WQ0005910_Final Permit_20240806

August 6, 2024
BRIAN M. CONNER – EHS MANAGER
AVOCA LLC
POST OFFICE BOX 129
MERRY HILL, NORTH CAROLINA 27957
Subject: Permit No. WQ0005910
Avoca – Merry Hill WWTP
Wastewater Irrigation System
Bertie County
Dear Mr. Conner,
In response to your permit renewal request received on May 8, 2024, we are forwarding herewith
Permit No. WQ0005910 dated August 6, 2024, to Avoca LLC for the continued operation of the subject
wastewater treatment and irrigation facilities.
This permit is effective from November 1, 2024, through October 31, 2032, shall replace Permit
No. WQ0005910 issued on January 28, 2021, and is subject to the conditions and limitations therein. The
Permittee shall submit a renewal application no later than May 4, 2032.
Please pay attention to the monitoring requirements listed in Attachments A, B, and C for they may
differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information may result in future non-compliance.
The Division has removed the following permit conditions since the last permit issuance dated
January 28, 2021:
➢ Old Condition I.1 – The Division has removed this condition because the Permittee submitted
an updated site map for this facility on May 8, 2024.
➢ Old Condition II.3 – The Division has removed this condition because the Permittee has
constructed groundwater monitoring wells MW-10 and MW-11.
➢ Old Condition IV.10 – The Division has removed this condition because the Permittee has
completed initial sampling of groundwater monitoring wells MW-10 and MW-11.
➢ Old Condition IV.12 – The Division has removed this condition because the Permittee
submitted a GW-1 form for groundwater monitoring well MW-10 on September 13, 2019. The
Permittee also submitted a GW-1 form for groundwater monitoring well MW-11 on June 5,
2020.

Mr. Brian M. Conner
August 6, 2024
Page 2 of 2
The following permit conditions are new or modified since the last permit issuance dated
January 28, 2021:
➢ Condition III.7 – The Division has modified this condition to require annual testing and
calibration of irrigation equipment.
➢ Condition IV.8 – The Division has modified the record keeping duration for this condition from
five years to eight years because this permit renewal shall be for eight years per 15A NCAC
02T .0111(e).
➢ Condition IV.9 – The Division has modified the record keeping duration for this condition from
five years to eight years because this permit renewal shall be for eight years per 15A NCAC
02T .0111(e).
➢ Condition V.2 – The Division has modified the record keeping duration for this condition from
five years to eight years because this permit renewal shall be for eight years per 15A NCAC
02T .0111(e).
➢ Condition VI.10 – This condition requires the Permittee pay an annual fee for each year of the
term of this permit.
This permit can be contested as provided in Chapter 150B of the North Carolina General Statutes
by filing a Petition for a Contested Case Hearing (Petition) with the North Carolina Office of Administrative
Hearings (OAH) within 30 calendar days. Requirements for filing a Petition are set forth in Chapter 150B
of the North Carolina General Statutes and Title 26 of the North Carolina Administrative Code. Those
interested in filing may access additional information regarding the requirements for filing a Petition and
Petition forms at the OAH website or by calling the OAH Clerk’s Office at [phone]. A party filing
a Petition shall serve a copy of the Petition on the Department of Environmental Quality’s Office of General
Counsel at 1601 Mail Service Center, Raleigh, NC 27699-1601. If the party filing the Petition is not the
Permittee, then the party shall also serve the Permittee pursuant to G.S. 150B-23(a).
If you need additional information concerning this permit, please contact Leah Parente at (919)
707-3656 or [e-mail].
Sincerely,
Richard E. Rogers, Jr., Director
Division of Water Resources
cc: Bertie County Health Department (Electronic Copy)
Washington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)

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NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
WASTEWATER IRRIGATION SYSTEM PERMIT

Pursuant to the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Avoca LLC
Bertie County
FOR THE
continued operation of a 50,000 gallon per day (GPD) wastewater treatment and irrigation facility
consisting of:
two 65,500 flow equalization tanks each with a 10 horsepower (hp) mixer and a 2 hp pump; three 63,500
gallon aeration tanks with three 25 hp mixers and three 60 hp blowers; a 9,000 gallon clarifier (not in use);
an 880 gallon dissolved air flotation (DAF) unit with a 7.5 hp pump; a 2,244 gallon sludge sump with two
3 hp mixers; a 68,000 gallon sludge holding tank with a 3 hp pump and a 7.5 hp mixer; two 30,000 gallon
effluent storage tanks (not in use); a Rosemont A732 Magnetic effluent flow meter with an effluent flow
rate totalizer; a 75,000 gallon tertiary effluent lagoon with an aerator; a 7.5 hp effluent pump; a 3 hp effluent
pump; a 0.9 acre clay-lined effluent storage pond with an air injector aerator; two 350 gallon per minute
(GPM) irrigation pump; two 520 GPM irrigation pumps; approximately 5,600 linear feet (LF) of 8-inch
PVC force main; a 32.88 acre spray irrigation area; and all associated piping, valves, controls, and
appurtenances
to serve the Avoca – Merry Hill WWTP, with no discharge of wastes to surface waters, pursuant to the
application received on May 8, 2024, and in conformity with the Division-approved plans and specifications
considered a part of this permit.
This permit is effective from November 1, 2024, through October 31, 2032, shall replace Permit No.
WQ0005910 issued on January 28, 2021, and is subject to the following conditions and limitations:
I. SCHEDULES
1. If the permitted facilities change ownership or the Permittee changes its name, the Permittee shall
submit a permit modification request on Division-approved forms within 90 days of the change of
ownership. The Permittee shall comply with all terms and conditions of this permit until the Division
transfers the permit to the successor-owner. [G.S. 143-215.1(d3)]
2. The Permittee shall request renewal of this permit on Division-approved forms no later than May 4,
2032. [15A NCAC 02T .0105(b), 02T .0109]

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II. PERFORMANCE STANDARDS
1. The Permittee shall operate and maintain the subject wastewater treatment and irrigation facilities so
there is no discharge to surface waters, nor any contravention of groundwater or surface water
standards. In the event the facilities do not perform as designed, including the creation of nuisance
conditions due to improper operation and maintenance, or failure of the irrigation areas to assimilate
the effluent, the Permittee shall take immediate corrective actions, including Division-required actions,
such as the construction of additional or replacement wastewater treatment or disposal facilities. [15A
NCAC 02T .0108(b)(1)(A)]
2. This permit shall not relieve the Permittee of its responsibility for contravention of groundwater or
surface water standards resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1)(A)]
3. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T
.0108(b)(1)(A)]
4. The Permittee shall not irrigate effluent in exceedance of the hydraulic and agronomic rates specified
in Attachment B. [15A NCAC 02T .0108(b)(1)(A)]
5. For wastewater irrigation fields (i.e., Field 4) originally permitted prior to December 30, 1983, the
Division has established the compliance boundary 500 feet from the irrigation area boundary or at the
property boundary, whichever is closest to the irrigation area boundary. Any exceedance of
groundwater standards at or beyond the compliance boundary shall require the Permittee to take
corrective action. The Division shall note any Division-approved relocation of the compliance
boundary in Attachment B. The Division shall consider multiple contiguous properties under common
ownership and permitted for use as a disposal system as a single property regarding the determination
of a compliance boundary. [15A NCAC 02L .0106(e), 02L .0107(a), 02L .0107(c), 02L .0107(f), 02T
.0105(h)]
6. For wastewater irrigation fields (i.e., Fields 5-1, 5-2, 5-3, and 5-4) originally permitted on or after
December 30, 1983, the Division has established the compliance boundary 250 feet from the irrigation
area boundary or 50 feet within the property boundary, whichever is closest to the irrigation area
boundary. Any exceedance of groundwater standards at or beyond the compliance boundary shall
require the Permittee to take corrective action. The Division shall note any Division-approved
relocation of the compliance boundary in Attachment B. The Division shall consider multiple
contiguous properties under common ownership and permitted for use as a disposal system as a single
property regarding the determination of a compliance boundary. [15A NCAC 02L .0106(e), 02L
.0107(b), 02L .0107(c), 02L .0107(f), 02T .0105(h)]
7. The Division has established the review boundary midway between the compliance boundary and the
irrigation area boundary. Any exceedance of groundwater standards at or beyond the review boundary
shall require the Permittee to take preventative action. [15A NCAC 02L .0106(d), 02L .0108]
8. The Permittee shall notify the Division of any sale or transfer of property affecting a compliance
boundary (i.e., parcel subdivision). [15A NCAC 02L .0107(l)]
9. The Permittee or any landowner who owns land within the compliance boundary shall not construct
any water supply wells within the compliance boundary. [15A NCAC 02L .0107(i)]

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10. The Permittee shall ensure that any landowner who owns land within the compliance boundary and
who is not the Permittee executes and files with the Bertie County Register of Deeds an easement
running with the land. This easement shall contain either a notice of this permit, including the permit
number, a description of the type of permit, and the name, address, and telephone number of the
permitting agency; or a reference to a notice of this permit with book and page number of its
recordation. The landowner may request that the Director file a document terminating the easement
with the Bertie County Register of Deeds upon completion of the following:
a. The Permittee has completed all required groundwater remediation.
b. The Division determines that groundwater monitoring is no longer required pursuant to 15A NCAC
02L .0110(f).
c. The Permittee has abandoned monitoring wells pursuant to 15A NCAC 02C .0113.
[15A NCAC 02L .0107(k)]
11. The Permittee shall operate and maintain the permitted facilities pursuant to the following setbacks:
a. Field 4 has no setbacks. The original permit (Permit No. 3947) pre-dates administrative code 15A
NCAC 02H .0219(j), which was effective October 1, 1987. Since no modifications or expansions
have been made to the originally permitted facility, the facility is still covered under the 15A NCAC
02H .0200 rules effective February 1, 1976, which contain no setback requirements. [15A NCAC
02H .0200]
b. The Division originally permitted Fields 5-1, 5-2, 5-3, and 5-4 on September 12, 2005, with an
application received on July 19, 2005. The setbacks for spray irrigation sites originally permitted
or modified with an application received from February 1, 1993, through August 31, 2006, are as
follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 400 1
ii. Each private or public water supply source: 100
iii. Surface waters: 100
iv. Groundwater lowering ditches: 100
v. Surface water diversions (upslope): 100
vi. Surface water diversions (downslope): 100
vii. Each well with exception of monitoring wells: 100
viii. Each property line: 150 2
ix. Top of slope of embankments or cuts of two feet or more in vertical height: 15
x. Each water line: 10
xi. Each swimming pool: 100
xii. Public right of way: 50
xiii. Nitrification field: 20
xiv. Each building foundation or basement: 15
1 Habitable residences or places of assembly under separate ownership constructed after the
Division originally permitted or subsequently modified the facilities are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .0219(j)(5)]

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c. The Division permitted modifications to the treatment and storage units on September 12, 2005,
with an application received on July 19, 2005. The setbacks for treatment and storage units
originally permitted or modified with an application received from February 1, 1993, through
August 31, 2006, are as follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 100 1
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50 2
vi. Nitrification field: 20
1 Habitable residences or places of assembly under separate ownership constructed after the
Division originally permitted or subsequently modified the facilities are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .0219(j)(5)]
III. OPERATION AND MAINTENANCE
1. The Permittee shall operate and maintain the subject facilities as a non-discharge system. [15A NCAC
02T .0101]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include:
a. A description of the operation of the system in sufficient detail to show what operations are
necessary for the system to function and who shall conduct the operations.
b. A description of the anticipated maintenance of the system.
c. Provisions for safety measures, including restriction of access to the site and equipment.
d. Spill control provisions that include response to upsets and bypasses, including control,
containment, and remediation; and contact information for personnel, emergency responders, and
regulatory agencies.
[15A NCAC 02T .0507(a)]
3. Upon the Water Pollution Control System Operators Certification Commission’s (WPCSOCC)
classification of the subject non-discharge facilities, the Permittee shall designate and employ a certified
Operator in Responsible Charge (ORC), and one or more certified operators as Back-up ORCs. The
ORC or its Back-up shall operate and visit the facilities as required pursuant to 15A NCAC 08G .0204
and 08G .0205. [15A NCAC 02T .0117]
4. The Permittee shall maintain a year-round vegetative cover on the irrigation area such that crop health
is optimal and allows even effluent distribution and inspection of the irrigation system. [15A NCAC
02T .0507(b)]
5. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation area.
[15A NCAC 02T .0507(c)]
6. The Permittee shall not irrigate treated effluent during inclement weather or when the soil is in a
condition that will cause ponding or runoff. [15A NCAC 02T .0505(x)]
7. The Permittee shall test and calibrate the irrigation equipment annually. [15A NCAC 02T .0507(d)]

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8. The Permittee shall only irrigate treated effluent from the Avoca – Merry Hill WWTP onto the sites
listed in Attachment B. [15A NCAC 02T .0501]
9. The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during
equipment installation or maintenance activities. [15A NCAC 02T .0507(e)]
10. The Permittee shall prohibit public access to the wastewater treatment, storage, and irrigation facilities.
[15A NCAC 02T .0505(q)]
11. The Permittee shall dispose of or utilize generated residuals in a Division-approved manner. [15A
NCAC 02T .0508, 02T .1101].
12. The Permittee shall not divert or bypass untreated or partially treated wastewater from the subject
facilities. [15A NCAC 02T .0505(j)]
13. The Permittee shall maintain a freeboard of not less than two feet in the 75,000 gallon tertiary effluent
lagoon and the 0.9 acre effluent storage pond. [15A NCAC 02T .0505(d)]
14. The Permittee shall provide gauges to monitor freeboard levels in the 75,000 gallon tertiary effluent
lagoon and the 0.9 acre effluent storage pond. These gauges shall have readily visible permanent
markings, at inch or tenth of foot increments, indicating the following elevations: the maximum liquid
level at the top of the temporary liquid storage volume, the minimum liquid level at the bottom of the
temporary liquid storage volume, and the lowest point on top of the dam. [15A NCAC 02T .0507(f)]
15. The Permittee shall establish and maintain a protective vegetative cover on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., the outside toe of the
embankment to the maximum allowable temporary storage elevation on the inside of the embankment).
The Permittee shall remove all trees, shrubs, and other woody vegetation from earthen dikes and
embankments. The Permittee shall keep all earthen embankments mowed or otherwise controlled and
accessible. [15A NCAC 02T .0507(g)]
16. The Permittee shall test and calibrate metering equipment annually. [15A NCAC 02T .0507(d)]
IV. MONITORING AND REPORTING
1. The Permittee shall conduct and report any Division-required monitoring, including the monitoring of
groundwater, surface water or wetlands, waste, wastewater, residuals, soil, treatment processes, lagoon
or storage ponds, and plant tissue, if necessary to evaluate this facility’s impact on groundwater and
surface water. [15A NCAC 02T .0108(c)]
2. A Division-certified laboratory shall conduct all analyses for the required parameters specified in
Attachments A and C. Parameters measured on-site with in-line metering equipment are exempt from
a Division-certified laboratory analysis. [15A NCAC 02H .0805]
3. The Permittee shall continuously monitor flow through the treatment facility and report daily flow
values on Form NDMR. Facilities with a permitted flow of less than 10,000 GPD may estimate its
flow from water usage records provided the water source has a metering device. [15A NCAC 02T
.0105(k), 02T .0108(c)]
4. The Permittee shall monitor the treated effluent at the frequencies and locations for the parameters
specified in Attachment A. [15A NCAC 02T .0105(k), 02T .0108(c)]

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5. The Permittee shall maintain records tracking the amount of effluent irrigated, which shall include the
following information for each irrigation site listed in Attachment B:
a. Date of irrigation.
b. Volume of effluent irrigated.
c. Site irrigated.
d. Length of site irrigation time.
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings.
f. Continuous monthly and year-to-date loadings for any non-hydraulic parameter specifically
limited in Attachment B.
g. Weather conditions.
h. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. The Permittee shall measure and record weekly to the nearest inch or tenth of a foot of freeboard (i.e.,
the waste level to the lowest embankment elevation) in the 75,000 gallon tertiary effluent lagoon and
the 0.9 acre effluent storage pond. The Permittee shall maintain the weekly freeboard records for eight
years and shall make them available to the Division upon request. [15A NCAC 02T .0108(c)]
7. On or before the last day of the month following the previous month’s sampling, t he Permittee shall
submit monitoring data (as specified in Conditions IV.3 and IV.4) on Form NDMR for each PPI and
operation and disposal records (as specified in Conditions IV.5 and IV.6) on Form NDAR-1 for every
site in Attachment B. If no activities occurred during the monitoring month, the Permittee shall still
submit monitoring reports documenting the absence of the activity. The Permittee shall submit the
reports via the Non-Discharge monitoring report portal. [15A NCAC 02T .0105(l)]
8. The Permittee shall maintain records of all residuals removed from this facility. The Permittee shall
maintain these records for eight years and shall make them available to the Division upon request.
These records shall include:
a. Name of the residuals hauler.
b. Non-Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals.
c. Residuals hauling date.
d. Volume of residuals removed.
[15A NCAC 02T .0508(b)]
9. The Permittee shall keep a log of all maintenance done at this facility. The Permittee shall maintain
this log for eight years and shall make it available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration.
b. Date of irrigation equipment calibration.
c. Visual observations of the plant and plant site.
d. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing,
inspections, cleanings, etc.).
[15A NCAC 02T .0507(h)]
10. The Permittee shall sample monitoring wells MW-5, MW-7, MW-8, MW-9, MW-10, and MW-11 at
the frequencies and for the parameters specified in Attachment C. [15A NCAC 02T .0105(m)]
11. On or before the last day of the month following the previous month’s sampling, the Permittee shall
submit a Compliance Monitoring Form (GW-59) and its associated laboratory analyses for each
monitoring well in Attachment C. The Permittee shall submit the Compliance Monitoring Forms via
the Non-Discharge monitoring report portal. [15A NCAC 02T .0105(m)]

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12. The Permittee shall conduct an annual representative soil analysis (i.e., Standard Soil Fertility Analysis)
on each irrigation site listed in Attachment B. The Permittee shall maintain these results at the facility
for eight years and shall make them available to the Division upon request. Each Standard Soil Fertility
Analysis shall include the following parameters:
Acidity Exchangeable Sodium Percentage Phosphorus
Base Saturation (by calculation) Magnesium Potassium
Calcium Manganese Sodium
Cation Exchange Capacity Percent Humic Matter Zinc
Copper pH
[15A NCAC 02T .0108(c)]
13. Noncompliance Notification:
The Permittee shall report to the Washington Regional Office, telephone number [phone],
within 24 hours of first knowledge of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, structural, etc.) that makes the facility
incapable of adequate wastewater treatment.
c. Any facility failure resulting in a discharge to surface waters.
d. Any time self-monitoring indicates the facility has gone out of compliance with its permit
limitations.
e. Ponding in or runoff from the irrigation sites.
Emergencies requiring reporting outside normal business hours shall call the Division’s Emergency
Response personnel at the telephone number [phone]. All noncompliance notifications shall
file a written report to the Washington Regional Office within five days of first knowledge of the
occurrence, and this report shall outline the actions proposed or taken to ensure the problem does not
recur. [15A NCAC 02T .0108(b)(1)(A)]
V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the wastewater
treatment and irrigation facilities. [15A NCAC 02T .0507(i)]
2. The Permittee shall inspect the wastewater treatment and irrigation facilities to prevent malfunctions,
facility deterioration, and operator errors that may result in discharges of wastes to the environment,
threats to human health, or public nuisances. The Permittee shall maintain an inspection log that
includes the date and time of inspection, observations made, and maintenance, repairs, or corrective
actions taken. The Permittee shall maintain this inspection log for eight years from the date of the
inspection and shall make this log available to the Division upon request. [15A NCAC 02T .0507(h),
02T .0507(i)]
3. Division-authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the permitted wastewater treatment and irrigation facilities at any
reasonable time for determining compliance with this permit. Division-authorized representatives may
inspect or copy records maintained under the terms and conditions of this permit and may collect
influent, treatment process water, effluent, residual, soil, plant tissue, groundwater, or surface water
samples. [G.S. 143-215.3(a)(2)]

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VI. GENERAL
1. The Permittee’s failure to comply with this permit’s conditions and limitations may subject the
Permittee to a Division enforcement action. [G.S. 143-215.6A, 143-215.6B, 143-215.6C]
2. This permit is effective only for the nature and volume of wastes described in the permit application
and Division-approved plans and specifications. [G.S. 143-215.1(d)]
3. There are no variances to administrative codes or general statutes governing the construction or
operation of the permitted facilities unless the Permittee specifically requested a variance in the
application and the Division approved the variance as noted in this permit’s facility description. [15A
NCAC 02T .0105(b)]
4. This permit does not exempt the Permittee from complying with all statutes, rules, regulations, or
ordinances that other jurisdictional government agencies (e.g., local, state, and federal) may require.
[15A NCAC 02T .0108(b)(1)(A)]
5. The Permittee shall retain this permit and the Division-approved plans and specifications for the life of
the permitted facilities. [15A NCAC 02T .0105(o), 02T .0116(d)]
6. The Permittee shall comply with all permit conditions and requirements until the proper closure of the
permitted facilities, or until another appropriate authority permits the facilities. [15A NCAC 02T
.0105(j)]
7. This permit is subject to revocation or modification upon 60-day notice from the Division Director in
whole or part for:
a. Violation of any terms or conditions of this permit or 15A NCAC 02T.
b. Obtaining a permit by misrepresentation or failure to disclose all relevant facts.
c. The Permittee’s refusal to allow authorized Department employees upon presentation of
credentials:
i. To enter the Permittee’s premises where a system is located or where the Permittee keeps any
Division-required records under the terms and conditions of this permit.
ii. To have access to any permit-required documents and records.
iii. To inspect any monitoring equipment or method as required in this permit.
iv. To sample any pollutants.
d. The Permittee’s failure to pay the annual fee for administering and compliance monitoring.
e. A Division determination that the conditions of this permit conflict with the North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]

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8. Unless the Division determines that the Permittee needs a permit modification for the construction of
facilities to resolve non-compliance with any environmental statute or rule, or the Division Director
grants a variance, expansion of the permitted facilities shall not occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.6B or under Federal law that would otherwise be
prosecuted under G.S. 143-215.6B, and the Permittee or any parent, subsidiary, or other affiliate of
the Permittee has abandoned or exhausted all appeals of this conviction.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility in accordance with its permit
or 15A NCAC 02T.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and the Permittee or any parent, subsidiary, or other affiliate of the Permittee has
abandoned or exhausted all appeals of this penalty.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee pursuant to 15A NCAC 02T .0105(e)(2).
[15A NCAC 02T .0120(b), 02T .0120(d)]
9. Unless the Division Director grants a variance, the Division shall not renew this permit if the Permittee
or any affiliation has not paid an annual fee pursuant to 15A NCAC 02T .0105(e)(2). [15A NCAC 02T
.0120(c), 02T .0120(d)]
10. The Permittee shall pay an annual fee for each year of the term of this permit pursuant to the schedule
in G.S. 143-215.3D(a). The Permittee shall continue to pay annual fees for any facility operating on
an expired permit that the Division has not rescinded or revoked. [15A NCAC 02T .0105(e)(2)]
Permit issued this the 6th day of August 2024
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
____________________________________________
Richard E. Rogers, Jr., Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0005910

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ATTACHMENT A – LIMITATIONS AND MONITORING REQUIREMENTS Certification Date: August 6, 2024
Avoca LLC Permit Number: WQ0005910 Version: 5.0
WQ0005910 Version 5.0 Attachment A Page 1 of 1
PPI 001 – WWTP Effluent
EFFLUENT CHARACTERISTICS EFFLUENT LIMITS MONITORING REQUIREMENTS
PCS
Code Parameter Description Units of
Measure
Monthly
Average
Monthly
Geometric Mean Daily Minimum Daily Maximum Measurement
Frequency
Sample
Type
00310 BOD, 5-Day (20 ºC) mg/L Monthly Grab
00916 Calcium, Total (as Ca) mg/L 3 x Year 1 Grab
00940 Chloride (as Cl) mg/L 3 x Year 1 Grab
50050 Flow, in Conduit or thru Treatment Plant GPD 50,000 Continuous Recorder
00927 Magnesium, Total (as Mg) mg/L 3 x Year 1 Grab
00610 Nitrogen, Ammonia Total (as N) mg/L Monthly Grab
00625 Nitrogen, Kjeldahl, Total (as N) mg/L Monthly Grab
00620 Nitrogen, Nitrate Total (as N) mg/L Monthly Grab
00600 Nitrogen, Total (as N) mg/L Monthly Grab
00400 pH su 5 x Week Grab
00665 Phosphorus, Total (as P) mg/L Monthly Grab
00931 Sodium Adsorption Ratio ratio 3 x Year 1 Calculated
00929 Sodium, Total (as Na) mg/L 3 x Year 1 Grab
70300 Solids, Total Dissolved – 180 ºC mg/L 3 x Year 1 Grab
00530 Solids, Total Suspended mg/L Monthly Grab
1. The Permittee shall conduct 3 x Year sampling in March, July, and November.
2. The Division has removed Fecal Coliform (PCS Code 31616) from the sampling requirements because the effluent is 100% industrial wastewater.

THIS PAGE BLANK
ATTACHMENT B – APPROVED LAND APPLICATION SITES AND LIMITATIONS Certification Date: August 6, 2024
Avoca LLC Permit Number: WQ0005910 Version: 5.0
WQ0005910 Version 5.0 Attachment B Page 1 of 1
IRRIGATION AREA INFORMATION APPLICATION LIMITATIONS
Field Owner Parcel No. County Latitude Longitude Net
Acreage
Dominant
Soil Series Parameter Hourly
Rate
Yearly
Max Units
4 Avoca Technical of Delaware, Inc. 1 6872531900 Bertie 36.000107° -76.720816° 9.97 Bonneau 01284 – Non-Discharge Application Rate -- 26 inches
5-1 Avoca Technical of Delaware, Inc. 1 6872531900 Bertie 35.990627° -76.720098° 5.64 Lynchburg 01284 – Non-Discharge Application Rate -- 26 inches
5-2 Avoca Technical of Delaware, Inc. 1 6872531900 Bertie 35.990797° -76.718800° 5.90 Lynchburg 01284 – Non-Discharge Application Rate -- 26 inches
5-3 Avoca Technical of Delaware, Inc. 1 6872531900 Bertie 35.990448° -76.716926° 5.64 Lynchburg 01284 – Non-Discharge Application Rate -- 26 inches
5-4 Avoca Technical of Delaware, Inc. 1 6872531900 Bertie 35.989874° -76.715829° 5.73 Lynchburg 01284 – Non-Discharge Application Rate -- 26 inches
Total: 32.88
1. The field owner, Avoca Technical of Delaware, Inc., leased the property to the Permittee in the attached lease agreement made on April 1, 2003.

THIS PAGE BLANK
ATTACHMENT C – GROUNDWATER MONITORING AND LIMITATIONS Certification Date: August 6, 2024
Avoca LLC Permit Number: WQ0005910 Version: 5.0
WQ0005910 Version 5.0 Attachment C Page 1 of 2
Monitoring Wells: MW-5, MW-7, MW-8, MW-9, MW-10, and MW-11
GROUNDWATER CHARACTERISTICS GROUNDWATER STANDARDS MONITORING REQUIREMENTS
PCS Code Parameter Description Daily Maximum Frequency Measurement Sample Type Footnotes
71870 Bromide (as Br) mg/L 3 x Year Grab 2
00680 Carbon, Total Organic (TOC) mg/L 3 x Year Grab 2, 7
00940 Chloride (as Cl) 250 mg/L 3 x Year Grab 2
00610 Nitrogen, Ammonia Total (as N) 1.5 mg/L 3 x Year Grab 2
00620 Nitrogen, Nitrate Total (as N) 10 mg/L 3 x Year Grab 2
00400 pH 6.5-8.5 su 3 x Year Grab 2, 3
00665 Phosphorus, Total (as P) mg/L 3 x Year Grab 2
70300 Solids, Total Dissolved - 180 ºC 500 mg/L 3 x Year Grab 2
GWVOC Volatile Compounds (GW) Present: Yes/No Annually Grab 2, 5, 6
82546 Water Level, Distance from measuring point feet 3 x Year Calculated 2, 3, 4
1. The Division has removed Fecal Coliform (PCS Code 31616) from the sampling requirements because the effluent is 100% industrial wastewater.
2. The Permittee shall conduct 3 x Year monitoring in March, July, and November, and Annual monitoring in November.
3. The Permittee shall measure the water levels prior to purging the wells. The Permittee shall measure the depth to water in each well from the surveyed point on the top of the casing. The Permittee
shall measure pH after purging and prior to sampling for the remaining parameters.
4. The Permittee shall survey the measuring points (top of well casing) of all monitoring wells to provide the relative elevation of the measuring point for each monitoring well. The Permittee shall
survey the measuring points (top of casing) of all monitoring wells relative to a common datum.
5. Volatile Organic Compounds (VOC) – Analyze by one or more of the following methods:
a. Standard Method 6200 B-2011, PQL at 0.5 μg/L or less
b. Standard Method 6200 C-2011, PQL at 0.5 μg/L or less
c. SW-846 Method 8021 B, Low Concentration, PQL at 0.5 μg/L or less
d. SW-846 Method 8260 D, Low Concentration, PQL at 0.5 μg/L or less
e. Another method with prior approval by the Water Quality Permitting Section Chief
Any method used shall meet the following qualifications:
a. A Division-certified laboratory shall run any method used.
b. The method used shall include all the constituents listed in Table 6200:I of Standard Methods.
c. The method used shall provide a PQL of 0.5 μg/L or less supported by laboratory proficiency studies as required by the D ivision’s Laboratory Certification Branch. A Division-certified
laboratory shall qualify (estimate) and report any constituents detected above the MDL but below the PQL of 0.5 μg/L.
6. If monitoring detects any volatile organic compounds (VOC), then the Permittee shall immediately contact the Washington Regional Office supervisor, telephone number [phone], for
further instructions regarding any additional follow-up analyses required.
ATTACHMENT C – GROUNDWATER MONITORING AND LIMITATIONS Certification Date: August 6, 2024
Avoca LLC Permit Number: WQ0005910 Version: 5.0
WQ0005910 Version 5.0 Attachment C Page 2 of 2
7. If monitoring detects TOC concentrations greater than 10 mg/L in any downgradient monitoring well, the Permittee shall conduct additional sampling and analysis to identify the individual
constituents comprising this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration shall represent the naturally occurring
TOC concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells are subject to additional sampling and analysis as described above.
8. The Permittee shall report monitoring well data on Compliance Monitoring Forms (GW-59s) consistent with the nomenclature and location information provided in this attachment.

WQ0005910
Avoca LLC- Merry Hill WWTP
Legend
Irrigation Field
Monitoring Well
Pond/Lagoon
Review Boundary/ Compliance Boundary
2000 ft
N
➤➤
N
© 2020 Google
© 2020 Google
© 2020 Google
Field 4
Fiel
d
5-1
Fiel
d

5-2 Fie
l
d
5-3
Fiel
d
5-4
STATE OF NORTH CAROLINA :
N-Loll] a
LEASE AGREEMENT
This LEASE AGRERAENT (the -Lease") is made and entered into by and between
AVOCA TECHNICAL OF DELAWARE, INC., A Delaware Corporation (the "Landlord'), and
AVOCA, INC., a Nardi Carolina .. ...:.::on (the "TenuV) as of the 1st day of April, 2003.
WITNESSETH:
1. PREMISES. In consideration of the obligation of Tenant to pay rent as herein provided,
and in consideration of the other terms, provisions and covenants hereof, Landlord hereby demises
and leases to Tenant, and Tenant hereby accepts and leases from Landlord, that certain real
property located in Bertie County, North Carolina consisting of approximately 197.53 acres as
more particularly set forth in the attached Exhibit A ("Ladd"), together with all improvements
located thereon (the "Improvements") and all rights, privileges, easements, appurtenances and
imnnrnities belonging to or in any way pertaining to the property (the Land and the Improvemenrs
being collectively referred to herein as the "Pretr ises" or the "Property").
2. TFRM. This Lease shall be for a term of Ninety -Nine (99) years commencing an April
1, 2003 (the "Commencement Date's and terminating at midrright on March 31, 2102 (the "Lease
Term").
Tenant hereby accepts the Premises and acknowledges that the Premises and other
irrmproverncvts are in good and satisfactory condition as of the date hereof. Tenant fiudw
acknowledges that no representations as to the repair of the Premises, nor promises to alter,
remodel or improve time Premises have been made by Landlord unless such are expressly set forth
in this Lease.
RM. Tenant agrees to pay rent for the first lease year in the amount of $219,600.00 per
year, payable monthly in the amount of $18,300.00, to Landlord as rent for the Premises, in
advance, without demand, deduction or set off in lawinl money of the United States. Beginning on
the fast anniversary of the Commencement Date, and continuing on each anniversary thereafter,
Rent shall be adjusted as mutually apteed by Landlord and Tenar t. Landlord and Tenant agree to
negotiate in good faith to determine Rent for each subsequent lease year and shall begin such
negotiations at least thirty (30) days prior to the end of each lease year. If Landlord and Tenant
cannot agree to the amoi nt of Rent for any subsequent lease year, this lease shall terminate, and
Landlord and Tenant shall be deemed to have a month -to -month lease in regard to the Premises on
the same terms and conditions as set forth herein except that monthly Rent shall be the same
amueur t as the last moth of the Lease prior to such termination, and either Landlord or Tenant
shall be entitled to terminate the month-to-m Durh lease with at least thirty (30) drays prior written
notice to the other.
All mrknthly installments shall be due and payable on or before the fast day of each
calendar moo im daring the hereby demised tam except that the rental payment for any h2ctional
1758424

calendar month at the beginning or end of the Lease Term shall be prorated. Notwithstanding the
above, Tenant shall have one (1) five (5) day late payment period annually as it relates to the
monthly installments of Rend. In addition to such remedies as may be provided under the Default
provisions of this Lease, Landlord shall be entitled to a late charge of five percent (5%) of the
amount of each monthly rental payment not received by the fifth day of the month when due, and a
charge of the lower of a lawful bad check fee or five percent (5%) of the amount of any check
given by Tenant not paid when first presented by Landlord.
TAXES. Landlord shall pay all taxes, assessments and governmental charges of any kind
and nature whatsoever levied or assessed against the Property by any municipality, county, or other
governmental agency (the "Taxes").
INSURANCE, Beginning on the Commencement Date and continuing for the entire Lease
Term hereof', Tenant shall maintain policies of insurance and pay the insurance premiums for
public liability on the driveways, parldng lots and other surrounding exterior areas, and fire and
Wended coverage on the buildings and other improvements located on the premises, in accordance
with Paragraph 12 herein. The fire and extended coverage insurance of the buildings and other
improvements located on the Premises shall list the Landlord as an additional insured, shall list any
secured lender that is the beneficiary in regard to a deed of trust on the Property as an insured
mortgagee and shall contain a clause wherein such insurance cannot be cancelled without first
giving thirty (30) days prior written notice to Landlord. The public liability insurance shall list the
Landlord as an additional insured and shall contain a clause wherein such insurance cannot be
cancelled without first giving thirty (30) days prior written notice to Landlord. If the first year for
which such premiums are due or the final year of the term hereof does not coincide with the year
upon which the insurance rate is determined, the pramum for the portion of that year shall be
prorated according to the number of months during which Tenant was in possession of the
Premises.
PROVISIONS TO SURVIVE LEASE TERMINATION. The provisions of this section 3
shall survive the termination of the Lease or any extension or renewal hereof.
4. JILE. The Premises shall be used only for the operation of the Tenant's business of
plant extract and tolling, and other uses related to the same including research and development
and office use. Tenant shall at its own cost and expense obtain any and all licenses and permits for
any such use. Tenant shall comply with all governmental laws, ordinances and regulations relating
to the use of the Premises, and shall promptly comply with all governmental orders and directives
for the correction, prevention and abatement of nuisances in or upon, or connected with, the
Premises, all at Tenant's sole expense. Tenant will not permit the Premises to be used for any
purpose or in any manner (including, without limitation, any method of storage) that would render
the insurance thereon void. Tenant shall give notice to Landlord immediately upon the occurrence
of any accident in the Premises or upon Tenant's discovery of any defects thereon or in any fixtures
or equipment located therein or upon the occurrence of any emergency in the Premises.
5. Intentionally Doleted.
6. ,]MNANT'S gBPA1RS AND MAINTENANCE. Tenant, at its sole cost and
expense, shall be responsible for maintairhing and repairing the Premises, including without
limitation (i) the roof', downspouts, gutters, foundation, utility lines located outside any buildings,
and the structural soundness of the exterior walls of any buildings, concrete floors, all exterior
painting and entrances, in good repair; (ii) any damage to the Premises caused by the negligence of
Tenant or Tenant's employees, agents or invitees, or caused by Tenant's default hereunder,, (iii)
r7ssrivh

keeping and mab wining all parts of the interior of any buildings in good condition, promptly
malting all reasonable necessary repairs and replacements, including, but not limited to, windows,
glass and plate glass, doors, interior walls and finish worts, floor coverings, heating and air
conditioning systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures and
regular removal of trash and debris; and (iv) lawn maintenance, driveway and parking area
maintenance, exterior lighting maintenance, snow removal, waste removal, cleaning supplies,
miscellaneous building supplies, sweeper brushes, supplies for materials, external paint for any
buildings, exterior lighting, security guards, signs, and fuel for vehicles and street sweepers.
Tenant shall not be obligated to repair any damage caused by fire, tornado or other casualty
covered by the insurance pursuant to section 12 of the Lease, except that Tenant shall be obligated
to repair all wind damage to glass except with respect to tornado or hurricane damage. Tenant
shall give written notice to Landlord in regard to the need for repairs to or replacement of the roof,
the found Wou, exterior walls or any structural components of the Premises or any repairs or
replacements that will cost in excess of $25,000.00 (collectively, the "Major Repairs'), and prior to
commencing any such Major Repairs, the Tenant shall obtain the written consent of the Landlord,
and the Landlord shall be entitled to have such Major Repairs performed by a contractor designated
by Landlord, at the Tenant's expense.
Tenant shall, at its cost, enter into a regularly scheduled preventive maintenance/service
contract for servicing all heating and air conditioning (HVAQ systems and equipment within the
Premises. Said contract shall be with a reputable firm reasonably acceptable to Landlord and
Tenant.
7. AiITERATIONS. Tenant shall not make any alterations, additions or
improvements (i) to the exterior walls or roof, (ii) that affect the structure of any buildings; and/or
(iii) costing in excess of $25,000.00 without the prior written consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed. Tenant may, without the consent of
Landlords, but at its sole cost and expertise and in a good workmanlike manner, erect such shelves,
bins, machinery and trade Sutures as it may deem advisable, without altering the basic character of
the Premises or improvements and without overloading or damaging the Premises or
improvements, and in each case complying with all applicable governmental laws, ordinances,
rcgubWons and other requimments. Tenant shall not make any alterations, additions or
improvements to the Premises which will contravene Landlord's policies insuring against loss or
damage by fire or other hazards, including but not limited to public liability, or which will prevent
Landlord from securing such policies in companies reasonably acceptable to Landlord. If any such
alterations, additions or improvements cause the rate of fire or other insurance on the Premises by
companies acceptable to Landlord to be increased beyond the minimum rate from time to time
applicable to the Premises for permitted uses thereof; Tenant shall pay any such increase. All
alterations, additions, improvements and partitions erected by Tenant shall be and remain the
property of Tenant during the term of this Lease, and Tenant shall be entitled to remove all
alterations, additions, improvements and partitions erected by Tenant by the date of termination of
this Lease or upon earlier vacating of the Premises, provided that Tenant repairs any damage
caused by such removal. All shelves, bins, machinery, equipment and trade fixtures installed by
Tenant may be removed by Tenant prior to the termination of this Lease if Tenant so elects, and
shall be removed by the date oftermination of this Lease or upon earlier vacating ofthe Premises if
elected by Tenant; upon any such earlier removal, Tenant shall restore the Premises to its original
condition, ordinary wear and tear and casualty excepted. All such removals and restoration shall be
accomplished in a good, workmanlike manner . so as not to damage the primary structure or
structural qualities of the buildings and other improvements situated on the Premises.
17i842vt

$, SIGNS. Tenant shall have the right to install signs upon the Premises only when
first approved in writing by Landlord and subject to any applicable governmental laws, ordinances,
regulations and other requdxeme is, such approval shall not be unreasonably withheld, conditioned
or delayed. Tenant shall remove all such signs upon the termination of this Lease. Such
installations and removals shall be made in such a manner as to avoid injury or defacement of the
Premises, and Tenant shall repair any injury or defacement, including, without limitation,
discoloration of any building caused by such installation and/or removal.
9. INSPEt: ON. Landlord and Landlord's ages and representatives shall have the
right to enter and inspect the Premises at any reasonable time during business hours for the purpose
of ascertaining the condition of the Premises or m order to make such repairs as may be required or
permitted to be made by Landlord under the term of this Lease or in order to show the Premises to
any prospective purchaser or lender. During the period that is six (6) months prior to the end of the
term hereof; Landlord and Landlord's agents and representatives shall have the right to enter the
Premises at any reasonable time during business hours for the purpose of showing the Premises to
any prospective tenant and shall have the right to erect on the Premises a suitable sign indicating
the Premises is available. Tenant shall arrange to meet with Landlord for a joint inspection of the
Premises prior to vacating. In the event of Tenant's failure to give notice or arrange such joint
inspection, Landlord's inspection at or after Tenant's vacating the Premises shall be conclusively
deemed correct for purposes of d-. ' " Tenant's responsibilities for repairs and restoration.
10. UTILITIFS. Tennant shall pay all charges for all water, electrical, telephone,
sewer, and other utilities or services used on or from the Premises, together with any taxes,
penalties, surcharges or the like pertaining thereto. Tenant shall also pay for any utility
maintenance charges and shall fiumish all electric light bulbs and tubes required for the Premises.
Landlord shall m no event (except for its wifful mjsronduct) be liable for any i ter option or
failure of utility services on the Promises.
11. ASSIGNMENT AND SUBLETTING. Tenant shall not without the prior written
consent of Landlord assign this Lease or any interest herein or sublet the whole or any part of the
Premises or allow any other party to use the Premises, such consent shall not be unreasonably
withheld, conditioned or delayed. Notwithstanding any permitted assignment or subletting, Tenant
shall at all times remain directly, primarily and fully responsible and liable for the payment of the
rent herein specified and for compliance with all of its other obligations under the terms, provisions
and covenants of this Lease. Landlord shall have the right (but not obligation), if it does not
consent to any such proposed assignment or sublease submitted by Tenant, to terminate this Lease
by written notice to Tenant, which termination shall take effect ninety (90) days after Landlord has
so notified Tenant; notwithstanding the foregoing, in the event Landlord so notifies Tenant that
Landlord does not consent to any such proposed assignment or sublease submitted by Tenant, then
in such event Tenant shall have the right by written notice delivered to Landlord within fifteen (15)
calendar days of the date of delivery of such written notice E m Landlord to Tenant to withdraw
such proposed assignment or sublease and to verify that this Lease shall remain m full force and
effect in accordance with its terms; without any such proposed assignment or sublease, in which
event Landlord's notice of termination shall be mull and void and of no force and effect. Consent to
any assignment or sublease shall not destroy this provision and all later assignments or subleases
shall be made likewise only on the prior written consent of Landlord (on the same basis as
aforesaid) and subject to Landlord's right to terminate. An assignee of Tenarit, at the option of
Landlord, shall become directly liable to landlord for all obligations of Tenant hereunder, but no
sublease or assignment by Tenant shall relieve Tenant of any liability hereunder.
i7saasvt

12. FIRE AND CASUALTY DAMAGE. Tenant agrees to maintain standard fire
and extended coverage insurance covering the buildings and other improvements located on the
Premises in an amount not less than eighty percent (806A) (or greater percentage as may be
necessary to comply with the provisions of any co-insurance clauses of the policy) of the
"replacement cost" thereof as such term is defined in the Replacement Cost Endorsemert to be
attached thereto, insuring against the perils of fire, lightning and extended coverage, such
coverages and endorsements to be as defined, provided and limited in the standard bureau forms
proscribed by the insurance regulatory authority for the State of North Carolina. Subject to the
provisions of this section 12, such insurance shall list the Landlord as an additional insured, shall
list any secured lender that is the beneficiary in regard to a deed of trust on the Property as an
insured mortgagee and shall contain a clause wherein such insurance cannot be cancelled without
first giving thirty (30) days prior written notice to Landlord.
If the Premises should be damaged or destroyed by any peril covered by the insurance to
be provided under this section 12, Tenant shall give immediate written notice thereof to Landlord.
If the Premises should be toWly destroyed by any peril covered by the insurance to be
provided under this section 12, or if the Premises should be so damaged thereby that rebuilding or
repairs cannot in Landlord's reasonable estimation be completed within three hundred sixty (350)
bays after the date upon which Landlord is notified by Tenant of such damage, this Lease shall
terminate and the rent shall be abated during the unexpired portion of this Lease, effective upon the
date of occurrence of such damage.
If the Premises should be damaged by any peril covered by the insurance to be provided
under this section I2, but only to such extent that rebuilding or repairs can, in Landlord's
reasonable estimation, be completed within three hundred sixty (3$0)days after the date upon
which Landlord is notified by Tenant of such damage, this Lease shall not tcrmirmte, and Landlord
shall, at its sole cost and expense, thereupon proceed with reasonable diligence to rebuild and
repair the Premises to substautially the condition in which it existed prior to such damage, except
that Landlord shall not be required to rebuild, repair or replace any part of the partitions, fixtures,
additions and other improvements which may have been placed in, on or about the Premises by
Tenant. If the Premtscs arc untenantabIc in whole or in part following such damage, the rent
payable hereunder during the period in which it is umtenantable shall be reduced to such extent as
may be fair and reasonable under all of the circumstances. If Landlord has not so restored or
repaired the Premises within five hundred and forty (540) days from the date of the casualty,
Tenant shall be entitled to terminate this Lease at any time by giving written notice thereof to
Landlord prior to the date that the Premises is so rebuilt or repaired.
Notwithstanding anything contained herein to the contrary, in the event the holder of any
indebtedness secured by a mortgage or deed of trust covering the Premises requires that the
insurance proceeds apply to such indebtedness, then Landlord shall have the right to terminate this
Lease by delivering written notice of termination to Tenant within fifteen (15) days after such
requirement is made by any such holder, whereupon all right's and obligations hereunder thereafter
accruing shall cease and terminate.
Anything in this Lease to the contrary notwithstanding, Landlord hereby releases and waives unto
Tenant (including all partners, stockholders, officers, directors, employees and agents thereof), its
successors and assigns, and Tenant hereby releases and waives unto Landlord (including all
partners, stockholders, officers, directors, employees and agents thereof), its successors and
assigns, all rights to claim damages for any injury, loss, cost or damage to pawns or to the
Premises or any other casualty, as long as the amount of such injury, loss, cost or damage (i) has
h?Ss420

been paid either to Landlord. Tenant, or any other person, firm or corporation, under the terms of
any Property, General Liability, or other policy of insurance, or (ti) wmid bavc bem cflvcred undo
any insurance reWned to be in place under the terms of this Lease, to the extent such releases. or
waivers are permitted under applicable law. As respects all policies of insurmce curried or
maintained pursuant to this Lease and to the eaten permitted under such policies, Tenant and
Landlord each waive the insurance carriers' rights of subrogation
13. TENANT'S COMPLIANCE - INSURANCE REOIJIRIII+ NT9,. Tenant shall
comply with all applicable laws, ordinances and regulations affecting the Premises.
Throughout the terse of this Lease, Tenant at its sole cost and expense shall keep or cause
to be kept for the mutual benefit of Landlord, Landlord's managing agent, if any, and Tenant (with
appropriate cross -liability endorsements so showing) through companies licensed to do business in
North Carolina having a Beat's rating of at least A-XIII (as the same may be adjusted from time to
time) public liability and property damage insurance with combined single limit coverage of at
least $25,000,000.00, which policies insure against all liability of Tenant, Tenant's authorized
representatives, and anyone for whom Tenant is responsible arising out of and in connection with
Tenhanfs use of the Premises, and shall insure Tenant's performance of the indemnity provisions
contained herein. Not more frequently than once cwh year, Landlord may require the limits to be
increased if in its reasonable judgment (or that of its mortgagee) the coverage is insufficient.
Tenant shall also insure its personal property located in the Premises, and shall neither have nor
make any claim against Landlord for any loss or damage to the same, regardless of the cause
thereof. The proceeds from any such policy covering personal property shall be used by Tenant for
the replacement of Tenant's personal property.
Prior to taking possession of the Premises and thereafter at least ten 0 0) business days
prior to the renewal dates thereof, Tenant shall deliver to Landlord copies of original policies or
satisfactory certificates thereof. All such policies shall be non -assessable and shall contain
language, to the extent obtainable, that (A) any loss shall be payable notwitbztanding any act or
negligence of Landlord or Tenant that might otherwise result in forfeiture of the insurance, (B) that
the policies are primary and non-contributing with any insurance that Landlord may carry, and (C)
that they cannot be canceled or changed except after thirty (30) days notice to landlord.
Tenant shall indemnify and hold Landlord harmless from and against any and all claims
resulting in bodily injury and/or property damage arising out of (A) Tenant's use of the Premises or
any other part thereof, (B) any activity, work, or other thing done, permitted or suffered by Tenant
in or about the Premises, or any part thereof, (C) any breach or default by Tenant in the
of any of its obligations under this Lease, or (D) any act of negligence of Tenant, or
any officer, agent, employee, contractor, servant, invitee or guest of Tenant; and in each case from
and against any and all damages, losses, liabilities, lawsuits, casts and expenses (including
attorneys' foes at all tribunal levels) arising in connection with any such claim or claims as
described in (A) through (D) above, or any action brought them. If such action be brought
against Landlord, Tenant upon native from Landlord shall defend the same through counsel
selected by Tenant's insurer or other counsel, in each case acceptable to Landlord. Tenant assumes
all risk of damage or loss to its property or injury or death to persons in, on or about the Premises,
from all causes except those for which the law imposes liability on Landlord regardless of any
attempted waiver thereof and Tenant hereby waives such claims in respell thereof against
Landlord. The provisions of this paragraph shall survive the termination of this Lease.
Landlord shall indemnify and hold Tenant harmless from and against any and all claims
resulting in bodily injury and/or property damage arising out of (A) any activity, work, or other
1158420

thing done, permitted or suffered by Landlord in or about the Premises, or any part thereof, (B) any
breach or default by Landlord in the performance of any of its obligations under this Lease, or (C)
any act of negligence of Landlord, or any officer, agent, employee, contractor, servant, invitee or
guest of Landlord; and in each case from and against any and all damages, losses, liabilities,
lawsuits, costs and expenses (including attorneys' fees at all tribunal lcvc1s) arising in connection
with any such claim or claims as described in (A) through (C) above, or any action brought
thereon. If such action be brought against Tenant, Landlord upon notice from Tenant shall defend
the same through counsel selected by Landlord's insurer or other counsel, in each case acceptable
to Tenant. The provisions of this paragraph shall survive the termination ofthis Lease.
14. CONDEMNATION. If the whole or any substantial part of the Premises should
be taken for any public or quasi -public use sunder governmental law, ordinance, or regulation, or by
right of eminent domain, or by private purchase in lieu thereof; and the taking would prevent or
materially interfere with the use of the Premises for the purpose for which they are being used, this
Lease, at Tenant's election, shall terminate and the runt shall be abated during the unexpired
portion of this Leas--, effective when the physical taking of the Premises shall occur.
If part of the Premises shall be taken for any public or quasi -public use under any
governmental law, ordinance or regulation, or by right of eminent domain, or by private purchase
in lieu thereof, and this Lease is not terminated as provided in this section 14, this Lease shall not
but the rent payable hereunder during the unexpired portion of this Lease shall be
reduced to such extent as may be fair and reasonable under all of the circumstances.
In the event of any such taking or private purchase in lieu thereof, Landlord shall be
entitled to receive and retain all awards as may be awarded in any condemnation proceedings other
than those specifically awarded Tenant for the taking of Tenant's personal property, improvements
and/or alterations made by and paid for by Tenant after the date of this Lease, loss of business and
moving expenses.
15. 14OLDING OVER If Tenant holds over and remains in possession of the
Premises after the expiration of the Lease, the hold over tenancy shall be deemed a month -to -
month tenancy and subject to termination by Landlord at any time upon not less than thirty (30)
days advance written notice, or by Tenant at any time upon not less than thirty (30) days advance
written notice, and all of the other terms and provisions of this Lease shall be applicable during that
period, except that Tenant shall pay Landlord from time to time upon demand, as rental for the
period of any hold over, an amount equal to one and one-fourth (1.25) times the rent in effect on
the termination date, computed on a daily basis for each day of the hold over period.
Notwithstanding the foregoing, if Landlord gives Tenant at least thirty (30) days written notice
prior to the expiration of the Lease that Tenant must vacate the Premises on the lease termination
date, any holding over by Tennant shall be deemed to be a tenancy at sW%rmce and not a nnonth3o-
month tenancy and Landlord shall be entitled to all remedies at law. No holding over by Tenant,
whether with or without consent of Landlord, shall operate to extend this Lease except as otherwise
expressly provided. The preceding provisions of this PaiA"h 15 shall not be construed as
Landlord's consent to hold over.
16. OUIET ENJOYMENT. Landlord represents and warrants that it has full right and
authority to enter into this Lease and that Tenant, upon paying the rental herein set forth and
performing its other covenants and agreements herein set forth, shall peaceably and quietly have,
hold and enjoy the Premises for the term hereof without hindrance or molestation from Landlord,
subject to to terms and provisions of this Lease.
175842VI

17. EVENTS OF DEFAULT. The following events shall be deemed to be events of
default by Tenant under this Leese:
Tenant shall fail to pay any installment of the rent or additional rentals herein reserved by
the date that such payment is due, provided Landlord shall give Tenant written notice of any such
default and Tenant shall have ten (10) days from the receipt of such written notice to cure said
defauk, provided further that Tenant shall not be entitled to more than two (2) such notice and cure
periods within any twelve (12) month period.
Tenant shall become insolvent: or shall make a transfer in fraud of creditors, or shall make
an assignment for the benefit of creditors.
Tenant shall file a petition under any section or chapter of the Bankruptcy Reform Act, as
amended or under any similar law or statute of the United States or any state thereof, or Tenant
shall be adjudged bankrupt or insolvent in proceedings filed against Tenant thereunder.
A receiver or trustee shall be appointed for all or substantially all of the assets of Tenant.
Tenant shall desert or vacate any substantial portion of the Premises.
Tenant shall fail to comply with any term, provision or covenant of this Lease (other than
the foregoing in this section 17), and shall not cure such failure within thirty (30) days after written
notice thereof to Tenant, provided, however, that in the event such default cannot reasonably be
cured within said thirty (30) day period, Tenant shall be deemed to be in compliance with this
subparagraph if it pursues all reasonable means to ewe and such default is in fact cured within
ninety (90) days after written notice to Tenant.
18. REMEDIES. Upon the occurrence of any such events of default in section 17
hereof; and provided that such event of default ruins uncured after the expiration of any
applicable notice and cure period, Landlord shall have the option to pursue any one or more of the
following remedies without any notice or demand whatsoever:
Terminate this Lease, in which event Tenant shall immediately surrender the Premises to
Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which
it may have for possession or arrearages in rent, enter upon and take possession of the Premises and
expel and remove Tenant and any other person who may be occupying the Premises or any part
thereof, by force if necessary, without being liable for prosecution or any claim of damages
therefor, and Tenant agrees to pay to Landlord on demand the amount of all loss and damage which
Landlord may suffer by reason of such termination, whether through inability to relet the Premises
or otherwise.
Enter upon and take possession of the Premises and expel or remove Tenant and any other
perm who may be occupying such Premises or any part thereof, by force if necessary, without
being liable for prosecution and receive the rent thereof, and Tenant agrees to pay to Landlord on
demand any deficiency that may arise by reason of such reletting_ in the event Landlord is
successful in reletting the Premises at a rental in excess of that agreed to be paid by Tenant
pursuant to the terms of this Lease, Landlord and Tenant each mutually agree that Tenant shall not
be entitled, under any circumstances, to such excess rental, and Tenant does hereby specifically
waive any claim to such excess rental.
17M2Yh

Declare immediately due and payable the entire amount of all Rent thcn remaining to be
paid under this Lease for the balance of the Lease Term, discounted at the rate of ten percent (100/9)
per year, which amount shall be offset by the amount of rent that Landlord would be able to collect
by reletting the Premises less the expenses that would be incurred in relating the Premises
(including without limitation the amortized portion of tenant improvements and reasonable
attorneys fees that apply to the remaining Lease Term which such amounts shall be amortized over
the term of such new lease for which the Landlord would be able to relet the Premises), and taking
into account the time that it would take to Find a new tenant, which amount shall also be discounted
at the rate of ten percent (1011/6) per year. This provision shall not otherwise affect Tenant's
monthly obligation to pay additional rent as provided herein.
Enter upon the Premises, by force if necessary, without being liable for prosecution or any
claim for damages therefor, and do whatever Tenant is obligated to do under the term of this Lease;
and Tenant agrees to reimburse Landlord, on demand for any expenses which Landlord may incur
in thus effecting t ing compliance with that which Tenant is obligated to do under the terms of this
Lease, and Tenant agrees to reimburse Landlord on demand for any expenses which Landlord may
incur in thus effecting compliance with Tenant's obligabons under this Lease, and Tenant further
agrees that landlord shall not be liable for any damages resulting to Tenant from such action,
whether caused by the negligence of Landlord or otherwise.
Landlord shall have the duty to pursue all reasonable meatrs to mitigate any damages to it
incurred as a result of any event of default hereunder.
Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other
remedies herein provided by law or equity, nor shall pursuit of any remedy herein provided
constitutc a forfeiture or waiver of any rend due to Landlord hereunder or of any damages accruing
to Landlord by reason of the violation of any of the terms, provision and covenants herein
contained. No act or thing done by Landlord or its agents during the term hereby granted shall be
deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no
agreement to terminate this Lease or accept a surrender of the Premises shall be valid unless in
writing signed by Landlord. No waiver by Landlord of any violation or breach of any of the terms,
provisions and covenants herein contained shall be deemed or construed to constitute) a waiver of
any other violation or breach of any of the term, provisions and covenants herein contained.
Landlord's acceptance of the payment of rental or other payments hereunder after the occurrence of
an event of default shall not be construed as a waiver of such default; unless Landlord so notifies
Tenant in writing, and no receipt of money by Landlord from Tenant after the termination of this
Lease or after service of any notice or after the commencement of any suit or after final judgment
for possession of the Premises shall reinstate, continue or extend the term of this Lease or affect
any such termination, notice, suit or judgment, unless Landlord so notifies Tenant in writing.
Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of
default shall not be deemed or construed to constitute waiver of such default or of Landlord's right
to enforce any such remedies with respect to such default or any subsequent default, if, on account
of any breach or default by Tenant or Landlord in regard to the obligations under the terms and
conditions of this Lease, it shall become necessary or appropriate for the non -defaulting party to
employ or consult with an attorney canvmmg such breach or default by the defaulting party, or to
enforce or defend any of the non -defaulting party's rights or remedies hereunder, the defaulting
party agrees to pay any reasonable attorneys' fees so incurred.
19. rntentionaliy Deleted.
l75842v1

20. MORTGAGES. Tenant accepts this Lease subject and subordinate to any
wort ages) and/or deeds of trust now or at any time hereafter constituting a lien or charge upon
the Premises or the unpmvcaacnts situated thereon; provided, however, that if the mortgagee,
trustee, or holder of any such mortgage or deed of trust elects to have Tenant's interest in this Lease
superior to any such instrument, then by notice to Tenant from such mortgagee, aortae or holder,
this Lease shall be deemed superior to such lien, whether this Lease was executed before or after
said mortgage or deed of trust. Tema shall at any time her a&= on demand execute any
instruments, releases or other documents which may be required by any mortgagee or trust for
the purpose of further subjecting and subordinating this Lease to the lien of any such mortgage or
deed of trust, provided that such mortgagee or trustee agrees in such document that it will not
disturb Tenant's possession provided that Tenant is not in default of this Lease. Provided further,
however, that Tenant shall state, with particularity, any claims, offsets or defenses it has against
Landlord.
21. MECHANIC'S LIENS. Tenant shall have no authority, express or implied, to
create or place any Lien or encumbrance of any kind or nature whatsoever upon, or in any manner
to bind, the interest of Landlord in the Premises or to charge the rentals payable hereunder for any
claim in favor of any person dealing with Tenants including those who may thrnish materials or
perform labor for any construction or repairs, and each such claim shall affect and each such lien
shall attach to, if at all, only the leasehold interest granted to Tenant by this instrument. Tenant
covenants and agrees that it will pay or cause to be paid all, sums legally due and payable by it on
account of any labor performed or materials furnished is connection with any work performed on
the Premises on which any lien is or can be validly and legally asserted against its leasehold
interest in the Premises or the improvements thereon and that it will save and hold Landlord
harmless from any and all loss, cost or expense based on or arising out of asserted claims or liens
against the leasehold estate or against the right, title and interest of Landlord in the Premises or
umler the terms of this Lease, provided that Tenant's releasing such lien based upon the issuance of
a bond pursuant to North Carolina law shall be deemed curing such default.
22. NOTICES. Each provision of this instrument or of any applicable governmental
laws, ordinances, regulations and other requirements with reference to the sending, mailing or
delivery of any notice by Landlord to Tenant or with reference to the sending, mailing or delivery
of any notice or the making of any payment by Tenant to Landlord shall be deemed to be complied
widr when and if the following steps are taken:
All rent and other payments required to be made by Tenant to Landlord hereunder shall be
payable to Landlord at the address herein below set forth or at such other address as Landlord may
specify from time to time by written notice delivered in accordance herewith. Tenant's obligations
to pay rent and any other amounts to Landlord under the terms of this Lease shall not be deemed
satisfied until such rent and other amounts have been actually received by Landlord.
Any notice or document required or permitted to be delivered hereunder shall be deemed to
be delivered whether actually received or not three (3) business days after being deposited in the
United States Mail postage prepaid, Certified or Registered Mail, return receipt requested,
addressed to the parties hereto at the respective addresses set out below, or at other such address as
they have theretofore specified by written notice delivered in accordance herewith.
l7ssazdi

fIF;I 0 IJ ka)"
Avoca Farms, Inc.
438 Yeopim Road
Edeatoni, North Carolina 27957
Attention: David M. Peele
TENANT:
Avoca, Inc.
Post Office Box 129
Merry Hill, North Carolina 27957
Attention: David M. Peele
If and when included within the term "Landlord", as used in this instrument, there is more
than one person, fum or corporation, all shall jointly arrange among themselves for their joint
execution of such a notice specifying some individual at some specific address for the receipt of
notices and payments to Landlord; if and when included within the term "TenaW, as used in this
instrument, there is more than one person, firm or corporation, all shall jointly arrange among
themselves for their joint execution of such a notice specifying some individual at some specific
address within the continental, United States for the receipt of notices to Tenant. All parties
included within the terms "Landlord" and "Tenant", respectively, shall be bound by notices given
in accordance with the provisions of this section 22 to the same effect as if each had received such
notices.
23. BROKER'S CLAUSE. The parties agree that no broker was instrumental in
bringing about this Lease. Both parties represent to each other that they had no negotiations with a
broker concerning the renting of the Premises and agree to indemnify each other with respect to
said representation_
24. HAZARDOUS MATERIALS_ Tenant agrees that it will not place, hold, or
dispose of any Hazardous Material (as hereinafter defined) on, under or at the Premises and that it
will not use the Premises or any other portion thereof as a treatment, storage, or disposal (whether
permanent or temporary) site for any Hazardous Material, except that Tenant shall have the right to
use and store at the Premises any Hazardous Materials used in its business operations which are
ordinary and customary for such business operations and use, so long as such use and storage is in
compliance with all applicable laws and with the terms of this Lease and so long as Tenant does
not dispose of such Hazardous Materials at the Premises_ Tenant further agrees that it will not
cause or allow any asbestos to be incorporated into any improvements or alterations which it makes
or causes to be made to the Premises. Tenant hereby agrees to and does indemnify Landlord against
any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind
whatsoever (including without limitation, court costs and attorneys' fees) which at any tune or from
time to time may be paid, incurred or suffered by, or asserted against landlord for, with respect to,
or as a direct or indirect result of (i) any breach by Tenant of the foregoing covenants or (ii) to the
extent caused or allowed by Tenant or any agent, employee, invitee, or licensee of Tenant, the
presence on or under, or the escape, seepage, leakage, spillage, discharge, emission, or release
from, onto, or into the Premises, the atmosphere, or any watercourse, body of water, or
groundwater, of any Hazardous Material (including, without limitation, any losses, liabilities,
damages, injuries, costs, expenses or claims asserted or arising under the Comprehensive
175942VI

Response, Compensation and Liability Act, any so-called "Superfnid" or
"Superhan" law, or any other Federal, State, Local or other statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to or imposing liability or standards of conduct
concerning any Hazardous 1bLwwal); and the provisions of and underta]dugs and indemnification
set out in this section 24 shall survive the early termination or expiration of this Lease, and shall
continue to be a personal liability, obligation and indemnificatiott of Tenant, binding upon Tenant
for a period of two years following such early termination or expiration of this Lease. The
provisions of the preceding scutcnce shall govern and control over any inconsistent provisions of
this Lease. For purposes of this Lease, "Hazardous Material" means and includes any hazardous
substance or any pollutant or contaminant defined as such in (or for purposes of) the
Comprehensive Environmental Response, Compensation, and Liability Act, any so-called
"Superfund" or "Superlien" law, the Toxic Substances Control Act, or any other Federal, State,
Local or other statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to,
or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste,
substance or material, as now or at any time hereafter is in effect, or any other hazardous, toxic or
dangerous, waste, substance or material.
25. MWELLANEOUS. Words of any gender used in this Lease shall be held and
construed to include any other gender and words in the singular number shall be held to include the
plural, unless the context otherwise required.
The terms, provisions, covenants and conditions contained in this Lease shall apply to,
inure to the benefit of and be binding upon the parties hereto and upon their respective heirs, legal
representatives, successors and permitted assigns, except as otherwise herein expressly provided.
Landlord shall have the right to assign any of its rights and obligations under this Lease. Each party
agrees to fiunish to the other, promptly upon demand, a corporate resolution, proof of clue
authorization by partners, or other appropriate documant V ion evidencing the due authormwn of
such party to enter into this Lease.
The captions inserted in this Lease arc for convenience only and in no way define, limit or
otherwise describe the scope or intent of this Lease, or any provision hereof, or in any way affect
the interprotation of this Lease.
Tenant agrees from time to time, within ten (10) business days after request of Landlord, to
deliver to Landlord, or Landlord's designee, an estoppel ocrtificate stating that this pease is in lull
force and effect, the date to which rent has been paid, the unexpired tarn of this Lease and such
other matters pertaining to this Lease as may be requesteei by Landlord. It is understood and agreed
that Tenant's obligation to fiunish such estoppel certificates in a timely fashion is a material
in&mnic It for Landlord's execution of this Lease.
This Lease may not be altered, changed or amended except by an instrument in writing
signed by both parties hereto.
All obligations of Tenant hereunder not fully performed as of the expirations or earlier
termination of the term of this Lease shall survive the expiration or earlier termination of the term
hereof including, without limitation, all payment obligations concerning the condition of the
Premises. Tenant shall also, prior to vacating the Premises, pay to Landlord the amount, as
estimated by Landlord, of Tenant's obligation hereunder for real estate taxes for the year in which
die Lease expires or tamiunates. All such amounts shall be, used and held by Landlord for payment
of such obligations of Tenant hereunder, with Tenant being liable for any additional costs therefor
upon demand by Landlord, or with nay excess to be rotumed to Tenant after all such obligabons
175342a1

have been determined and satisfied, as the case may be. Any security deposit held by Landlord
shall be credited against the amount payable by Tenant under this paragraph.
In the event of a transfer by Landlord of its interest in the Premises and the assumption in
writing by Landlord's transferee of Landlord's obligations under the terms of this Lease, then in
such event Landlord shall bo released from any further obligations and liabilities under the terms of
tl» s Lease for matters occurring after the date of such transfer.
If any clause or provision of this Lease is illegal, invalid or unenforceable under present or
future laws effective during the term of this Lease, then and in that event, it is the intention of the
parties hereto that the remainder of this Lease shall not be affected thereby, and it is also the
intention of the parties to this Lease that in lieu of each clause or provision of this Lease that is
illegal, invalid or unenforceable, there be added as a part of this Lease contract a clause or
provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be
possible and be legal, valid and enforceable.
All references in this Lease to "the date hereof' or similar references shall be deemed to
refer to the date as contained in the first paragraph of this Lease.
Time is of the essence of this Lease.
'This Lease shall be governed, controlled and construed in accordance with the laws of the
State of North Carolina. The state courts located in Berne County and Wake County, North
Carolina and the federal courts located within the Eastern District of North Carolina shall have
exclusive jurisdiction over any platters arising out of this Lease.
IN WnNESS ` W R4017, the Landlord and the Tenant have executed this Lease as of the
day of ,fir / 2003.
(Signature page attached hereto)
175842VI

Signatme Page to Least
Regarding Befiie County Property
LANDLORD:
Avoca Technical of Dciaware, Inc.,
a Drlaware n
By:
Name: -e '," -r Y,
r
Tide: /'r*.e %1�i y� 1 L
TENANT:
Avoca, Ync.,
a North Carolina i,e ,.,,:fan
l
By: j y
Name: At
1 � r' � a4 � 1 qA E S
Title: �I
175842v1