES FOUNDATION INC
A North Carolina Nonprofit Corporation
By
Brenda Brickhouse President
STATE O —Nc,�e
COUNTY OF
a Notary Public of the County and State aforesaid certify
that Brenda Bnckhouse`�ersonally appeared before me this day and acknowledged that she is
President of NC STATE NATURAL RESOURCES FOUNDATION INC a North Carolina nonprofit
corporation and that she as President being authorized to do so executed the foregoing on
behalf of the corporation Witness my hand and official stamp or seal this the day of
2��/11
�aEi,LE 1&l��'
SUTE
(AF$X SEA= = Notary Public"
PURc
Notary Printed Named -r���,
ellll
My commission expires
PAGE 12 OF 13 PAGES

EXHIBIT A
Description of Property
Those certain tracts or parcels of land lying in Richlands Township, Onslow County, North
Carolina, being shown on a map entitled "Conservation Easement Survey for Weyerhaeuser Real
Estate Development Company Portion of Onslow 19 Tract — 237 32 Acres," prepared by
McKim & Creed dated July 6, 2010, revised May 27 2011, and recorded in Map Book 63, at
Page 209 [Plat Cabinet N] in the office of the Register of Deeds of Onslow County, to which
map reference is hereby made for a more complete and accurate description
Less and except any portion of said tracts or parcels of land lying to the north of the property line
established in that certain Boundary Line Agreement dated December 23, 1981, between
Weyerhaeuser Company and North Carolina Forestry Foundation which is recorded in Book
617 Page 211 in the office of the Register of Deeds of Onslow County
PAGE 13 OF 13 PAGES

Doe ID 009790ype
Recorded 05/31/20121atT09 29 CRP AM
Fee Amt $26 00 Page i of 15
Revenue Tax $0 00
Onsloa County NC
Rebecca L Pollard Ron of Deeds
BK3787 Pa344 -358
This instrument prepared by Jordan Price Wall Gray Jones & Carlton, PLLC
After recording mail to NC State Natural Resources Foundation Inc
NC State University
Campus Box 8010
Raleigh, NC 27695 8010
[OUT OF] Parcel # 1999 23 Parcel ID 04076
STATE OF NORTH CAROLINA
COUNTY OF ONSLOW
CONSERVATION EASEMENT
THIS CONSERVATION EASEMENT ('Conservation Easement ) made as of the date
of the notary acknowledgement for Grantor below by and between THE BOARD OF
TRUSTEES OF THE ENDOWMENT FUND OF NORTH CAROLINA STATE UNIVERSITY
('Grantor") and NC STATE NATURAL RESOURCES FOUNDATION INC ( "Grantee )
The designation Grantor and Grantee as used herein shall include said parties their heirs
successors and assigns and shall include singular plural masculine feminine or neuter as
required by context
RECITALS
WHEREAS Grantor owns in fee simple certain real property situated lying and being in
Onslow County North Carolina and being three (3) separate tracts containing 89 98 acres 20 81
acres and 13 19 acres more or less respectively as more particularly described in Exhibits A 1
A 2 and A 3 attached hereto and incorporated herein ( Property )
WHEREAS the Property is depicted on surveys (hereinafter collectively the 'Survev' )
entitled Conservation Easement Survey[s] of [89 98 acres and 20 81 acres respectively] for the
Board of Trustees of the Endowment Fund of NC State University Portion of Hofmann Forest
Deed Boot. 516 Page 408 Drawing Nos 2010 032 and 2010 053 prepared by McKim &
PAGE 1 OF 1 PAGES

c
Creed dated July 6, 2010 and recorded in Map Book 63 at Pages 212 and 211 [Plat Cabinet N]
in the office of the Register of Deeds of Onslow County and Conservation Easement Survey of
13 19 acres for the Board of Trustees of the Endowment Fund of NC University Portion of
Hofmann Forest Map Book 21 Page 140 , Drawing No 2011 023, prepared by McKim & Creed
dated June 15, 2011 and recorded in Map Book 63 at Page 210 [Plat Cabinet N] in the office of
the Register of Deeds of Onslow County (collectively the "Plat'),
WHEREAS Grantee is the NC State Natural Resources Foundation Inc (a 501(c)(3)
non profit organization) is qualified to be the Grantee of a conservation easement pursuant to
N C Gen Stat § 121 35, and is willing to accept this Conservation Easement under the terms
and conditions hereinafter described
WHEREAS, Grantor and Grantee recognize the conservation scenic, natural or aesthetic
value of the Property in its natural state which includes the following natural communities pine
flat wetlands small stream swamp forest, and coastal plain streams The purpose of this
Conservation Easement is to restore and maintain wetland and/or riparian resources to protect
wildlife forests and open -space values, and to further provide, maintain, restore enhance and
preserve wetland and/or riparian resources on the Property that contribute to the protection and
improvement of water quality, flood prevention fisheries aquatic habitat and wildlife, plant and
forest habitat to maintain permanently the Property in its natural condition consistent with these
purposes and to prevent the use or development of the Property for any purpose or in any
manner that would conflict with or significantly impair or interfere with these purposes or the
maintenance of the Property in its natural condition No activity or use inconsistent with the
purpose of this Conservation Easement shall be conducted, permitted or allowed on the
Property
WHEREAS the preservation of the Property is required by that certain Mitigation
Banking Instrument for the Bachelors Delight Mitigation Bank ( "Mitigation Bank ") made and
entered into by and between the Weyerhaeuser Real Estate Development Co as Sponsor
( WREDCO ) and the U S Army Corps of Engineers and the several State and Federal
agencies that are also signatories thereto Department of the Army Action ID No 2009 00832
(the 'Mitigation Banking Instrument ") The Mitigation Bank is intended to be used to
compensate for unavoidable stream and/or wetland impacts authorized by permits issued by the
Department of the Army Grantor and Grantee agree that third -party rights of enforcement of this
Conservation Easement shall be held by the U S Army Corps of Engineers Wilmington North
Carolina District ( Corps ) to include any successor agencies) and that these rights are in
addition to and do not limit the rights of the parties to the Mitigation Banking Instrument or this
Conservation Easement
WHEREAS the Grantor approved the execution of this Conservation Easement at a
meeting held in the City of Raleigh on the 16th day of September 2010
WHEREAS the parties hereto have mutually agreed to the terms of this Conservation
Easement as hereinafter set forth
PAGE 2 OF 15 PAGES

WHEREAS Grantor and Grantee do not intend that this Conservation Easement qualify
for any Federal Income Tax deduction, Federal Estate Tax exclusion or State Income Tax credit
or deduction
NOW, THEREFORE, for and in consideration of the covenants mutual benefits and
representations contained herein and for other good and valuable consideration the receipt and
legal sufficiency of which is hereby acknowledged Grantor hereby unconditionally and
irrevocably grants and conveys unto Grantee, its successors and assigns, forever and in
perpetuity a Conservation Easement of the nature and character and to the extent hereinafter set
forth over the Property described on Exhibits A -1, A 2 and A 3, together with the right to
preserve and protect the conservation values thereof, as follows
ARTICLE I
DURATION OF EASEMENT
This Conservation Easement shall be perpetual This Conservation Easement is an
easement in gross runs with the land described as the Property and is enforceable by Grantee
against Grantor Grantor s successors and assigns lessees agents and licensees
ARTICLE II
PROHIBITED AND RESTRICTED ACTIVITES
Any activity on or use of the Property inconsistent with the purpose of this Conservation
Easement is prohibited The Property shall be preserved in its natural condition and restricted
from any development that would impair or interfere with the conservation values of the
Property
Without limiting the generality of the foregoing the following activities and uses are
expressly prohibited restricted or reserved as indicated hereunder
A Disturbance of Natural Features Except in connection with restoring and
maintaining wetlands and riparian resources as described in Article III or as
otherwise specifically provided herein, any change disturbance, alteration or
impairment of the natural features of the Property is prohibited Further any
introduction of non native plants and/or animal species on the Property is prohibited
B Construction There shall be no constructing or placing of any building mobile
home asphalt or concrete pavement billboard or other advertising display antenna
utility pole tower conduit line pier landing dock or any other temporary or
permanent structure or facility on or above the Property
C Industrial, Commercial and Residential Use Industrial residential and/or commercial
activities including any rights of passage for such purposes are prohibited on the
Property
PAGE 3 OF 15 PAGES

D Agricultural, Grazing, and Horticultural Use Agricultural grazing animal
husbandry and horticultural use of the Property are prohibited
E Vegetation Except as specified herem, no removal, burning, destruction, harmmg
cutting or mowing of trees shrubs or other vegetation shall be permitted on the
Property with the exception of narrow, pedestrian access trails to be used for
monitoring and/or educational purposes 'Access Trails' In no circumstance shall
these Access Trails be wider than 8 ft wide
No trees may be cut or removed and the natural features of the Property may not be
disturbed except for (1) eradication of non - native plant species, (2) the construction
of fire Imes (3) as may be incidental to boundary marking fencing and signage
allowed or required hereunder (4) selective cutting and prescribed burning or
clearing of vegetation for fire containment protection damage control insect and
disease control, human safety, restoration of hydrology and wetlands, and wildlife,
plant and forest habitat enhancement subject however to 30 days written notice to
the Grantee and approval by the Corps, except in the event of emergency
F Roads and Trails There shall be neither construction of roads trails or walkways on
the Property nor enlargement or modification to existing roads trails or walkways
with the exception of narrow Access Trails
G Si na a No signs shall be permitted on or over the Property except the posting of no
trespassing signs signs identifying the conservation values of the Property signs
giving directions or proscribing rules and regulations for the use of the Property
and/or sign identifying the Grantor as owner of the Property
H Dumnmg or Storage No dumping or storage of soil trash ashes, garbage waste,
abandoned vehicles, appliances machinery or hazardous substances or toxic or
hazardous waste, or any placement of underground or aboveground storage tanks or
other materials shall be permitted on the Property
I Excavation, Dred Yng or Material Use No gradmg filling excavation dredging
mining or drilling removal of topsoil, sand, gravel, rock, peat minerals or other
materials, or change in the topography of the land in any manner shall be permitted
on the Property except to restore natural topography or drainage patterns
J Water Qualit y and Drainage Pattern No diking draining dredging channeling
filling leveling pumping impounding or related activities altering or tampering with
water control structures or devices or disruption or alteration of the restored
enhanced or created drainage patterns shall be permitted on the property In addition
no diversion or causing or permitting the diversion of surface or underground water
into within or out of the easement area by any means removal of wetlands polluting
or discharging into waters springs seeps or wetlands or use pesticides or biocides
shall be permitted on the Property
PAGE 4 OF 15 PAGES

K Development Rights No development rights that have been encumbered or
extinguished by the Conservation Easement shall be transferred pursuant to a
transferable development rights scheme or cluster development arrangement or
otherwise
L Vehicles Except in connection with restoring and maintaining wetlands and riparian
resources as described in Article III, or as otherwise specifically provided herein no
operation of mechanized vehicles, including but not limited to, motorcycles, dirt
bikes, all - terrain vehicles cars and trucks shall be permitted on the Property
M Other Prohibitions No other use of or activity on the Property which is or may
become inconsistent with the purpose of this grant the restoration and preservation of
the Property substantially in its natural condition or the protection of its
environmental systems shall be permitted on the Property
ARTICLE III
GRANTOR S RESERVED RIGHTS
The Grantor expressly reserves for itself its successors or assigns, the right to continue
the use of the Property for all purposes not inconsistent with this Conservation Easement,
including but not limited to the right to quiet enjoyment of the Property, the rights of ingress
and egress the right to hunt fish and hike on the Property the right to sell transfer gift or
otherwise convey the Property in whole or in part provided such sale, transfer or gift
conveyance is subject to the terms of and shall specifically reference, the Conservation
Easement All rights reserved by Grantor are reserved for Grantor its representatives successors
and assigns and are considered to be consistent with the conservation purposes of this
Conservation Easement Grantor shall continue to own and may use the Property in any lawful
manner except for the specific restrictions and prohibitions made applicable herein to the
Property
Notwithstanding the foregoing restrictions contained in Article II and the other provisions
of this Conservation Easement Grantor reserves for Grantor its successors and assigns the right
to construct wetland and stream mitigation of the Property all as specified in accordance with
that certain detailed mitigation plan entitled Bachelors Delight Stream and Wetland Mitigation
Bank/ Onslow County North Carolina/Final Mitigation Plan' dated October 2010 prepared by
Land Management Group Inc /Environmental Consultants and Florence & Hutchinson
Consulting Engineers relating to the Property and approved in accordance with the Mitigation
Banking Instrument for the Mitigation Bank ( "Mitigation Plan ) It is recognized that some
disturbance and passage and use of mechanized vehicles will be necessary in connection with the
restoration of the Property and construction of wetland and stream mitigation Such activities are
allowed as provided in the Mitigation Banking Instrument and the Mitigation Plan approved in
accordance therewith
PAGE S OF I-) PAGES

ARTICLE IV
GRANTEE S RIGHTS
The Grantee or its authorized representatives successors and assigns and the Corps
shall have the right to enter the Property at all reasonable times for the purpose of inspecting said
Property to determine if the Grantor or its successors or assigns is complying with the terms,
conditions restrictions and purposes of this Conservation Easement The Grantee shall also
have the right to enter and go upon the Property for purposes of making scientific or educational
observation and studies and taking samples The Easement rights granted herem do not include
public access rights
ARTICLE V
ENFORCEMENT AND REMEDIES
A To accomplish the purpose of this Easement Grantee is allowed to prevent any
activity on or use of the Property that is inconsistent with the purposes of this
Easement and to require the restoration of such areas or features of the Property that
may be damaged by such activities or use Upon any breach of the terms of this
Conservation Easement by Grantor that comes to the attention of the Grantee the
Grantee shall notify the Grantor in writing of such breach The Grantor shall have 30
days after receipt of such notice to correct the conditions constituting such breach or
to commence cure if such cure would take longer than 30 days to complete If the
breach remains uncured after 30 days and if Grantor is not diligently prosecuting
cure after 30 days the Grantee may enforce this Conservation Easement by
appropriate legal proceedings including damages, injunctive and other relief
Notwithstanding the foregoing the Grantee reserves the immediate right to seek a
temporary restraining order injunctive or other appropriate relief if the breach of the
term of this Conservation Easement is or would irreversibly or otherwise materially
impair the benefits to be derived from this Conservation Easement The Grantor and
Grantee acknowledge that under such circumstances damage to the Grantee would be
irreparable and remedies at law will be inadequate The rights and remedies of the
Grantee provided hereunder shall be in addition to and not in lieu of all other rights
and remedies available to Grantee in connection with this Conservation Easement
The costs of a breach correction or restoration of the Property including the
Grantee s reasonable actual expenses court costs and attorney s fees shall be paid
by Grantor provided Grantor is determined to be responsible for the breach if
ordered by the court The Corps shall have the same right to enforce the terms and
conditions of this easement as the Grantee The Grantor and Grantee agree to provide
60 day advance notification to the District Engineer of the Corps before any action is
taken to void or modify this Conservation Easement or in the event of transfer of title
to or establishment of any other legal claims over the Property
B No failure on the part of the Grantee to enforce any covenant or provision hereof shall
discharge or invalidate such covenant or any other covenant condition or provision
hereof or affect the right to Grantee to enforce the same in the event of a subsequent
breach or default
PAGE 6 OF 15 PAGES

C Notlung contained in this Conservation Easement shall be construed to entitle
Grantee to bring any action against Grantor for any injury or change in the Property
resulting from causes beyond the Grantor s control including without lurutation fire
flood storm, war, acts of God or third parties, except Grantor s lessees or invitees or
from any prudent action taken in good faith by Grantor under emergency conditions
to prevent abate or mitigate significant injury to life damage to Property or harm to
the Property resulting from such causes
ARTICLE VI
MISCELLANEOUS
A Title Grantor covenants and represents that Grantor is the sole owner and is seized
of the Property in fee simple, subject to matters of record has good right to grant and
convey the aforesaid Property, and that there are no outstanding mortgages, tax liens
or other liens on the Property which have not been expressly subordinated to this
Conservation Easement Grantor further warrants that Grantee shall have the use of
and enjoy all the benefits derived from and ansing out of tlus Conservation Easement
and the Grantor will warrant and defend title to the Property against the claims of all
persons
B Subsequent Transfers The Grantor agrees to incorporate the terms of this
Conservation Easement in any deed or other legal instrument that transfers any
interest in all or a portion of the Property The Grantor agrees to provide written
notice to the Grantee of such transfer at least sixty (60) days prior to the date of the
transfer The Grantor and Grantee agree that the terms of the Conservation Easement
shall survive any merger of the fee and easement interests in the Property or any
portion therefore and shall not be amended, modified or terminated without timely
notification to the District Engineer of the Corps as provided in Section V Section A
of tins Conservation Easement and the prior written consent and approval of the
Corps
C Assignment The parties recognize and agree that the benefits of this Conservation
Easement are in gross and assignable in whole but not in part provided however that
the Grantee hereby covenants and agrees that in the event it transfers or assigns this
Conservation Easement the organization receiving the interest will be a qualified
holder under N C Gen Stat § 121 -34 et seq and § 170(h) of the Internal Revenue
Code and the Grantee further covenants and agrees that the terms of the transfer or
assignment will be such that the transferee or assignee will be required to continue in
perpetuity the conservation purpose described in this document Grantee shall provide
to Grantor at the time of such assignment the name address telephone numbers and
principal contact of the party to whom this Conservation Easement is assigned and a
writing executed by the assignee addressed to Grantor that the assignee has assumed
all of the obligations of Grantee hereunder Grantee its successors or assigns hereby
covenant and agree to monitor and observe the Property in perpetuity for such
PAGE 7 OF 15 PAGES

purposes set forth in this Conservation Easement and to report to the Corps any
observed violations on the Property
D Entire Agreement and Severability This instrument sets forth the entire agreement of
the parties with respect to the Conservation Easement and supersedes all prior
discussions negotiations, understandings or agreements relating to the Conservation
Easement If any provision is found to be void or unenforceable by a court of
competent jurisdiction the remainder shall continue in full force and effect
E Obligations of Ownership Grantor is responsible for any real estate taxes,
assessments fees or charges levied upon the Property Grantor shall keep the
Property free of any liens or other encumbrances for obligations incurred by Grantor
Grantee shall not be responsible for any costs or liability of any kind related to the
ownership operation insurance upkeep or maintenance of the Property except as
expressly provided herein Nothing herein shall relieve the Grantor of the obligation
to comply with federal state or local laws regulations and permits that may apply to
the exercise of the Reserved Rights
F Termination Prior to Release and Use of Credits This easement is granted for the
purpose of facilitating the establishment of the Bachelors Delight Mitigation Bank as
a general -use bank site providing compensatory mitigation of unavoidable wetland
and stream impacts separately authorized by Section 404 1972 Clean Water Act
(CWA) permits and/or Section 401 Water Quality Certifications from the North
Carolina Division of Water Quality (NCDENR) If prior to the release and use of
mitigation credits in the Mitigation Bank, circumstances or conditions anse that
render the property unsuitable or infeasible as a mitigation bank site as determined
by Grantor in its sole discretion this easement shall terminate In such event the
Grantor and the Grantee shall ,loin in the execution of such documentation as may be
necessary to evidence such termination
G Extinguishment Except in the event of termination in accordance with Article VI
Section F above, this easement may only be extinguished in whole or in part by
judicial action
H Eminent Domain Whenever all or part of the Property is taken in the exercise of
eminent domain so as to substantially abrogate the Restrictions unposed by this
Conservation Easement Grantor and Grantee shall loin in appropriate actions at the
time of such taking to recover the full value of the taking and all incidental and direct
damage due to the taking
Proceeds This Conservation Easement constitutes a real property interest
immediately vested in Grantee In the event that all or a portion of this Property is
sold exchanged or involuntarily converted following an extinguishment (but not a
termination prior to the release and use of credits) or the exercise of eminent domain
Grantee shall be entitled to the fair market value of this Conservation Easement The
parties stipulate that the fair market value of this Conservation Easement shall be
PAGE 8 OF 15 PAGES

determined by multiplying the fair market value of the Property unencumbered by
this Conservation Easement (minus any increase in value after the date of this grant
attributable to improvements) by the ratio of the value of this easement at the time of
this grant to the value of the Property (without deduction for the value of this
Conservation Easement) at the time of this grant The values at the time of this grant
shall be the values used, or which would have been used to calculate a deduction for
federal income tax purposes pursuant to Section 170 (h) of the Internal Revenue
Code (whether eligible or ineligible for such a deduction) Grantee shall use its share
of the proceeds in a manner consistent with the purposes of this Conservation
Easement
J Notification Any notice, request for approval or other communication required
under this Conservation Easement shall be sent by registered mail postage prepaid or
national overnight delivery service, to the following addresses (or such address as
may be hereafter specified by notice pursuant to the paragraph)
To Grantor The Board of Trustees of the Endowment Fund
of North Carolina State University
Campus Box 7010
Raleigh NC 27695 7010
To Grantee NC State Natural Resources Foundation Inc
NC State University
Campus Box 8010
Raleigh NC 27695 8010
To the Corps US Army Corps of Engineers
Ann Mr Mickey Sugg
Wilmington District — Regulatory Branch
P O Box 1890
Wilmington NC 28402
Fax [phone]
K Failure of Grantee If at any time Grantee is unable or fails to enforce this
Conservation Easement or if Grantee ceases to be a qualified grantee and if within a
reasonable period of time after the occurrence of one of these events Grantee fails to
make an assignment pursuant to this Conservation Easement then the Grantees
interest shall become vested in another qualified grantee of a conservation easement
as described in Article VI Paragraph C of this Conservation Easement in accordance
with an appropriate proceeding in a court of competent jurisdiction
L Amendment This Conservation Easement may be amended but only in writing
signed by all parties hereto and provided such amendment does not affect the
qualification of this Conservation Easement or the status of the Grantee under any
applicable laws and is consistent with the conservation purposes of this grant
PAGE 9 OF 1 -*) PAGES

M Present Condition of the Property The wetlands scenic resource environmental
and other natural characteristics of the Property, and its current use and state of
improvement are described in the Mitigation Plan dated October 2010, prepared for
and on behalf of WREDCO and acknowledged by the Grantor and Grantee to be
completed and accurate as of the date hereof Both Grantor and Grantee have copies
of this report It will be used by the parties to assure that any future changes in the
use of the Property will be consistent with the terms of this Conservation Easement
However this report is not intended to preclude the use of other evidence to establish
the present condition of the Property if there is a controversy over its use
N Conservation Purpose Grantor and Grantee for themselves their successors and
assigns agree that this Conservation Easement shall be held exclusively for
conservation purposes set forth herein and in the Mitigation Banking Instrument
O Recording Grantee shall record tlus instrument and any amendments hereto in a
timely fashion in the official records of Onslow County North Carolina and may
rerecord it at any time as may be required to preserve Grantee's rights
TO HAVE AND TO HOLD the said rights and easements perpetually unto Grantee for
the aforesaid purposes
IN TESTIMONY WHEREOF Grantor has caused this instrument to be executed by its
duly authorized officer as of the date of the notary acknowledgement for Grantor below
Grantee loins in the execution of this Conservation Easement to acknowledge and
confirm the terms conditions limitations and provisions contained herein
* * * * * * * * * * * * * * * * * **
THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGES AND EXHIBITS A -1 A 2 AND A 3 FOLLOW
* * * * * * * * * * * * * * * * **
PAGE 10 OF 15 PAGES

GRANTOR
THE BOARD OF TRUSTEES OF THE ENDOWMENT FUND OF NORTH CAROLINA STATE
UNIVERSITY
BY ' 4th (SEAL)
Charles D Leffler Treasurer
GRANTEE
NC STATE NATURAL RESOURCES FOUNDATION INC
A North Carolina Nonprofit Corporation
By AL)
Brenda Bnckhouse President
PAGE 11 OF 15 PAGES

STATE OF NORTH CAROLINA
COUNTY OF /,t)
I Robt -4 bk W\al'A , Jr , a Notary Public of the County and State aforesaid
certify that Charles D Leffler personally appeared before me this day and acknowledged that he
is Treasurer of the BOARD OF TRUSTEES OF THE ENDOWMENT FUND OF NORTH CAROLINA STATE
UNIVERSITY ( Endowment Fund') and that he as Treasurer being authorized to do so executed
the foregoilig on behalf of the Endowment Fund Witness my hand and official stamp or seal
this the dS{`'day of yVla.� 2012
Notary Public
rW 2y I
* M s Notary Panted Name a6, -- ►fin os 1 r
u_ l0* 4
expires ?W
STATE OFS�P
COUNTY OF�.,��n
hM t� `+ a Notary Public of the County and State aforesaid certify
that Brenda Brnckersonally appeared before me this day and acknowledged that she is
President of NC STATE NATURAL RESOURCES FOUNDATION INC a North Carolina nonprofit
corporation and that she as President being authorized to do so executed the foregoing on
behalf of the corporation Witness my hand and official stamp or seal this the day of
(AFF& SI C s _ Notary Public
v
Notary Printed Name
My commission expires `, � E�
PAGE 12 OF 15 PAGES

EXHIBIT A
Description of Property
Those certain tracts or parcels of land lying in Richlands Township Onslow County, North
Carolina being shown on a map entitled "Conservation Easement Survey of 89 98 Acres for the
Board of Trustees of the Endowment Fund of NC State University Portion of Hofmann Forest
Deed Book 516 Page 408 , Drawing No 2010 053 prepared by McKim & Creed dated July 6
2010, and recorded in Map Book 63 at Page 211 [Plat Cabinet N], in the office of the Register of
Deeds of Onslow County to which map reference is hereby made for a more complete and
accurate description
Less and except any portion of said tracts or parcels of land lying to the south of the property line
established in that certain Boundary Line Agreement dated December 23 1981, between
Weyerhaeuser Company and North Carolina Forestry Foundation, which is recorded in Book
617 Page 211 in the office of the Register of Deeds of Onslow County
PAGE 13 OF 15 PAGES

EXHIBIT A 2
Description of Property
Those certain tracts or parcels of land lying in Richlands Township, Onslow County, North
Carolina being shown on a map entitled "Conservation Easement Survey of 20 81 Acres for the
Board of Trustees of the Endowment Fund of NC State University Portion of Hofmann Forest
Deed Book 516 Page 408 Drawing No 2010 052 prepared by McKim & Creed dated July 6
2010 and recorded in Map Book 63, at Page 212 [Plat Cabinet N], in the office of the Register of
Deeds of Onslow County to which map reference is hereby made for a more complete and
accurate description
Less and except any portion of said tracts or parcels of land lying to the south of the property line
established in that certain Boundary Line Agreement dated December 23 1981 between
Weyerhaeuser Company and North Carolina Forestry Foundation which is recorded in Book
617, Page 211 in the office of the Register of Deeds of Onslow County
PACE 14 of 15 PACES

EXHIBIT A 3
Description of Property
Those certain tracts or parcels of land lying in Richlands Township Onslow County North
Carolina, being shown on a map entitled Conservation Easement Survey of 13 19 Acres for the
Board of Trustees of the Endowment Fund of NC State University Portion of Hofinann Forest
Map Book 21 Page 140" Drawing No 2011 -023 prepared by McKim & Creed dated June 15
2011, and recorded in Map Book 63 at Page 210 [Plat Cabinet N] in the office of the Register of
Deeds of Onslow County to which map reference is hereby made for a more complete and
accurate description
Less and except any portion of said tracts or parcels of land lying to the south of the property line
established in that certain Boundary Line Agreement dated December 23, 1981, between
Weyerhaeuser Company and North Carolina Forestry Foundation which is recorded in Book
617 Page 211 in the office of the Register of Deeds of Onslow County
PAGE 15 OF 15 PAGES